In the old days (you know, 2015 or so), there simply weren’t that many ways to buy Bitcoin. Most of us were limited to sites like Coinbase or LocalBitcoins, each with their own pros and cons. Generally speaking, however, these limited options just weren’t that convenient. LocalBitcoins could cost an arm and a leg, with a service less than user-friendly, and Coinbase coin take ages to give you your coins after you had already spent your money.
Today, things are much more convenient. Not only are Coinbase and LocalBitcoins far from the only Bitcoin sellers on the block, there are now much faster ways to buy Bitcoin. Furthermore, even if you don’t have all the cash you need to buy Bitcoin, there are options (like the exchange/platform we’ll be talking about today) that can help you out in your time of need. We’re talking, of course, about XCoins.io.
What is Xcoins.io?
Not to be mistaken for Xcoins.com, Xcoins.io is an interesting Bitcoin seller, which provides near instant access to new Bitcoins, as well as the opportunity to borrow and lend for Bitcoins. There are few places on the web we’re aware of that introduce this lending feature. We’ll go into much great detail throughout the rest of this Xcoins.io review.
Is There an Xcoins.io Scam?
If you search for Xcoins.io on Google, you’ll quickly come across a number of people who talk about a Xcoins.io scam. And while it’s easy to throw around accusations about interesting economic models in the Bitcoin exchange universe, we find Xcoins.io legit claims to be credible. In short, there doesn’t seem to be a reason to think this Xcoins.io scam is real. Xcoins simply does what it says it does.
Lending and Borrowing Bitcoin on Xcoins.io
Welcome to the second half of this Xcoins.io review. You’ve already learned how to buy Bitcoin with Paypal or Credit Card through Xcoins.io, but we haven’t really scratched the surface of the interesting lending/borrowing option built into the Xcoins.io system.
Why Does Xcoins.io Allow Lending and Borrowing Anyway?
No matter the action on the site, Xcoins.io makes a little money in Xcoins.io fees. This is true for buying Bitcoin the conventional way, as it is with all exchanges, but Xcoins.io has found another way to make money while adding value to the end user by offering a lending and borrowing platform through the site.
The lending and borrowing that goes on on Xcoin.io is strictly Peer to Peer (P2P). Lenders put up Bitcoins that they wish to lend out with the hope of making a tidy profit, while borrowers who don’t have the money to buy all of the Bitcoin they would like can borrow this offered Bitcoin loan, and pay it back later plus interest and fees.
Borrowing on the Xcoins.io Platform
If you want to buy Bitcoin but don’t have enough money to but as much as you would like Xcoins.io is for you. Borrowing (especially borrowing in order to invest) is always a risky proposition, but because of Bitcoin’s meteoric rise over the past several years, this option has worked out very well for thousands of Xcoins.io borrowers.
First of all, the would-be lender deposits some money to their Xcoins.io wallet. You can’t just borrow Bitcoin through Xcoins.io without putting down some collateral. This is called a “secured loan”. There are examples of secured loans in every type of financial industry sector. In addition, the borrower will commit to pay interest.
The borrower looks through a list of all of the active loan offers in the Xcoins.io platform. When they see one in the amount desired, and at a good rate of interest, they can lock in their collateral and get the Bitcoin on loan. The new borrower can pay back the loan at their convenience or at the rate identified in the loan. If they don’t repay, they lose their collateral.
The Pros and Cons of Xcoins.io
Xcoins.io is a strong platform that offers Bitcoin buyers speed and convenience of purchase, plus a solid lending and borrowing platform. It does, as they say, what it says on the tin. Because we like this project, we’ll start with the cons and then get into the pros, of which there are a greater number.
Cons of Using Xcoins.io
- Expense. Xcoins.io will charge more than exchanges like Coinbase, because they offer greater convenience. Borrowers who use the service will pay more than the cost of a single Bitcoin order, because of the fees and interest. This, of course, is no surprise to any user and is simply how this kind of lending works.
- No Xcoins.io app. For mobile users, Xcoins.io can be slightly inconvenient.
Pros of Using Xcoins.io
- Instant access to Bitcoins. If you buy on Xcoins.io, you’ll have your Bitcoins in minutes.
- Getting to use fiat dollars to buy Bitcoin. Most exchanges don’t accept US Dollars, making it difficult for new traders to get into cryptocurrency ownership. Xcoins.io solves this problem by accepting common payment methods like credit card and Paypal.
- Passive profit. Lenders get to stake their Bitcoins and earn interest and fees that they wouldn’t have if there coins were simply sitting in a private wallet.
- Access. People who can’t afford a large Bitcoin order will be able to get Bitcoin, then pay it back at their leisure.
- An Effective Futures Market. People borrowing Bitcoin and paying it back when they can are basically buying a futures contract of sorts, one which will be profitable in the situation where future Bitcoin is worth more than it is worth today, hence making the borrowing process worth it. As already stated, Bitcoin’s long term upward trajectory have created many opportunities like this over the past several years.
Final Thoughts on Xcoins.io
Xcoins.io is a very convenient way to buy Bitcoin. But apart from that, it also provides a unique opportunity for Bitcoin owners to lend out their Bitcoin for profit, and for people who can’t afford to buy as much Bitcoin as they would like to borrow Bitcoin and pay it back as they are able.
New users should well understand this model and its demands before putting in their money, but it’s important to understand that Xcoins.io is legit and that their business practices are totally above board. If you’re curious, try it for yourself and see how your results go. We’d love to hear about it!