How To Buy Bitcoin With PayPal: The Best Choices
PayPal has been derided by many who buy and sell online due to issues with account closures and holding funds for extended periods of time.
For its faults, PayPal has been open to those who are interested in using the platform to buy Bitcoin. The company announced a couple of years ago it would permit all merchants to accept Bitcoin as payment.
Despite its faults, PayPal has garnered a reputation for being one of the easiest ways to send and receive money. It is used by millions of people across the world for payment processing.
However, finding ways to purchase Bitcoin through PayPal can be more difficult than it looks. Not all crypto exchanges and platforms support PayPal purchases because PayPal supports chargebacks on transactions.
Since crypto transactions are not reversible, a person could use PayPal to buy Bitcoin and petition to get their money back claiming ‘they never received the cryptocurrency.’
A Popular Option That’s Closed Down
January 2020 marked the end of a once-popular method to buy Bitcoin with PayPal. The website Virtual World Exchange (VirWoX) allowed users to first buy an in-game currency with PayPal and then utilize the currency (Second Life Lindens) to buy Bitcoin.
The website, once the world’s oldest Bitcoin exchange after the infamous Mt. Gox, shut down officially on January 6th, 2020.
Buying Bitcoin Through An Exchange With PayPal?
Coinbase remains one of the most user-friendly and intuitive crypto exchanges. Integrating PayPal is as simple as linking your account through the “Settings” tab on Coinbase.
However, it’s not possible to use Coinbase to actually buy Bitcoin with PayPal just yet. According to the company, “Currently, customers are only able to use PayPal to withdraw or sell, and transaction availability depends on region.”
Users of Coinbase should note PayPal charges fees for transactions. Coinbase also mandates each account on its platform can just be linked to one PayPal account.
Coinbase users will have to go through an identity verification process on the platform, which will include sharing details like contact information and an official ID. Integrating PayPal with Coinbase can be a great way to easily have access to cash from the exchange after selling cryptocurrencies like Bitcoin.
Buying Bitcoin Through Peer-To-Peer Marketplaces
Using a peer-to-peer marketplace like LocalBitcoins is a well-known and legitimate way to buy Bitcoin with PayPal. Buying on this marketplace can come with high fees. However, it’s a good way to get Bitcoin quick.
There’s always sellers on the “Quick Buy” Screen who accept PayPal as acceptable payment to buy Bitcoin.
Users also have the ability to post an ad saying they’re on the hunt for Bitcoin and have PayPal ready. LocalBitcoins is good for buyers who have a price in mind they’d like to buy Bitcoin at, but it might be difficult at times to get the rate you’re looking for.
Paxful is another peer-to-peer marketplace where it’s possible to buy Bitcoin with PayPal. The platform is very similar to LocalBitcoins and comes with many of the same pros and cons.
Using A Trading Service to Buy Bitcoin With PayPal
There’s a few well-known trading services that let users purchase Bitcoin using PayPal.
eToro is probably the most popular option, but using the platform comes with a few caveats. While users can purchase Bitcoin, they’re only able to change cryptocurrency back into cash on the platform. It’s not possible to purchase Bitcoin and then withdraw or send the crypto to other people.
As a result, eToro is best for those who are looking to profit (hopefully) from Bitcoin’s price swings, and don’t actually need the cryptocurrency to send to a friend or to make a purchase.
Otherwise, you’ll need to find a different platform. eToro has low fees, but the platform might not be available to use depending on the country you are in.
Other trading services where users can buy Bitcoin with PayPal include Wirex and xCoins. Many of these services are going to require identity verification to buy Bitcoin while selecting the PayPal payment option.
While people who use PayPal to purchase cryptocurrencies are most likely not the most concerned with privacy, since PayPal is not anonymous or private, those interested in flying under the radar while buying Bitcoin should stick with a peer-to-peer service like LocalBitcoins.
Buying Bitcoin Using A Lending Service
Another way to use PayPal for Bitcoin purchases is to work with a Bitcoin lending service like xCoins.io. This site lets users receive a Bitcoin ‘loan’ after verifying ID and depositing the USD equivalent of the loan, including fees and a fixed interest rate amount.
What’s the Best Way To Buy Bitcoin With PayPal?
There is no seamless way to purchase Bitcoin with PayPal. If you are looking for the most flexible option with the lowest fees, then LocalBitcoins would be your best choice. Just make sure to vet sellers carefully to reduce the risk of a scam.
Platforms like eToro and Paxful are good options for those looking to quickly purchase Bitcoin with PayPal, though services might not be accessible depending on where you live. These sites are also the best option if you are concerned about security and regulation, as both are properly registered with legitimate financial authorities.
There are options out there if you’re looking to buy Bitcoin with PayPal, just be sure to understand what you’re getting into with regard to fees and transaction speeds.