In this “how to buy Bitcoin using PayPal” article, I’ll show you five different places where you may do so. I’ll also go over some benefits and drawbacks of employing each of them.
With the introduction of Bitcoin in 2009, it was nearly tough to get through the first few years of trade. This was because there were very few bitcoin exchanges! Even if you could locate a trustworthy exchange, finding one that accepted real-world payment methods was extremely difficult.
However, in 2022, it is now quite simple to purchase Bitcoin using a debit/credit card or a bank account. But did you know you can also buy Bitcoin with PayPal? Now you do, and I’m going to teach you how today!
Then I’ll offer you a really easy step-by-step tutorial! You will understand how to buy Bitcoin using PayPal after this article! If you’re willing to buy Bitcoin in other methods, you may go to a high-end exchange or even use Simplex.
What are you waiting for now? Let us begin by determining why it is tough to buy Bitcoin using PayPal.
Where Can You Buy Bitcoin using PayPal?
The vast majority of bitcoin exchanges do not accept PayPal. Even the vast majority of exchanges that accept deposits in fiat money do not support it.
The key reason for this is the way PayPal’s chargeback policy operates. When individuals use PayPal to pay for things, they get “Buyer Protection“. This implies that if consumers are unhappy with their purchase, they may file a claim with PayPal to receive their money back.
If the vendor cannot show that they delivered the goods, PayPal will take the money back and reimburse them to the buyer in the vast majority of circumstances.
As one might expect, there is no way to show that the buyer did not get the Bitcoin (even if they did). So exchanges are concerned about using PayPal as a payment mechanism.
That doesn’t mean you can’t, since there are a couple of various methods you can, as I’m going to show you. Let us begin with LocalBitcoins.
LocalBitcoins is a peer-to-peer exchange where users from over 200 countries can buy and sell BTC. The best part of LocalBitcoins is that it accepts over 20 different payment methods, including PayPal.
It operates straightforwardly. If someone wants to sell their Bitcoin, they post the price they want to sell it for in their local currency, as well as the payment methods they accept. Because PayPal is a global payment method, it makes no difference whatever nation you select.
When you identify a seller that will accept Bitcoin, you input the quantity of BTC you wish to purchase and wait for the buyer to accept. When they do, their Bitcoin goes into an escrow. They protect both the buyer and seller from losing their Bitcoin or payment because of this.
The buyer tells the seller as soon as they receive the PayPal payment. When the seller notices that the money has arrived in their PayPal account, they contact LocalBitcoins, and they immediately release the BTC.
I’ve previously used PayPal to Bitcoin on LocalBitcoins, and the procedure took less than 10 minutes. But keep in mind that because PayPal includes some risk for the seller, they may demand considerably higher rates!
Although it is possible to deal anonymously with LocalBitcoins, some vendors will need you to verify your identity. Before they will accept your deal, they may want you to provide a copy of your ID, and validate your email address and phone number. If you use PayPal to buy Bitcoin, the LocalBitcoins seller will certainly ask you to do so.
So, now that you’ve learned about LocalBitcoins, the next section of my ‘Buy Bitcoin using PayPal’ article will look into VirWoX.
The next choice on my list of merchants that accept PayPal for Bitcoin purchases is VirWoX. They specialize in the sale of ‘Second Life Lindens,’ or SLL for short. SLL is virtual money used in the online game Second Life. Confused? Allow me to explain.
PayPal may purchase SLL coins on the site. They may then exchange the SLL tokens for Bitcoin via the built-in exchange. After that, you may simply withdraw the Bitcoin from your wallet!
As I have stated, there is a higher danger for vendors that take PayPal, hence VirWoX has constraints in place. When you register, you must submit certain personal information, such as your complete name and nationality.
This will allow you to purchase €90 in coins every 24 hours. As your account becomes older, they will raise the restrictions. The most you may buy in 24 hours is €1,000, which you can do after 60 days of opening an account.
As an added security step, when you initially establish an account, you cannot buy BTC using PayPal until 48 hours have elapsed.
