Bitcoins (BTC) are the most prominent cryptocurrency in our recent times. They are the first peer to peer decentralized cryptocurrency to come into existence. While the popularity and demand for bitcoins are increasing, the ease of purchase of these bitcoins is very low.
PayPal, one of the world’s commonly used digital payments service is not compatible to purchase Bitcoins. While a lot of people use Bitcoins for their transactions, not being able to buy bitcoins through PayPal is, however, a sad reality.
Initially, PayPal allowed the purchase of bitcoins. However, few scammers took advantage of the chargeback system of PayPal and exploited it. These scammers got Bitcoins and at the same time, received their money-back as well. Therefore, as a preventive measure, PayPal disabled the option to buy Bitcoins using it. However, if you have cash lying around in your PayPal account which you might want to invest in Bitcoin, then you need not worry. There are few ways in which you can buy bitcoins using your PayPal balance.
Before you can proceed and follow the guide, you must have a PayPal wallet, and a Bitcoin wallet as well.
This step by step guide lists down five methods to buy Bitcoins with PayPal.
Method 1: Buy via Direct Trading
While you cannot directly link your PayPal account to your Bitcoin wallet to buy bitcoins, but you still by Bitcoins by finding a seller who is willing to accept the payment through PayPal. In few cases, some sellers do accept payments via PayPal. There are some websites like LocalBitcoins and Paxful which facilitate peer to peer transactions and put you in touch with sellers willing to accept PayPal as a payment option.
Buying Bitcoins via LocalBitcoins
LocalBitcoins is a marketplace where sellers and buyers meet. You have to deal with an individual for purchase, and the chances of scam or fraud might come into place. Be careful and cautious while dealing with a potential seller on the website. Follow these steps to buy bitcoins on LocalBitcoins through PayPal. The upsides of using this platform are the fact that you can pick from a wide range of sellers from all over the world. The downsides are the chances of scam and high fees as well.
Step 1: Searching for a Seller
Initially, you have to enter the search parameters. Enter how much money you want to spend for buying bitcoins and mention your payment source as PayPal. Though it is a global platform, one cannot find all the sellers at once. You have to search through each country’s list of sellers in the platform to select your potential seller.
Step 2: Pick a seller
After you have entered your search terms, you get a list of sellers. You need to browse through the list and pick a seller. While choosing a potential seller, you must take the feedback score and trade limits into consideration. Make sure that you pick sellers with a high feedback score only. At the same time, make sure that you read all the terms and conditions that are specific to the seller who is located on the right side under the name of ‘Terms of trade….’
Step 3: Complete the trade
Enter the amount you will be paying and check the correspondent bitcoin value and hit the ‘Send trade request’ button. Also, it is advisable to conduct all your communications on the website only. That way, it is more secure, and the chances of fraud will come down.
Buying Bitcoins via Paxful
Though Paxful is not as famous as LocalBitcoins, it is the smaller version of it. It’s also a peer to peer marketplace that helps you buy bitcoins via PayPal, Skype Credits, Amazing gift cards, etc. The process of buying Bitcoins in Paxful is pretty simple; follow these steps:
Step 1: Create an account
Visit the Paxful website and create your account.
Step 2: Chose a payment method
As Paxful allows buying Bitcoins using many options, you need to choose PayPal here and set the desired amount that you are willing to pay.
Step 3: Choose your seller
After you enter your parameters, you will be shown a list of sellers to choose from. Paxful picks the best seller for you, or you can do it by yourself manually.
Step 4: Chat with the seller
Once you have picked your seller, you get to chat with him online to finalize your deal. After the deal is finalized, the amount will be in escrow in the marketplace. Always remember to finalize the deal within 30 minutes or so; otherwise, the deal will be canceled.
Method 2: Buy Bitcoin ‘Loans’— XCoins
Though you cannot directly buy Bitcoins with PayPal, as mentioned above, you can, however, do it indirectly via XCoins. This website is a Bitcoin loan system where Bitcoin owners can lend their coins to PayPal buyers. Now, instead of loaning the Bitcoins to the PayPal buyers, the buyers buy the bitcoins with the ‘loan’ amount acting as a payment for the Bitcoins. Here are the steps to follow for buying Bitcoins using Paypal on XCoins.
Step 1: Sign up for an account
Visit the XCoins website and click on the ‘Get Bitcoin’ button present in the top menu. After doing so, you must Sign up for an account. Enter your email id, sign up and confirm your email address by clicking on the link sent to your email id.
Step 2: Setup two-factor authentication
Two-factor authentication is a must for enhanced security and protection.
Step 3: Input the amount
In the Bitcoin amount field, enter the amount of Bitcoin or select the currency you wish to pay in. After entering these details, a suitable lender will be chosen by XCoins.
Step 4: Proceed with the transaction
After XCoins finds a suitable lender, the transaction details like the processing fees and the lender fees are displayed. If they are satisfactory, read the loan agreement and click ‘Continue to Payment.’
