How to Get a Loan to Buy Bitcoin (in 3 Simple Steps)

At a glance

• Yes, you can take out a crypto loan to buy Bitcoin in 2025
• Ledn’s B2X is a fast, Bitcoin-backed loan product designed for this  
• Compare Bitcoin loan options
• Crypto loans carry margin call and liquidation risks
• Borrowing to buy Bitcoin: calculated risk or financial trap?

If traditional borrowing feels slow and outdated, crypto loans are a faster, asset-backed path to increase your exposure to digital assets like Bitcoin. Thousands of investors are leveraging platforms like Ledn to buy more BTC without selling their current holdings. It's efficient. It’s aggressive. But it’s not for everyone.

The principle is simple: borrow against your Bitcoin to buy more Bitcoin. If the market goes up, your gains are magnified. But if prices fall, you’re on the hook, facing margin calls, liquidation, and the real possibility of losing your crypto collateral.

This guide explains how to take out a Bitcoin loan in three steps using Ledn’s B2X product. It also compares alternative options and helps you decide whether this strategy fits your risk tolerance.

Read more: How to Earn Interest on Bitcoin

Can you really take out a loan to buy Bitcoin?

Yes, and it’s more common than you might think. Crypto lending platforms like Ledn, Binance, and Nexo offer ways to use digital assets as collateral to access fiat or other cryptocurrencies. These are often called crypto loans or crypto-backed loans.

In 2025, the most common routes are:

• Bitcoin-backed loans to borrow fiat or stablecoins
• Stablecoin-backed loans to access short-term liquidity
• Fiat-backed loans (less common) to buy Bitcoin directly
• Margin trading through exchanges (higher risk, more fees)

3 steps to get a Bitcoin loan with Ledn B2X

Ledn’s B2X loans are designed for people who already hold BTC and want to increase their exposure. It lets you take out a Bitcoin-backed loan to buy more Bitcoin, effectively doubling your position. 

Here’s how it works:

1. Sign up and verify your Ledn account

Create an account at Ledn.io and complete the identity verification process. This includes submitting identification documents and answering some brief questions.

2. Use the B2X calculator

Visit the B2X page and input how much BTC you want to double. The calculator will show:

• The loan amount (in USD)
• Your new total BTC exposure
• Estimated loan-to-value (LTV) ratio
• Liquidation thresholds

Example:

Deposit 1 BTC → borrow USD → buy 1 more BTC → total holdings: 2 BTC

Both BTC are held as collateral. The loan is repaid in fiat or stablecoin.

3. Place your B2X order

Once you’ve reviewed the terms and loan structure, click “Place B2X Order.” Your transaction is processed immediately, giving you an increased Bitcoin position backed by a crypto loan. You can read about how Ledn protects your BTC here.

Read more: How to Use Ledn to Grow Digital Wealth

 Bitcoin loan options, compared

Ledn’s B2X is a great option for long-term Bitcoin holders who want to stay in the asset and increase their exposure without cashing out.

Read more: How To Store Bitcoin Everything You Need To Know

Who should (and shouldn’t) borrow to buy Bitcoin?

These loans are good fit if you:

• Are confident in Bitcoin’s long-term value
• Understand how crypto loans and liquidation thresholds work
• Want to avoid selling BTC while increasing your holdings
• Have contingency plans for margin calls and price volatility

They’re not a good fit if you:

• Need guaranteed access to your crypto or fiat
• Don’t have experience with market cycles or risk management
• Cannot afford to lose the collateral in a downturn
• Are reacting to short-term hype rather than conviction

Understand the risks before you borrow

1. Liquidation risk

If Bitcoin’s price drops and your loan-to-value ratio exceeds the platform’s threshold, you may receive a margin call. If you don’t top up collateral, your BTC may be liquidated, potentially at a loss.

2. Liquidation fees

Forced liquidations often involve platform fees. Review the terms carefully before taking out a crypto loan, especially when using high loan-to-value ratios.

3. Tax implications

Borrowing against crypto is generally not taxable, but selling BTC to repay a loan may trigger capital gains tax. Tax rules vary widely by jurisdiction.

4. Platform and regulatory risk

The crypto lending space is evolving. Choose a platform that is transparent, adheres to regulatory standards, and offers robust custody and risk disclosures. Ledn is a registered provider that focuses on Bitcoin and USDC lending.

Is it worth it?

Borrowing to buy Bitcoin can generate higher returns, but only if the market moves in your favour. It’s a leveraged strategy, meaning both your upside and downside are amplified.

It may be worth it if you:

• Have a long-term bullish outlook
• Want to increase BTC holdings without triggering a taxable event
• Can manage short-term drawdowns, margin calls, and volatility

It may not be worth it if you:

• Need certainty and low-risk investments
• Don’t understand the mechanics of crypto lending
• Cannot afford to add collateral or repay quickly under pressure

Read more: Best Bitcoin Loan Rates In 2025

Final thoughts

Crypto loans are a powerful way to access capital without selling your Bitcoin. Ledn’s B2X product simplifies the process of borrowing to buy more BTC, making it ideal for long-term holders looking to increase exposure.

However, leveraged strategies like this are not for everyone. The risk of margin calls, liquidation, and unexpected volatility means you should proceed with caution and only after running the numbers.

Try Ledn’s B2X calculator

See how much you can borrow and preview your loan position at ledn.io.

Disclaimer

This article is sponsored by 21 Technologies Inc. and/or its subsidiaries (“Ledn”) and is for general information, discussion, or educational purposes only and is not to be construed or relied upon as constituting legal, financial, investment, accounting, tax, estate-planning, or other professional advice or recommendation. Please read Ledn’s full Risk Disclosure Statement and Disclaimers.

‍