How to Sign Up on xCoins
The service is extremely user friendly and intuitive. You may have to go through a few screens but the signing up process is quite straightforward.
You need to activate the two-factor authentication by providing your phone number, and you are required to copy another confirmation code sent through SMS this time to confirm your account.
How to Buy
Since xCoins is delivering a workaround a problem, its buying procedure is a bit different as well. Here are the steps you need to follow.
1. Determine and inform xCoins how many bitcoin you want
2. Go through the identity verification process
3. Pay the price which constitutes of USD equivalent of loaned bitcoins, processing fee, and a fixed one-time interest payment.
4. The cryptocurrency exchange, or lender will send bitcoins in your account.
On the website, xCoins states that you can get back your money apart from the processing fees by returning the bitcoins. You can also lend bitcoins on the platform to other buyers or borrowers. The service will act as an agent between you and the traders who are interested.
Supported Payment Methods
Since the service is all about getting around the PayPal hurdle, there aren’t many payment methods. However, you will find some of the regular ones here.
• Credit/Debit Cards by MasterCard, American Express, Visa and Discover
• PayPal Credit
• PayPal Balance
• US Bank Account (ACH)
Lenders are required to have a verified PayPal account, however there’s no such condition for the borrower. All of the above-mentioned modes are supported by PayPal.
Fees & Transaction Charges
Buying or borrowing bitcoins on xCoins is fairly expensive. You don’t only have to pay the equivalent price in USD but transaction processing fees as well as a fixed interest rate.
• Bitcoin buyers or borrowers have to pay interest on their loan. This is paid when you’re depositing loan security through PayPal or the credit card. Lenders have fixed interest rates and they have nothing to do with the tenure of the loan. It’s just a one-time payment. Naturally, lenders are in competition that is why a borrower usually be sent to a lender who is offering the lowest interest rate.
• As a buyer or borrower, you are also required to pay the loan origination fee and transaction charges.
• If there’s any bank transfer fee, you will have to pay that as well.
The minimum and maximum values of bitcoin you can buy in a single transaction is $20 and $100 respectively. The upper limit increases with your seniority on the platform. After two weeks, you can buy up to $250 worth of bitcoins, after 30 days the limit goes up to $500, after 60 days it raises the ceiling to $750 and once you’ve completed 3 months on the platform, you can buy up to $1,000 in bitcoins.
Security and Safety
The cryptocurrency exchange uses multiple steps to ensure that bitcoins owned by lenders and sellers stay secure in their wallets. The security measures include the following:
• Two Factor Authentication – Borrowers and lenders are required to sign up for 2FA. You can only log in by entering the passcode received through a call or SMS. This step can also be done through Google Authenticator.
• IP Verification – XCoins also verifies the users of its platform through IP verification. If a user logs in from a different network or a device, they are required to confirm their identity using the email they provided during the sign-up process.
• KYC Policy – The platform has a strict Know Your Customer (KYC) due diligence initiatives in place to ensure safe and secure dealings on the platform.
|Pros of xCoins||Cons of xCoins|
|• Very user-friendly, intuitive interface||• Transactions can be slow|
|• Purchase bitcoin with PayPal||• Costly! Price+Fee+Interest|
|• Peer to peer lending service||• Lack of cold wallet storage|
|• Borrow bitcoins using credit card||• Long wait for refunds|