Buying Bitcoin with Paypal is somewhat difficult to do.
It’s a method that incurs high fees, low limits, and many other issues.
If you’re still determined to use Paypal… it’s possible with the main way being LocalBitcoins.
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%).
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.
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.
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.
Of the two highlighted methods, LocalBitcoins 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.
LocalBitcoins itself only charges 1% fees, but when you take into account premiums on price and Paypal fees, you will be near 20%.
This you can do! Coinbase allows you to sell Bitcoin with Paypal on their exchange and receive a balance in your Paypal account. Any Paypal transaction takes around 3% fees so keep that in mind.
Yes and No. Most services only sells Bitcoin, but you can send Bitcoin to another exchange such as Binance to purchase altcoins and other cryptocurrencies in exchange for Bitcoin.
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 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 feedback.
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.
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.
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.
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.
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 to 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.