3.5 out of 5 based on 7 reviews.Overall rating:
|Location||Santa Monica, USA|
|Features||Users “lend” out their bitcoins to buyers using PayPal|
|Trading Fees||PayPal fee (2.9%) + $0.30 on top of the loan amount and interest|
|Withdrawal Fees||Yes (depends on the withdrawal method)|
|Tradeable Coins||Bitcoin (BTC)|
- Service accepts PayPal and credit cards
- Referral program
- Simple verification
- The website was hacked in 2017
- There is a risk that PayPal block your account
- A lot of negative reviews around the web
xCoins is a California-based company and a pretty unique phenomenon on the cryptocurrency market. This service allows you to buy BTC with the help of your credit card or PayPal. Considering the fact, that getting cryptos with PayPal is a rare option, we believe that xCoins deserves your attention.
This platform works as a peer-to-peer service that helps buyers and sellers find each other and make deals. In a word, all operations are done between users personally and xCoins is just a mediator that administrates the transactions.
How it works?
Actually, buyers and sellers at xCoins are called “borrowers” and “lenders”. But don’t be afraid – this is because they use the only method supported by PayPal for BTC operations – “secured loan”. It also means that borrowers have the right to get their money back if they do not want their coins anymore.
As for lenders, they are welcome to work at xCoins for free. Lenders are able to set the rates and collect PayPal fees like processing fee and loan origination fee. The website recommends lenders to start at 15%.
The lending and borrowing processes are both pretty complicated. As a buyer, you have to register and verify an account first. Next step is making a USD deposit in an amount of coins you need + PayPal fees + additional percent.
Website owners claim that their fees are competitive, because they aim to give you the best interest rate. However, if you sign up and try to make a deal, you will see that a fixed rate is 15%, which is really high. In fact, most BTC exchanges have much lower fees.
Next, the website claims that borrowers can get their money back if they don’t want BTC anymore. From the first glance, this sounds good, however, let’s think more accurately. Remember that Bitcoin’s price grows constantly. If you borrowed one when the price for it was $1,000 and you got 0.1 BTC for $100 then you will have to give back more BTC if the price becomes higher with time. On the other hand, this may be a field for getting income, too. So think twice before jumping into a risky project like that.
If you want to lend BTC at xCoins, decide the amount you are willing to give away and deposit this sum to your personal account. There is no need for you to look for buyers yourself – the website will find and match them automatically. If everything turns, you will get the money right to your PayPal account as soon as the buyer makes a deposit.
- A great deal of payment methods is available: Mastercard, Visa, American Express, eCheck, debit cards, PayPal Credit and Balance, etc;
- Customers’ safety is ensured by two-factor authentication;
- Transactions are instant;
- xCoin is a pretty unique type of service.
- xCoins was hacked in 2017;
- You can only buy Bitcoins here – no other cryptos are available;
- There are no trading features or tools at xCoins;
- The maximum loan you can make here is very small;
- There are negative feedbacks on the web about xCoins.
We are not sure that xCoins is a stable platform, especially when it comes to large deals. Moreover, comparing to the other exchanges, fees at this site are too high. We recommend xCoins to those users, who have no other options to buy BTC except through PayPal and are ready to pay additional money for that operation.
As for sellers – offering BTC here may be a risky idea, because PayPal might shut your account down, which is a very sad scenario.