Buying Bitcoins via PayPal payments is one of the most challenging tasks, and often time-consuming too.
Buying Bitcoins via PayPal payments is one of the most challenging tasks, and often time-consuming too. For years there have been speculations that PayPal will add support for Bitcoin transactions where you can buy and sell Bitcoins via PayPal but that remains a rumor.
The primary reason why PayPal isn’t a popular way of buying Bitcoins is because of the chargebacks. Basically the buyer can claim that the seller (or the exchange) hasn’t sent him the bitcoins, and since Bitcoin transactions are irreversible and in most cases, anonymous, the buyer can run away with the money causing a fraudulent transaction.
However there are a few exchanges which do accept PayPal payments. Let us take a closer look at these exchanges and how to buy Bitcoins using PayPal:
VirWoX which stands for Virtual World eXchange has been around for quite a long time and has earned quite a goodwill when it comes to transactions.
The process of buying Bitcoins using VirWoX is a little complex yet one of the most effective ones as of now. To give you a brief overview of how you can buy Bitcoins using this exchange - you’d have to buy SLLs (Second Life Lindens) which are a Virtual World currency. These SLLs can later be traded for Bitcoins of the same value.
This is quite a smart way of providing Bitcoins over PayPal because unlike Bitcoins which cannot be proven to have been paid to the buyer, SLLs can actually be proved since transactions aren’t anonymous here hence the risk of chargebacks and scams is considerably lower.
Here’s a look at how to buy Bitcoins using Paypal over VirWoX:
Step 1: Register for an account on VirWoX: This includes filling up personal details and is quite simple. Just like signing up for any other website.
Step 2: Activate your VirWoX account. After registering with the website you would get a mail for activation. Activate your account using the password in the mail.
Step 3: Once your account gets activated, it is strongly advised to immideatly change the password.
Step 4: Add Money to VirWoX using PayPal. There’s an option on the left side of the screen called ‘Deposit’. From there you’d be able to add money from your PayPal account to your VirWoX account. You would be charged a certain amount of transaction fee on adding this amount.
Step 5: The next step is to trade your Dollars to buy Second Life Lindens. On the left side you’d see ‘Exchange’, below which you’d see USD/SLL. Click on that and buy SLLs worth your money.
Step 6: In the same ‘Exchange’ section, you’d also see another option, BTC/SLL. Here you’d be able to trade your SLLs to buy Bitcoins. Please note that sometimes VirWoX would do a manual review before this transaction takes place and might take about a day or two. However it is usually done much quicker than that.
Step 7: Now that you have bought Bitcoins using SLLs bought using your PayPal, you can withdraw them and send them to your Bitcoin Wallet. Tap on ‘Withdraw’ which is under ‘My Account’ on the left side of the screen. Enter your wallet address and click on ‘Request Withdrawal’.
Do keep in mind that you’d be charged fees when you:
Transfer money from PayPal to VirWoX
Buy Bitcoins in exchange of SLLs
The compex fee structure makes it quite unappealing but this is still the most preferred ways of buying Bitcoins using Paypal.
While VirWoX remains the most popular way to buy Bitcoins via PayPal, there are other ways too. One of the most popular ways to do this is to buy Bitcoins via LocalBitcoins.
LocalBitcoins is a website which acts as an exchange but also helps you connect people nearby to trade Bitcoins against cash. PayPal is a popular means of transfer when it comes to these transactions. The challenge here is to find a person who is willing to accept PayPal payments against Bitcoins.
While this is a popular method, there are two things which remain a constant problem:
Risk of Fraud
Here’s how to buy Bitcoins using PayPal via LocalBitcoins
Step 1: Go to LocalBitcoins website and sign up.
Step 2: LocalBitcoins works on a regional basis. Before you begin trading you will have to look for traders who are willing to offer you Bitcoins at a price you want it for. You would have to enter your location, the amount you’re willing to buy for in your preferred currency and finally the mode of payment, which you can select as PayPal.
Step 3: You would then see a list of available sellers who are willing to offer your Bitcoins in exchange for the amount you’re offering. You could then go through all of them and find the person who is willing to offer you the most Bitcoins for the amount and supports your preferred payment method.
Step 4: Before going to trade with a seller, look out for the following things:
Feedback Score: Based on the seller’s past transactions, he’d be given a feedback score. The higher the feedback score the more trusted the seller is and the safer he is to transact with.
Trade Limit: The minimum and maximum amount a seller is willing to trade for.
Payment Window: The maximum time that you have for paying for your purchase and for marking the purchase as ‘done’.
Also ensure that you read the terms of the trade. Each seller has their own terms and conditions. Read them carefully before going for them.
Step 5: After you are satisfied with the seller’s score and conditions you can initiate the trade by entering your amount in your local currency. On the box opposite to it you’d see the Bitcoins the seller is willing to offer for that price. You can enter your message along with it and then finally click on ‘Send Trade Request’.
Trading via LocalBitcoins is quite simple. However one must keep in mind that it is subjected to many risks and frauds and one must step very carefully while trading here.
Also Read: How to Mine Bitcoin
The third name on our list is that of Paxful, which is another trusted name when it comes to buying Bitcoins via PayPal. Paxful accepts not only PayPal payments, but als payments over Skrill, Skype Credits, Amazon Gift Cards and many other similar tokens that carry monetary value.
It is perhaps the simplest platforms to buy Bitcoins using PayPal. However, it only accepts verified PayPal accounts of US based users. If your account is not verified or not a US account then you’d have to look at other options.
The risks of buying Bitcoins using PayPal via Paxful are the same as any other platform: Fraud and Scams. The fees would always be high when it comes to purchase of Bitcoins via PayPal.
Here’s how to buy Bitcoins at Paxful using PayPal:
Step 1: Register an account with Paxful.
Step 2: Choose a payment method and you will see a number of ‘open options’ for that payment method.
Step 3: Choose your seller manually or let Paxful choose it for you. You can then proceed to chat with the seller in private and decide on mutually agreeable terms of the transfer, following which the exchange takes place between the buyer and the seller.
In addition to buying Bitcoins via the aforementioned methods, there are a few other exchanges where you could try your luck. These include the likes of:
While these are some of the most trusted, existing names, there are other options too. However make sure you invest in a legitimate exchange and with legitimate sellers. If you are a seller make sure your buyer is legit and does not run scam you over PayPal payments.