Investors and Borrowers on Xcoin Exchange

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xCoins is officially a peer-to-peer lending platform that connects bitcoin lenders and borrowers. Loans that originate on the platform are person to person. xCoins is merely the middleman that facilitates the transaction.

The California-based company allows users to get bitcoin through a “secured loan,” which can be paid for with any payment method recognized by PayPal. Unlike regular exchanges, borrowers can get their money back if they no longer want the bitcoin.

Lenders (Investors) can also join xCoins for free. If you decide to lend bitcoin, you can set your own interest rate, collect the loan origination fee and the PayPal processing fee. xCoins recommends that lenders set their interest rate fee at 15% to start.


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Banks Sell money in form of loans, they in return make money on the interest they charge on loans because that interest is higher than the interest rate a bank charges its borrowers. It will depends on both the number of people who want to borrow and the amount of money the has available to lend.
This is the exact way in which  investors are making money from Borrowers  who are transacting on the xcoin platform.  Until today it has been extremely hard to buy Bitcoins with PayPal due to the possibility of Chargeback. However Xcoin seems to have found a way around this. Instead of selling you Bitcoins, they are loaning you Bitcoins (Deposited by investors from across the globe). Each Investor’s account behaves like a bank.

How it Works:

As an Investor (Lender) you decide how much you are willing to loan in USD and deposit that amount inform of Bitcoin into your xcoin account. You will then set your own interest rate, 15% being the lowest rate.
(a)The Interest is way higher than what you will get on almost any bitcoin exchange
(b)The system will automatically match you with buyers (borrowers from across the globe) who will deposit money into your PayPal account.
© Investors Can Start with as little as $20

As a Buyer (Borrower) You will undergo a short verification process and will be requested to deposit the USD equivalent of how much you want to borrow plus credit card/ PayPal processing fees and a fixed amount that acts as the interest rate on the loan depending on the Investor (Lender) you are matched with.
(a)There is no ongoing Interest on the loan since the amount is a one time payment.
(b)  You can repay the loan at any time and get back your USD deposit minus the fees

However you need to keep this in mind, 

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. E.g. if you borrowed $100 when Bitcoin was $1000 you got 0.1 BTC (Excluding Fees).  Now Let’s say Bitcoin is at $2,000 – this means you will need to give back only 0.05BTC
2.       You have to contact the lender (Investor) directly to arrange paying the loan back.


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