When Bitcoin was first conceived in 2009, it was almost impracticable to buy during the first few years of trading.
This was because there were barely any exchanges that traded cryptocurrency at that time!
Even if you find a decent exchange, it was complicated to find one that allowed real-world payment systems.
The process of purchasing bitcoin has turned out to be more and more convenient throughout recent years, with a significant number of payment options rising here and there, as investing in bitcoins has turned out to be a very appealing and feasible endeavour.
A great many users like to get their hands on cryptocurrencies without going through the tiresome process of setting up mining supplies, accounts on exchanges, and going through the verifying processes.
There are plenty of exchanges that help you in this process.
Many investors would prefer acquiring bitcoins by making use of payment methods that they are happy with, and one of the convenient options is PayPal.
There are numerous services that can facilitate PayPal-to-bitcoin transactions. The benefit here is that you can instantly and easily make a payment with PayPal.
Nevertheless, purchasing bitcoins with PayPal can be a bit complicated.
Bitcoin transactions are irreversible, while PayPal supports chargebacks. This makes it comparatively easy for someone to buy bitcoin with PayPal, claim that they never received the goods and can ask for a chargeback.
However, unlike physical assets, it would be almost improbable to work out whether or not chargeback calls for bitcoin are true.
There happen to be a few good reasons why bitcoins can’t be purchased directly through PayPal. One major example is the fact that bitcoins are in direct opposition to PayPal.
Bitcoins also does not support chargebacks, and fake or even false charges are frequent due to bitcoin accounts being constantly targeted by hackers and scammers.
Remember though that the simple reason why it’s difficult to buy Bitcoin with PayPal is, a PayPal payment is reversible, Bitcoin is not.
Also, make sure you take a few extra steps to procure bitcoins with PayPal successfully.
There are exchanges out there that let you make such purchases. yet, a majority of these exchanges place resists onto a user account until specific verifications are passed.
Keep in mind that PayPal doesn’t appreciate users buying bitcoin through the platform, and it might occasionally call on users who try to do so. However, there are a few ways by which you do not get into trouble.
The downside to all these is that your choices are limited and that you’ll often have to take some extra steps which can be sometimes inconvenient and might mean slightly less value for money than other payment systems.
However, I hope this post will clear up the uncertainty and put you on your way toward buying digital assets with PayPal.
Here is a list of 5 best options that let you buy Bitcoin using PayPal:
Localbitcoins
LocalBitcoins is a peer-to-peer cryptocurrency exchange that enables users from more than over 200 different countries to buy and sell BTC.
It came to life in the year 2012 and their headquarters are in Finland.
The most attractive feature of LocalBitcoins is that they support over 20 different payment methods for buying bitcoins – including PayPal!
The way LocalBitcoins works is pretty simple.
If somebody wants to trade their Bitcoin, they list the amount that they want to sell it for in their local currency, accompanying a list of payment methods that they readily accept.
As PayPal is a globally recognized payments system, it doesn’t matter which country you pick!
Once you find a dealer that is happy to acquire Bitcoin, you enter the amount of BTC that you wish to buy and then wait for the customer to receive.
Once they do, their Bitcoin is fastened into an ‘Escrow.’ This protects both the customer and the dealer from losing their Bitcoin or payment.
As soon as the PayPal payment has been carried, the buyer notifies the seller. When the seller can see the amount is in their PayPal account, they notify LocalBitcoins, and the BTC is instantly released!
Getting Started on LocalBitcoins
- Visit the LocalBitcoins website
- Follow the account registration process.
- Buy Bitcoins from the option given at the head of the page
- Enter in your local currency rate of Bitcoin you want to buy
- A list of dealers that will let you buy Bitcoin using Paypal are displayed
- Make sure that all the information entered is correct
- Click on the Send Trade Request option.
- You will be presented with the PayPal address that you need to transfer the funds to
- click on Payment Sent.
- The seller will then be informed that you have sent the payment
- Bitcoin will be discharged to your LocalBitcoins wallet
- Don’t forget to withdraw them back to your wallet
Advantages
- Easy signup method
- Lots of sellers admitting PayPal
- Guarded by escrow
Disadvantages
- Sellers often charge higher Bitcoin rates for PayPal payment
- You might be asked to verify yourself
Virwox
The exchange was formed in the year 2007. They concentrate on selling something called ‘Second Life Lindens,’ SLL for short. SLL is a cryptocurrency that is used in an online game called Second Life.
The platform allows you to buy SLL coins utilizing PayPal. You can then make use of the built-in exchange to trade the SLL tokens for Bitcoin.
Once you have done that, you can merely withdraw the Bitcoin back to your bitcoin wallet!
As I mentioned earlier, there is more risk for sellers who accept PayPal, so VirWoX has installed limits.
