There are not many sites that accepts PayPal for Bitcoins.
A lot of my followers have been asking me how to buy Bitcoin with PayPal.
Sure you could sell your Bitcoins on Coinbase and transfer out to PayPal. (This stopped working months ago)
But big sites like those do not accept PayPal as a payment method.
That’s because with PayPal like every other credit card company, allows charge-backs.
Due to this feature, scammers could take advantage and get Bitcoins for Free.
How the Scam works?
Say we agreed to a price of Bitcoin for $7800.
I pay you through my PayPal account.
Then after a few days, I contact PayPal and let them know I didn’t receive any of the goods you promised.
PayPal would tend to side the buyer’s party and refund the money I paid for because there’s no way for them to be sure since Bitcoin is pseudonymous.
Because of this flaw, I could ultimately end up getting Bitcoins without ever spending a buck.
And that is why most exchanges do not allow PayPal as a purchasing method for Bitcoin.
How to Find a Way round PayPal?
The Fees are way cheaper than the 10% Extra you’re paying with PayPal and you’ll receive your Bitcoins Almost Instantly!
Otherwise, you could still use Over-the-Counter (OTC) sites like LocalBitcoins and buy them from people you trust with either Cash or PayPal.
This is still perhaps the earliest method of purchasing bitcoin using PayPal and it is still very much effective. Local Bitcoins is like a marketplace for sellers and buyers of Bitcoin. The platform itself doesn’t sell Bitcoins to you, but rather the sellers on the platform who do.
Since you will be dealing with an independent seller, you have to make sure that you choose a trustworthy seller. To use LocalBitcoins, you will have to find a seller on the platform who is willing to sell his coins to you.
Bitcoins here are sold at premium rates (5% to as much as 20% + 1% service fee) on this platform due to the high risk for the seller and the cost involved. You’re also buying it anonymously and not giving any I.D. to the authorities, so it’s a price you have to pay.
Even though it is expensive, you can be sure of getting your Bitcoins anonymously.
- To purchase Bitcoin on this platform, the first step is to visit their homepage. Insert the amount you wish to buy and the country/currency of choice. There isn’t a worldwide search, so you’re only restricted to a country/currency of your choice.
- The second step is to choose your preferred seller. You will be shown a list of sellers based on your search parameters. Before choosing a seller, take a look at his or her profile.
Take note of things such as the feedback score, and the trade limits of the seller (ensure that the seller has a trade limit that is higher than your purchase requirement). The terms of the trade for the seller should also be read to ensure that everything is clear before initiating the transaction. Most require your verified name and proof.
- Once you have found your ideal seller, the final step is to complete the trade. Enter the amount you wish to purchase and click on ‘send trade request’.
- The State of New York requires license to operate, as such LocalBitcoins suspended the service for New York Residents.
While LocalBitcoins supports the use of PayPal, there is a price to pay for this convenience.
LocalBitcoins isn’t an exchange platform like the others, it is a platform where buyers and sellers of Bitcoin converge. They just provide the platform for you to conduct your trade.
Let’s take a look at some other platforms where you could use PayPal.
Virwox is a virtual world exchange (not to be confused with a Cryptocurrency exchange) where there is a work-around to trade for Bitcoins on this platform using PayPal.
To do that, we will have to make use of their virtual currency dubbed Second Life Linden Dollars or SLL in short. This virtual currency is being used in a virtual world called Second Life.
The first thing you will need to do is to purchase the SLL currency with PayPal, afterward, you can trade them for Bitcoin. This is a very efficient method since you aren’t actually buying Bitcoin directly using PayPal but rather using SLL .
Virwox acknowledges the risk of chargebacks which they have decided to take upon themselves, however, they have set some limitation to purchasing the SLL currency using PayPal. Here are some of them.
- Due to the risks that purchasing using PayPal presents, Virwox has decided to limit the amount a user can deposit using PayPal. Take a look at the figures below.
- It has a rather high transaction fee when it comes to purchasing the SLL using PayPal. It is very important that you know this before purchasing the coin.
- For new transactions, you might have to wait for a period of 2 days before your transaction can be completed. This might be slow but it is still faster than purchasing the SLL virtual coins using wire transfer.
To make use of Virwox to purchase your Bitcoin using PayPal, follow the steps below.
