xCoins.io is a platform that offers the possibility of buying or selling bitcoins using PayPal as a means of payment. In this review we will show you how effective it is and what advantages it offers compared to buying BTC directly from PayPal.
What is xCoins.io?
Main cover of xCoins.io Source: xCoins.io
xCoins.io is a P2P Bitcoin loan exchange market that offers payment methods such as: credit / debit cards, bank transfers and PayPal.
The funny thing is that, although it is defined as a loan exchange market (according to its website), and indeed, the concept of loans (lends) is very present within the platform, you are going to buy and sell BTC directly. This is because, when giving a loan in BTC in xCoins.io, there is an exchange of assets: you receive the USD as a lender and the other user the BTC as a borrower. The bitcoins traded are not stored in an escrow as in traditional loan platforms, where the funds are blocked until the borrower pays the debt, and to which the lender does not have access.
On the other hand, when you lend bitcoins within xCoins.io, you sell them at a minimum interest rate of 15% on the current value of the BTC in the market. You can vary the rate up to 30%. This means that you get 115% of its value in USD.
In case you are the buyer, you must pay the commission or interest rate of at least 15%, established by the lender, along with other internal commissions of xCoins.io.
How does xCoins.io work?
Steps to buy bitcoin at xCoins.io Source: xCoins.io
The platform takes care of matching lenders with borrowers. The lender is the one who sets the offer (Announcement) according to their conditions, setting the amount to be lent and the interest rate (minimum 15%), this being the percentage most used to achieve quick sales. Once the ad is published, the user will have to wait for the platform to match him with another user.
For his part, the borrower must create a search request with the amount to buy and the interest rate. The system will be in charge of finding the most suitable offer and will proceed to make the pairing.
When paying the loan, a direct link opens within PayPal. This in a way guarantees that the payment is made correctly, since the procedure is not executed externally, as occurs in P2P buying and selling portals such as Localbitcoins or Paxful, where the user provides their email and you must do manual procedure. In xCoins.io, when accepting the loan, a payment window opens from PayPal, in which you must log in, press pay and that’s it.
Payment window in PayPal to confirm purchase within xCoins.io. Source: PayPal.
What about PayPal disputes on xCoins.io?
This is a controversial point as to why PayPal is not considered a good payment processor, due to the ease of filing a dispute and requesting a refund. To counteract this, xCoins.io establishes in its terms and conditions that it is totally prohibited to make disputes. This is because there is no reason for a disagreement to be generated that leads to creating a dispute. xCoins.io guarantees that the bitcoins you buy always reach your account, since it is the platform that guards and transfers the BTC internally.
Obviously there are malicious users. In this case, xCoins.io puts at your disposal a series of instructions to face disputes, which include documents, generated and supported by the platform, which confirm that said exchange was successful and the user, who is claiming, did receive the BTC . Of course, the diputa is done from PayPal, but for this you have all the necessary documentation.
If you enter the details of a transaction, you will find Payment reversed (reversed payments) where you can obtain all the necessary documents to fight the dispute. Source: xCoins.io
It should be noted that every time you receive a dispute, USD 20 is deducted from your xCoins.io account as a precaution. Once the dispute is resolved, these are returned to your wallet at xCoins.io.
How safe is it to use PayPal at xCoins.io?
The risk of having a dispute exists, as it is part of PayPal and does not concern xCoins.io. Although, you have all the possible guarantees and documentation to avoid being scammed, allowing you to go to disputes with the least possible risk.
Other forms of payment at xCoins.io
In addition to payments with PayPal, xCoins.io allows you to use credit and debit cards, as well as deposits in your account by bank transfer, whose time for awarding funds is 24 hours. All deposits must be in USD, including the balance in PayPal.
Withdrawal of bitcoin to your wallet
Once you have made a successful purchase within xCoins.io, it is possible to make withdrawals to the Bitcoin wallet of your choice. For BTC withdrawals, the amount to be withdrawn must be greater than the mining commission, which at the time of writing is 0.0003 BTC approximately USD 12. This varies according to network congestion.
Where is xCoins.io available?
This platform is available worldwide, the only exceptions being Algeria, Iraq, Qatar, Bangladesh, Vietnam, Nepal, the United Arab Emirates and China.
Differences between buying bitcoins at xCoins.io and PayPal
In October 2020 PayPal announced that its payment services would accept the purchase and sale of Bitcoin, although not everything was as thought. First of all, you will not be able to deposit BTC from your wallet or withdraw the ones you buy within the platform. It will only be possible to exchange them with other users or merchants directly to their PayPal accounts. This makes the system basically work like a BTC backed IOU exchange. In contrast, xCoins.io uses PayPal as a means of payment only, that, when buying bitcoins, you can withdraw them without any problem to the wallet of your choice.
What is needed to use xCoins.io?
To use xCoins.io you will need to create an account with your email and verify your phone number via SMS. In addition, after registration, a KYC verification is mandatory, where you will be asked to upload a photo in which your face is clearly appreciated, holding an identity document and a paper with the current date and the name xCoins.io.
It is not necessary to have a PayPal account to use xCoins.io since you can buy and sell by other means of payment. However, if you wish to use a PayPal account, it must be 100% verified, that is, it must have an affiliated debit or credit card. Of course, within xCoins.io you can pay both with the affiliated card and with the PayPal account balance.
Commissions and limits in xCoins.io
Breakdown of commissions to be paid at the time a lender has been found. Source: xCoins.io
In xCoins.io in addition to the commission or interest rate of the lender, which ranges from 15% to 30% and is set by the user who creates the loan advertisement, borrowers must also pay the commissions of:
Commission for creation: it goes from 5% and varies according to the volume traded; the lower the volume, the higher the commission. PayPal Commission: This commission is direct from the payment platform and is 2.9% of the total to be paid plus USD 0.3.
Table of trade limits when buying or applying for a loan. Source: xCoins.io
The platform does not seem to establish exchange limits for selling, but for buying. In the previous image you can see the daily limit that you will have and that will increase according to the number of days you have been registered on the platform.
Security within xCoins.io
When you register, xCoins.io asks you to verify your phone number, which also serves as a means of two-factor authentication when registering. However, it is also possible to activate authentication via code generated by the Google Authenticator app.
Conclusions about xCoins.io
PayPal is perhaps one of the least popular payment methods in the P2P cryptocurrency exchange arena. This because of how easy it is to put a dispute and win it. If you have previously bought bitcoins with PayPal on any other P2P exchange platform, such as LocalBitcoins, Binance P2P or LocalCryptos, you will have experienced the situation that whoever sells you requires you to take a photo along with an identity document and a note where indicate that you are explicitly accepting that you have successfully received the BTC and that you will not apply a dispute.
Due to all this, PayPal is not well regarded among cryptocurrency users. However, within xCoins.io, the scope of security against disputes is fairly well preserved. Of course, you are not rid of them at all, but for this case, xCoins.io gives you everything you need to fight and win them.
Regarding usability, the interface is too simple. So much so that it can be confusing. For example, after creating a sale advertisement (loan), you can configure it to require certain minimum requirements that users must have when opening an offer with you, among which you can find: the minimum number of transactions carried out. When configuring this parameter, this is simply a drop-down list with numbers from 1 to 5 and that, within the form, it is not clearly established that it is the minimum number of transactions required. To understand what it was about, it was necessary to look for the platform documentation since it was not very clear.
In conclusion, is it safe to use xCoins.io to buy with PayPal? The answer is yes, thanks to its system of protection against disputes. On the other hand, if you are going to use xCoins.io to buy bitcoins, consider finding out the withdrawal fees before buying, as they can be quite high at times.