The 2025 Guide to Bitcoin Loans: Comparing Firefish, Ledn, Binance, and YouHodler
Need fiat but won’t sell your sats? You're not alone. Bitcoiners across the world are unlocking liquidity through Bitcoin-backed loans. But here’s the catch: not all platforms are created equal. Some take custody of your BTC. Some even rehypothecate it. Others? They let you stay sovereign.
This guide breaks down how Bitcoin loans work, and compares four major platforms: Firefish, Ledn, Binance, and YouHodler.
Why Borrow Against Bitcoin?
Stay in Bitcoin: Don’t sell, just borrow.
Get fiat fast: Pay bills, fund a project, or stack more sats.
Avoid taxes: Loans don't trigger capital gains.
Borrowing lets you access liquidity without exiting your position. But it only makes sense if you can trust the platform.
How Bitcoin Loans Work
Lock your BTC as collateral
Receive fiat or stablecoins (EUR, USD, USDC, etc.)
Repay loan + interest
Reclaim your Bitcoin
Key terms to know:
LTV (Loan-to-Value): How much you can borrow vs. your BTC's value.
Custody: Who holds the Bitcoin? You or them?
Bitcoin Loan Platform Comparison (2025)
Platform | Custody | Model | LTV | Rehypothecation | Special Feature |
|---|---|---|---|---|---|
Firefish | Non-custodial | P2P + Instant | Up to 50% | No | Multisig escrow, PSBT recovery |
Ledn | Custodial | Centralized | Up to 65% | Yes | BitGo storage, no altcoins |
Binance | Custodial | Exchange-based | Up to 50% | Yes | High liquidity, CeFi perks |
YouHodler | Custodial | Centralized | Up to 90% | Yes | High LTV, earn yield |
Deep Dive: Platform by Platform
Firefish: Built for Bitcoiners
Model: Non-custodial. Multisig escrow with PSBT support.
Pros:
Sovereign-friendly: keys never leave your control.
Instant loans or P2P match.
Transparent on-chain escrow.
No rehypothecation.
Cons:
Requires KYC for fiat (but non-custodial escrow remains intact).
Verdict: Best choice for Bitcoiners who value control, privacy, and speed.
Ledn: CeFi with a Bitcoin focus
Model: Custodial, centralized lender.
Pros:
Long-running, security track record.
Transparent audits.
Cons:
Bitcoin leaves your control.
Can rehypothecate collateral.
Verdict: Safer than some CeFi, but still CeFi. Trust required.
Binance: Big Exchange, Bigger Risks
Model: Exchange-integrated lending.
Pros:
Large ecosystem, low interest rates.
Supports altcoins and stablecoins.
Cons:
Custodial. Not Bitcoin-first.
Regulatory risks in many regions.
Verdict: Convenient, but centralized and trust-heavy.
YouHodler: High LTV, High Risk
Model: Centralized, custodial lender.
Pros:
High LTV (up to 90%).
Additional yield options.
Cons:
Collateral rehypothecation.
Not available in US/CA.
Verdict: Convenient, but centralized and trust-heavy.
Final Thoughts: Choosing the Right Bitcoin Loan Platform
As the Bitcoin lending space evolves, it's crucial to prioritize security, transparency, and sovereignty. Non-custodial solutions, peer-to-peer matching, and multisig protection aren't just technical preferences—they're core to preserving the ethos of Bitcoin.
Each platform comes with its own approach and trade-offs. But for those who value true self-custody, risk minimization, and control over their assets, solutions like Firefish stand out.
In a market full of compromises, Firefish offers a lending experience aligned with Bitcoin’s original vision.
Learn more at firefish.io
