Bitcoloan: Scam or Legit Crypto Lending?

BitcoLoan is an online decentralized peer-to-peer crypto lending platform that acts as an intermediary between two parties who are either interested in borrowing or lending. It enables customers to lend money and borrow crypto-based loans by connecting with multiple lenders on the platform.

In other words, the platform guarantees smooth operation of the entire process with the help of its quick search function. Bitcoloan website is no longer reachable and withdrawals from the platform are not possible either by the time of writing this. The company claims to have provided over $50 million in loans to date and has a lending limit of $100,000 per loan.

In this Bitcoloan review you’ll have learned what bitcoloan is, how it works and most importantly, whether it is legit.

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Bitcoloan: Scam or Legit Crypto Lending? 16

Bitcoloan Review

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What is Bitcoloan?

According to BitcoLoan website, in the Decentralized Financial system, they are a marketplace for lending money or borrowing in terms of crypto. BitcoLoan applies an algorithm that allows you to find the relevant offer in a matter of seconds. Apparently, you can borrow or earn on loans while they take care of security and other details.

Bitcoloan Scam

Since BitcoLoan is not a financial institution; you can receive a loan in just a few minutes without any kind of paperwork to check eligibility. In addition, it is up to the individual how long he/she wants to lend or borrow cryptocurrencies. However, the minimum requirement is of 30 days.

Additionally, using the BitcoLoan services, the interest rate for each loan offer is quite favorable for both borrowers and lenders.

If you are a lender, you can loan your cryptos for any length of your choosing with the minimum being 30 days, and in return, you will yield up to 0.6% to 0.9% profits daily. In contrast, the interest rate for the borrower is the lowest compared to the market; one needs to pay 1.5% interest per day.

For instance, suppose you want to borrow $10 worth of BTC for 30 days, the platform will find a lender for you. After the 30-day period ends, you will need to pay $13.60.

BitcoLoan lending platform operates on a rating system. If you want to invest your cryptocurrency on the forum, you will get a 0.1 rating in the beginning. This initial flat rating, though, can be improved by carrying out a particular set of actions. The following are the ratio of yields an investor can get after maintaining specific rating points; An investor having a rating of 0.1 will get 0.7% profit on his/her investment, a rating of 1.5 will yield the investor 0.85% profit and a rating of 3.0 on the platform will yield the investor 1.0% profit on their investment.

The BitcoLoan Business Model

BitcoLoan allows users to post their loan requirements on the platform, after which lenders can bid on the loan. Once the loan is funded, BitcoLoan releases the funds to the borrower and collects a 1% origination fee. Loan repayments are made via automatic monthly payments, and borrowers can prepay their loans at any time without penalty.

BitcoLoan also offers a buyback guarantee, which allows borrowers to sell their loan for a full refund if they are unable to make their monthly payments. However, there have been complaints that the buyback guarantee is not honored by the company.

BitcoLoan is not a registered investment advisor or broker-dealer and is not subject to financial regulation. This means that there is no government oversight of the company, and it is not required to disclose its financials or lending practices. This lack of transparency makes it difficult to assess the risk involved in investing with BitcoLoan.

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What is included in BitcoLoan

As the BitcoLoan platform facilitates the transaction process between lenders and borrowers, we will discuss features that benefit both.

BitcoLoan benefits

Low-Interest Rate

The asking interest rate is relatively low if compared with the banks or other lending platforms. Anyone can get a loan at a 1.5% interest rate per day.

Low initial investment

On the BitcoLoan platform, a lender can start earning by investing worth of $10 cryptocurrencies within 24 hours.

Invest together and earn more

BitcoLoan lending forum also presents its userbase an opportunity to invest together with others. Say you and your friend want to invest a significant amount together to lend to businesses. In this way, you and your partners can earn more profits in less time.

No Approval

Once you have applied for a loan on the platform, you will not really need to get the approval of any sort. It is accepted momentarily.

Long-term Loans

An excellent feature for all kinds of purposes. You can get a loan for a time of 1 to 3 months.


The platform does not require any proof of identity for you to be eligible for the borrowing.

Quick Loans

The platform is heavily dependent on its algorithm and claims to facilitate its users with a loan within 10 minutes once applied.

Quicker Profit Generation

BitcoLoan presents the facility of lending to individuals for a shorter time-period that ranges from 1-3 months. In this way, the lender gets his loan repayments and profits much faster.

