Bitcoin Loan Rates: Compare Best (BTC) AER

Rather than selling your Bitcoin, use it as collateral to secure a Bitcoin-backed loan. Compare the top BTC loan options from a variety of providers in the UK.

Last updated: 11 January 2026|Advertising disclosure

Platform	Coin	AER
Nebeus	Bitcoin (BTC)	From 8% AER
Nexo	Bitcoin (BTC)	From 0% AER
Xapo Bank	Bitcoin (BTC)	From 10.26% AER
YouHodler	Bitcoin (BTC)	From 8% AER
Ledn	Bitcoin (BTC)	From 12.4% AER
Bitget	Bitcoin (BTC)	From 2.88% AER
Aave	Bitcoin (BTC)	From 0.51% AER

Platform

Coin

AER

From 8% AER

From 0% AER

From 10.26% AER

From 8% AER

From 12.4% AER

From 2.88% AER

From 0.51% AER

Frequently Asked Questions About Purchasing Bitcoin (BTC)

What exactly is Bitcoin and how does it work at a high level?

Bitcoin is a decentralized digital currency that operates on a public blockchain. It enables peer-to-peer money transfers without banks or intermediaries. Transactions are verified by miners who solve cryptographic puzzles (Proof of Work) and recorded on a public ledger. The system has a hard cap of 21 million coins, with new coins issued as block rewards about every 10 minutes. This design creates scarce digital assets and censorship-resistant transfers. Users interact with Bitcoin through wallets that hold private keys; signing a transaction with your key proves ownership and authorizes the transfer.

What is Bitcoin’s supply dynamics and why is the cap important?

Bitcoin has a fixed supply cap of 21 million coins. New bitcoins are minted as rewards to miners for adding blocks to the chain, with the reward halving roughly every four years. This halving reduces new supply over time, contributing to potential long-term scarcity. Once all 21 million coins are mined, no new bitcoins will be created. The capped supply is a core aspect of Bitcoin’s value proposition, often described as “digital gold,” as it aims to protect against inflation by limiting the total quantity available.

How can I safely buy, store, and use Bitcoin for transactions?

To buy Bitcoin, use a regulated exchange or broker, complete identity verification, and transfer BTC to a personal wallet. For storage, choose a secure wallet type: hardware wallets (offline storage) offer strong security for larger balances, while software wallets (mobile/desktop) are convenient for daily use. Always back up your seed phrase and enable two-factor authentication on exchange accounts. To transact, you’ll need the recipient’s Bitcoin address, confirm fee preferences (speed vs. cost), and broadcast the signed transaction to the network. Be mindful of security best practices to avoid phishing and loss of private keys.

What are the main risks and considerations when investing in Bitcoin today?

Bitcoin investments carry market risk, including price volatility driven by macro events, regulation, and market sentiment. As a decentralized asset with no intrinsic cash flows or credit risk, value depends on demand and adoption. Regulatory changes could impact exchanges and custody services, while technological shifts (like improvements to scaling or competing networks) may influence demand. Diversification, position sizing, and understanding custody risk are essential. Always use reputable platforms, secure wallets, and keep private keys offline when possible to reduce loss risk.

What are notable developments and use-cases surrounding Bitcoin beyond payments?

Beyond a peer-to-peer currency, Bitcoin has become a store of value and treasury asset for some institutions. Innovations like Ordinals enable NFT-like features directly on Bitcoin, while experimental token standards (e.g., BRC-20) explore fungible tokens on the Bitcoin network. Companies and investors also use Bitcoin as a hedge against currency debasement, treating it as a long-term reserve asset. Ongoing ecosystem growth includes infrastructure for custody, security, and potential integration with traditional financial vehicles through regulated products like spot ETFs and futures markets.

Frequently Asked Questions About Purchasing Bitcoin (BTC)