A step-by-step guide on how to apply for a crypto-backed loan on Biterest

We have prepared a step-by-step guide on how to get a loan secured with BTC on Biterest. Out platform provides P2P crypto-backed loans. The user who holds bitcoin and applies for a loan is the borrower and the user who provides his funds to the borrower is the lender.

1. First of all, please register on the platform and confirm your account via the link sent to your email

On the main screen at biterest.com click the button “Apply for a loan” to start to create a loan application. You need to specify:

  • the loan amount and currency you want to request
  • the loan period
  • the annual interest rate
  • the discount (loan to value rate).

The platform automatically calculates the bitcoin amount required to transfer into the collateral and the amount of money required to refund to the lender before the expiry date. What the discount is and how it affects the loan is described in the article The 5 main questions about the discount to the value of the collateral


2. Choose the appropriate direct ways how to get money from the lender

You can receive funds both in fiat currency and cryptocurrency. When choosing a method of receiving fiat money, keep in mind that payment systems have limitations depending on the country of your registration.


You may not have the opportunity to receive funds through PayPal. Before placing an application on the platform, please check out the list of PayPal services that are available in your country

Additionally, receiving loans upwards of thousands of dollars using fiat payment system brings with it a plethora of complications such as:

  • Firstly, the higher the amount is, the higher the transfer fee will be especially the fees for the international transfers
  • Secondly, a lot of payment systems restrict the amount you are able to send or receive depending on your identification status in their system.
  • Thirdly, there are limits on transferring funds from one bank account to another bank located in one country. Furthermore, if the lender and the borrower are located in different countries, to transfer money will be simply impossible.

Based on the points mentioned above, we recommend the cryptocurrency as the most convenient and fast way of receiving a loan.

3. You can secure your loan application with collateral upon completing your application or after it is accepted by one of the lenders


The first option speeds up the process of receiving a loan. After you transfer the collateral to the multisignature-address, your application will immediately appear among the loan applications on biterest.com. Once the lender has accepted your secured loan application, they will be given your payment details and required to transfer the loan amount within 4 hours.

Choosing the second option, your application will be published among the loan applications the platform. When the lender accepts it, you receive a notification to provide the collateral. After transferring the required amount of bitcoin to the multisig-address, your payment details will become available to the lender and they will transfer the loan to you.

4. Provide your public key

This step is extremely important for setting up reliable protection for your bitcoin. Each borrower’s collateral is safely stored on the multisig-address until the end of the loan period.


To create a specialized multisignature-address for your collateral, you have to provide a public key. You can either generate the keys in the browser with the Easy option or upload the public key by yourself with the Advanced option. Based on the three public keys from the lender, the borrower and Biterest, a multi-address address will be created.

We suggest learning why multisig-addresses are 100% secure and how they are created in the article Why it is impossible to steal collateral.

5. Top up your account balance


You need to top up your account balance. Every time you publish a loan application on Biterest platform, a small fee is charged from your account balance. The fee depends on the loan period and the amount you have indicated in the application. It is equal to the annual interest rate of 0.5%.


6. Transfer the collateral to the multisig-address specially created for your application

At this step, you need to transfer the necessary amount of bitcoin to the multisig-address, if you chose to provide the collateral before the application publishing. Confirm the payment by clicking the button “Continue”, and your application will appear in the table among the other applications.


If you prefer to publish application without collateral, wait for it to be selected by one of the lenders. As soon as the application is accepted, you will receive a notification to transfer bitcoins.

7. Wait until the loan period starts

After the lender sends the money according to specified payment details, the loan period will begin. The information about the deadline within which you have to return the money to the lender, the current value of the collateral and the Margin Call bitcoin rate are available on the loan application page. We recommend you to find out What Margin Call is and how to minimize the risk of its occurrence


If you will haven’t already refunded money to the lender, you will receive a reminder three days before the end of the loan period. If you do not repay the loan, your security deposit will be transferred to the lender.