In 2019, Bitcoin will be celebrating its 10th birthday. Although it has been present on the digital payments market for almost a decade, this virtual currency is still quite an unfamiliar topic, mostly because of its covert nature.
Bitcoin is surrounded by several controversial points since the cryptocurrency enables peer-to-peer money transfers without the involvement of banks.
Hopefully, this post will provide you with some insights on what exactly are Bitcoins, how you can buy them with PayPal and, most importantly, how to stay safe in doing so.
Welcome to a New Financial Reality: Paying with Bitcoins
Bitcoin is an independent and decentralized currency, which means it allows for transactions to be made with no middle-man or transaction fees.
Some people use it to shop anonymously on dark web markets; others buy it as an investment since a single Bitcoin varies in value daily.
Even though Bitcoin operates in the virtual world, this doesn’t diminish its significance and revolutionary character in the “real” world.
Despite the current government’s concern about taxation and lack of regulatory control over this currency, some argue that Bitcoins may easily become the basic payment tool in the future.
PayPal and Bitcoin – Best Pals?
If you’re one of the satisfied users of one of the largest and most successful online payment services in the world and would like to invest in the single most popular and ever-growing cryptocurrency, you are at the right place—PayPal and Bitcoin might soon become the best of pals.
But they aren’t quite there yet. Apparently, there’s a downside of anonymity related to Bitcoin which affects the PayPal-Bitcoin friendship.
Bitcoin transactions are anonymous and there isn’t a way you can prove your purchase, making it very susceptible to potential scams and fake refunds by sellers. So, even though PayPal has historically supported Bitcoin, it still has a certain dose of skepticism.
Best Trusted Methods – Step by Step
Before listing some of the safest, most reliable methods for purchasing Bitcoins with PayPal, it is important to mention that there is no a direct way to do so.
On the other hand, luckily for users around the globe, there are several indirect ways to purchase Bitcoins with PayPal money.
As one of the most trusted and reliable ways to buy Bitcoins, this platform is justifiably at the top of the list. LocalBitcoins simply lists all the registered users who are selling Bitcoins in various ways. Some accept the PayPal option, so simply choose among those.
Of course, you need to be careful when picking the seller, and LocalBitcoins will help you with that by providing a number of security fail-safes to make sure all the transactions happen smoothly and with legit sellers.
- The first thing you need to do is open an account at LocalBitcoins.com. Log in and you’re all set to proceed with your Bitcoin purchase.
- As we said, LocalBicoin.com presents a list of people who are selling Bitcoins. To get this list, you need to specify some parameters first. So, from the top menu choose Buy Bitcoins.
- After doing so, enter the amount of the preferred currency you wish to spend, select your country and, in the Payment methods section, choose the Paypal option. You can also leave everything blank; the list will appear anyway.
- You will be presented with a number of people selling Bitcoins within different price ranges. Choose the cheapest option by clicking on Buy
- This will open a new window where you will be able to see more detailed information on the seller. If the chosen trader is currently on vacation or out of Bitcoins, there will be a notice presented below this information.
- See Feedback option enables you to gain perspective on whether the person is trustworthy or not.
While analyzing the feedback, pay close attention to the following:
- Number of confirmed trades should be in good proportion with the Number of partners. This way, you will avoid being fooled if the seller traded with just one person 30 times.
- Verifications – a very important section because verifications like ID/Passport and other crucial details can track back to a real person, so the chance of potential fraud is hopefully lower.
- Trust– the higher, the better.
- Blocks – if the seller has a higher number of blocks than trusts, perhaps it would be a good idea to reconsider your choice.
- If you have taken these aspects into consideration and you’re sure that the seller is legit, then proceed with the trade. Go back and into the previous window, and simply specify the Bitcoin amount you wish to buy using PayPal.
- Clicking the Send Request button will invoke the Payments
- Make the payment and choose Mark the Payment Complete in the invoice.
- The final step is to pay the seller, which verifies the Payment and the BTC then proceed to your digital wallet.
Another way to buy Bitcoins using PayPal is with PAXFUL. The procedure is pretty similar to LocalBitcoins, with one significant advantage for PAXFUL—it provides a “cleaner” method of purchase.
PAXFUL offers an escrow service, which is a neat option.
- After accessing PAXFUL, enter the amount of currency for which you wish to buy Bitcoins and the payment method on the following page :
- PAXFUL will then return you the list of open offers for your PayPal request:
- After choosing your seller of interest, you can look at some basic information regarding their track record.
