How to Buy Bitcoin with PayPal?
Buying Bitcoin is becoming more and more convenient, and more options are becoming available. Read this article to learn how to buy Bitcoin with PayPal.
Bitcoin, the flagship cryptocurrency, has seen a meteoric rise in price and popularity since its introduction. It has gone mainstream.
The growth of Bitcoin is bittersweet.
It’s an investment which you curse yourself because you never had the commitment when there was the opportunity.
Early adopters burned through their wallets. A classic example being Laszlo Hanyecz paying $10,000 BTC for pizzas, back in the early days, which amount to millions in today’s market.
We wouldn’t be here today if it weren’t for these early adopters.
Bitcoin is volatile as any other cryptocurrency but the adoption for the purchase of goods and investments has made it a true winner. You are able to use the currency to buy a wealth of items/services from individuals and reputable dealers because it has been established.
The truth: your average Joe wants in on the action.
They want an easy method to do so without the tedious process of mining or using payment services that seem foreign to their normal usage.
What most want is to buy Bitcoin with Paypal.
But there is a problem…
Buy Bitcoin with Paypal? Hold Up
The short: There are no ways to buy Bitcoin with PayPal directly.
The long: There are ways to work around restrictions using services and marketplaces so that you’re able to buy Bitcoin with Paypal.
Bitcoin isn’t quite kosher with Paypal for a few reasons:
- It's the competition
- Sellers cannot contest chargebacks
- Fraudulent charges are frequent due to hacked accounts
This doesn’t mean it’s not possible. It means you have to take additional steps in order to use your Paypal account when buying the cryptocurrency.
It’s better in a way because Paypal is quick to freeze accounts that are used to make Bitcoin purchases. If this is your only method you prefer for online payments then you’re out of luck.
There are exchanges which allow you to buy Bitcoin with Paypal but in a limited fashion because they too want to protect themselves from chargebacks. These exchanges eventually lift holds after you’ve proven your intent and investment.
Of course, they charge a small transaction fee but it’s better than having to take risks with wire transfers or cash exchanges. Paypal may give you the slap but if you’re smart how it’s used then you gain buyer protection.
There are risks but if it’s Paypal you want then you have options.
Which brings us to…
VirWox: The Best to Buy Bitcoin with Paypal
Paypal terms of service accept the use of Second Life Lindens (SLL) for the buy of Bitcoin. This acceptance has given the opportunity to launch exchanges and services to provide SLL – the leader of these being VirWox.
VirWox isn’t quite an exchange. It’s actually a platform which serves the online sandbox Second Life as a way to buy in-game items. This is why they are called Second Life Lindens.
Second Life, the game, is large enough to be accepted by Paypal which does create a gray area in terms of using the in-game currency as a means to buy Bitcoin.
Before you begin:
- Set a budget
- Understand the history of cryptocurrency
- Learn about the exchanges and platforms
- Get a Bitcoin wallet
Bitcoin has seen swings which are why you must budget. Cryptocurrency is like any other investment in that it can be a gamble so it’s wise to diversify your investments rather than riding a hot trend.
Cryptocurrency is like any other investment in that it can be a gamble so it’s wise to diversify your investments rather than riding a hot trend. This investment is hot and plenty of hype surrounds the currency but to win you need to keep your finger on the pulse of the marketplace as a whole.
The education in the history and exchanges/platforms will help you create safeguards because even the vetted, trusted platforms have seen quite a rocky past such as Mt. Gox.
A wallet will ensure everything is in order so when you do make the exchange it’s not floating out there for someone to snag because of phishing or exploitation.
Anyway…
Okay, now into the juicy bits.
- Visit VirWox and open an account (here)
- Fill in the appropriate information for the account though leave the 'Link to Avatar' section blank (since you aren't likely playing SL at this time)
- Open your email client and confirm your account by changing the password within the allotted time (24 hours)
- Deposit money into the account under the 'deposit' tab -- select the amount in the form and continue with PayPal
- Verify and exchange your balance for SLL
- Use the 'Exchange SLL to BTC' to convert
- Withdraw the Bitcoins
There you have it.
There will be a transaction fee (up to 10%) for the process because you’re using Paypal but that’s something you’ll have to grit for the ease of service.
VirWox accepts payments from anywhere in the World to boot!
It’s recommended that you transfer Bitcoins to your personal wallet after this transaction for added security. There is a handling fee around .004 BTC and may take up to 48 hours to transfer.
So… what if you want to try a different method?
Alternative Platforms to Buy Bitcoin with Paypal
VirWox isn’t the only player in town.
Many other platforms and services have sprung up to provide options for using Paypal when purchasing cryptocurrency via SLL. These may not be as recognizable but they are worthwhile to explore as alternatives.
Each come with variable amounts of transaction fees and the need for due diligence. These are platforms that have shown promise but the nature of cryptocurrency is anonymity which can be a shaky investment if you’re quick to the gun on the investments.
Alternative platforms include:
- Paxful - Paxful is an emerging exchange and conversion option which hasn't been quite proven now. The process is like others in which you create an account, select your payment options, seller, and then exchange money for
- Bitcoin using the Paypal account. Paxful uses an escrow account to provide buyer protection. It's quick and easy but isn't quite established as the other options.
- E-Coin - A new account/card can be accessed to buy via Paypal by connecting a debit card to the PP account and processing verification. A basic balance of $3 is required. E-coin will provide a 4-digit code which will allow you to withdraw funds from the account. Once money has been transferred -- it's a matter of using the 'Buy Bitcoin' option. This may take up to several business days to complete.
- Personal - A local Bitcoin exchange may be the best option since you are able to feel the person in a face-to-face manner. Meetup.com and other forums centered around Bitcoin and cryptocurrency will provide you with information about users and the gatherings. Here you could exchange cash or through Paypal to start transfers. Viable options as long as you understand the locals.
- Cryptonit - This service offers low fees which start as a great contender to VirWox. There are buyer protections through the service because of verification through ID's and addresses which may off-put certain individuals that aim for privacy in their use of cryptocurrency. Turn around is quick (12 hours) while the platform easy-to-use.
- LocalBitcoins - Think of LocalBitcoins as doing the local meetup but in a virtual setting. Here you're almost completely on your own. You have to vet the individual to find credible sellers. </ul>
Keep your eyes peeled for new, up-and-coming platforms but DO take the time to read reviews, research, and vet these services before jumping head first into them to be on the safe side. Speaking of that...
A Word of Caution and Going Forward
Protect your Bitcoin wallet with your life. You have the ability to store your wallet on your personal computer or use online wallet services. The personal route is often best as long as you're careful with the hardware and avoiding troublesome software which may hijack your efforts and hard-earned finances.There are many different ways to buy Bitcoins. Paypal in tandem with VirWox is one of the easiest for those already accustomed to using the payment processing service. Like we said: the cryptocurrency market is volatile. Small investments are best for the beginner since the prices of BTC can hop. Scaling is the preferred method until you're ready to play heavy with your investments. Scaling is the preferred method until you're ready to play heavy with your investments. Bitcoin is on track to change and destabilize the balance of power in the financial World. We encourage you to read crypto news and keep up-to-date with the options you have when using the currency. Knowledge is power.