Loan My Coins vs. Ledn: Detailed Comparison
A factual comparison of BTC-to-BTC lending versus traditional fiat-denominated Bitcoin loans.
Both services allow you to borrow against Bitcoin, but their structures, risks, and use cases differ significantly. This comparison helps you understand the key differences.
Quick Comparison
- Loan currency: LMC = Bitcoin (BTC), Ledn = USD/USDC
- LTV: LMC = 95%, Ledn = 50%
- Margin calls: LMC = None, Ledn = Yes
- Risk score: LMC = 10 (Low), Ledn = 49 (Medium) per Zone21
Key Differences
| Feature | Loan My Coins | Ledn |
|---|---|---|
| Loan Type | BTC-to-BTC | Fiat-denominated (USD, USDC) |
| Maximum LTV | 95% | 50% |
| Liquidation Threshold | None - no liquidation mechanism | 80% LTV |
| Margin Calls | None - impossible with BTC-to-BTC | Yes - triggered by price volatility |
| Fee Structure | 5% upfront (one-time fee) | 11.9% APR (ongoing interest) |
| Interest Rate | 0% (fee-based) | 11.9% fixed APR |
| Loan Currency | Bitcoin (BTC) | USDC or USD |
| Repayment Currency | Bitcoin (BTC) | USDC or USD |
| Custody Model | Segregated wallets | CeFi (BitGo) |
| Rehypothecation | No | Limited |
| KYC Required | Yes (via loan provider) | Yes |
| Loan Term | 12 months (renewable up to 5 years) | 12 months |
| Minimum Loan | 1 BTC | Varies |
| Price Volatility Impact | None - LTV remains constant | High - affects LTV and triggers margin calls |
| Risk Score (Zone21) | 10 (Low) | 49 (Medium) |
| Best For | Long-term holders avoiding liquidation risk | Short-term USD liquidity needs |
Risk scores based on Zone21.com risk framework. Data for Ledn from Zone21.com as of 2025. Always verify current terms directly with providers.
Why These Differences Matter
1. Asset Alignment
Loan My Coins
Bitcoin collateral + Bitcoin loan = perfect asset alignment. Both sides move together, so LTV ratio never changes based on price movements.
Ledn
Bitcoin collateral + USD/USDC loan = asset mismatch. When Bitcoin price drops, LTV worsens, triggering margin calls and liquidation risk.
2. Liquidation Risk
Loan My Coins
Liquidation is impossible because both collateral and loan are the same asset. No mechanism exists to trigger forced sales.
Ledn
Liquidates at 80% LTV. If Bitcoin price drops significantly, your collateral can be forcibly sold to cover the USD loan amount.
3. Capital Efficiency
Loan My Coins
95% LTV means accessing nearly all your Bitcoin's value. Stake 10 BTC, receive 9.5 BTC as loan.
Ledn
50% LTV means accessing half your Bitcoin's value. Stake 10 BTC worth $1M, receive $500k USD.
4. Fee Structure
Loan My Coins
5% upfront fee (one-time). No ongoing interest. Total cost is predictable regardless of loan duration.
Ledn
11.9% APR (ongoing interest). Interest compounds over time. Total cost increases with loan duration.
Understanding the Risk Differences
Zone21.com provides independent risk assessments for Bitcoin-backed loan providers. Here's how the risk profiles compare:
Loan My Coins
Why it's lower risk:
- BTC-to-BTC structure eliminates liquidation and margin call risk
- Borrowed BTC delivered upfront reduces counterparty exposure
- No price oracle dependency or forced liquidation mechanisms
- Fixed terms in Bitcoin prevent volatility-related risks
Ledn
Risk factors:
- Fiat-denominated loans create margin call and liquidation risk
- Price volatility affects LTV ratios and can trigger forced sales
- CeFi custody model introduces centralized counterparty risk
- Ongoing interest payments increase total cost over time
Risk assessments are subjective and for reference only. Not investment advice. See Zone21.com for detailed methodology.
When to Choose Each
Choose Loan My Coins If:
- You're a long-term Bitcoin holder
- You want to eliminate liquidation risk
- You prefer Bitcoin-only solutions
- You want maximum capital efficiency (95% LTV)
- You don't want to monitor prices or manage margin calls
- You prefer predictable, fixed fees
Choose Ledn If:
- You need immediate USD/USDC liquidity
- You're comfortable managing margin call risk
- You want short-term leverage (under 12 months)
- You actively monitor Bitcoin prices
- You can add collateral during market downturns
- You prefer CeFi custody solutions
Ready to Compare Your Options?
Use our calculator to model different scenarios and see how BTC-to-BTC lending compares to Ledn's fiat loans in your specific situation.
Important: Loan My Coins acts solely as an introducer. All loans and agreements are entered into directly with an independent loan provider. This comparison is for informational purposes only. Always do your own research and verify current terms directly with providers. Data for Ledn based on public information from Zone21.com as of 2025. Terms may change.