Xcoins Review – is it a Legit way of Buying Bitcoins?


Recently I’ve been hearing more and more about a service called Xcoins. The service describes itself as a “Bitcoin lending service” that allows you to get Bitcoins through the use of Paypal or a credit card.

Buying Bitcoins with Paypal through Xcoins

Until today it has been extremely hard to buy Bitcoins with Paypal due to the possibility of chargeback. However Xcoins claims to have found away 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:

You (the buyer), come to the site and say you want to “loan” some Bitcoins. After a short ID verification process you will be requested to deposit the USD equivalent of how much you want to borrow + 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 more than 20%.

xcoins - how does it work

I wasn’t able to actually purchase Bitcoins through Xcoins since they don’t support my country of residence however after looking around the site I’m left with a few questions.

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

Furthermore, the site says 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 thing:

  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.” (from the site’s FAQ). This means that if you borrowed $100 when Bitcoin was $1,000 you got 0.1BTC (excluding fees for the sake of example). Now let’s say Bitcoin is at $2,000 – this means you will need to give back only 0.05BTC.
  2. Please contact the lender directly to arrange paying the loan back.” (from the site’s FAQ). So basically you will need to trust someone whom you don’t know to respect this agreement and actually give you a refund.

Selling (or lending) Bitcoins on Xcoins

You can also lend Bitcoins on Xcoins. This is done by deciding how much you’re willing to loan in USD and depositing that amount into your Xcoins account. The system will then automatically match you with buyers (i.e. lenders) 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.

Online User reviews of Xcoins

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:

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

-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 than 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 of 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 Reddit and BitcoinTalk but sometimes it’s hard to distinguish the honest reviews from the fake ones due to Xcoins affiliate program.

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

Conclusion – Will I use Xcoins?

As a buyer – 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 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 Virwox.

As a seller – 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.

In any case make sure to read the FAQ on the site before getting started. Good luck!

Ofir Beigel

Owner at 99 Coins ltd.
Blogger and owner of 99Bitcoins. I've been dealing with Bitcoin since the beginning of 2013 and it taught me a lesson in finance that I couldn't get anywhere else on the planet. I'm not a techie, I don't understand "Hashes" and "Protocols", I designed this website with people like myself in mind. My expertise is online marketing and I've dedicated a large portion of 99Bitcoins to Bitcoin marketing.


  1. john kennedy on

    Ive been around bitcoin and crypto currency for awhile, but most of my friends are scared to set up accts with places like Coinbase or Gemini. They would never understand how to use Local Bitcoins or Paxful and have very few ways to actually “buy” bitcoins

    I see X-Coin as being a way for Noobs to get involved with crypto for under $50 and begin to learn how to buy, exchange and sell– I personally just set up an account to “lend” and will see how it goes

    If they can get their stuff together, I think they have found a unique nitch for the new bitcoin enthusiasts

    • Ofir Beigel on

      By summing up the different features in an easy to read article and going through doznes of online reviews. In any case I didn’t give a score for Xcoins exactly because I didn’t have a first hand experience with them. Hope this clears things up.

  2. THIS WEBSITE IS A COMPLETE SCAM! THEIR CUSTOMER SERVICE SUCKS! You cant get in touch with anyone when you need them (they dont respond to your calls and emails). And what kind of company is that when they have one person handling all the phone or email issues – fucking Michelle!
    I used to be a customer for a long time, buying smaller amounts from time to time. First time I bought high amount here (almost 1K), my bitcoins disappeared from my account!! WTF?! They didnt even care to look into it!! Now when I try to get in touch with them, to solve the issue, they dont respond my emails and phone calls! fuckung scammers! took my money and they dont give a shit! I now what should I do, who do I go to?! Where to find this fucking scammers so I can suck their blood like they did mine! Dont trust them! because first issue you get – they disappear and dont exist for you! DONT TRUST XCOINS!!! BUNCH OF SCAMMERS PRETENDING TO BE A BIG COMPANY!

    • Nikola,

      I am going to ignore all the expletives.

      I located your account and saw that you issued a chargeback. Your post is completely false and inaccurate. We would appreciate if you refrained from any further defamation, or we will be forced to take a legal action.

  3. If you absolutely want your ACCOUNT FROZEN BY PAYPAL, then go for it. I have 10k sitting for 180 days that I can no longer touch thanks to LENDING ON XCOIN. Paypal froze it as a violation of their terms of service for acting as a currency exchange. Lend, sell, it don’t matter. PAYPAL WILL FREEZE AND PERMANENTLY CLOSE YOUR ACCOUNT.

  4. As an investor I have noticed I am able to create a relatively reliable income stream. Fair warning is that it is not without some risk and exposure. There will always be idiots that try and charge back but that is the cost of doing business and with the contract set up paypal tends to rule in your favor. That said give it a try. For bitcoin buyers, its quick, its easy and allows you to get bitcoin with a variety of payment methods. Sure there is a premium attached, but with the price of bitcoin on the rise and the ability to have it instantly that is just the cost of convenience.

  5. Not great for investors as you will get burned on occasion and customer service is not existent. I would suggest going elsewhere if you are looking to make coin with your coin as you can be exposed to much more risk than just charge backs…

  6. jason barwick on

    seems like all the good reviews are from xcoin employees, i just checked it out and to get 40.00 usd of bitcoins was going to cost me 51.00 with a debit card. seems kinda steep to me.