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How BitcoLoan Works

Customers obtain cryptocurrency loans or sign up as lenders. A borrower or investor could find the appropriate offer quickly by using Bitcoloan’s rapid search option.

Borrowing on BitcoLoan

Getting a Loan

In order to get a loan from the BitcoLoan platform, you need to follow the simple steps mentioned below.

Sign up

Visit the official website and click on the “Start now” button on the top right corner to sign up.


You have to pledge an amount to the platform against your desired loan amount.

Apply for a loan

Once the pledge amount is deposited, you can now apply for the loan by filling the form.

Withdraw funds

After receiving the funds, you can cash out in a cryptocurrency of your choice.

Lending on BitcoLoan

The lending process to the individuals and to business is pretty much symmetrical. Here is how to go about it.

To make a deposit, navigate to the “Deposit” section of your Dashboard. You will find a separate window to set your own loan terms; the system will find a suitable individual loan.

Bitcoloan: Scam or Legit Crypto Lending? 17

Enter the amount of money you want to invest.

Determine the loan term

Select “Find Borrower” by clicking or tapping on it.

The system will find you a borrower and activate the loan automatically.

The minimum loan amount is $10, with terms ranging from 10 to 90 days. Your profit percentage is directly proportional to your account rating and loan term.

There is no limit to the number of loans you can make. It will be reflected in your balance and displayed in the Transactions section of your Dashboard.

The total deposit amount will be refunded to your balance once the loan terms have expired. You will not be able to withdraw this amount until the loan term expires. On the other hand, your daily profit is withdrawable at any time.

The terms of a business loan vary. The loan term ranges from 90 to 360 days, with a minimum investment of $100. Profit percentages may differ depending on the loan terms. Information about a specific Business loan can be found in the menu.

A business loan is a group loan, which means that it involves the entire group of lenders who raise the required loan amount. You can invest in such a loan indefinitely until the whole amount is raised.

Profits from your Business loan are automatically added to your balance and displayed in the Transactions section of your Dashboard. The entire investment amount is refunded to your balance when the loan term ends and becomes available for withdrawal.

To invest in a business loan, first, choose the loan you’re interested in and then enter the amount you’re willing to invest. Then click the “Make deposit” button. Every 24 hours, your daily profits will be credited to your account.

You may have noticed that the loan terms now include an additional profit percentage. This percentage is determined by your account rating. Every 0.1 rating score increases your profits by 0.01 percent.

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BitcoLoan’s Compensation Plan

BitcoLoan affiliates invest $10 or more on the promise of an advertised daily return.

BitcoLoan Compensation Plan

Specifics aren’t provided on BitcoLoan’s website; however the company provides the following example in one of its official BitcoLoan tutorial video:

  • receive a 0.6% daily ROI for 30 days, capped at 118%
  • receive 0.75% daily ROI for 60 days, capped at 145%
  • receive a 0.9% daily ROI for 90 days, capped at 181%

To boost the daily ROI percentage affliates have to market BitcoLoan affiliate membership whose ROI has a max of 3%.

BitcoLoan pays referral commissions on invested funds down three levels of recruitment that is unilevel compensation.

Bitcoloan: Scam or Legit Crypto Lending? 18

  • 8% on level 1 (personally recruited affiliates)
  • 4% on level 2
  • 2% on level 3

The BitcoLoan platform’s payment mechanism is mostly in cryptocurrencies. However, it is normally shown in the account as USD. The platform accepts a number of cryptocurrencies for payment including Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), a dash (DASH), Litecoin (LTC), The Dogecoin cryptocurrency (DOGE) and Tethering (USDT).

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Is BitcoLoan a Scam?

Here we are essentially delving into whether Bitcoloan is a Ponzi scheme and if not, is bitcoloan legit?

What is a ponzi scheme?

A Ponzi scheme is an investment fraud that pays existing investors with funds collected from new investors. The organizers often promise to invest your money and generate high returns with little or no risk. But in many cases, the fraudsters do not invest the money. Instead, they use it to pay those who invested earlier and may keep some for themselves.

We’ve seen with other MLM programs like Minerift Biz, Xifra Lifestyle, and EtherConnect.

Bitcoloan: Scam or Legit Crypto Lending? 19

There are some red flags.

First, the website does not provide any information about who owns or runs the company. This is always a bad sign, as it means that the people behind the company are trying to hide their identity. Furthermore, the website’s terms and conditions state that they can change their lending terms at any time without notice. This is another huge red flag, as it means that the company is not committed to providing transparent and fair lending terms.

