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Buy Bitcoin with Paypal

buy bitcoin with paypalSince the dawn of cryptocurrency, it’s always been difficult to buy Bitcoin with PayPal. This is because PayPal does carry a transparent log of previous transactions, unlike Bitcoin, and allows users to make chargebacks when and if they feel necessary, on some very lenient grounds. You can see why sellers would want to stay away from PayPal!

With that said, it doesn’t need to be hard to buy Bitcoin with PayPal if you know how to approach it. Let’s dive into some safe and easy methods for doing so.

How to buy Bitcoin with PayPal

When it comes to buying Bitcoin with PayPal, there are only really two options:

  • Purchase them on a peer to peer exchange
  • Purchase an intermediate cryptocurrency to sell for Bitcoin

We’ll get to the pros and cons of each method in just a second, but for now, let’s take at how you can purchase Bitcoins on a decentralized exchange using PayPal.

Using a peer to peer exchange

Peer to peer exchanges are services like LocalBitcoin and Paxful whose job is to connect buyers with sellers. PayPal turns out to be a valid payment method for many of these sellers, not only because the quantities are usually quite small, but also because these services feature a built-in rating and feedback system for both parties.

The process gets easier with every trade you make, as your account becomes more and more trustworthy. Still, first-time buyers won’t struggle to find a seller, so long as they’re happy to start off with smaller amounts of Bitcoin, and perhaps show some ID.

To buy Bitcoin with this method, these are the steps you will need to take:

  1. Navigate to the exchange of your choice. We’ll be using LocalBitcoins as an example.
  2. Sign up to the exchange and confirm your email address. Click “Buy bitcoins”.
  3. In the filters section of the listing, change the payment method (by default set to “All online offers”) to PayPal.
  4. Browse the offerings and pick one from a user with a suitable reputation.
  5. Read the seller’s terms of sale, and start trading following their instructions!

That’s all there is to using peer to peer exchanges to buy Bitcoin. Be sure to leave your seller a review after the trade and politely ask them to do the same — this will make future transactions a lot easier.

Let’s move onto the second way to buy Bitcoin with PayPal.

Using an intermediate currency

Another option for buying Bitcoin with PayPal is to buy an intermediate currency first, and then sell that currency for Bitcoin. An especially popular intermediate is Linden Dollars, or Second Life Lindens (SLL), which you can buy using PayPal from a service like VirWox.

This is because, unlike Bitcoin, Linden Dollar transactions can be easily tracked. As a result, sellers don’t have to worry about fraudulent chargebacks filed through PayPal, as they can effortlessly present a transaction log which shows that the buyer did, in fact, receive the product!

All that remains is to sell the SLL for Bitcoin, which you can often do on the same service, like our example of VirWox.

Here are the exact steps, using VirWox as an example:

  1. Sign-up as a customer and verify your email address.
  2. On the exchange page, buy your budget’s worth of Linden Dollars.
  3. Once the order has been fulfilled, sell your Linden for Bitcoin.

The biggest drawback of using this method as opposed to just a peer to peer exchange is the high fees. You are, however, offered a lot more security when you use an established service.

That’s all there is to buying Bitcoin with PayPal. Although it isn’t really all that difficult, it can take time and occasionally quite risky. Remember though, if you have a credit or debit card, it’ll be a lot easier to purchase Bitcoin directly than to purchase it through PayPal!

Use Paypal to Withdraw Fiat from Coinbase

Coinbase does not currently accept Paypal to buy bitcoin. Although you can use your paypal account to withdraw USD from your Coinbase account.