If I look back, I can distinctly remember the amount of effort and thought that went into figuring out a way to buy bitcoins. But you know what, it’s no way near as difficult to buy bitcoins now compared to a few years back – even if you decide to buy bitcoin with Paypal.
To be honest, it wasn’t really difficult back then either, it was just the fact that information was quite scarce back then. But even now, there are some limitations. For example, you’d be surprised at how few companies accept Paypal when cryptocurrencies are involved.
What’s the Thing with Cryptocurrencies and Paypal?
There is no doubt that Paypal as a company has been quite keen on cryptocurrency and bitcoin in particular. So it’s all the more surprising that you can’t really use a Paypal account to deposit funds into your cryptocurrency exchange account.
Why is this? Well, the reason is that Paypal allows chargebacks, which is a prominent feature for most of us. It allows us to confidently pay for goods in advance over the internet knowing that if the seller reneges on our agreement we can issue a chargeback and get our money back.
The chargeback feature, for all its benefits, is not compatible with how cryptocurrencies work. Once a bitcoin transaction has been confirmed, there is absolutely no way to reverse it. Worse yet, refunds in cryptocurrency might not be worth the same when they were paid out.
Potential for the Unscrupulous
This creates a situation where there is a lot of potential for frauds. Let me explain how exchanges can get defrauded. Let’s say a person deposits $1,000 onto a cryptocurrency exchange. They use the newly deposited funds to buy bitcoins on the bitcoin market and withdraw it to a hardware wallet.
After safely withdrawing their funds to a hardware wallet, they could initiate a chargeback. Now, this doesn’t mean that the exchange would lose the money by default. But the process is time-consuming and would require a huge team to deal with all of the unwarranted chargebacks.
Basically, it is a costly problem that most of the exchanges simply don’t believe is worth the effort. This is why cryptocurrency exchanges simply don’t offer Paypal as a method for depositing funds.
You Can Still Buy Bitcoin with PayPal
Obviously, a lot of us love the convenience of PayPal. Most of us have PayPal accounts that are linked to our bank accounts and using them is the preferred option above all else. Since there is a demand for it there are ways to buy bitcoins with PayPal. You just need to know where to look.
5 Ways to Buy Bitcoin with PayPal
In this article, I will go over some of the best ways to Buy Bitcoin with PayPal. This way you can easily pay for bitcoin using your PayPal account and transfer the bitcoins to an exchange or to your wallet for safekeeping.
LocalBitcoins is a peer-to-peer market for buying and selling bitcoins. The website acts as an intermediary between buyers and sellers and provides a platform to post our bids and asks at different prices. Moreover, the website also acts as an escrow service to prevent fraud.
If you want to buy bitcoins on LocalBitcoins you can either put a buy order and wait for a seller to interact with your order or you can simply choose the seller who is offering the best price.
You would first click on a seller’s name, after which you can check the feedback they’ve received from other buyers. You will also want to check the maximum amount they are willing to sell at a time.
Using LocalBitcoins is extremely easy and barely takes any time at all. However, there is a downside as well. You will probably be paying more than you would on an exchange because most of the recurring and trustworthy buyers and sellers do this in order to make a profit. Hence, they will a little more than a market price and buy a bit below the market price.
eToro is a leading social trading platform, its recent initiative to broaden its cryptocurrency offering has made it one of the best options for buying bitcoins and several other cryptocurrencies with PayPal.
Since eToro is more than a cryptocurrency exchange, you can fund your trading accounts with PayPal and make a number of investments across a host of different asset classes including cryptocurrencies.
eToro also offers a platform for copy-trading, which allows new investors to copy the trading decisions made by successful traders on the platform. If you’re investing in cryptocurrencies for trading, eToro is by far the best option that is available to you.
It is an established online broker. It offers countless social media tools tailored for investors and traders’ needs. And most importantly, you can fund your account using PayPal, a feature that none of the other cryptocurrency exchanges have yet to offer.
Wirex is a cryptocurrency-friendly payment processor. You can use the service to issue VISA debit cards or simply transfer funds and make payments using their mobile or desktop currency platform. Aside from exchanging foreign currency, you can also exchange your fiat currency into cryptocurrency, including bitcoins.
The first time you use the service, setting up an account will take around 1 to 2 days. After the initial setup, all transactions are pretty much instantaneous. In order to get started you would need to follow these simple steps:
Once you have gone through all of these steps and linked your Wirex account to your PayPal account, you can use your new virtual debit card to indirectly access funds from your PayPal account to buy bitcoins or any other cryptocurrency.
PaxFul is another popular and simple way for new cryptocurrency users to buy bitcoins using PayPal. In Fact, you can even use other payment services similar to PayPal such as Skrill and Payoneer.
PaxFul as a service is quite similar to LocalBitcoins. However, it has a much better user-interface and offers a lot more options for buying bitcoins. You can look at the number of options in the image above.
In order to buy bitcoins using PayPal, you would simply have to click on the PayPal tab under the, Pay using, column on the left side of the screen.
Virwox stands for the Virtual World Exchange. It is the preeminent service to purchase virtual currencies of all stripes and not just cryptocurrencies. In fact, Virwox is the authorized reseller of Lindens, the virtual currency used in the popular online game, Second Life.
Virwox was initially the only way for cryptocurrency investors to buy bitcoins using PayPal. The process is a bit complicated and involves making a couple of transactions before you can get your bitcoins. It is also a bit costly because of the number of transactions involved. Let’s go over how you would buy bitcoins on Virvox:
- Go to VirWox and create a free account.
- Fund your account using Paypal.
- Go to the exchange and buy SLL by converting dollars into SLL.
- Convert your SLL into bitcoins.
- Now, withdraw the bitcoins to your bitcoin wallet.
Initially, Virvox was the only way to buy bitcoins using Paypal, but that is no longer the case. If you have an account on the website, sure, it makes sense. Otherwise, I don’t think the effort simply worth it, especially with all of the alternatives that are available to us now.
As you can see there are a number of ways you can buy bitcoins with PayPal. However, most of these ways involve that you use your PayPal account to fund another account. But if you opt for one of the peer-to-peer bitcoin marketplaces, you can directly make your purchases using your PayPal account.
If you found this article helpful and informative, I’d urge you to check out of some of the articles on the website. We do our best to make sure that our articles are informative and help you better understand the practical implications of being a cryptocurrency investor.