BitcoLoan’s website domain (“”) was first registered on July 4th, 2020. The private domain registration was last updated on October 28th, 2020.

BitcoLoan’s official Twitter account places the company in Sydney, Australia. However, none of these countries are likely candidates for where BitcoLoan is being operated from. The first video uploaded to BitcoLoan’s official YouTube channel was on January 28th, 2021.

The official website claims that there are 12million+ borrowers and 18million+ lenders worldwide using their services. The company also claims that, on average, $12,000 amount is running through the platform daily. It is somewhat surprising to see a company this new attaining such traction in such a short time span.

Lastly, there have been negative reviews from users who claim that they have not received their loan funds after making a deposit. This is obviously a major issue, as it means that people are losing money to this company. The following is a testimonial left on TrustPilot, by a BitcoLoan affiliate purportedly from Russia; “Everything worked until July, the platform paid regularly. But for almost 3 weeks now there is no way to withdraw funds, the withdrawal simply does not work and no specific information. At first they said wait 5-7 days, then they just began to write the standard “stay tuned for news”.

All in all, it is very clear that BitcoLoan is not designed to help borrowers. Though BitcoLoan does a great job of promising a wide variety of features and benefits, many users find themselves swept away in the excitement and flat broke a few short months (or weeks) later.

BitcoLoan is what I would call a legal scam. They aren’t breaking a single law, on one hand. On the other hand, they also aren’t FDIC-insured, or backed by any major banking institutions. They have no BBB rating. They’re simply a loan shark that uses the Bitcoin blockchain to track their loans.

BitcoLoan is not be the first MLM cum crypto-laden venture to escape public light by citing technical issues. Its update message is a mild case, regardless. For instance, Watermine, Finiko, and SkyWay Capital are all weightier instances than BitcoLoan.

In the light of its collapse, BitcoinLoan affiliates contacting support are being told: ‘Our technical service is now working on the implementation of our token through the “Bridge” system. We are working on the transition from CEFI to DEFI system. We apologize for the inconvenience caused. At the end of the work, the company will reimburse everything to our customers.’

No withdrawals are being permitted by BitcoLoan despite an unannounced transition from one platform to another, regardless of whether the move is related to crypto jargon token exit scam mar.

It takes no more than three weeks to switch platforms, again unannounced.This all seems designed to line affiliate investors up with excuses they won’t be able to understand.

This buys BitcoLoan’s anonymous admins time to make their getaway with what’s left of invested funds.

On paper, nothing seems particularly predatory. However, this a typical Ponzi scheme, before its current inactivity, though, BitcoLoan paid out remittals, which could not have come from its unfinished DeFi tech. Impliedly, the affiliate testimonies on the website unwittingly nod to earning from a pyramid structure.

If you are still considering using their services, I would strongly recommend against it. There are much better and more reputable companies out there that can provide business loans.

Are you looking to lend through BitcoLoan? Doing so may be slightly safer and more profitable than borrowing, but you’ll still want to log-in at least once or twice a day to make sure you’re aware of everything you have going on.

I would not recommend using BitcoLoan for any of the services they provide, overall. They seem to be a lending ponzi.

A rule of thumb to these scams is if an MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any money.


As discussed in this article ‘bitcoloan scam’, it is clear that bitcoloan is a Ponzi scheme which collapsed after the owners attained their investments targets. When a deal is too good think twice.

All in all, Bitcoloan had an attractive business model and features as cryptocurrency is, first and foremost, an investment asset, and selling it means forfeiting potential profits. When you use it as collateral, you protect your assets while also benefiting from them. However, the bitcoloan model is idealistic and impractical as there was no clear money-making venture (investment). It seems this was the company’s plan all along.

You will be better off doing your own research before getting involved with the crypto market. If possible, talk to your financial advisor if you intend to invest in the crypto market because if you get it right, the return could be worthwhile.

Before you leave

If you’re tired of scams and want a real solution for making money online check out my no.1 recommendation.

It’s helped me earn over $300,000 in the last 12 months alone:

Go here to see my no.1 recommendation for making money online

(This is a 100% free training)

Bitcoloan: Scam or Legit Crypto Lending? 16

David Fortune has been the editor since 2019. He is an expert at writing content on stock advisory services, side hustles, reviewing online business opportunities and many more topics. You can learn more about David on our about us page.

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