Step 6: Pay using PayPal
After the above step, you will be directed to your PayPal account. You need to validate the amount and let the transaction complete. Once the transaction is successfully finished, you will be returned to XCoins, and the Bitcoins will be sent to your XCoins wallet. You can transfer it further to another wallet according to your needs.
Method 3: Buy through Virwox
Virwox is an exchange platform. Virwox is a virtual world exchange where you will be using a virtual currency known as SLL (Second Life Linden Dollars). To buy Bitcoins, you must first buy the virtual currency through PayPal and trade it later to buy Bitcoins. While the upsides of this website are its high reliability, the downside is the fact that Virwox charges a high transaction. Here are the steps to follow:
Step 1: Sign up on Virwox
Visit the website and open a new account and fill your personal details like username, email address, etc. You need not necessary will your avatar name as you are not going to play the Second Life on the website.
Step 2: Activate account and change password
You will get a confirmation email with a password for your account on Virwox. Click on the confirmation email and log in to your account on Virwox. Change your password before you proceed with any transactions as the website generated password is not very reliable when you are about to perform money transactions on the website.
Step 3: Load money from PayPal account
Click on the deposit button on the left side and choose the PayPal express amount to fund your Virwox account. There are withdrawal and deposit fees involved with each transaction. Read through the guidelines before making any transactions on the website.
Step 4: Convert USD to SLL
Go to the Exchange option and click on USD to SSL option present on the left side. You can pick any other currency of your choice that you have right now. Buy the SLL so you can use it to buy Bitcoins.
Step 5: Make the purchase and finish the transaction
Once you’ve purchased SSL, go to the BTC/SSL option and buy the Bitcoins and you can withdraw your bitcoins from Virwox to your wallet. In few cases, Virwox might setup a manual review and may take from 6 to 48 hours for the completion of the review.
There are few issues while following this method though. First off, you are performing two transactions here— USD to SSL and BTC to SSL. Therefore, you will have to incur two transaction fees. Also, the fee structure is subject to frequent change. Make sure to check the fee structure as well. Nonetheless, Virwox has been facilitating this method since 2013. Therefore, it is much reliable than other sites.
Method 4: Using Wirex
Wirex provides virtual as well as physical Bitcoin debit cards, and as it is like any other debit card, you can use PayPal to add money to your debit card. The upside of using Wirex is the reasonable and medium fees it charges, and the only downside is the fact that it requires about ten days for the transaction to complete. Follow these steps to setup your Wirex debit card and buy Bitcoins through Paypal.
Step 1: Order debit card from Wirex
Go to the website and order a new card and pick a card depending on your requirements. You can buy Bitcoins using both physical and virtual cards as well.
Step 2: Connect to Paypal
Go to your Paypal account and click on your ‘Wallet.’ Click on the ‘Add a card’ option there and add your newly obtained Bitcoin card here. For your card to be verified by PayPal, it must have a minimum balance of $3 in it for PayPal to be able to charge you. The moment you are charged by PayPal, you will see a four-digit code in your Wirex account in the transaction details. After the card is verified, you are good to go. This four digit code will be your verification pin for using PayPal through your card.
Step 3: Transfer funds from PayPal to Wirex
Go to your PayPal account and withdraw the required amount into your Wirex account. Once you approve the withdrawal in your PayPal account, it will take seven business days to appear in Wirex account.
Step 4: Buy Bitcoins
As your Wirex account has funds, use them to buy Bitcoins. This whole process involves a significant amount of waiting period as verifications will take place.
Method 5: Buy through eToro
This method is not for people who are looking towards buying Bitcoins and holding them in their wallets or for performing any other transactions. On the other hand, this platform can be used for making money by leveraging the price swings in Bitcoins.
Through eToro, you can use PayPal to buy Bitcoins on this platform. After doing so, you can only sell them back to other people on the network again. By selling and buying during the right times, you can make a decent profit from it. This method applies to individuals living outside the USA only. If you are someone who wants to day trade or makes a profit out of the price swings in Bitcoin, you can use eToro to make money. The major upside of this website is the fact that it has very low transaction fees and a wide range of payment methods are accepted by them. However, if you aren’t a resident of the USA, you cannot use this option. On the other hand, you cannot own Bitcoins for real; you merely trade them in the same platform.
If you have some cash reserves in your PayPal account and are looking to purchase Bitcoins and store them in your wallet; either for long-term holding or transactions, prefer websites where you can transfer Bitcoins to your personal wallets. On the other hand, if you want to trade Bitcoins and have no plans of transferring them to your wallet for other use, platforms like eToro are a good option. While the road to buying Bitcoins via PayPal is not an easy one, it isn’t exceedingly difficult either. Be careful, read the terms and be cautious while buying from sellers on the marketplaces. Always maintain the communication in the marketplace medium only. By following the methods mentioned above, you can buy Bitcoins using PayPal wallet.