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xCoins Review – Is it Legit?

By: Ofir Beigel | Last updated: 1/21/21

xCoins.io (not to be confused with Xcoins.com) is a Bitcoin lending service that allows you to borrow or lend Bitcoins. In this review I’ll cover how the service works, its fees and my overall impression of it.

xCoins Review Summary

xCoins.io allows you to borrow or lend Bitcoins via PayPal, bank transfer, or a credit card. The site charges high fees and is sort of a workaround for the limited options available for buying Bitcoins with PayPal.

The company has been around since 2016, and while their service seems far from perfect they seem to be legit.

That’s xCoins in a nutshell. If you want a more detailed review keep on reading, here’s what I’ll cover:

  1. xCoins Overview
  2. xCoins Services
  3. xCoins Fees
  4. Supported Payment Methods
  5. Support and Online Reviews
  6. Conclusion

1. xCoins Overview

xCoins.io is a privately held company, founded on April 1, 2016, by Sergey Nikitin, headquartered in Santa Monica, United States. The company is relatively small with 4 registered employees.

There’s not a lot of information online about the company, aside from some sponsored press releases and articles, which have been removed by publications like Coindesk and Huffington Post.


2. xCoins Services

Until today it has been extremely hard to buy Bitcoins with Paypal, due to the possibility of a chargeback. However, xCoins have found a way around this.

Instead of selling you Bitcoins – they are loaning you Bitcoins (to an extent). Whether this is actually a loan or a sale is somewhat ambiguous and can be left for interpretation. Here’s how it works:

The buyer states how many Bitcoins he’d like to receive. After a short ID verification process, he is requested to deposit the USD equivalent of the borrowed amount + credit card / Paypal processing fees + a fixed amount that acts as the interest rate on the loan.

In fact, there is no ongoing interest on the loan since the amount is a one time payment. In most cases, these fees add up to around 20%.

The site’s FAQ states you can repay the loan at any time and get back your USD deposit minus the fees. However, you need to keep in mind two things:

  1. “all loan amounts are denominated in US dollars. You will need to return the amount of bitcoin equivalent to the amount you received in US dollars.” – This means that if you borrowed $1,000 when Bitcoin was $10,000 you got 0.1BTC (excluding fees for the sake of example). Now let’s say Bitcoin is at $20,000 – this means you will need to give back only 0.05BTC.
  2. “Please contact the lender directly to arrange paying the loan back.” – So basically you will need to trust someone whom you don’t know to respect this agreement and actually give you a refund.

You can also lend Bitcoins on xCoins. This is done by deciding how much you’re willing to lend in USD and deposit that amount into your xCoins account.

The system will then automatically match you with buyers (i.e. borrowers) and they will deposit money directly into your PayPal account.

I have not tried this method personally since I don’t want to get in trouble with PayPal in case a buyer files a dispute. However, several users online have reported that they have been generating nice returns through this method.


3. xCoins fees

The site claims to have competitive fees since lenders compete against each other, thus giving you the best possible interest rate.

When I signed up as a lender I was not able to set my interest rate and it was fixed at 15%, so I’m assuming that’s the lowest possible rate. This is way higher than what I will get on almost any other Bitcoin exchange.

More recently browsing as a buyer, I was offered interest rates of 10% (which comes in addition to a 3.5% origination fee and 2.9% PayPal processing fee).


4. Supported Payment Methods

xCoins supports the following payment methods:

  • Debit and credit cards
  • Bank account (ACH)
  • eCheck
  • PayPal Credit
  • PayPal Balance

5. Support and User Reviews

For support, you can email xCoins at [email protected]. Additionally, there’s a company phone number (+1-310-589-4556) and Physical Address (1541 Ocean Ave., Suite 200, Santa Monica, CA, 90401).

For some reason, xCoins’ page on BitTrust does not exist anymore. However, I was able to find a cached copy of it and dig through additional user reviews.

