What is a secured loan?
A secured loan is a loan in which the borrower pledges something as collateral for the loan. An example of a secured loan is mortgage or a car loan. In our case, the borrower gives to the lender an amount of money to hold as collateral for the loan he or she receives in bitcoin.
Why a secured loan is better than exchange?
Bitcoin transactions are irreversible like cash. In contrast, credit card, debit card, and PayPal payments can all be reversed. To protect themselves from chargebacks, exchanges make clients wait for several days to get bitcoin, not allow credit card payments, set low limits on trades, or often, do all of the above.
Secure lending solves this problem by giving bitcoin as a loan. There is no waiting period to get bitcoin, and borrowers can pay for the security deposit and fees with their favorite payment method.
How does your peer-to-peer platform work?
At xCoins, any user can be a borrower or a lender. When a borrower requests a bitcoin loan, the platform matches the borrower with a lender. The process is automatic and seamless. No communication between the borrower and the lender is required. The borrower makes a payment directly to the lender on the lender's PayPal payment page. After the payment is made, bitcoin is automatically transferred to the borrower's wallet.
How much does it cost?
The interest fee for a loan is paid as a one-time payment together with the loan security deposit. The interest payment amount does not depend on the loan term.
Lenders decide what interest rates to offer to borrowers. When you enter the loan amount and click "Get Bitcoin", xCoins fetches the best offers matching the amount you requested. Out of all available offers, the system displays the one with the lowest interest fee. Because only one offer is displayed for each amount, lenders compete with each other to offer the lowest interest rates to you.
In addition to the interest fee, the borrower also pays the loan origination and payment processing or bank transfer fees.
How long does it take?
The loan transaction is instant for return borrowers. As soon as you make the payment for the security deposit and fees, you receive bitcoin in your xCoins wallet immediately.
If you are a first-time borrower, please allow time for transaction approval. The approval time is usually a few minutes, but can be up to 3 hours, if entered during the hours of 8:00 am – 6:00 pm PST or up to 12 hours, if entered during the hours of 6:00 pm – 8:00 am PST. All subsequent transactions are instant.
What payment methods do you accept?
We accept all payment methods currently accepted by PayPal:
- Major credit cards: Visa, MasterCard, American Express, and Discover
- Debit cards
- Bank account (ACH)
- PayPal Credit
- PayPal Balance
Do I need a PayPal account to use your system?
You do NOT need to have a PayPal account to use the system, if you are a borrower. We only accept lenders with verified PayPal accounts. You can pay without having an account or signing up for a PayPal account yourself. If PayPal asks you to create an account, please contact our support.
To pay without a PayPal account, select Pay with a debit or credit card, or PayPal Credit on the PayPal payment page. It is the second payment option on the screen.
When do I need to repay the loan back?
The loan is paid back in a lump sum at your convenience. For example, you borrowed bitcoin at xCoins and used it for your needs. A few days, weeks, or months later you obtained bitcoin elsewhere and decided to repay the loan back to the lender. You can contact the lender at that time and repay the loan. You will receive your deposited funds back less fees.
What happens, if I do not repay the loan?
It you do not repay the loan back to the lender, the lender will keep the funds you deposited as collateral, until you repay the loan.
What happens, if bitcoin price changes?
Because of bitcoin price volatility, 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.
I received bitcoin in my xCoins wallet. What do I do now?
xCoins wallet is a regular full-featured bitcoin wallet. You can withdraw your bitcoin and spend it on anything you like. To withdraw your bitcoin, click on "My Wallet" in the main menu and select "Withdraw Bitcoin."
I received a message "No lenders are available." What should I do?
Every once in a while, there may be no lenders available to lend a certain amount of bitcoin. Instead of being redirected to the payment page, you will receive this message. In this case, you can try again later. Simply click on your transaction on your "Activity" screen. The program will attempt to find a new lender for you.
You can also try lowering your transaction amount. Consider getting two loans of $50 each instead of one for $100. The lower your loan amount, the more lenders are available to fund it.
To whom am I making the payment, when I am using xCoins?
You are paying the loan security deposit and the loan fees directly to the lender. As the last step of the checkout process, you will be redirected to the lender's PayPal page, where you will make the payment. It is completely safe. There is no risk of losing your money, as the corresponding bitcoin amount has already been reserved for you.
What if I send money to the lender, but the lender does not give me bitcoin?
This situation is not possible at xCoins. The platform will only match you with a lender, who has sufficient balance in his or her xCoins wallet to fund your transaction. As soon as the lender is selected, the bitcoin is reserved. Once you make the PayPal payment to the lender, the bitcoin is moved from the lender's wallet to your wallet. The process is automatic. It does not require lender's participation and does not depend on the lender.
What is the procedure for paying the loan back?
Please contact the lender directly to arrange paying the loan back. You will need to transfer the amount of bitcoin back to his or her bitcoin wallet. After that, he or she will make a payment to your PayPal account. If you do not have a PayPal account, you may arrange a different method of payment. Please keep in mind that the borrower is responsible for all payment processing and bank transfer fees.
How can I confirm that my bitcoin was really sent?
Click on the transaction status icon in your Activity screen to view transaction details. The "Blockchain Data" section contains the blockchain transaction data. If the "Confirmations" number is 1 or greater, that means that at least one other bitcoin node confirmed your transaction.
You may also click on the transaction "Tx code" to view the detailed confirmation information from a third party source. Use that page, if you need a proof of payment for the intended recipient.
Note, depending on the block chain performance, bitcoin transfers can take 10 – 40 minutes.
What is your refund policy?
You may request a refund at any time from the lender (you are paying directly to the lender). The lender will issue a refund for the full amount less the loan interest, loan origination fee, and payment processing fees. To request a refund, please contact the lender directly. You will need to transfer the amount of bitcoin back to his or her bitcoin wallet.