FAQ

1) Is there a risk involved when using this method?

Yes. Some potential risks include PayPal closing down your account, you can be
stiffed by lenders and the market can capsize. However, from my experience, these are
more exceptions than the rule. If taking proper measures to switch over your PayPal
account when PayPal sends warnings or paying off any refund requests when PayPal
pesters you will likely lead to you continuously lending out Bitcoin for huge profits over
the long-term.

2) Can a huge decline in the value of Bitcoin cause you to lose money?

In theory, it is possible; however, as you’ve learned in during the video course, your
Bitcoin is being lent out at a 15% rate. Therefore, it would require a massive decline to
wipe out your investment each time you set it up. Can it happen? Yes. Will it happen?
Most likely, No.

3) Why am I having trouble signing up to Coinbase & xCoins?

Because Coinbase & xCoins take liberties in exchanging cryptocurrencies for fiat
currencies and vice versa, there is an extra layer of protection against hackers and
thieves. Therefore, you may find yourself signing up to these services and be required
to provide additional information such as your latest utility bill for example - to verify
your address and identity. If this happens to you and you don’t have this information
or are not willing to provide it, contact customer support. In the past, I’ve found that if
you have this issue, customer support will likely disregard the identification
requirement and move you on to the finalization of your account.

4) Do I really need a business PayPal account when Bitcoin lending?

 Technically you do not need to upgrade your PayPal account to a business account.
When I first began this method, I used a personal account setting for the first few
months and then switched over to a business account. I’ve found that when you use a
personal PayPal account, xCoins requires you to manually accept payments into your
PayPal account to be paid for Bitcoin loans. When I finally made the switch over to a
business PayPal account, I learned that the moment a lendee pays you Bitcoin it will be
automatically sent to your account rather than manually having to accept payments
each time. This really streamlines the process, makes payments more automatic and
the income truly passive.

**Please Note: In the case of both a new personal or business PayPal account, you will
likely have to wait 60 days for your Bitcoin lending earnings to be processed as they
are withheld to protect the buyer – This may be less true for personal accounts, but
you will have to experiment and try this out for yourselves.

5) Why is PayPal holding my money for 60 days?

As a precaution, PayPal requires that your money be held in your account without it
being withdraw in order to protect your Bitcoin buyers. PayPal treats the Bitcoin lending
process in the following way: the lender as a seller of “goods” and the lendee as the
buyer of those “goods”. Therefore, your money will be held for 60 days in order to
protect the buyer in case they do not “receive their goods” - in our case, this would be
the Bitcoin. In the event that Bitcoin is purchased and not returned to you, you will of
course keep the money and will not be asked to have your money withheld again after
the 60 days are up.

6) How long will it take to lend out all of my Bitcoin?

This is a tough question to answer because there are a lot of factors to consider such
as the amount of Bitcoin you are lending, what is happening to the exchange rate of
Bitcoin at the time of lending, the amount of lenders on the xCoins platform at any
particular time, the priority order xCoins gives your loan when lending out Bitcoin each
time etc. I’ve found from past experience that smaller amounts of Bitcoin tend to lend
out faster than larger ones. However, when you have more money to lend out, the
upswings in the exchange rate of Bitcoin can lead to greater capital gains atop of the
interest earned on Bitcoin lent out to your buyers. Both amounts therefore have
separate benefits to consider.

7) Can you explain limit orders once more?

By definition, a limit order is a direction that you are giving a broker to buy or sell a
commodity at a specified price or better. When we use Coinbase Pro we are selecting
the top most green value because we want to purchase Bitcoin at that price when it
reaches that value. We are putting our money up to purchase the Bitcoin and when it
reaches that price, Coinbase Pro will buy Bitcoin for that value. There are no fees
involved in that process which makes it more advantageous to use than buying Bitcoin
through an exchange like Coinbase with fees.

8) What is a simplified version of the steps I must take each time I want to lend out
Bitcoin?

1 – Transfer funds from bank account to Coinbase (7-8 days)

2 – Transfer funds from Coinbase to Coinbase Pro

3 – Set a limit order to turn USD fiat into Bitcoin

4 – Transfer Bitcoin to xCoins.io

5 – Start lending offer and collect passive income in PayPal account

6 - Repeat

9) Can I use this method with other cryptocurrencies?

 Likely you can use this method with other cryptocurrencies; however, you would need
to find another 3rd party website similar to xCoins that can lend out the cryptocurrency
to which you desire. XCoins only allows Bitcoin at this time.

10) Does xCoins report income to the IRS?

This is something that you would likely need to discuss with xCoins. Please contact
their support personnel for better information.