Not Sure How It Works? Here is How to Buy Bitcoin with PayPal
If you’ve been trading for a little while and have tried your hand in the various payment methods, then you might agree with me that buying coins using PayPal isn’t that easy and it can be quite confusing especially when you are just starting out on your crypto journey.
Well, it’s a good thing that you’re here, because in this guide, I will show you how to buy Bitcoin with PayPal, and hopefully, you can apply the same technique when buying other digital assets.
I’ll get into the guide in a moment, but first, let’s get one thing off the way – so far, VirWox offers the most popular and easiest way of buying Bitcoins with PayPal.
So, we’ll talk about VirWox and other great platforms for buying Bitcoin using PayPal.
Where and How to Buy Bitcoin with PayPal
There are several ways of buying Bitcoin from various exchanges using PayPal – and the main advantage of this mode of payment is that you can use your fiat currencies held in your PayPal account to buy Bitcoin.
However, the number of exchanges that accept PayPal is limited compared to other payment modes such as a bank wire or credit/debit cards. As much as there a couple of exchanges that accept PayPal, I was able to single out four main ones that I noticed were widely used.
Here are four exchanges to consider when you wish to purchase Bitcoin with PayPal:
- LocalBitcoins and Paxful: These platforms allow users to buy Bitcoin on a peer-to-peer basis using PayPal and there are no trading limits apart from the ones set by the seller of an asset.
- xCoins: xCoins allows you to buy $1,000 worth of Bitcoin per transaction when using PayPal.
- VirWox: With this platform, users can purchase up to a maximum of 1,000 euros worth of Bitcoin using PayPal.
Let’s analyze each of these platforms to give you a clearer picture of what each has to offer.
How to Get Bitcoins with PayPal on LocalBitcoins
This is a peer-to-peer exchange that allows users to locate Bitcoin buyers and sellers around their geographical location. It also permits both parties to transact using the most convenient channels available to them. If, for instance, you reside in the US, the platform will offer customized solutions for both parties around the states.
When the buyer and the seller connect, they will use the platform to present whatever each of them has to offer. The buyer will deposit funds on the platform while the seller will remit the coins he/she wishes to sell. As soon as that’s done, both parties will receive their funds.
PayPal comes in when a buyer needs to send money to their LocalBitcoins online account to enable them to purchase Bitcoin. The platform enables users to safely and conveniently transfer the agreed amount of money for the purchase of the digital coins. Being a fiat-only wallet, PayPal lets you use a couple of fiat currencies in exchange for BTC.
- No transfer limits
- Simple and easy-to-use
- Very cost effective way of acquiring Bitcoins
- There’s a need for users to find sellers and buyers of products for themselves
- Some users may not prefer PayPal as their payment method
- The deals you get are determined by the kind of buyer or seller you find
How to Purchase Bitcoins with PayPal on Paxful
Just like LocalBitcoins, Paxful is a peer-to-peer platform that connects buyers and sellers of various digital assets. However, on this platform, you don’t have to necessarily find a buyer or a seller on your own; all you need to do is browse around for the best deals.
Buyers on this platform can use their PayPal funds to make their purchases with Paxful offering escrow services to both the buyer and the seller to enable both of them to deposit their assets at a central depository before each receives their funds.
- No transaction limits
- Simple and easy-to-use
- Very friendly transaction fees
- The purchase rates of assets are dependent on the buyer you identify
- In a way, you still need to browse around to find a seller
LocalBitcoins and Paxful are similar in the sense that they are both peer-to-peer platforms with no trading limits. In addition, in a way on both platforms, you’ll need to find the buyer of the Bitcoins you wish to purchase.
But despite being similar in many ways, Paxful offers a relatively wider range of payment methods as compared to LocalBitcoins. In case your PayPal account contains foreign currencies, you might want to go for Paxful since you are likely to get more value out of transacting on it using foreign funds due to its favorable policies of foreign currencies.
How to Buy Bitcoin with PayPal on xCoins
Compared to the first two exchanges, xCoins is a “hybrid” as it offers peer-to-peer lending and it is a Bitcoin exchange.
This platform works a bit differently…
Users of the platform offer loans to each other at a predetermined interest; however, unlike most conventional loans, borrowers on this platform are required to make a one-off settlement for amounts lent to them. This technique makes it seem almost like you are buying the Bitcoins now but the agreed amount is settled at a future date.
So, what happens is that the sellers “lend” Bitcoins to buyers who take the Bitcoins on “loan” with a promise to settle the amount with the sellers at a future date with an interest on top of the principal amount.
Buyers of the Bitcoins have the option to settle their “loans” using PayPal at the expiry of the loan period. The platform essentially operates in the same way as most other exchanges only with some additional features such as lending and a PayPal mode of payment for Bitcoin lent to buyers.
- Relatively simple to use
- One of the few useful platforms for acquiring Bitcoin using PayPal
- It would make much sense if the platform offered the corresponding option for transferring BTC to PayPal when a buyer and a seller strike a loan deal
- The issue of interest on your buys can mean that you end up not getting meaningful value from your digital assets
How to Buy Bitcoin with PayPal on VirWox
Like I mentioned at the beginning of this post, this platform is known to be the most popular means of buying BTC using PayPal.
This is a unique exchange that first came into existence in 2007 to enhance the trading of Linden dollar (SSL), a currency used in the Second Life video game. Ever since that time, this platform has evolved its way into the crypto world.
Users can purchase Bitcoin on VirWox using PayPal, but they will first of all be required to buy SSL, and then exchange it with Bitcoin. Here is the process of doing that:
- Set up and have your account verified on the VirWox platform
- Avail funds on your VirWox account using PayPal
- Purchase SSL using the funds in your account
- Trade SSL for Bitcoin and then withdraw your digital assets to your offline wallet
- This is one of the safest platforms for PayPal-to-Bitcoin transactions
- Having been around for more than a decade now, you can rely on their expertise to deliver the right service for you
- VirWox enables users to participate in a Bitcoin exchange directly using PayPal
- You end up paying conversion fees to convert to SSL and then to BTC
Despite having detailed guides on this subject on various crypto websites, I noticed a few questions still went unanswered. In this next section, we’ll take a look at some of the frequently asked questions in regards to buying Bitcoin using PayPal
Is it possible to sell BTC to PayPal?
Yes, you can. You can choose to use a platform such as Coinbase to sell your coins to PayPal at a fee of 3.75%. However, most platforms offer the same option but at a higher fee of about 10%.
Can I use the Same Method to Buy Other Coins?
If I was to speak about the above four listed platforms, the closest that offers you an option to buy coins other than Bitcoin using PayPal is Paxful – this platform allows you to buy BTC and then you can use it to buy other coins.
Do We Have a Wallet for PayPal to Bitcoin Transactions?
Not at the moment. But there have been rumors about that possibly happening any time in the near future.
Well, there you have it!
I know we can’t possibly answer all your questions but we’ll be happy to respond to them the best way we can on our various platforms and the comments section.
It seems that the future of Bitcoin and PayPal is just but starting to unfold. Recently, the co-founder of PayPal expressed confidence in their new-found partnership (that allows users to buy Bitcoin by using Paypal) and he even went on to cement their union with a generous investment into the digital money space.
Take a look at his TV interview below:
Aside from that, as a user of these platforms, you need to understand that each exchange has its pros and cons – so it all depends on what you’re looking for. The most important thing is to know where to go when it comes to convenience or affordability and so on.
So, which exchange have you finally decided to use? Let us know in the comments below!