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 $9800.
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?
If you’re just using your Debit or Credit card on your PayPal account to purchase Bitcoin, then it’s a cinch! You could use them directly on CoinSwitch anywhere you are in the World.
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…
Buy bitcoins instantly via peer-to-peer in a Bitcoin-only marketplace.
Choose over 300 payment methods to pay for your bitcoins once you find a suitable seller.
Select PayPal in the top of the list as one of the most popular ways to transact on Paxful, choose how much you would like to purchase in your own currency and press “Buy Bitcoin Now”
You will now receive real-time offers of sellers who will accept payment with PayPal for bitcoins.
Look at their offer, read the terms and execute a purchase order in real-time.
Some would require you to submit photo IDs as verification, others don’t.
You’ll find fiat amounts you can purchase ranging from $10 to as much as $10,000.
- Users who reach an equivalent of $1,500 in trade volume or wallet activity must provide ID for verification.
- Users who reach $10,000 in trade volume or wallet activity must *provide ID and address verification.
- Users who reach higher trade volumes or engage in certain wallet activity may undergo enhanced due diligence and may be asked for additional information.
- All buyers of bitcoin for bank transfer must provide ID and address verification.
Voila! There you have it, you have just bought Bitcoins using PayPal.
Don’t store your bitcoins on Paxful!!!
Just Bought bitcoins on Paxful? Don’t leave them there! Leaving bitcoins on exchanges are risky:
- Bitfinex hack where users lost $70 million
- Mt Gox where users lost $450 million or more
- 5 Things to Watch If You Leave Bitcoin on an Exchange
There are only two types of exchanges, the ones that have been hacked and the ones that WILL BE HACKED.
We’ve only just begun…
In the world of Bitcoin, there’s so much more to delve into. That’s why I created The Zodiac Collection, that tells the story of Bitcoin and the cryptocurrency revolution from every angle you can dream up.
There’s a lot of exciting stuff to read — I’ve selected a few of the stories, to start with, below.
To read a curated list of the most important crypto news stories each morning, subscribe for FREE. It will be everything you need to know, in your inbox, every day. No brainer 🙂
I certainly don’t want to overload your brain with the library of Bitcoin resources we have here.
Here are some special picks:
- How to Get Rich Without Trading Bitcoin (or renting out your time)
- How to Buy Cheap Bitcoin
- How to Get Rich In the Next Market Crash (Without Trading)
- 3 Bitcoin Wallets That Are Iron-Clad, Ultra-secure and Affordable
- 6 Top Ways to Instantly Exchange One Cryptocurrency for Another [300+ Altcoins]
- How do I Buy Bitcoin (BTC) on Binance w/ My Credit Card?
- 7 of the Fastest Ways to Buy Bitcoin (BTC) Today!
- Where Do Everyone Trade Bitcoin (BTC)?