Paypal to Bitcoin? Here’re The 6 Easiest Ways to Buy Bitcoin with Paypal
As news of cryptocurrencies and the blockchain technology continues to gain global attention, many people seek to come into the ‘decentralized’ using the existing system of payments such as credit card, bank accounts etc. Bank accounts and, to a lesser extent, credit cards are already widely supported at exchanges and coin conversion services. However, using PayPal as a system of payment to buy bitcoins has been somewhat tasking and this article enlighten well on how to go about it.
Why is it hard to buy bitcoins with PayPal?
Many have lamented on why it has been impossible to buy bitcoins using PayPal but it’s important to understand that although there is no direct linkage whereby bitcoins can be purchased with PayPal, there are however, connecting steps through which it can be done. Understanding both PayPal and Bitcoins as payment systems would explain in part why buying with PayPal isn’t easy. Bitcoins poses a threat to the use of PayPal. Another reason is that unlike PayPal, bitcoins doesn’t allow chargebacks and very importantly, PayPal payments are reversible while Bitcoin payments aren’t.
Where can I Buy Bitcoins?
In buying bitcoins using PayPal, the only way possible is by going through exchange platforms. There are a few exchanges put there that allow you to make such purchases; however, many of these exchanges place holds onto users account until certain verifications are carried out. These purchases can be made possible using SLLs also known as Second Life Lindens, a feature on the PayPal platform.
One of such trusted exchanges through which bitcoin purchases can be made is VirWox otherwise known as Virtual World Exchange. There are other exchanges also that can be used for the purchase of bitcoins such as Localbitcoins, UpCoin, Paxful, Wirexapp, eToro etc
It is important to note that VirWox doesn’t function or operate in full capacity as an exchange. What does mean? It means that VirWox’s primary function isn’t as an exchange but a platform through in-game collectibles are purchased for the famous Second Life game. Considering the number of users on the game, it’s a big project that could be fully accepted by PayPal which in turn creates an opportunity for purchasing bitcoins. So, the following steps should be taken in successfully buying bitcoins with PayPal using VirWox:
- Set up a Bitcoin Wallet: A bitcoin wallet is an encrypted account where bitcoins are stored. There are various wallet providers online e.g. blockchain.info, bitwala.com etc. After registering and setting up the wallet, note your wallet private keys and keep them.
- Open an Account with VirWox: After creating your bitcoin wallet, the next thing is for you to go to your browser and go to https://www.virwox.com, create an account there and ensure you fill the correct information. A confirmation email would be sent to the email you used in registration. Confirm your email and get back to the VirWox homepage.
- Fund your VirWox account: VirWox accepts PayPal payments on their platform. Thus, the next step to take is to deposit your money in your account through PayPal.
- Exchange USD for SLL: On the VirWox interface, you’ll find the USD/SLL where you can exchange your fund for SLL.
- Convert SLL to Bitcoins: Lastly, you have to convert your SLLs to bitcoins and thereafter transfer to your created bitcoin wallet using your wallet address.
It is pertinent to note that while normal bitcoins charge or doesn’t charge at all for bitcoin transaction, this is not the same with bitcoin. They are two different systems. While converting your SLLs to bitcoins, VirWox would deduct a 10 percent compulsory transaction fee.
LocalBitcoins is a very interesting website to buy bitcoins with PayPal. It provides an easy to use interface for transactions. It is also amongst the most reputable bitcoin exchange platforms globally. There are various system of payment accepted on the platform. However, the way the platform works is that there is a one on one interaction between buyer and seller. Thus, if you’re buying bitcoins using PayPal, you’ll have to connect with someone who would accept that form of payment. Trading on LocalBitcoins is at the discretion of users. LocalBitcoins is just like a platform that connects both parties together and it is in no way like a third party so, every buyer/seller must be cautious in their transactions. However, the platform has proven to be good for trading. LocalBitcoins exists on the address https://www.localbitcoins.com. So, below are the steps to take when using LocalBitcoins to purchase bitcoins using PayPal.
- Have a Bitcoin Wallet: Either you’ve created one before or you don’t have any, its important to have a bitcoin wallet as that is where your bitcoins would be stored after transaction. So, in case you haven’t created one, create one by searching on search engines but www.blockchain.info, www.bitwala.com is recommended.
- Look for Traders that accept PayPal as mode of Payment: Looking at the search bar at the top of the site, input the amount in USD or the currency you’re using for payment, country you want your seller to be from and payment mode where you’ll choose Paypal and then you search. After searching and it brings out the search results. Look up the details of the traders that accept that payment and a page shows up showing the trade volume, number of confirmed trades, feedback score (i.e. report from system on amount of reviews generated overtime and their ratings).
- Make Payment: After this, you talk with the seller and you discuss rates and finish up the transaction.
N.B: It is important to note that for all transaction to buy bitcoin using PayPal, there would be deductions for transaction fees, so your value of bitcoins would definitely not be the same as the value of PayPal you start with. Another issue that has risen up overtime with the usage of LocalBitcoins is the high chance of scam since it’s a reversible form of payment while Bitcoin isn’t. However, this can be avoided by making sure you’re trading with a verifiable identity. Also, before agreeing on a contract, there are terms that must be meted which would be based on mutual understanding.
