What is xCoins?
xCoins is officially a peer-to-peer lending platform that connects bitcoin lenders and borrowers. Loans that originate on the platform are person to person; xCoins is merely the middleman that facilitates the transaction.
The California-based company allows users to get bitcoin through a “secured loan,” which can be paid for with any payment method recognised by PayPal. Unlike regular exchanges, borrowers can get their money back if they no longer want the bitcoin.
Lenders can also join xCoins for free. If you decide to lend bitcoin, you can set your own interest rate, collect the loan origination fee and the PayPal processing fee. xCoins recommends that lenders set their interest rate fee at 15% to start.
xCoins has a detailed process in place for both lenders of bitcoin and those who want to borrow it.
- xCoins can be accessed through virtually any web browser.
What cryptocurrencies can I borrow/lend?
xCoins supports bitcoin only.
XCoins is available in over 40 countries. You can find the full country list after receiving your confirmation code upon signup.
Which payment methods are accepted?
xCoins supports all payment methods accepted by PayPal. This includes:
- Major credit cards: Visa, Mastercard, American Express and Discover
- Debit cards
- From bank accounts using the Automated Clearing House (ACH)
- PayPal Credit and Balance
How much will it cost me to use xCoins?
xCoins is free for lenders. Borrowers are subject to the following fees:
|PayPal processing fee||2.9% + $0.30 on top of loan amount and interest|
|Loan origination fee||5% of loan amount or higher, depending on lending volume|
|Transfer fee payable to bitcoin miner||0.00025 BTC|
How fast will my funds be available?
Transactions are instant for returning users. First-time users typically wait up to 3 hours if the transaction is entered between 8:00am and 6:00pm PST, or up to 12 hours if entered between 6:00pm and 8:00am PST.
Are there any transfer limits?
- Minimum loan amount: US$10
- Maximum loan amount: US$1,000
For example, if bitcoin is valued at US$4,000, the maximum amount you will be able to borrow is 0.25 BTC (US$1,000/US$4,000 = 0.25, or a quarter of a bitcoin).
Is it safe to use?
xCoins offers a two-factor authentication model, which means you’ll be asked for your email and phone number during registration. This protocol is generally considered to be secure and good for privacy.
However, the website was hacked in January 2017, raising significant concerns over security.
Inquiries made through the Help Desk are usually answered within 24 hours. For a quicker response, users are encouraged to include the transaction number.
xCoins also operates a transparent discussion forum, where users can leave their questions.
xCoins pros & cons
- Easy verification
- Good customer service and quick turnaround time
- Two-factor authentication
- Users receive bitcoin instantly upon paying the lender
- xCoins was hacked in January 2017, raising questions about its security
- Bad publicity during 2017
- Website lacks extensive features
- Maximum loan amount is low
Getting started with xCoins takes just a few minutes, however you need to consider the features before you sign up. Once you are confident that you are ready to buy, you can register and then use the website to find a bitcoin lender. First-time users should allocate at least half a day to receive their first order.
You should also carefully read through the website to get acquainted with xCoin’s peer-to-peer lending model. Although it works just like any exchange, it’s important to consider the subtleties when dealing with bitcoin.
Frequently asked questions
Image source: xCoins