Xcoins is a Bitcoin lending service. It allows you to buy bitcoin with a credit card or PayPal. Lately, there has been too much talk about Xcoins and whether is it legit to buy bitcoins with this service.
In this article, we have discussed all the aspects of Xcoins to help you understand the concept of the service, and whether it is legit to buy bitcoins through Xcoins.
Buying Bitcoin with PayPal Through Xcoins:
Due to the possibility of chargeback fraud – and the lack of support for Bitcoin from PayPal itself, it’s extremely hard to buy bitcoins with PayPal. Xcoins, on the other hand, have exploited this problem and claim to have found a solution in which the coins are loaned instead of getting sold to the clients.
In order to buy bitcoins through Xcoins, the users go to the site where they do an ID verification. After the verification process, they’ll be required to deposit:
- USD equivalent to how much they want to borrow
- PayPal/credit card processing fees
- A fixed amount that acts as the interest on the loan
The site claims to have competitive fees due to their lenders competing against each other for the best possible rate. However, in most cases, the interest rate is fixed at 15% - which could possibly be the lowest interest rate offered by Xcoins. Interestingly, it’s still way higher than what most Bitcoin exchanges offer.
Trading Bitcoins on Xcoins:
Xcoins is not just a buying service – you can also sell/lend coins on the site. To do so, you must decide how much you are willing to loan, and then deposit the amount into your Xcoins account. The amount must be in USD.
Once the deposit is made, the system will automatically direct you to the buyers and they will deposit the money directly into your PayPal account.
Pros and Cons of Xcoins:
The major pros and cons of Xcoins include:
- The quick purchase of Bitcoin either through Credit Card or PayPal.
- Easy sign-up.
- Slow refunds – can take up to a week or longer.
- Support staff is not active – even on working days. If you send them an email, expect the response to come in at least two days.
- Constant complaining to their Support can result in a permanent ban.
- If you do not dispute your charges, they will disable your ability to buy bitcoins.
- If you purchased some coins but the lender is not willing to release them, you will still be charged.
From buyer’s perspective - Xcoins isn’t stable enough for large purchases. Also, the fees are extremely high in comparison to other exchanges. However, if your only option to buy Bitcoin is PayPal, then Xcoins is the way to go.