Another factor to consider is that the costs for purchasing Bitcoin with PayPal on VirWoX are rather expensive. Foremost, they will charge you 3.4 percent for using PayPal. Following that, the conversion rate between SLL and BTC may be extremely low. However, if this is the route you wish to take, keep in mind that using PayPal to gain Bitcoin will always result in greater costs.
So, now that you’ve learned about VirWoX, the next section of my ‘Buy Bitcoin using PayPal’ guide will look at how to buy bitcoin using PayPal using LocalBitcoin.
How to Buy Bitcoin using PayPal.
- Click here to go to the LocalBitcoins website.
- Follow the account registration process by clicking the green Sign up free button. I recommend you input accurate information so that you may discover a vendor that will take a PayPal payment from you.
- After you’ve created your account, go to the top of the website and select Buy Bitcoins.
- Enter the local currency value of the Bitcoin you wish to buy, then choose the nation from which you want to buy. Although I choose the United Kingdom, you are free to select any country of your choice. Then, pick Search from the all online offers drop-down box.
- You should now see a broad list of retailers who will let you buy Bitcoin using PayPal. The price that the seller is prepared to take is used to rank the results. Following the username, you will find the total number of deals performed by the seller, as well as their feedback score.
As you can see, the top seller has completed over 500 deals and has a perfect feedback score (this is super-important). Not only that, but they also provide the cheapest PayPal to Bitcoin exchange rate! After you’ve decided on a vendor, click Buy.
- You’ve reached the final stage before sending your trade request to the seller. Check that the information, including the rate and the amount you wish to buy, is right. The vendor has stated certain particular terms on the right-hand side.
- Now all you have to do is click on Send Trade Request.
- The seller’s funds will be in escrow as soon as they accept your Bitcoin with a PayPal request. They will give you the PayPal address to which you must transfer the payments. When you’re finished, click Payment Sent.
- They will subsequently notify the vendor that they have received the money. They will verify their PayPal account and release the Bitcoin to your LocalBitcoins wallet as soon as they see it! You may then easily return them to your wallet!
So, now that you’ve learned how to buy Bitcoin using PayPal on LocalBitcoins, the next section of my step-by-step guide will look at VirWoX.
- Click here to go to the official VirWoX webpage.
- Click Not Registered Yet on the left side of the page.
- Continue with the account opening procedure. You must select a username and provide your email address, complete name, and country of residence.
- After you’ve registered and logged in to your new account, go to the left-hand side of the screen and select Deposit.
- You will now see a lengthy selection of payment options. Scroll down to find PayPal. Enter the amount you wish to deposit, then click the Check out with PayPal button. To complete the purchase, they will redirect you to your PayPal account.
- Your account now has the currency of your choice (mine was USD, but it could also be EUR). Then, on the left side of the website, search for Exchange and then click on USD/SLL (or EUR/SLL).
- At the best market price, exchange your USD/EUR for SLL coins. You should do right away this.
- Now that you have SLL coins in your account, go to the left-hand side and click on the BTC/SLL.
- You can exchange SLL coins for Bitcoin at the best market price. Again, this should be instantaneous.
- Now, you have Bitcoin in your account. You may now transfer them to your Bitcoin wallet.
You now understand how to buy Bitcoin using PayPal at VirWoX.
How to buy Bitcoin using Paypal: Conclusions
That concludes my ‘Buy Bitcoin using PayPal’ guide! As you may have discovered, attempting to purchase Bitcoin with PayPal is not as simple as using other payment options, such as a debit/credit card or a bank account. It is very plausible.
Each of these exchanges has advantages and disadvantages – it all depends on what you’re searching for. However, if you are merely searching for the lowest costs, I would choose LocalBitcoins. Just be certain that you only enter deals with reliable dealers. If you want to buy Bitcoin with a credit card, check out my instructions here.
Alternatively, if you’ve concluded that PayPal isn’t the ideal option to gain Bitcoin, don’t forget to look into exchanges like Coinbase or even Simplex!