  7. Todd Parke on

    hey Orif,
    Thank you for the review, i dont agree with your conclusions but thats ok. Im not reply to slash you or yourr review. i just want to give my experiences with xcoins. I have been using them for all my bit coin purchases for the majority of my time since becoming involve with bitcoin so almost a year. I dont purchase huge amounts of at a time since im a port working man. In the year that i have used tbis service i have made purchases of bitcoins about 24 times the amount purchased is ussually in the $40 dollar range with my largest being $500. Of those 24 purchases i have always recievied my coin nearly instantly ussualy 2 min or less, only once did it take 5 min . im not sure what the reviewer that wrote the review you included in yours was doing that was causing so many issues but xcoins system is set in such a way that the seller cant not give you the coin. As you said in your review when you lend you have to deposit your coin into the sytem. When the buyer agrees to the price and amount the lenders bit coins are locked they cant touch that amount for i believe 30- 60 minutes . only once the buyer submits payment or cancels the transaction are the bitcoins released on sale to the buyer. where on cancel the seller still doesnt have access for about 15 minutes just to make sure that there isnt an issue. now granted ive always purchased using my paypal and credit card so other forms of payment are outside my expertise. i really like xcoins they are abit expensive with the 15 percent added and fees but compared to local bitcoins and other ways of purchasing bitcoin on the fly can getvyou scammed i am very satisfied. i have many more sales that purchases but that due to the fact that most purchases are ussually 30 dollars or less in my experience but so far i have only had to refund twice and those were my fault. The risk is always there when you sell by credit card and paypal but my charge backs were due to impatience on my part. when sell coin on xcoins the system will either auto complete and you dont havd to do anything other times you will have to capture the finds in paypal not sure what causes the difference but if you have to capture the funds from the sale xcoins will tell you when to do so. if you do so early its at your risk. i think the part about the refund is ridiculous but im zure its to add saleiblity or to reduce charge backs . One last thing this is in response to the changing the ray of interest that is possible but creating offers from their lending dash board, there you set the amount range of loan amount , the interest rate and the rating your willing to lend to of the borrower but you were correct that the default is 15 %. one last tidbit of info if anyone does decide to borrow from xcoins when you get to the offer screen and it lists the fees and charges if is to hi say over 20 % dont just pay it or grt mad and quit just back step and resubmitt for new loan any you get a totally different loan amount which should come back at standard 15 % plus fees. # thank you for letting me share i hope it was informative and i again wish to thank you for review

    • Zsofia - 99Bitcoins support on

      Hi Todd, I edited the end of your comment, thanks for sharing your experiences with Xcoin.

  8. Mike Hendley on

    Hi Erez,

    You are not required to use PayPal to work with us as a lender. You are given a choice in payment processors at signup. Also, the vast majority of our lenders use PayPal with no problems.

    We also have a profit margin guarantee program, which ensures that all of our lenders make money. In other words, if you get a chargeback and your profit drops below 50%, we reimburse you out of our pocket (with some limitations). I am not aware of any other website or financial instrument that offers something like that.

    Feel free to reach out to me at mhendley@xcoins.io. I will be happy to walk you through the process.

    • Ricardo Morales on

      I have been using xcoins for over a month. Below are a rundown of what I have loaned on xcoins. Now today I received an email from paypal forcing me to sing off an affidavit stating that I will no longer use my paypal account to sell bitcoins. This is driving me crazy because there are 4 thousand held in there and I can’t take it out. The department that sent me the email is compliance and they can only be reached by email. I do not trust Solid Trust Pay so unless you guys find another way to get us lenders our money, despite how much I loved the concept, I won’t be lending or signing- up people to sell bitcoins on xcoins.io

      Lending volume $10,426.19 100.00%
      Interest fees $1,466.43 14.06%
      PayPal reversals $-650.00 -6.23%
      PayPal reversal fees $-60.00 -0.58%
      Refunds $607.12 5.82%
      Net profit $1,363.55 13.08%

  9. Mike Hendley on

    Hi Ofir,

    Thank you posting a review of our site. I am Mike Hendley, xCoins customer relations manager. I would also like to add that we no longer work with just PayPal for accepting payments. Now, our lenders can use an alternative payment processor without any risk of account shutdown.

    We have also recently launched a new service (available in some states) that allows receiving bitcoin for only 1.5%. Yes, only 1.5%!

    And, of course, we have been improving our services over time (some of the reviews are kind of dated). Users can get up $1,000 worth of BTC at once with no problems. Our customer support should be much quicker now that I’m here too :)

    • claudia zunker on

      Hello Mike Hendley,
      I would very much like to become part of Xcoin but am not willing to risk it through PayPal, I do not live in the US, but would like to know what this new service is, please.

  10. What I do is use a PayPal Debit card on Coinbase to purchase Bitcoin. It’s the easiest method thus far for buying Bitcoin with PayPal.

    • Ofir Beigel on

      Yeah that should work as well. However if you live outside of the states you can’t get the Paypal debit card.

  11. Toda. Ofir. Nice read. Sound like a bad idea overall. I think you at risk of having your PayPal account suspended.

    • Anthony Amalokwu on

      I have lended via xcoins for over 4 months, had PayPal disputes resolved, even when a buyer claimed his account was used without permission and tried to keep my btc and dollars, it was easily resolved to my favour by PayPal with documented evidence from xcoins.
      Xcoin is wonderful, the only challenge is that they don’t allow buyers from Nigeria and so many other countries.
      I will continue lending until one day Nigerians will be able to buy btc from xcoins

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