Launched in January 2018 with Beta testing currently in progress, UPCoin was developed to become the world’s most secure and easy to use exchange platform for crypto trading. It is expected to start trading on 1st March, 2018 where it would trade cryptocurrencies and as promised by the development team beforehand, it would add PayPal as a deposit option. On launch, it also offers a $500 bonus trading fees. So, when it launches fully on March 1, just use the interface by creating an account, use the PayPal deposit option to continue trading.
With a good track record of successful purchases, Wirexapp has proven to be a good platform for the purchase of bitcoins using PayPal. However, it is important to understand that there are select countries where this method is applicable. These countries include Bahamas, Bahrain, Bulgaria, Chile, Croatia, Estonia, Georgia, Gibraltar, Iceland, Indonesia, Italy, Jordan, Kazakhstan, Latvia, Lesotho, Liechtenstein, Lithuania, Luxembourg, Malaysia, Malta, Mauritius, Moldova, Morocco, Oman, Philippines, Romania, San Marino, Saudi Arabia, Serbia, Slovakia, Slovenia, United Arab Emirates. With these outlined steps, you can begin to use Wirexapp for your purchases.
- Create an account: To begin to using the Wirexapp platform, you’ll have to create an account with them. To do this, on your web browser, go to www.wirexapp.com and then click on the registration option after which you’ll fill all the necessary information which includes your name, email address, a strong password and then after you click the register button, a confirmation mail is sent to your email address which you’ll click on to verify your account. Upon registration, you’ll be given a free virtual visa card which would be used for your payments.
- Add Card to your Paypal: After registeration on Wirexapp website, you’ll have to link your virtual card details to your details. Thus, logon to your PayPal account, you’ll see a Money feature on the profile, click it. After loading, click the Add a Card feature also included in this section. After loading, input the details of the visa card you got from Wirexapp. When you are done, click the Confirm my card button. After doing this, PayPal will take steps to verify your card, so you follow the required information relayed to you on completion of this phase. Note: It is very important to have a least balance of $3 in your account to enable this verification go through.
- Verify your PayPal on Wirexapp: Go back to the tab created on your browser for your Wirexapp account and check for the PayPal code sent (This is a usual practice by PayPal to avoid spamming accounts). To check for this code, click on the Transaction feature. Confirm the code and then wait for the next 24 hours to get a refund of every charges that would have been incurred in the process.
- Purchase Bitcoins: On completion of the last step, you’re ready to buy Bitcoins using PayPal on Wirexapp. To buy bitcoins, go to your PayPal account and fund your Wirexapp account using your linked virtual card. Normally, withdrawal on this feature takes between 1 – 7 days before it gets to your linked card, so be rest assured if there is no automatic credit on your Wirexapp account. After the funds get to your account, you can easily use Wirexapp interface to purchase your bitcoins.
Note: Only countries listed above have access to this method, so if you’re in the listed countries. Boom! You have a solution.
This method is another popular method used by people to purchase bitcoins using PayPal. This website offers purchases using other means of payments too such as Payoneer, Skrill etc. However, to use this website, it is essential to have a verified USA PayPal account. To create a verified PayPal account, you’ll need your bank details, debit/credit card details and a valid means of identification such as driver’s license etc. Paxful’s modus operandi is that it uses escrow services for transactions which in turn provide a good protective layer for buyers. Here, you find sellers who wish to sell their Bitcoin in exchange for PayPal funds. This platform works in a similar way to LocalBitcoins and to use this platform, create your account filling your correct details and after all verifications and linking of PayPal accounts, you can use the Buy Bitcoin and Sell Bitcoin features respectively.
This platform is another form of exchange peculiar with its low transaction fees and extended list of accepted mode of payments. Unlike other platforms where you there is a withdrawal feature for your bitcoin into your bitcoin wallet, eToro doesn’t support bitcoin withdrawal. It is an exchange that is only fit for swing traders such that they make their gains with price flunctuations. The only exchange feature that exist on this platform is the Fiat/Bitcoin feature where bitcoins are exchanged for dollars, euros, pound, etc. Thus, it is important for any user of this platform to understand categorically that he/she doesn’t own the bitcoins but rather trade with them. It is also important to know that the usage of eToro is only possible outside the United States of America.
So, to use this platform, the first thing is to logon to the website using www.etoro.com, then register and then connect your PayPal account to it where you’ll transfer your funds to buy the bitcoins. Also, the platform can be accessed comfortably on smartphones without the stress of taking a computer around. So, you can download the app from the appstore and enjoy your trading.
In conclusion, although the direct interface that connects Bitcoin with PayPal is unavailable at the moment due to a few conflicting issues, these platforms highlighted above can serve its purpose. Also, understand the limitations and strengths of these platforms and put them into consideration when transacting. Goodluck!