Today we’ll be reviewing Xcoins, which is a new peer-to-peer lending platform that was launched recently.
Buying bitcoins is risky business for everyone, especially due to the possibility of a chargeback. However, Xcoin claims to have found a way around this, since they loan you bitcoins instead of selling them to you. Here’s how it works:
Visit the site and select to “loan” some bitcoins. You’ll be asked to verify your ID and requested to deposit the USD equivalent of how much you’d like to borrow + credit card/ PayPal processing fees + a fixed amount that will be acting as the interest rate on the loan.
Fortunately, there is no ongoing interest on the loan since it is just a one-time payment. Usually, these fees go up to more than 20%.
Selling (or lending) Bitcoins on Xcoins
Xcoins even gives the option to lend bitcoins. You can decide how much you wish to loan in USD and deposit that amount in your Xcoins account. The system automatically matches you with suitable buyers and they will deposit money directly to your PayPal account.
In this scenario, you are lending .5 BTC. You would make 15% profit and Xcoins would make 10% profit.
Xcoins put the risk of the transaction on the lender that wants to make money from the premium. There is currently a 15% premium on the bitcoin lending as seen above. So as long as you get a fraudulent customer for less than 15% of the time, you’d end up with a profit.
Xcoins claims that they thoroughly screen all the people that want to buy bitcoins, to reduce the amount of fraud. Also, new users can only withdraw a limited amount of bitcoin and the limit only increases after the user develops a good reputation over time.
What are the benefits?
The main benefit for any seller is obviously to earn around 15% interest when selling bitcoin on the platform.
For the buyer, the advantage is that you don’t need to wire money to an exchange. You can get bitcoin instantly through PayPal or credit card by just paying a slightly higher premium.
What are the risks?
Once you turn over your bitcoins to the buyer, they can choose to challenge the PayPal transaction and unfortunate to the seller, PayPal almost always sides with the buyer. So, the buyer would end up with both the money and bitcoins and you’d be left with nothing else than remorse. This is why you get paid a premium.
Conclusion – Will I be using Xcoins?
Being a buyer: Xcoins still seems a little unstable to be used for large purchases since it is very new. Although, if the only way you can acquire bitcoins is through PayPal and you’re willing to pay the price, this might be a substitute to VirWox.
Being a seller: No one would want to risk being flagged by PayPal, thus I wouldn’t recommend this to others as well. However, if you want to try it out, go ahead and please share your experience with us right here in the comments section. We’d love to hear all about it!
In case you’re looking for other platforms where you can purchase Bitcoins, be sure to check out Wirex, VirWox, LocalBitcoins, Cryptonit and Paxful.
Enigma, a cryptocurrency investment platform was miserably hacked on August 21st, during their training for a crypto-token sale for their Initial coin (Ethereum, Bitcoin, etc.) offering (ICO). It was meant to be a method of raising capital using digital currencies. that would be launched on 11 September.
Unfortunately, the company’s website, slack accounts and mailing lists were overtaken by hackers. Furthermore, the website was changed and many fake emails and messages were sent to visitors and those interested, influencing them to deposit money.
It was reported by TechCrunch that the $500,000 worth of Ethereum currency stolen was not from the company alone, but the large Enigma community with their slack members, mailing list, and Ethereum exchange. That’s a shocker since the Enigma staff had imposed a strict warning that they would never request for money this way yet, a large amount of the digital currency was stolen.
Highlight The Security Errors:
When it comes to thinking how such an attack could be carried out, reports prove that there were some weak points like two-factor authentication missing from the affected channels. There must’ve been a leakage of at least one of the account passwords, which would lead to this.
The company has broadcasted temporary closing of its Slack channel.
Story Credits: siliconrepublic
Bitcoin selling is not that much simple as you buying bitcoin. But we are here to guide you to cash out your digital currency. When you are mentally prepared to sell your bitcoin, you have two options in front of you selling bitcoin online and selling bitcoin in person. You have to decide that which option you are going to choose because both options have advantages and disadvantages. Here we will discuss both options to clear your difficulty.
Online selling bitcoin
This is the most common option of trading your bitcoin. Which include the three ways of selling your bitcoins.
- Direct trade
- Exchange trade
- Peer to peer trading marketplaces
and then put an offer of sale. Sites alert you when a buyer will available and you can contact the buyer by using a website to complete your trade. Bitbargain and bootylicious are quite different so you have some patience.
In this way, you also have to verify yourself. You may not be going to trade with an individual but with an exchange. Where exchanges act intermediary who keeps’s everyone’s funds. You just need to place a sell order, amount and type of currency you want to sell, and per unit price you want to sell. As soon as buy order places, an exchange will complete the transaction and your desired currency will be credited to your account. The downside is if you are selling bitcoin for fiat currencies, you have to withdraw those funds to the bank. These are some difficulties you can face in future If you’ll make the wrong decision with bitcoins. So be careful while you are purchasing or selling the bitcoin. Circle, Kraken, and Bitstamp are some examples of crypto to fiat currency.
On the other side, you can use the currency directly in shops where bitcoin directly use or a bitcoin shop rarely accept lite coin and dogecoin. that’s the rare case if someone wants to use pure currency exchange to change bitcoin for another currency.
For exchange, BTC e-charges a flat 0.2%. but on the other hand, you must store on exchange for your future.
Trading in which site like brawler and purse combine the two or more groups of people to competes for their specific issues. In this process, the first group combines the group of people who wants to buy goods from sites which don’t accept digital currency directly. They want to be able to use bitcoin. And in second, there is that type of people who buy bitcoin with a credit or debit card. The marketplace combines the people of same requirements.
- Emi place her amazon wish list on marketplace
- Hash want to buy bitcoin by using his credit/debit card on the same rate place by Emi. So, he’ll accept the trade by using marketplace platform. And things were delivered to Emily’s place.
- Once the good delivered, hash’s bitcoin are released and arrive in his wallet.
In this system, hash pays an amount for service but easily able to attain bitcoin via bank card.
Withdrawing from your own funds
The worldwide way of moving money is international wire transfer. Most of the online bitcoin markets use this way also. But for the ease of the people, another way of transferring your money is single European payment areas. This SEPA was created to make international transfer between the member if European union more efficiently. e-support these payments.
Transfer take a long time and heavy charges of services. If you are going to open an account for this purpose you’ll face heavy refusal from banks. HSBC directly refused this guide accounts for bitcoin trading.
Your identification is necessary
Your identification is must when you are going to buying or selling the bitcoin. While you going to buy a bitcoin, there will be a small process of your identification but when you are going to sell your bitcoin, you must face different difficulties. So, while buying the bitcoin, you must complete your identification process. When you first enter, the site makes your identification clear by uploading at least two utility bills, your pic, id card to make your selling process easier.
When you are going to sell your bitcoins, you have to be aware of several things,
- You can use mobile phone application for the calculation of the rates.
- Worldwide meetup of bitcoins is existing. Where people easily trade the bitcoin and cryptocurrencies.
- Many use the same price as prominent bitcoin exchange or bitcoin desk.
- For the sake to cover costs, some seller applies the percentage on the top of the rate.
- Prices vary from country to country, so it will help you in local fluctuations.
- Keep yourself safe, so create your meeting in public places.
- There is a site, where you are can easily advertise yourself as a bitcoin seller.