- By the time you agree to the transaction with your preferred client, your money has already arrived in an escrow account from PAXFUL. You also have an option to live chat with the seller.
- Once you and the seller are ready, click the I have paid the seller as requested button.
- As soon as the seller verifies the payment, Bitcoins will instantly arrive in your PAXFUL wallet.
III. Wirex App
The Wirex App platform is possibly the best option for those looking to buy Bitcoins using PayPal on a consistent basis.
This method will take one to two days for the first time, but every transaction thereafter will happen instantly.
Wirex grants you plastic and virtual payment cards for BTC transactions.
Follow the steps below and you will be able to buy Bitcoins with your PayPal funds.
- Get the card– To get started, you need to create a WirexApp account. After creating and verifying your account, you’ll get a free virtual card:
It is important to know that in order to use this method, you’ll need to add a small amount ($3) to your virtual card.
- By choosing the USD virtual card option, you will be asked to enter your first and last name as well as your date of birth. After filling out the form click the Next: billing and recovery button
- You will be prompted to check your personal details and confirm your order by clicking on Place order.
- Now you have to be a bit patient since it takes around 24-48 hours for your card to be processed. And after you receive your virtual card, you can continue with the procedure.
- The next step is to link this new card with your PayPal account just like you would do with any other card. Log in to your account and click on Wallet
After choosing the Add a Card button, you will be asked to fill out your card details and save them.
- If you are a PayPal user already, you know that the next step is the card verification process for which your card needs to be funded with a small amount of money, say $3. Wait for PayPal to charge your card, and then check your Wirex account—you should receive a four-digit code to verify the transaction.
- Once you’ve verified the transaction, your PayPal and Wirex accounts are linked.
- Now you can buy Bitcoins using your PayPal account. Hopefully, you have funded your PayPal account using your credit/debit card, so you can simply withdraw funds to your Wirex card. PayPal offers the following options: Withdraw to your bank account and Withdraw funds to your card. Choose the second option. Now your virtual card is loaded with cash.
- Finally, visit Wirex’s page and click on Buy Bitcoins. Select your card from the drop-down menu and enter the amount.
The only thing left is to confirm the transaction on the next page (simply click the CONFIRM button), and that’s it!
The VirWoX (or Virtual World Exchange) platform is definitely one of the most common methods for purchasing Bitcoin.
Although technically VirWoX doesn’t support the direct purchase of Bitcoin via PayPal, you can buy SLL instead (Second Life Lindens) which you can use for buying Bitcoin.
But, let’s go one step at a time.
- Register as a new user here. Fill in the required data. Make sure that when filling the Link to avatar option, you choose SL (Second Life) as your virtual world when signing up. No need to change the avatar section.
- Activate your account by clicking the confirmation link in your email.
- On the left side of the screen, select Deposit to add money using PayPal:
- You will see the Overview of Available Payment Options:
- Scroll down and choose the PayPal Express Checkout option, then simply enter the amount for which you wish to purchase Bitcoins.
- Confirm the payment and you’ll get some information about your deposit.
- Click on Exchange tab located under My Account section, choose USD/SLL and buy SLL with your deposit amount.
- You will also gain insight into Current Market Depth and Rate Movement:
- To confirm your order, click on the Place Order! button
- Now you have purchased SLL using PayPal money and you have it in your VirWoX account. You can now buy BTC directly. You should basically repeat similar actions—all you have to do is visit the exchange tab again, but this time choose BTC/SLL.
- Once again, you will be offered with the Place Order option to confirm the transaction after choosing Withdraw from My Account section
Let’s recap: Log in to VirWoX, buy SLL with your PayPal account, exchange purchased SLL for Bitcoins and finally, withdraw Bitcoins to your BTC wallet.
Although the fee at VirWoX might be a bit higher than you would expect, the chargeback risk is minimal because you can prove a purchase of SLL from VirWoX.
Bitcoin is one of the most popular digital currencies in the world, establishing itself on numerous Bitcoin trading platforms—each different than the next and each with its set of Yes’s and No’s.
The most popular is certainly LocalBitcoins.com. Thereafter, Wirex App is at the market rate, PAXFUL is only for verified accounts and VirWoX uses a long, but very reliable method.
Generally, when deciding which platform to use, pay attention to the trading volume, the security measures and the charges involved in the process.
Remember that safety comes first and enjoy your purchase.