One of the most detailed reviews had the following statement:

Pros:

  • Easy sign up
  • Quick access to buy bitcoin with CC with PayPal
  • Any amount under $20, you would have no issues

Cons:

  • Any amount over $20, you can expect errors where you are charged but the buyer does not send the bitcoin, so you have to notify Xcoins support and PayPal.
  • The refund can take about a week or longer
  • This has happened numerous times with purchases over $20.
  • If you keep notifying their support that you have purchased bitcoin but have not received it from the lender then you can expect to be banned from buying bitcoin
  • They will eventually disable your ability to buy bitcoin even if you do not dispute the charges
  • Their support staff is not 24/7 or even business hours. If you submit an email to their support expect to wait at least 2 days at the least or longer.
  • If the lender does not release the coins that you purchase you will still be charged, requiring you to contact both PayPal and their support.

Of course, there are other good and bad reviews which you can read for yourself but I think this one was the most comprehensive one.

There are also a lot of reviews on TrustPilot (rated “Average”) and BitcoinTalk. Sometimes it may be hard to distinguish the honest reviews from the fake ones due to the xCoins affiliate program.

After reading through dozens of reviews I can say that the recurring theme is that xCoins works, however the process is risky for large amounts, their support takes 2 days or more to respond and the fees are extremely high.


6. Conclusion – Is xCoins Legit?

xCoins.io seems to be legit, however, it’s not necessarily the best choice for conducting business.

As a buyer (borrowers) – xCoins doesn’t seem stable enough at the moment to use for large purchases. Also, it seems that the fees will be extremely high compared to other cryptocurrency exchanges.

However, if the only way you can acquire Bitcoins is through PayPal and you’re willing to pay the price this might be a valid alternative to LocalBitcoins.

As a seller (lender) – Even though the ROI may be high I don’t want to risk being flagged by PayPal, so at the moment I can’t recommend this to anyone else as well.

If you don’t care if PayPal shuts down your account feel free to try your luck and I’d even appreciate if you can share your experience in the comment section below.

xCoins.io

6.8

Fees

6.2/10

Support

6.7/10

Reputation

7.5/10

Pros

  • Allows PayPal purchases of Bitcoin

Cons

  • No information about the company
  • Extremely high fees
  • May get you in trouble with PayPal

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66 comments on “Xcoins Review”

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  1. Xcoins funciona de verdad para latinoamerica a sido genial ademas la plataforma da garantia que se obtengan los bitcoins .
    **affiliate link removed**

    1. Hi Michael,

      Well, I see on their site that they claim to be the largest peer-to-peer Bitcoin exchange on the web. That is blatantly false, as LocalBitcoins is the biggest P2P exchange by far, followed by Paxful. I’ve never heard of Coinsfast.com and I doubt they’ve been around since 2013 as they claim – a search for their domain turned up no results.

      Based on these lies on their home page, I’d recommend that you avoid them. Marketing is one thing but blatant falsehood does not give me any confidence in their service.

  2. As a lender Xcoins is one of the smartest safest businesses you can run. The only thing is when you’re lending most of the time people don’t pay the entire loan amount you request, so you are left with a balance. So you have to always have bitcoin on hand and the money to buy it if you want to turn your lending into residual income. But it’s a great site. Really good site to use

  3. Hi Jason,

    Well, sorry to hear about your frustrating experience with Xcoins but thanks for sharing the info. It seems like an expensive and troublesome way to get bitcoins, especially if the verification fails.

    I suggest you try an alternative method. For a $20 test amount, I would suggest buying from a Bitcoin ATM if you have one near to you. See our Buying Guides section for more hints.

    If you suspect your identity may have been stolen, try searching for your emails on this site:

    https://haveibeenpwned.com/

    That’ll tell you if your email address and perhaps associated personal info has been sold by hackers who ripped it from a breached site.

  4. Patrick Maher

    I am terribly sorry that you had a sub par experience with our service. The information you provided us was flagged by one of our third party verification services for fraudulent data. For security reasons we cannot say exactly which piece of information was flagged. We have a comprehensive verification process in order to prevent any fraudulent users from defrauding our customers. Sorry for the inconvenience.

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