How to?
How to Get a Bitcoin Loan in Australia (Step-by-Step)
Selling Bitcoin to cover expenses means giving up your position. A growing number of Australians are choosing a different path: borrowing AUD against their Bitcoin instead of selling it. This is called a Bitcoin-backed loan, and it lets you access cash while keeping your BTC exposure intact. Here's exactly how the process works, step by step.
Key Takeaways
- A Bitcoin-backed loan lets you borrow AUD using your BTC as security, without selling it
- Loan amounts are based on your Loan-to-Value Ratio (LVR): the percentage of your Bitcoin's value you can borrow
- Block Earner offers up to 40% LVR on a Line of Credit and up to 50% LVR on a Fixed Term loan
- A 30-day pre-approval is available before sending any Bitcoin
- Funds typically arrive within 24 hours of approval, direct to your bank account
- Your Bitcoin is held in institutional-grade custody (Fireblocks)
- A 30-day ‘Default Notice’ period gives you time to restore a healthy LVR if Bitcoin's price falls
- Block Earner holds an Australian Credit Licence (ACL 542689)
What Is a Bitcoin-Backed Loan?
A Bitcoin-backed loan is a secured loan where your Bitcoin is held as security rather than sold. You borrow AUD, keep your exposure to the Bitcoin price throughout the loan term, and get your BTC back once the loan is repaid. For a full breakdown of how this works, see our guide: What's a Bitcoin-Backed Loan?
Bitcoin loans in Australia are typically used for things like:
- Funding home renovations
- Growing businesses
- Buying a car
- Covering travel costs
- Consolidating existing debt
- Managing life expenses without selling BTC
How to Use Bitcoin for Loans: The Step-by-Step Process
Step 1: Choose a Licensed Provider
Not all crypto lenders operate the same way, so it's worth checking whether a provider holds an Australian Credit Licence (ACL). Block Earner is an Australian Credit Licence holder (ACL 542689), so its consumer credit products are provided under Australia's national credit laws — note some business-purpose loans may fall outside the National Credit Code.
- Create an account and choose your account type (personal or business)
- Verify your email, phone number
- Verify your ID (KYC), a standard regulatory requirement for identity verification
This step exists to protect against fraud and money laundering, and it's required before any loan can be issued.
Step 2: See How Much You Could Borrow
Bitcoin loan amounts are calculated using a Loan-to-Value Ratio (LVR), the percentage of your Bitcoin's value that you're able to borrow. With Block Earner, individuals can access up to 40% LVR on a Line of Credit, or up to 50% LVR on a Fixed Term loan. So if you hold $100,000 worth of BTC as security, a 40% LVR would give you access to a $40,000 AUD loan.
Block Earner Bitcoin Loan amounts range from $50 up to $5 million AUD, depending on the value of your Bitcoin security and your eligibility.
Step 3: Choose Your Bitcoin Loan Type
At Block Earner there are two structures available:
Line of Credit: a flexible facility (a 12-month term) with a fixed interest rate and no compulsory monthly repayments. You draw down and repay on your own schedule, and can typically redraw if your LVR allows.
Fixed Term: a longer facility (3–5 year term) with a fixed interest rate and predictable monthly repayments, suited to larger planned expenses.
Each option comes with its own interest rate, comparison rate, and LVR thresholds, so it's worth comparing both against your financial goals before applying.
Step 4: Get Approved
A Block Earner Bitcoin-backed loan application typically takes 5 to 10 minutes to complete. You’ll be asked about your income, expenses, dependants and loan purpose to help assess your eligibility. Before proceeding, review your loan agreement carefully to understand the applicable interest rate, loan-to-value ratio (LVR), fees and repayment terms.
Once submitted, your application will be reviewed in accordance with applicable responsible lending requirements. You’ll then be notified whether your application has been approved or declined via email and in-app notification.
30-Day Pre-Approval
Pre-approval is valid for 30 days. To activate your loan after pre-approval, you send the required Bitcoin to be held as security for the loan. Reputable providers hold this security in institutional-grade custody. Block Earner, for instance, uses Fireblocks, which carries ISO 27001, ISO 27017, ISO 27018, and SOC 2 Type II certifications. Your Bitcoin isn't accessible to you while the loan is active, but you retain full exposure to its price movements.
Step 5: Receive Your AUD
Once your Bitcoin security is confirmed, funds are usually deposited directly into your nominated bank account, often within 24 hours of approval.
Step 6: Manage Your LVR
This is the part that matters most after your loan is funded. Your LVR moves with the market price of Bitcoin. Block Earner has designed simple LVR thresholds that make it easier fro Australians to manage and keep track of their Bitcoin loan LVR:
Healthy — your loan is in good standing
Attention — your LVR is rising and worth monitoring
Repayment Notice — action is recommended to bring your LVR back down
Default Notice — individuals have a grace period (30 days) to restore your LVR by repaying AUD or adding more Bitcoin security
With Block Earner, you can monitor LVR in real time via a desktop or mobile app, with notifications sent by email, SMS, or in-app alerts as your loan approaches each threshold.
Step 7: Repay or Roll Over
You can repay your Block Earner loan at any time using AUD or Bitcoin, with no early repayment fees or lock-ins. Line of Credit loans often allow a rollover into a new term once the 12 month term matures, subject to approval, while Fixed Term loans follow a set repayment schedule until the loan is closed.
Is a Bitcoin Loan Right for You?
A Bitcoin-backed loan can make sense if you want access to AUD without exiting your Bitcoin position — but like any secured loan, it comes with real risk. If the value of your Bitcoin security falls, your LVR rises, and you may need to add security or make a repayment to avoid your provider selling a portion of your BTC.
It's worth reading the loan's Target Market Determination (Line of Credit TMD) or (Fixed Term TMD), Credit Guide, booking a call to ask more questions, and seeking independent professional advice before deciding if it suits your circumstances.
Frequently Asked Questions
How much can I borrow with a Bitcoin-backed loan?
Loan amounts range from $50 up to $5 million AUD, depending on the value of your Bitcoin security, your chosen loan type, and your eligibility.
Do I need a credit check to get a Bitcoin loan?
Your Crypto-Backed Loan application and repayment behaviour may be reported to credit reporting bodies, and this information can influence your credit score positively or negatively, depending on each bureau’s assessment criteria.
What happens if the price of my Bitcoin drops after I borrow?
If Bitcoin's price falls, your LVR rises. Block Earner gives individuals a 30 days Default Notice period to restore your LVR by adding more Bitcoin security or making a repayment before any action is taken on your security.
How long does it take to receive funds?
Once your Bitcoin security is confirmed, AUD is typically deposited into your nominated bank account within 24 hours of approval.
Disclaimer: The information contained in this blog is general in nature and is provided for informational purposes only. It does not constitute financial, legal, or tax advice, and should not be relied upon as such. Block Earner does not guarantee the accuracy or completeness of any information presented. You should consider your own personal circumstances and seek professional advice before making any financial or investment decisions. Past performance is not indicative of future results. All investments carry risk. Crypto-backed loans carry real risks. The value of your crypto can fall sharply, rapidly increasing your LVR and reducing any initial buffer. This may require you to add security or repay part of the loan and could result in some or all of your crypto being sold. *Approved applicants only. Terms, conditions, fees and charges apply. Credit provided by Web3 Loans Pty Ltd ACN 668 516 952 and managed by Web3 Ventures Pty Ltd trading as Block Earner (ACN 655 090 869) under Australian Credit License 542689.
