Here’s the thing…
Buying Bitcoin with Paypal is somewhat difficult to do.
The good thing is it is possible. There are two main ways to buy Bitcoin with a Paypal balance.
The exchange Virwox allows you to buy a virtual currency called Second Life Lindens (SLL). After purchasing SLL you can instantly convert them into Bitcoin on Virwox.
This is a bit of a strange method, but it is one of the most popular ways to buy Bitcoin with Paypal.
Localbitcoins is your other option. Localbitcoins is an escrow service which typically has lower limits and higher fees than Virwox.
Expect a whopping 20% premium if LocalBitcoins is used to buy Bitcoin.
Paypal is not the most optimal method for purchasing Bitcoin as the fees associated with it are a bit higher (~10%).
How to Buy Bitcoin with Paypal on Virwox
To get started buying Bitcoin with Paypal, create an account on Virwox. All of the fields are pretty self-explanatory, although I would recommend leaving the link to the avatar section blank.
Depositing into the Exchange
After signup, click the deposit link on the left sidebar.
After clicking deposit, you will be taken to this page, where you will need to scroll down to find Paypal.
In addition to Paypal, Virwox also supports SOFORT, Skrill, OKPay for the purchasing of SLL and Bitcoin.
Enter the amount in Euro that you would like to buy, and then click the check out with Paypal button. Even if you use another currency other than Euros, Paypal will automatically convert it for you.
Selecting your Trading Pair
Once your transaction has been completed with Paypal, you can go to the USD/SLL, EUR/SLL, GBP/SLL or whatever currency pair works for you.
From this page, you can do a market order or limit order.
Market orders are recommended, and buy SLL at the going rate. If you want to choose your own price (no guarantees your order gets filled) use a limit order.
Go to the Exchange USD/SLL section(or whatever pair you are using) and enter the number of lindens that you want to buy.
Next, go to the BTC/SLL page and enter the amount of BTC you want to buy. In this example, I can buy .00016 BTC for 3,255 SLL. If you chose a market order your order will be filled immediately and you will receive Bitcoin.
To send Bitcoin off Virwox, to an exchange or wallet, go to the Withdrawl page on the left side menu under My Account.
Enter the amount you want to withdrawal, and the address that you are sending it to, press request withdrawal and wait for it to process! It should take less than 30 minutes for your Bitcoin to arrive at the address!
Congrats, you now know how to buy Bitcoin using Paypal on Virwox! It is not the simplest method but can certainly be done!
Virwox Frequently Asked Questions
Why do I need to buy Second Life Lindens first?
Unfortunately, due to Paypal’s chargeback feature, users are unable to buy Bitcoin as there are no chargebacks on the Bitcoin network. That is why we must first buy Second Life Lindens and then buy Bitcoin.
What are Virwox’s Paypal limits?
The limits placed on your account depending on the rank of your account. This rank is determined by age and verification process.
Are these the only ways to buy Bitcoin with Paypal?
These are two of the easiest and most popular methods of buying Bitcoin with Paypal. Paypal does not support Bitcoin buying so users have to get creative when purchasing using Paypal.
Is Virwox a safe exchange?
Virwox has been around for years and has a pretty good reputation in the community. Use a strong password and two-factor authentication to make your account as secure as possible. They are a regulated exchange based in Austria.
What countries does Virwox support?
Virwox supports all countries unless Bitcoin buying is restricted specifically in your State or country. Also, if your country doesn’t support Paypal, then you obviously can’t purchase Bitcoin with Paypal.
What is the best method of buying Bitcoin with Paypal?
Of the two highlighted methods, Virwox is the best method in terms of fees.
There are other factors that may cause you to use Localbitcoins such as privacy or supported countries.
Typically, Virwox has around 10% fees while LocalBitcoins will have around 20%. LocalBitcoins itself only charges 1% fees, but when you take into account premiums on price and Paypal fees, you will be near 20%.
Here is a video explaining the process if you have trouble following over text.
Is Virwox customer support helpful?
From my experience they were helpful, but most users will never need to contact them as it is extremely quick to buy Bitcoin with Paypal.
In the event you need to contact them, here is their email address: [email protected]
How long does Virwox take to credit your account?
