How to buy Bitcoin with PayPal?
One of the biggest problems with Bitcoin today is the fact that it can not be bought very easily. Even though Paypal has been very favorable with Bitcoin digital currency in the last 4 years, it is still a problem to be able to find more credible places to buy bitcoins with Paypal in 2018.
Why Paypal will not allow this?
Simple. There are numerous cases of refund of charges created by scammers who buy Bitcoin with Paypal and then claim that they received nothing. In this way, they can keep their money and their bitcoins by carrying out an unfair transaction.
You want to know why?
Many people are trying to buy Bitcoin or Litecoin with Paypal, but they are discovering that it is not an easy task to do.
What is important to understand about Bitcoin is that it is like cash. If you lose it, bad luck!
On the other hand, Paypal is like any other credit card company that deals with fraudulent actions and customer complaints. This means that theoretically, someone can buy Bitcoin with Paypal, get the products or services then create a dispute complaining of never having received anything.
I can give you a small example. Let's say I want to buy you 1 BTC and pay you through my Paypal account.
We agreed on a price (about $ 1000). I pay you and you send me the bitcoins. Spend a day or a few days and then I contact Paypal and say "Hi, I sent my money to this guy for bitcoins and I never received them."
Paypal of course, has no way of verifying if this is true or not (since bitcoins are impossible to track as cash). And since credit companies generally endorse the party that claims, it is very likely that I will get both my BTCs that you sent me and the money back for claim in my Paypal account.
Due to this escape route, most exchanges do not allow the purchase of Bitcoin with Paypal.
In addition to what I just mentioned, there is another reason why it is difficult to buy bitcoins with Paypal. Since Paypal is also an electronic currency, they do not allow the purchase of other electronic currencies, so sometimes they do not allow it. Paypal has been highly recognized for closing several accounts because they have been negotiating with the purchase and sale of bitcoins.
Remember: the problem is only on the seller's side, therefore, if you are the buyer, there is no harm you can do to yourself.
Then you have 2 options left:
Find a way to circumvent this problem as explained here in this article.
Buy BTC from people you trust through OTC sites like LocalBitcoins
Invest in Bitcoin has become a very profitable activity in recent years, the increase in its value has been a motivating factor for those who want to make some quick money or even for the most enthusiastic who want to take a plan focused on the long-term.
Just as there are several ways to invest in Bitcoin, such as mining and direct purchase in a house of exchange, there have also been various ways to buy this cryptocurrency through various payment methods.
The fact that there are numerous alternatives to buy bitcoin, benefits in part to occasional investors or new participants in the cryptocurrency market who intend to acquire these digital assets, especially without having to go through the tedious need to cover high costs in equipment and services in mining or to approve rigorous verification processes in some exchanges.
One of the methods that people regularly seek to acquire bitcoin is through the PayPal payment processor, this is related to several reasons, such as the custom of use that is part of the processor, the simplicity in terms of handling and the security that can contribute to the process. In addition, a simplified and common way to make the purchase is sought.
Despite this, the direct purchase of Bitcoins using PayPal is not possible until today, for different reasons. The first and foremost is that the payments made through PayPal are reversible, with Bitcoin this is not viable, another aspect is that Bitcoin does not allow extra charges and is frequently attacked by hackers and fraudsters with false and fraudulent charges. Last but not least, Bitcoin is a direct competition of the PayPal service.
Fortunately, there are options that allow you to make the purchase without many inconveniences, but with some additional steps. Some of them are markets in lines and several exchanges that facilitate the operation and of which we will talk a bit below.
Alternatives to buy Bitcoin with PayPal
For this point it is important to have a fully verified PayPal account and to have done a previous research on Bitcoin and the cryptocurrency market. Similarly, it is essential to study some exchange houses and utility tools, but above all, have set up a reliable wallet to store the Bitcoin units that are intended to be acquired.
VirWox
VirWox is without a doubt the most popular option in the community to acquire Bitcoin using PayPal. The use of this platform is possible thanks to the fact that the terms of service of PayPal allow the use of Second Life Linder or SLL, which has caused several Exchange to add this service to its characteristics.
In this platform Bitcoin is acquired as a collectable object of the Second Life game, which is large enough to generate a gray market in which exchanges are made for cryptocurrency.
When entering your website, you only need to create an account by filling in all the requested information and by confirming your email you can deposit your balance by using PayPal. Once you have the available balance you can make the conversion to SLL and then through an available option you can exchange it for Bitcoin.
Although in principle it is complicated, it is quite simple and safe, especially since it is done under a form in which PayPal will not issue any warning for the purchase of this cryptoactive. However, a disadvantage with this method is the commission that we must pay for the transaction, something that is inevitable due to the use of PayPal.
It is important to note that for greater security, once the conversion to Bitcoin is made, we must withdraw the balance to the wallet that we have previously configured, something that can take up to two days approximately, but which is essential to protect our investment.
LocalBitcoins
LocalBitcoins is another of the options available to make the purchase of Bitcoins using PayPal, although it is not as popular as the previous one, you can perform the operation in the same way and by simple steps.
The Exchange has gained a great reputation and has a large user base. Its operation is carried out by connecting buyers and sellers according to their location, the amount of cryptocurrencies they wish to sell and the payment method they are willing to accept.
That said, we should only search for a seller willing to accept PayPal as a payment method, in order to acquire the Bitcoins.
One of the disadvantages of this method are the verification processes that users have to pass through and which are common in exchange platforms, although on the other hand as a positive point there is a large offer of users willing to accept the payment method .
Paxful
Paxful is another of the alternatives in which we can use PayPal and it works in a similar way to LocalBitcoins. On the site, the buyer must find sellers who are willing to accept PayPal as a payment method to make the exchange to Bitcoins.
Although the operation can be performed on this platform, it has not yet managed to position itself with full acceptance by the users in the community and it is possible that the offer is not as big as in the previous option.
The advantage with Paxful is the use of a custody service, which ensures user funds, providing higher levels of security in the transaction.
Conclusions
While the ecosystem of cryptocurrencies is developing and stabilizing, it is important to have different options such as those mentioned in this article to acquire them through payment processors like PayPal, at least until it evolves to a point where it is not The use of intermediary services is necessary.
Until that happens, new methods will continue to appear that allow these operations to be carried out and where community members should select which one is the most suitable for their needs, especially taking into account the type of investment they plan to make.