You have Bitcoin, Ether, Solana, or XRP in your portfolio. And now you need liquidity for something specific: a renovation, a business opportunity, or covering an unexpected expense.
The obvious solution seems to be selling. But selling carries a cost that many people undervalue: the tax impact. And another that hurts even more in the long run: losing your market exposure just when you still believe in it.
Bit2Me Loan resolves this. In this article, we explain how it works, its advantages, and what you should consider before using it.
What is Bit2Me Loan and how to access it
Bit2Me Loan is a crypto loan: you provide your cryptocurrencies as collateral and receive liquidity in stablecoins instantly.
It is the only crypto loan authorised by the CNMV under the MiCA Regulation available in Spain, with custody via Ledger Enterprise, ISO 27001 and 22301 certifications, and segregated, non-rehypothecated omnibus accounts.
When you repay the crypto loan, you recover your guarantee intact. Therefore, if the market has risen in the meantime, that capital appreciation remains yours.
If you already have a Bit2Me account, you can access Loan on the web and also via the app.
How it works step-by-step
The process is designed so you can obtain liquidity on the same day you request it:
1. Choose your collateral and the amount: You select which cryptocurrency you want to provide as a guarantee and the amount you need, from €100 up to €1 million. The system will show you how much collateral you need based on the LTV (Loan-to-Value) you choose.
2. Lock the collateral: Your crypto is held in segregated custody at Bit2Me. It is not sold, lent to third parties, or rehypothecated. It remains yours.
3. Receive the loan: The funds arrive in stablecoins (EURR, EURC, USDR, or USDC, according to your preference) in your Bit2Me account instantly.
4. Repay when you can: Bit2Me Loan has a flexibility you won't find elsewhere: you can pay whenever you like within the term, even making no payments for months and settling the entire debt at once at the end. There are no opening fees, no early repayment fees, and no cancellation fees.
Currencies available as collateral
Currently, you can provide the following cryptocurrencies as collateral:
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Bitcoin (BTC) — the most common choice due to its liquidity and global recognition.
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Ethereum (ETH) — the second-largest cryptocurrency by market cap, widely accepted.
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Solana (SOL) — a high-speed network with growing adoption in the crypto ecosystem.
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XRP (XRP) — optimised for fast cross-border payments with low transaction costs.
The loan is issued in stablecoins pegged to the Euro or the US Dollar: EURR, EURC, USDR, or USDC.
Advantages of Bit2Me Loan over other options
No credit checks
To apply for a crypto loan with Bit2Me Loan, you do not need a payslip, credit history, or personal guarantees. The collateral is your guarantee. This means liquidity is accessible to people that a bank would ignore.
Opening does not trigger a tax event
When you request a crypto loan, you are not selling. Therefore, according to the criteria of the Spain's current tax authorities (DGT), its opening does not constitute a taxable event, and you do not pay tax when requesting it, as your crypto remains in your portfolio.
Important: Forced liquidation of collateral does trigger a taxable event.
Maintain your market exposure
If you believe in an asset for the long term, selling it to cover a short-term need carries a real opportunity cost. With a Loan, you keep your position open while using the liquidity you need now.
European regulation and custody
Your guarantees are held in custody in Spain by Ledger Enterprise, with the same security certifications that protect the rest of your portfolio at Bit2Me. This is not an unsupported DeFi protocol or an offshore platform. Bit2Me Loan is a product regulated under the European MiCA framework, with professional support.
Instant liquidity without paperwork
Approval is automatic. No documentation, no days of waiting, and no meetings. If your collateral covers the requested amount, the loan is activated immediately.
Things to consider before using it
Bit2Me Loan is a product with real advantages, but as with any loan, it is essential to understand how it works to use it intelligently.
LTV and how it affects your collateral
LTV (Loan-to-Value) is the percentage of your collateral's value that you receive as a crypto loan. Bit2Me Loan has an initial LTV of 50%.
Example: if you provide €10,000 worth of BTC, you can borrow up to €5,000 (50% LTV).
Staged alerts and liquidation risk
If the value of your collateral drops due to market volatility, the LTV rises. Bit2Me sends alerts when the loan risk moves to Medium (65%) and High (75%). When it exceeds 85%, forced liquidation (sale) of the collateral is triggered to cover the loan, with a 2% fee.
This is important: forced liquidation risk does exist if the market falls sharply. To manage this, if you receive an alert, you can add more collateral or repay a portion of the outstanding amount.
Forced liquidation does trigger a tax event
As previously mentioned, opening the loan does not trigger a tax event according to Spain's current tax authority. However, if your collateral is automatically liquidated by the platform for exceeding the LTV limit, that forced sale does constitute a taxable event.
Who is it best suited for?
Bit2Me Loan is ideal for the following scenarios:
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You need immediate, one-off liquidity. But if you sell now, you have to pay taxes and you also lose your market position.
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You lack easy access to bank credit or do not want to go through the traditional process.
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You are a long-term believer in the asset and see selling it as a short-term strategic mistake.
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You want to increase your market activity without having to give up the position you already have to raise capital to trade with.
The opening of a crypto loan does not constitute a taxable event according to Spain's current tax authority (DGT) criteria. Forced liquidation of collateral does trigger a taxable event. Consult a tax advisor if you have questions regarding your specific situation.
Investment in crypto assets is not fully regulated, may not be suitable for retail investors due to their high volatility, and there is a risk of losing the entire invested amount.
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