Tuesday, November 12, 2019

[2019 Updated] A Step by Step Guide on How to Buy Bitcoins with Paypal

The Takeaway:

PayPal and Bitcoin look like two platforms that are made for each other, but the differences in them keep them apart. Certain exchanges try to help in the purchase of Bitcoin using PayPal, but those BTC funds can't be transferred back to the PayPal account.

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PayPal Holdings Inc. was established in 1998 as Confinity. It was handed over to various companies over the years until 2015 when it started operating as an individual company.

PayPal was introduced as a global payment platform that supported online money transfers serving as an electronic alternative to traditional methods such as checks and money orders. They serve as payment processors for online vendors, auction sites, and several other commercial users and charges a fee in exchange for the services such as one-click transactions and password memory.

PayPal is one of the payment platforms that has been favorable for Bitcoin in the recent few years, but it’s still a big issue to find a suitable platform to buy Bitcoins with the help of PayPal. In the first look, PayPal and Bitcoin look like they are made for each other as PayPal works for the payments without using any middle parties processing the payments. On the other hand, Bitcoin is a medium for exchange, which is a decentralized platform and works outside the mainstream financial layout.

However, it seems like a complicated work to buy Bitcoins using PayPal as there is no direct way to buy Bitcoin using PayPal. The main reason behind this is the chargeback issues. The cryptocurrency world, on the other hand, has found ways to fix this problem. Very few exchanges accept PayPal as a payment method.

 

How to Buy Bitcoin using PayPal

People have often found it hard to work with PayPal as a payment method for purchasing Bitcoins, but even though this looks like a tough task, it’s not impossible.

There are various ways in which PayPal can be used as a payment method, such as registering on an exchange that supports PayPal as a payment method. Another way to use PayPal as a payment method is by using the debit or credit card that is offered by PayPal. This card then can be used to pay at these platforms.

Earlier Virwox was used for PayPal deposits, and from there, a user could obtain the Bitcoins, but in January 2019, they shut down the deposits.

These exchanges still offer PayPal as a method of payment. These are:

1. eToro

eToro is an exchange that allows PayPal to be used as a payment method. eToro allows the user to buy Bitcoins with PayPal, but these Bitcoins are the speculations made on the price and not actual Bitcoins. So you can’t withdraw these coins or send them to other people.

eToro is a good platform to make a profit with the Bitcoin price swings, but for actual Bitcoin holding, you might want to select another exchange.

 

2. LocalBitcoins

LocalBitcoins is one of the well-known exchanges that act as the marketplace where buyers and sellers can fix a deal for the Bitcoins over the platform and meet directly to purchase the Bitcoins. Here, you have to watch out for the seller’s credibility.

The first step is to enter the number of Bitcoins you want to buy along with from which country. Once you have selected the country, you move on to a list of sellers, and from here, you can choose a seller with a good feedback score. Another thing to notice here is the number of confirmed trades and the for how long the seller has been on the platform.

Once you choose a seller, the next window shows their location, trade limit, and payment window to make the transactions. It is essential to read the terms and conditions of the seller’s to see for any specific instruction from their end. Once this is done, you can click the “Send trade request” option to complete the trade.

 

3. Paxful

Paxful is a less known peer-to-peer market place that allows people to buy Bitcoin using almost any financial means like Skype credits, Amazon gift cards, etc. The process of obtaining Bitcoins here is similar to LocalBitcoins.

The user creates an account and then chooses their desired payment method for buying and the amount they wish to purchase. From there, you select the seller, and here Paxful’s algorithms determine the best seller for you, or you can select a seller manually as well. The conversations during the trade are made on the exchange, and once the payment is made, bitcoins will be transferred to the buyer’s account.

 

Can you buy bitcoin with PayPal on Coinbase?

Frequently, people have asked if Coinbase allows the purchase of Bitcoin with PayPal, but there is no such provision on their exchange. However, Coinbase allows the users to sell their Bitcoins, and the balance can be withdrawn to the PayPal account.

 

Bitcoin to PayPal

As we have mentioned few exchanges that list PayPal as one of the payment methods for the purchase of Bitcoins, there is no way you can transfer those Bitcoin funds to your PayPal account. Coinbase is the only exchange that provides this service.

 

Conclusion

In the end, no matter how complex the task is, PayPal can be used as a payment method with the help of exchanges, but there is no way to transfer the Bitcoin funds to your PayPal account. The only exchange that provides transfer of Bitcoin funds to the PayPal account is Coinbase, but you can buy Bitcoins using PayPal. It is confusing, but the only solution to this problem.

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

William Botello
William Botello
William is a market research coordinator who believes that blockchain technology and cryptocurrencies can revolutionize the financial landscape. He completed his studies in Arts and Sciences from Arizona State University.

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