We welcome BTC at DGD
How to shop with Bitcoin at Destination Gold Detectors
Shop savvy
Destination Gold Detectors welcomes Bitcoin Payments but you may also shop with USD and with a BTC backed loan. This way you could use your BTC to acquire goods and services such as any of our metal detectors while still potentially keep your BTC holding intact. Keeping your BTC holding intact however hinges on that your loan against your BTC does not default. So though it could be a savvy move not only loan options know-how but also timing is imperative. Feel free to read on below for some information and resources.
Keep in mind that using a BTC backed loan comes with risk of loosing the loaned against BTC.
Proceed wisely
If you are BTC holder, using funds from a Bitcoin backed loan can be a savvy alternative to using your BTC balance. However if you decide to take this route do proceed with caution and select your BTC backed loan options wisely. Further more use due diligence to prevent from the loan to default.
How to shop with Bitcoin at Destination Gold Detectors
Borrowing against Bitcoin allows you to use your BTC as collateral to access liquidity without selling your holdings. Several products and services are available for this purpose, offered by both centralized finance (CeFi) and decentralized finance (DeFi) platforms. Below is an overview of the options based on current offerings in the market as of March 20, 2025:
Compare Bitcoin Loan Options
Centralized Finance (CeFi) Options
CeFi platforms typically involve a centralized entity managing the loan process, holding custody of your Bitcoin, and providing funds in fiat (e.g., USD) or stablecoins (e.g., USDC, USDT). These services often require identity verification and may offer user-friendly interfaces.
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Binance Loans
- Description: Binance offers flexible and fixed-term crypto loans where you can use Bitcoin as collateral to borrow stablecoins or other cryptocurrencies.
- Features: Competitive interest rates (variable, often starting around 5-10% annually, depending on market conditions), flexible repayment terms, and integration with Binance’s trading ecosystem.
- Loan-to-Value (LTV) Ratio: Typically up to 65%, though this varies by asset and market conditions.
- Pros: Deep liquidity, no credit checks, and instant access to funds.
- Cons: Collateral is held by Binance, and liquidation risk exists if BTC value drops significantly.
2. CoinBase Borrow
- Description: CoinBase allows U.S. customers (excluding New York) to borrow up to $100,000 in USDC against their Bitcoin holdings.
- Features: LTV up to 40%, no fixed repayment schedule (interest accrues, payable at your discretion), and funds can be withdrawn via PayPal or ACH.
- Interest Rate: Market-dependent, typically visible at the time of borrowing (around 8-10% historically).
- Pros: Seamless integration with CoinBase accounts, no credit checks.
- Cons: Limited to U.S. users, and conversion of BTC to cbBTC (CoinBase Wrapped BTC) may have tax implications.
3. Nexo
- Description: A custodial lending platform offering instant loans against Bitcoin and other cryptocurrencies.
- Features: LTV up to 50% (higher for premium users), interest rates from 0% (for low LTV ratios with loyalty perks) to 15.9%, and funds available in stablecoins or fiat.
- Pros: No prepayment fees, flexible terms, and a simple process based on deposited assets.
- Cons: Custodial (Nexo holds your BTC), and higher rates for higher LTVs.
4. Unchained Capital
- Description: A Bitcoin-native financial services provider offering BTC-backed loans with a focus on security via multi-signature wallets.
- Features: LTV up to 50% or more, interest rates around 10-12% (as of mid-2024 estimates), and loans in USD.
- Pros: No rehypothecation option available, transparency with collateral management, and fast funding (2 business days).
- Cons: Requires application and approval, not available in all states.
5. Ledn
- Description: A platform focused on Bitcoin and stable coin lending, allowing you to borrow USD or USDC against BTC.
- Features: LTV up to 50%, interest rates around 8-10%, and a transparency-first approach with proof-of-reserves.
- Pros: No rehypothecation, user retains title to BTC, and straightforward terms.
- Cons: Limited to USD or USDC loans, custodial service.
Decentralized Finance (DeFi) Options
DeFi platforms use smart contracts on blockchain networks (often Ethereum or Bitcoin layer-2 solutions) to facilitate peer-to-peer lending without intermediaries. These require more technical knowledge but offer greater control over your assets.
- Description: A leading DeFi protocol allowing borrowing against Wrapped Bitcoin (WBTC) on Ethereum and other networks.
- Features: Variable interest rates (around 4-6% for stablecoin borrowing as of recent posts on X), LTV up to 70%, and no credit checks.
- Pros: Decentralized, transparent, and flexible repayment.
- Cons: Requires WBTC (not native BTC), and rates can spike with market demand.
2. Compound
- Description: A DeFi lending protocol where you can borrow against WBTC or other assets.
- Features: Variable rates (typically 2-5% for stablecoins), LTV varies by market conditions, and open-source smart contracts.
- Pros: No intermediaries, audited code, and repay anytime.
- Cons: Fewer asset options than Aave, and volatility in rates.
3. Maker DAO
- Description: A DeFi platform where you can lock BTC (via WBTC) in a vault to mint DAI, a stablecoin, as a loan.
- Features: LTV up to 66%, stability fee (interest) around 2-4%, and fully decentralized.
- Pros: Retain ownership of BTC until liquidation, low rates.
- Cons: Requires WBTC, and over-collateralization is mandatory.
4. Sovryn Zero (Rootstock/RSK)
- Description: A Bitcoin layer-2 lending protocol where BTC is bridged to RBTC for borrowing.
- Features: 110% over-collateralization, 0% interest loans subsidized by the protocol, and native BTC integration.
- Pros: No interest (unique model), Bitcoin-native.
- Cons: Early-stage, requires bridging BTC to RBTC.
5. Zest Protocol (Stacks)
- Description: An on-chain Bitcoin capital market for institutional borrowers on the Stacks layer-2 network.
- Features: Converts BTC to sBTC, offers loans with 4-7% APY for lenders, and flexible borrowing terms.
- Pros: Bitcoin-native, institutional-grade.
- Cons: Early access phase, requires sBTC conversion.
Key Considerations
- LTV Ratio: Most platforms offer 30-70% LTV, meaning you can borrow that percentage of your BTC’s value. Higher LTVs increase liquidation risk if BTC’s price drops.
- Interest Rates: CeFi rates range from 5-15%, while DeFi rates can be lower (2-6%) but fluctuate with supply/demand.
- Liquidation Risk: If BTC’s value falls below a threshold (e.g., 86% LTV on Coinbase), your collateral may be sold to cover the loan.
- Custody: CeFi platforms hold your BTC, while DeFi often requires you to manage your wallet (except for bridging to layer-2 networks).
Emerging Trends
Posts on X highlight newer platforms like Arch Lending (long-term BTC-backed loans), Avalon Finance (8% fixed-rate loans), and Hemi Network (native BTC borrowing without wrapping), indicating a growing ecosystem tailored to Bitcoin holders.
For the most current rates and terms, check directly with the platforms, as conditions evolve with market dynamics. Always assess risks like volatility, liquidation, and platform security before borrowing.
How to shop with Bitcoin at Destination Gold Detectors
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At DestinationGoldDetectors.com we currently use BitPay as our crypto payment processor and can accept crypto payments with Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Dogecoin (DOGE), Shiba Inu (SHIB), Litecoin (LTC), XRP (XRP), Dai (DAI), Wrapped bitcoin (WBTC), Gemini USD (GUSD), USD Coin (USDC), Binance USD (BUSD), ApeCoin (APE) and Euro Coin (EUROC).
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