1. Create an account with Virwox.
The first thing you need to do is to register on Virwox. Go to their homepage and click the ‘not registered yet button’. A page will pop up, displaying spaces where you should fill in your details. Enter the details for your account. There is a link that says ‘link to your avatar’, you can leave that space empty. Once you click register, you will receive an email with your temporary password.
2. Check your email and change your password
Before logging in to your account, you will have to check your email. Virwox will email you a temporary password which you need to use to log in for the first time. Since this first password is temporary, you must change your password the moment you access your account.
Failure to change your password within 24 hours automatically means that your account will be deleted. To change your password, go to the ‘change settings’ tab visible in the left sidebar of your homepage. Enter the new password you wish to set, ensure that the password has 12 characters and one that you can remember since you are responsible for your money.
3. Deposit funds using PayPal
After successfully changing your password, the next step is to deposit funds from PayPal. Click on the ‘deposit’ button visible on the left sidebar of your homepage. Among the options, you will see the PayPal section, choose the amount you wish to deposit and click on the “Checkout with PayPal” button.
4. Redirected to your PayPal
Now log in to your PayPal account. The amount you wish to deposit on Virwox will be displayed on your PayPal account, ensure that the amount tallies with what you are depositing on the platform. If it doesn’t, then you will have to go back, cancel the transaction and initiate another one.
5. Verify transaction & Fees
PayPal will direct you step by step on how to verify your transaction. If you follow the steps properly, then your Virwox account will display the amount you deposited. Note that the amount displayed will be lower than the amount deposited due to fees by PayPal which is usually EUR 0.35 + 3.4% fee per deposit
6. Purchase SLL using USD and then Sell it for BTC
Once your deposited funds reflect on your account, click on the “USD/SLL” or any equivalent fiat currency that you deposited. Once you have purchased the SLL with your deposited money, search for the BTC/SLL pair on the Virwox market and buy Bitcoins with your SLL coins.
That’s how simple it is. You can take a look at the rate of movement to see whether the rate you’re getting is high or low during the last 30 days. The image below shows that i’m getting less (SLL) Lindens for 1 USD over the last 30 days.
7. Withdraw your Bitcoin
On the left side of your Virwox account, you will see a withdraw button, click on it and send your Bitcoin to an exchange wallet or a personal wallet. As soon as you have done that, you would have successfully purchased Bitcoin via Virwox with PayPal.
Here is another place you can use PayPal…
This is another interesting way to purchase Bitcoin using PayPal. If you sign up today, it might take days or weeks before your can use this method to start purchasing bitcoins.
Wirex is supported in many countries across the globe, and if you follow the steps below, you can purchase Bitcoin using PayPal on a regular basis.
- The first thing you need to do is to access the wirex dashboard after creating the account, you will be given a free virtual card while you can also get a Free physical plastic card if you verify your identity. Plastic cards will be flown in wherever you live.Note, you can use either the virtual or the physical card to purchase Bitcoin using PayPal.
- Certain regions are currently on the waiting list for the any of the Virtual Cards. You can skip the queue if you invite your friends to join in here.
- After you have gotten your card, the next step is to connect the card to your PayPal account and verify it afterward.To do that, log in to your PayPal account, click on the wallet tab and proceed to add a card.Once you have added the card, you will have to verify it. You can only do that if you have a minimum balance of $3 on your virtual or physical visa card. (You need to top-up your card first) You also need to have funds in your PayPal account.
- PayPal will charge you for the verification and send you a 4 digit code next to that transaction on your Wirex account.
- Once verified, proceed to withdraw funds from your PayPal to Wirex. To do that, go to the wallet section on your PayPal account, click on ‘withdraw money‘ and withdraw it to the card. Ensure that you choose the wirex card option. This withdrawal can take between 5-7 business days.
- As soon as the funds appear on your Wirex account, you can use it to purchase Bitcoin on the Wirex Exchange.
Voila! There you have it, you have just bought Bitcoins using PayPal.
Don’t store your bitcoins on Wirex!!!
Just Bought bitcoins on Wirex? Don’t leave them there! Leaving bitcoins on exchanges are risky:
There are only two types of exchanges, the ones that have been hacked and the ones that WILL BE HACKED.