In order to buy Bitcoin, casual investors want to avoid the complicated process of setting up an account with exchanges or going the mining route – two rather detailed and laborious processes. Thankfully PayPal offers a more convenient method to acquire digital currencies.
Below we’ve provided a detailed explanation on how to buy bitcoins with PayPal – in hopes of easing the purchasing process for some of you newer crypto investors.
How to Buy Bitcoins with PayPal through eToro
Pros: Accepts a variety of payment methods, low fees
Cons: Not available in the US
eToro is a platform that allows users to buy bitcoins with PayPal and is considered to be one of the easiest methods to do so. Worthy of note is that eToro does not enable users to withdraw or transfer bitcoins to other users, rather it allows users to sell Bitcoin only for fiat currency. Users do not need a bitcoin wallet to use eToro as they do not store any coins.
How to Buy Bitcoin with PayPal through VirWox
Pros: A reliable method
Cons: High fees
VirWox (Virtual World Exchange) – It is a platform that allows trading of digital currencies such as Lindens, Bitcoins, etc. This exchange has more than 400,000 registered users and is an authorized reseller of Second Life Lindens (SLL).
Here is a step-by-step guide taking you through VirWox:
- Go to VirWox.com
- Open an account – login to Virwox, register and fill personal details like username, email address, etc. Skip when asked for “avatar name” and enter all other necessary information and click “register”.
- Activate an account – a confirmation email is sent to your account with a password. Login to Virwox with these credentials. It is advised to change the password before transferring money.
- Deposit money through PayPal – To do this, ensure you have an account with PayPal and ‘understand terms of service’ allowed by PayPal for using SLLs to buy bitcoins. Deposit money into Virwox account via PayPal. Now you have a balance in your VirWox account to purchase coins with.
- Go back to VirWox and buy SLL, and then buy bitcoins with your newly purchased SLL. Click “withdraw” to send your new bitcoins to your wallet. That’s it! Now you own Bitcoin!
VirWox charges fees for each transaction such as exchanging USD for SLL and then exchanging SLL for BTC. The fee structure of VirWox changes constantly so keep an eye on this every time you want to make a transaction. VirWox has been in the market for a long time and is currently the most reliable platform.
How to Buy Bitcoin with PayPal through Local Bitcoins
Pros: Various sellers from all around the world
Cons: High fees, chances of scams
Local Bitcoins is another marketplace where buyers and sellers meet. In this method, users can buy bitcoins with PayPal by finding a suitable seller with an excellent feedback score and large trade volume. Trading with new buyers involves higher risk, so sellers charge buyers high fees – keep that in mind!
- Enter search parameters – go to Local Bitcoins and select your country and choose the amount to be purchased.
- Choose a seller – a list of sellers is displayed by Local Bitcoins. Choose a seller who has a good feedback score. Each seller has trade limits which range from a minimum to a maximum amount of bitcoins required to trade.
- Go to Payment window – buyer’s reputation increases per transaction and sellers prefer to sell bitcoins to buyers with a good reputation to avoid becoming a victim of fraud.
- Complete the trade – after finding a suitable seller and entering the quantity of purchase, click “Send trade request” and your done!
How to Buy Bitcoin Using PayPal through Wirex
Pros: Normal fees
Cons: Withdrawing funds takes more than a week
Wirex is a leading company that provides virtual and physical bitcoin debit cards (which is just like a normal debit card). Users can use Wirex’s card to buy bitcoins with PayPal.
- Request for a new physical/ virtual debit card from Wirex – login to Wirex and click on “request new card” and choose the card type. Users can use both physical and virtual cards to buy bitcoins via PayPal.
- Link debit card details to PayPal account:
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- In PayPal account, go to “wallet”, select “add a card” to add your virtual bitcoin card. A minimum of $3 is required in PayPal account to verify this card.
- A 4-digit code is generated, which is the verification pin for Wirex cards on PayPal.
- Go to “wallet” and click “Withdraw funds” and choose “withdraw funds to your card” option.
- Withdrawal would take up to 7 days to appear in Wirex account.
- Buy bitcoins with Wirex debit card.
How to Buy Bitcoins Using PayPal through Paxful
Pros: Wide range of sellers from all over the world
Cons: Chances of scam, high exchange rate
Paxful is the latest version of Local Bitcoins. It is a decentralized peer to peer marketplace and allows users to buy bitcoins with Skype credits, Amazon gift cards, etc. In Paxful, a seller sends bitcoins, buyer purchases and sends dollars to escrow. Once the trading is completed, funds are released to each party.
The process to buy bitcoins through Paxful is:
- Create an account
- To buy, select payment method by entering the desired amount
- To sell bitcoins, select “seller manually” or allow Paxful to decide who the best seller is.
Final Thoughts…
Cryptocurrencies are tentative, complex and involve high risks as they are highly volatile. Before buying bitcoins through PayPal, ensure that the terms and conditions of PayPal and bitcoins are well – understood to make your transactions secure.
Featured Image: Twitter
