Borrowing vs. Selling
Not tax or legal advice
This article is general information, not tax or legal advice. Tax treatment varies by country and personal circumstances — consult a qualified professional for your situation.
Selling Bitcoin generally realizes a capital gain or loss — a taxable event in most jurisdictions. Borrowing against your Bitcoin is generally different: you keep ownership of your BTC and receive loan proceeds, which in many jurisdictions is not treated as a sale.
Why Native Bitcoin Matters Here
Because Bitlendex uses native Bitcoin and never wraps your BTC into a token like WBTC, you avoid the wrap/unwrap step — which in many jurisdictions can itself be treated as a taxable disposal.
Interest you pay, and how loan proceeds are eventually used, can have their own tax implications. A professional can help you understand them.
Keep Good Records
- Your loan amount, date, and the BTC you posted as collateral.
- Interest accrued and fees paid over the life of the loan.
- Repayments and the date your collateral was released.
Your activity history and loan details provide these figures so you (or your accountant) have what you need at tax time.
Was this article helpful?