Taking out a loan with Bitcoin as collateral is a neat trick to convert your bitcoin/crypto assets into fiat, you can then re-invest in the Crypto backed fund (500,000 euros) eligible for Portugal golden visa. Crypto Loans (lending) can be obtained in fiat (all major currencies) through AAVE or cryptocurrency exchanges (Binance, Coinbase, Gemini) based on interest rates.
The following rules must be observed
- Bitcoin cannot be used directly to pay for investment fund in Portugal.
- To be eligible for GV, the VC/PE fund must invest 60% in Portugal companies and only 40% maximum in crypto assets.
- Funds must be CMVM approved and cannot invest in real estate directly or indirectly.
- Opening Bank account in Portugal is necessary to deposit and transfer funds.
We offer two great Portugal investment funds that can be funded by crypto…
- Horizon Fund (open end fund) – 65% Portuguese fixed income assets 35% crypto assets (IRR 15-20%)
- Prime Hospitality Fund (closed fund) – Hospitality operations backed by real estate.
Borrowers must keep a close eye on
- Crypto lender reputation
- Interest rates, Transaction fee and LTV
- Repayment terms and Liquidation
- Margin calls
Crypto Lending
Crypto lending platforms have emerged to facilitate financial activity across the decentralized economy. most crypto loans require 2 (200%) to 3 (300%) as collateral.
All major cryptocurrencies are accepted as collateral, including Bitcoin, Ethereum, Litecoin, USDT, Cardano. SOL and many more. Loans are dispensed in all major fiat currencies (USD, EUR, CHF, CAD etc). After you repay the debt with a certain interest, the lender will return the collateralised cryptocurrency.
Aave is a decentralised non-custodial liquidity protocol where users can participate as suppliers or borrowers. Suppliers provide liquidity to the market while earning interest, and borrowers can access liquidity by providing collateral that exceeds the borrowed amount.
DeFi
DeFi is a term for decentralized peer-to-peer financial services on public blockchains, primarily Ethereum through smart contracts. Crypto lenders fall into CEFI and DEFI categories. DeFi platforms like Aave operate without intermediaries, relying instead on smart contracts to automate the lending process. DeFi platforms can offer more attractive rates and greater transparency, but they require users to manage their own security and bear full responsibility for their funds. CeFi latforms are user friendly act as intermediaries, managing user assets and often conducting KYC checks to comply with local regulations.
LTV Ratio
Loan-to-value (LTV) ratios offered, which dictate how much you can borrow against your collateral. LTV is the ratio of the total outstanding amount of your loan (including principal and all accrued and unpaid interest) to the current market value of your collateral. Coinbase customers can instantly borrow USDC at competitive interest rates with flexible, open-ended repayment terms.
Coinbase example – If you borrow $500 against a $1,000 collateral, your LTV would be 50% (500/1000). If you’ve borrowed against your bitcoin using Coinbase, you need to have an LTV of less than 86%. If your loan accrues enough interest or the value of your collateral drops, and that causes the LTV of your loan to reach 86%, then your collateral will be liquidated to repay the loan plus the penalty fee.
Lenders
| Platform | LTV Ratios | Interest Rates |
|---|---|---|
| Binance | Up to 80% (most assets capped at 65%) | Competitive, calculated minute-by-minute |
| Aave | Up to 80% (depending on collateral) | Dynamic, based on supply and demand (ETH < 3% APR, USDC > 16% APR) |
| Compound | Up to 80% (depending on collateral) | Algorithm-driven, stablecoins < 4% APR |
| CoinRabbit | Up to 90% (depending on collateral) | 12%–17% APR (calculated monthly) |
| Unchained Capital | Up to 70% (Bitcoin only) | Above 14% APR (varies by loan terms and collateral) |
| Alchemix | Up to 50% | Self-repaying via collateral yield |
| Crypto.com | Up to 80% (depending on collateral) | Reduced to 8% APR for CRO stakers, higher without CRO staking |
| Wirex | Up to 80% | Starts at 8% APR (varies by collateral and amount) |
| YouHodler | Up to 97% (for some assets) | 12%–26.07% APR (depending on LTV and asset type) |