When you first register your account, you will need to provide some personal details such as your full name and nationality. This will enable you to buy 90 EUR worth of coins every 24 hours.
These limits are raised as your account gets older. The maximum limit you are allowed to buy is 1,000 EUR per 24 hours, which you can do within 60 days of registering an account.
Steps for buying bitcoins
- Visit the website – Virwox.com
- Register an account on the website.
- Then, add money to your Virwox account via Paypal
- Buy Linden$ (SLL) using USD/EUR
- Buy bitcoins using your linden$ (SLL)
- Make sure you transfer your bitcoins to your wallet
Advantages
- A great number of sellers are available
- Direct PayPal deposits are available
- No withdrawal limits
Disadvantages
- The charges are very high
- Have to wait 48 hours since registration before you can make your first purchase
- Low deposit limits
Xcoins
XCoins.io is a fully automated, peer-to-peer marketplace that presents the first comforting solution to the issue of purchasing Bitcoins over PayPal.
By combining those who have bitcoin to spare with others, xCoins.io facilitates fast, secure, useful transactions. xCoins.io users can get bitcoin with PayPal payments as easily and quickly as anyone could hope.
With each user’s first purchase taking as little as a few minutes, everyone that follows will be instant.
Getting Started on Xcoins.io
- To begin with, you have to create an Xcoins account.
- You do need to provide government issued ID and proof of residence to verify your account.
- Specify how much Bitcoin you’d like to buy and make a payment with your preferred method (credit card, debit card, PayPal).
- Receive Bitcoin to your
xCoins wallet, which you should then transfer to your own wallet.
Advantages
- Easy-to-use interface.
- Has never been hacked.
- Many different funding options are available.
- Converts almost any altcoin to Bitcoin.
- Litecoin functionality and contactless crypto cards are in development.
Disadvantages
- Features are limited in the US.
- Does not support WaveCrest-powered Visa cards.
- No way to purchase altcoins.
Paxful
Paxful, the “Uber of Bitcoin,” was created back in 2015.
The site is a P2P website to buy/sell Bitcoin, similar to LocalBitcoins, where any person in the world can swap fiat for Bitcoin or vice-versa.
Purchasing Bitcoins via PayPal through Paxful is pretty simple. After creating and verifying an account, you choose PayPal as your payment method and define how much Bitcoin you’d like.
Then choose your seller and initiate the trade.
Once the trade is initiated, you will enter in an online chat with the seller to finalize the transaction.
The dealer’s Bitcoins get sent to an escrow account until you confirm that payment has been made.
That is the prompt for the dealer to verify they’ve collected payment and release the coins from escrow to you.
It’s a system that runs well and guards both parties.
Steps for buying Bitcoins
- Create your account.
- Select a payment method for purchasing and the aspired amount.
- Pick your seller
- You can either pick manually or let Paxful decide who is the best dealer for you
Advantages
- No merchant fees
- A huge new market
- Secure and trusted
Disadvantages
- Need to be careful and alert concerning cyber attacks and any other issues
- Customer support appears to be slower than proposed
- High prices charged by the site
eToro
Established in 2010, eToro has secured itself as the one of world’s leading social trading platform.
The innovative eToro exchange allows the trader to copy the methods of other more successful traders on the site.
You can quickly start to trade in the spot forex market even with limited experience, just by studying from other traders on the platform.
The simplest way to buy Bitcoin with PayPal would be by eToro yet only for a limited purpose.
Take note that while the platform allows you to buy bitcoins with PayPal, you will not be able to withdraw or transfer your bitcoins to other people, only to change them back to fiat currency.
To put it straight, eToro will allow you to invest in Bitcoin but not to purchase the coin.
Getting Started on EToro
- Visit the official eToro homepage
- Click on Get Started, along with Sign Up at the top of the page
- Follow the account opening process
- Click on Deposit Funds
- Enter the fraction of funds that you want to deposit and then choose PayPal
- search for Bitcoin at the head of the page and then click on Trade.
- Now that your account has been funded, search for Bitcoin and then click ‘Trade’.
- Enter the number of Bitcoin that you want to buy in your local currency
- Click on Buy.
Advantages
- Fully monitored in multiple nations
- Low Fees
- High-level security
- Good limits for first-time buyers
- Instant PayPal to Bitcoin deposits
Disadvantages
- You don’t actually ‘own’ the Bitcoin
- Only recommended for experienced users
Final Verdict
As you now know, buying Bitcoins with PayPal isn’t as easy as using other payment options, such as a debit/credit card or bank account.
Nevertheless, it is most surely possible. Each of these exchanges holds their own pros and cons — it all depends on whatever you are looking for.
However, if you are just in search for an exchange with the lowest fees, then I would suggest LocalBitcoins. Just be sure you only open trades with legitimate traders.
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