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

Last updated on May 15th, 2017 at 03:07 pm

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:

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 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.

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40 Comments on "Xcoins Review – is it a Legit way of Buying Bitcoins?"

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Joe Pace
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Joe Pace
Their customer support is worst then anything. This system ate my money!! Let me share you the story! I have started a lending but for the verification it wasn’t successful. But my papal was debited. Since then i was trying to contact with them. what they said is : It shows that your Transaction was rejected by the system. However, Paypal has still processed the payment by mistake. We have already sent a notification to the Lender to refund your money back. Please allow a few more days for the Lender to process the refund. Should you not receive any… Read more »
M. Tuhin
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M. Tuhin
Scam Alert!! Scam Alert!! Scam Alert!! Their customer support is worst then anything. This system ate my money!! Let me share you the story! I have started a lending but for the verification it wasn’t successful. But my papal was debited. Since then i was trying to contact with them. what they said is : It shows that your Transaction was rejected by the system. However, Paypal has still processed the payment by mistake. We have already sent a notification to the Lender to refund your money back. Please allow a few more days for the Lender to process the… Read more »
Darius
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Darius
Firstly I would like to say that customer service is virtually non existent. If you face a problem, get ready for minimum 4 weeks of waiting. I decided to send some bitcoins there to make a profit. Some guy sent me a money on my paypal, xCoins messaged me it’s safe to send him bitcoins he paid for. Then guy reversed the transaction. Paypal would not do anything about it even though I had person picture and ID! xCoins have a policy that if you loose more than certain amount, they will give you your money back.. It’s rubbish, I… Read more »
xCoins
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xCoins

Hi Darius,

Sorry you had a bad experience. Our business has tens of thousands of happy lenders, and some have increased their wealth drastically. We have strengthened our verification methods, and we also have a 50% profit margin guarantee, which means that if your profit margin ever falls below 50%, we will reimburse you back to 50% profit margin.

1world
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Member
1world

WOW 20% FEES ~~F#[email protected] me~~ in my opinion it doesn’t matter if EVERY transaction comes off with out a hitch and they bring me coffee and donuts wail i wait 20% REALLY ???

xCoins
Guest
Member
xCoins

Hi

1world,

Our fees are competitive . Our platform is attractive to our users because of our automation, speed of service, and convenience.

Earnest J.
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Member
Earnest J.

xcoins has made me $8000 since January. I don’t know how people have issues with it , maybe they are not good with technology?

Braden R
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Member
Braden R

What do you charge per loan? I started at 15% yesterday and now I charge 18%. I can’t get enough bitcoin into my account and it’s gone within hours. Made 700USD since yesterday. Love Xcoins.

Brian
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Member
Brian

I’ve bought over $500 of Bitcoin and everything works fine, no issues so far. I used promo code to get discounted fees, so in the end it is very cheap.

Anthony L Pape
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Anthony L Pape
Yes it’s a scam site. I guess I just had to try it for $10. But don’t waste your time. learn from the people that got scammed. Every positive review must be written by the company. First they will ask for ID verification over and over again. Meanwhile bitcoin is dropping. I’m sure if it went up I would have gotten a cancelled transaction message. Coinbase is legit and when I told them I tried this place they set my instant buy limit on my debit card to $6,000! I only asked to get to $1,000. Coinbase charges $5.00 for… Read more »
xCoins
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Member
xCoins

Anthony,

xCoins members have been making a great deal of profit since our inception, and we have a lot of very happy customers.

Here is a video a user did showing proof of how it works: https://www.youtube.com/watch?v=ZOTF7hQq51I

no name
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Member
no name

so i bought coins off of here and they never got sent to me. wanna know why? i need to verify my phone number. so i go to verify my phone number and it says its going to send me a text with a confirmation number. so i wait and wait and wait…. nothing. i never got any text messege. i tried again just to make sure i didnt accidently type in the wrong phone number .. still nothing, i tried a few times! so now im out 100$ and customer service is not responding to me.

john kennedy
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john kennedy
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… Read more »
Anonymous
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Anonymous

How can you review something if you don’t even use it?