Upon opening your Virwox account, it may take a few days to verify. After verification, Paypal deposits and Bitcoin purchases are near instant.
Can I sell Bitcoin to my Paypal account?
This you can do! Coinbase allows you to sell Bitcoin on their exchange and receive a balance in your Paypal account. Any Paypal transaction takes around 3% fees so keep that in mind.
Can I buy other cryptocurrencies (altcoins) with this method?
Yes and No. Virwox itself only sells Bitcoin, but you can send Bitcoin to another exchange such as Binance to purchase altcoins and other cryptocurrencies in exchange for Bitcoin.
Should I leave my Bitcoin on Virwox?
No no no! Leaving cryptocurrency on an exchange for an extended period of time is a terrible idea.
If the exchange gets hacked or shut down, your cryptocurrency will go down with it. After making a purchase, move your Bitcoin to a secure wallet.
How to Buy Bitcoin on LocalBitcoins with Paypal
As stated above, vendors on LocalBitcoins will charge higher premiums than Virwox, but because it is an option we will provide a tutorial. A requirement for a LocalBitcoins account is a phone number.
First, create an account on LocalBitcoins if you do not have one already. Using the menu on the main page, enter the amount of Bitcoin you want to buy, as well as selecting Paypal as a payment method. Click search.
At the time of this writing, Bitcoin is selling for $7600. Considering the first option is selling Bitcoin for $8350, this is a 10% premium minimum, and increases fast as you move down. LocalBitcoin charges 1% fees, Paypal charges around 3% so these fees really start to add up.
Select a seller, and you’ll be taken to a page similar to this. Read the sellers rules and send a trade request.
If the seller agrees to sell after viewing your account then you both can proceed the transaction using Localbitcoins as an escrow service.
Congrats, you have successfully used LocalBitcoins to purchase Bitcoin with Paypal!
LocalBitcoins Frequently Asked Questions
Is LocalBitcoins safe?
LocalBitcoins is one of the most known cryptocurrency exchanges in the space. Just to be safe, choose a vendor with a good rating and a high amount of feedbacks.
Do I need an ID to use LocalBitcoins?
Yes, to signup and transact on LocalBitcoins you need to validate your account. Validating your account requires you to use a real identity with a valid ID and phone number.
Why does LocalBitcoins charge a premium on Bitcoin’s price?
The actual exchange provides infrastructure for users to trade. Other people on the exchange know people will pay extra for the convenience and privacy LocalBitcoins provides. LocalBitcoins itself only charges 1% for its services.
How to Buy Bitcoin on Paypal No Verification
Virwox requires very little information upon signup, just a name, country, and email. Paypal itself requires more verification, but after having an account you can buy on Virwox with little verification needed.
Can I buy Bitcoin with Paypal on Coinbase?
No, unfortunately, only the selling of Bitcoin and other cryptocurrencies to Paypal is supported. It is possible this feature gets added in the future. Please note that when selling anything to Paypal, they will take a 2.99% fee + $.30.
History of Paypal and Bitcoin
Paypal was close to accepting Bitcoin at one point a few years back. Many feared that Paypal wouldn’t actually hold onto their Bitcoin supply and could cause a negative effect on the price of Bitcoin. Vendor acceptance of Bitcoin is inevitable as it becomes a more widely accepted currency.
One of the CEO’s of Paypal has gone as far as to say that Bitcoin is a scam. It is possible the pressure of Bitcoin taking over his industry has lead him to these thoughts. Why does Bill Harris think this?
For one, he says that Bitcoin has no intrinsic value. Fiat currencies do not either and are simply paper or certificates with a predetermined value.
Another complaint of Harris is that Bitcoin is too volatile to become a currency. Volatility hurts somethings use as a store of value but does not affect its job at being a currency. Items and services can be priced in any amount of Bitcoin possible as long as both parties accept.
Lastly, Harris claims that Bitcoin is mostly used to break the law, which is a foolish statement considering how much the dollar and other fiat currencies are used for criminal activity. Bitcoin is more about censorship resistance making it near impossible for anyone to cause a transaction to not go through.
Funny enough, Peter Thiel another former Paypal CEO is known for his bullish comments comparing it to gold.