xCoins.io

[Adrianax]

Anyone ever thought of doing this, or better question, anyone having some feedback on this? www.xcoins.io

Update: Okay, I can confirm that xCoins.io is a small operation and they are running some elaborate scam system.

The company is running some idea of 'borrowing' bitcoins in return for credit card or Paypal money. They think this is a measure they can bypass Paypal. They can't. If Paypal learns it was for Bitcoin payments, both the lender and buyers' accounts are frozen permanently. After 180 days you will be able to get your money out of Paypal.

If you buy Bitcoins through them, a certain number of transactions are 'declined' by them and they hope you will not report the incident. They will tell you to wait 7-45 days for a refund, but in most cases they do not give the refunds or the Bitcoins. In a small number of transactions they do actually trade Bitcoins.

Most lenders never get the promised profits and the company comes with all sorts of excuses on public boards about changing bitcoin prices, etc., influencing the amounts.

Over and above all a simple $20 purchase ends up costing $32 if you buy through them and transfer the Bitcoins to another wallet.

So beware!

 

[saor]

Thought of doing what?
Not really sure what you're asking.

Anyway I'd rather just use the well-known CEX.io for buying with a card.

 

[Adrianax]

Thought of doing what?
Not really sure what you're asking.

Anyway I'd rather just use the well-known CEX.io for buying with a card.

They are some sort of online marketplace where you can buy BC with credit card or Paypal, but you can also sell, set your commission, etc.

 

[airborne]

I thought most of the crypto exchanges didn't offer PayPal as a payment option?

 

[Adrianax]

I thought most of the crypto exchanges didn't offer PayPal as a payment option?

I am busy doing some reading.

The bit I am finding is that it seems they are trying to find a way to bypass Paypal restrictions by saying people are 'borrowing' bitcoins and then makes Paypal payments directly to your Paypal account.

I see a lot of dangers here, especially getting your Paypal account banned.

Also, seems on their forum there are some complaints that you cannot withdraw your Bitcoins once in their wallet.

 

[saor]

I'm sure you'll pay a premium for paypal.

Again - CEX.io works for credit card purchases - I've used it without issue and funds appear almost immediately. You need to register your card on their site and submit a few details and wait for it to be approved before you can buy with your card. But...it's cheaper and easier to just use luno & eft.

 

[Adrianax]

I'm sure you'll pay a premium for paypal.

Again - CEX.io works for credit card purchases - I've used it without issue and funds appear almost immediately. You need to register your card on their site and submit a few details and wait for it to be approved before you can buy with your card. But...it's cheaper and easier to just use luno & eft.

True, but I do get around $500-$1000 in Paypal a month, just looking at ways converting that into BC or Ether without the need of first bringing it into FNB.

 

[airborne]

I am busy doing some reading.

The bit I am finding is that it seems they are trying to find a way to bypass Paypal restrictions by saying people are 'borrowing' bitcoins and then makes Paypal payments directly to your Paypal account.

I see a lot of dangers here, especially getting your Paypal account banned.

Also, seems on their forum there are some complaints that you cannot withdraw your Bitcoins once in their wallet.

Is it a PayPal side issue?
Do their terms not allow people to pay for bitcoin coin purchases using paypal, isn't the transaction an agreement between 2 parties and whatever the deal is has no bearing on PayPal?

 

[Adrianax]

Is it a PayPal side issue?
Do their terms not allow people to pay for bitcoin coin purchases using paypal, isn't the transaction an agreement between 2 parties and whatever the deal is has no bearing on PayPal?

Paypal states that selling Bitcoin, you are acting as a currency exchange (which includes electronic media/money/currency), which is against their Acceptable Use policy. So, if they do find you are trading in any cryptocurrency, they have the right to block your account and all funds for 180 days. In this period they will report your activities to local authorities. If no claims are made in this period by authorities, after 180 days you will receive a notice that your account has been disabled permanently and you will be afforded 30 days to move it out of Paypal.

 

[airborne]

Paypal states that selling Bitcoin, you are acting as a currency exchange (which includes electronic media/money/currency), which is against their Acceptable Use policy. So, if they do find you are trading in any cryptocurrency, they have the right to block your account and all funds for 180 days. In this period they will report your activities to local authorities. If no claims are made in this period by authorities, after 180 days you will receive a notice that your account has been disabled permanently and you will be afforded 30 days to move it out of Paypal.

Righty-o, won't be using paypal to buy Bitcoin then!

That's one rather insular organisation, the rules do not bend and if you fail to understand why you may have broke them nobody will be available to explain. Have seen people get into quite a pickle when they have all their funds tied up in PayPal and PayPal decide on a whim to disable the account, sometimes for months at a time with no idea given why or when.

 

[Adrianax]

Righty-o, won't be using paypal to buy Bitcoin then!

That's one rather insular organisation, the rules do not bend and if you fail to understand why you may have broke them nobody will be available to explain. Have seen people get into quite a pickle when they have all their funds tied up in PayPal and PayPal decide on a whim to disable the account, sometimes for months at a time with no idea given why or when.

I have decided to stop this as well. Not worth getting a Paypal account banned. But, in short, you are correct.