Interested in knowing how to buy Bitcoin with PayPal?
Well, search no further for, in this post, I will be sharing the 2 actionable ways to buy Bitcoin with PayPal.
Paypal is an online payment method that is set up to send and receive payment online without any stress.
Through this method, money is sent to any part of the world and to any person provided he/she has a Paypal account.
But what about buying Bitcoin with PayPal? Is it even possible to do that?
The answer is Yes!
Though difficult, it is not totally impossible.
Find out the full details below.
This post will be discussed under the following subheadings:
Find out the details when you click on any of the subheadings.
As I said earlier, PayPal is an online payment method; a safer and easier way to pay and to get paid online.
This service allows you to pay people in any way they prefer(Credit Cards, Bank Accounts, PayPal Smart Connect) without sharing your financial information.
PayPal was founded in December 1998 by Ken Howery, Luke Nosek, Max Levchin, Peter Thiel, Yu Pan, and Russel Simmons.
It has come to become a global leader in online payment solutions with more than 265 million accounts and is available in more than 200 countries.
Supporting 25 currencies from around the world, PayPal promotes e-commerce by making payments across different locations and languages possible.
The company is located in San Jose, California.
But despite its services being used for online purchases, it becomes a herculean task to purchase Bitcoin with PayPal.
This is because most exchanges prohibit their users from using Paypal as a payment option for Bitcoin purchases.
This prohibition by most exchanges is because of the Chargeback problem that occurs with such transactions.
A Chargeback works this way:
Assuming Obi wants to buy 0.5 Bitcoin from me and pay me with his PayPal account.
We then agree on a price(say $500) and he pays me through PayPal while I send the Bitcoin to him.
After a day or 2, Obi can complain to PayPal that he paid me but I did not send him the Bitcoin.
Since PayPal has no way of tracing the Bitcoin I sent, Obi will most likely receive his money back(as most credit card companies tend to support the complaining party).
This way, Obi gets to keep his money and my Bitcoin!
But there is this option of ‘Family and Friends’ on Paypal that most people use to eliminate chargebacks.
In using the ‘Family and Friends’ option, PayPal takes it that you are sending the money to a close relative(someone you trust) and thus, no issue is meant to arise.
Most merchants insist on this option because:
- PayPal cannot reverse the money sent (since it is believed that you know and trust the recipient)
- The recipient does not pay any charge
The ‘Family and Friends’ option is not enabled in all accounts especially users with business accounts and those that have used the option severally.
Another reason why it is difficult to buy Bitcoin with PayPal is that being an e-currency, PayPal does not support the purchase of another e-currency.
The company has been known to close down accounts of users who have been found to be trading Bitcoin.
But even with these reasons, people still buy Bitcoin with PayPal.
How do they do that?
Keep reading to find out.
How to Buy Bitcoin with PayPal
Despite the reasons stated above, there are still ways to buy Bitcoin with PayPal.
The ways are through exchanges like:
How to Buy Bitcoin with PayPal using Paxful
Paxful is a peer-to-peer exchange is based in the United States and was founded in 2015.
It supports up to 300 different methods of payment, which include PayPal, Bank Transfer, Cash Deposit, Gift Cards, etc.
The only cryptocurrency supported by the company is Bitcoin, but it supports more than 80 fiat currencies.
For the steps to buying Bitcoin with Paypal, I have included a video explaining the steps.
The choice is yours: You can go ahead and watch the video or scroll down to read the text.
The steps involved include:
Register with Paxful
Click on ‘Create Account‘ on its page and fill in the required detail. Then verify your account and fund your wallet.
Create an order
Click on ‘Buy Bitcoin’ and select the following parameters:
- the desired amount
- the fiat currency to pay in
- the method of payment(PayPal in this case)
You can either click on ‘Search’ to search for offers or ‘Give me the Best’ for Paxful to present you with the best offer available.
Pick a Seller
You have to carefully choose a Seller from the list of offers available. Now, in picking a Seller, click on any of the offers to check out a Seller.
Some of the things to look out for in a Seller include:
- the feedback score of the seller
- how old the account is
- the number of confirmed trades the seller has carried out
- how many people blocked this seller
- the number of persons that trust this seller
NB: Even after reviewing a seller’s details, be sure to know when to call it quits especially when you start becoming uncomfortable with the trade.
Complete your transaction
When you have chosen a seller, you will be taken to the trade screen. On the trade screen, you will find out the Offer Terms of the seller like:
- the type of ID required
- seller rate
- time limit
- accepted type of proof of payment(POP)
- involvement of a third party or not
A sample of Offer Terms of a seller:
Once you agree to the terms and conditions of the seller, an online chat with the seller is initiated for you to finalize the trade.
The seller’s Bitcoins will be held in escrow until you send a proof of payment.
Once you indicate that you have made a payment and the seller confirms receiving the money, the BTC will be released into your Bitcoin wallet.
Note the following:
- that if you do not complete the trade within a specified time(30mins mostly), it will be automatically canceled.
- ensure you communicate with the seller within Paxful
Not difficult to understand, right?
Will be listing the other way below; so scroll down.
How to Buy Bitcoin with PayPal using LocalBitcoins
It is available in 248 countries and supports up to 30 payment methods, including Paypal.
The only supported cryptocurrency is Bitcoin.
With the former LocalBitcoins CEO(Nikolaus) moving into the company board, the company has recently announced its new CEO in the person of Sebastian Sonntag.
To buy Bitcoin with LocalBitcoin, the same steps as explained above are followed.
When you are using LocalBitcoins, you will be working with an actual person. And so, you have to examine the seller critically before initiating a trade.
You can read our LocalBitcoins Review here.
Buy Bitcoin with PayPal: Is It Beneficial?
Buying Bitcoin with PayPal presently is quite tough owing to the limited number of exchanges that allow you to do that.
And the exchanges that do charge high percentages in fees, and of course, you have the scam sites to deal with also.
To answer the question above, asides from it allowing you to transact with a wide variety of vendors from around the world, its benefits are low compared to the charges.
I recommend that you use other methods to obtain Bitcoins.
Read also: 10 Best Exchanges to Buy Bitcoin in Nigeria
So far in this post, I have discussed:
- What PayPal is
- Ways to buy Bitcoin with PayPal
And having read through, I know you have things to say.
Tell me: have you bought Bitcoin with PayPal before?
Which exchange did you use, and what were the charges like?
Or do you know of any exchange that should make this list?
Let me know what you think via the message you will leave me in the comment section.
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2 Actionable Ways to Buy Bitcoin with PayPal at the Best Rate was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.