The good news is that buying bitcoins with PayPal is possible. The bad news is that none of the options listed below is elegant, cost-effective and straightforward.
In general, you can’t directly buy bitcoins using PayPal, because it is too risky for the seller. Major bitcoin exchanges do not allow funding through PayPal at all. This is largely due to repeated cases where someone pays for bitcoins with PayPal, receives bitcoins and then fraudulently complains to PayPal or their credit card company that they never received the goods. All too often PayPal sides with the fraudulent buyer and this is understandably too risky for bitcoin seller. But there is a workaround that can be done in order to use PayPal to buy bitcoins but it holds within quite high transaction fees.
Buy bitcoins with PayPal via VirWox
You need a free account on Virtual World Exchange. Using the VirWox you can buy another currency, that is Second Life Lindens (SLL) with PayPal and then convert your SLL to bitcoins. The reason this method works is because you do not buy bitcoins with PayPal directly, you only buy SLL with PayPal and then exchange your SLL to bitcoin.
The whole process will cost you around 6% in transaction fees alltogether but will let you purchase bitcoins pretty quickly as opposed to a wire transfer. They do not accept payment from unverified PayPal accounts and there is a limit of how much coins you can buy at once (starting with 88$ per day).
If you already have a PayPal account, this is a very fast, convenient and secure way to buy bitcoins. You do not have to enter any additional information, and no financial information such as credit card numbers or bank accounts.
Buy bitcoins with PayPal via LocalBitcoins
LocalBitcoins is a marketplace for trading bitcoins locally to cash or on-line payments of your choice. In terms of buying bitcoin with PayPal you need to find a seller which is willing to do the sell. Trading happens in-person and the site has a built-in reputation system so you can always deal with high reputation individuals (users involved in fraud and chargebacks are weeded out). You will pay about 15% fee to the seller.
Some sellers will require you to have an initial reputation in order to buy from them (so they can avoid scams or fraud too). This means that sometimes you will have to make some small transaction just to get reputation. Some sellers will also require your id for the first purchase or other personal information.
Buy bitcoins with PayPal via Paxful
Similar to LocalBitcoins is Paxful. It is a marketplace for buying bitcoins directly from other people. You pay sellers directly from your personal accounts.
The problem with Paxful sellers is that you will pay about 25% in fees for buying bitcoin with PayPal. The good side of this platform is that if you are a buyer, you are 100% protected. They verify and check all of sellers for your safety. Pay with confidence, 2-factor, escrow, highest level encryption and professionally audited security. Most of the sellers will require your id for the first purchase or some other personal information.
Buying bitcoins with PayPal indirectly
Indirectly, you can purchase cloud mining facilities with PayPal and in time you will receive bitcoins for your PayPal money with some extra profit. Eobot accepted PayPal payments in the past, but please do note that this is a long-term investment and you can not get your bitcoins instantly this way.
- If you want to sell your bitcoins to PayPal, check our bitcoin to PayPal guide.
- You may want to check also other options to buy bitcoins
- Some users claim, that the best way to buy bitcoin with PayPal is that you simply withdraw money from your PayPal to bank account and then buy bitcoins with bank account. If you have a bank account and can withdraw PayPal funds, we suggest this option. If you can’t withdraw, the best options are listed above.
- There are many scam exchangers, so please do not just buy bitcoins through the first link that appears in google.
- From time to time, you may also buy bitcoins on forums, like bitcointalk.org or reddit from trusted forum members.
- The last PayPal 2016 Super Bowl Commercial featuring Demi Lovato‘s hit song Confident is titled: There’s a New Money in Town. Some speculate that this is actually a teaser for future PayPal’s bitcoin implementation. You can watch a commercial here.
- Untested services (use at your own risk): Cryptonit (about 10% fee, verified users only), LakeBTC, WeSellCrypto (they must be kidding with +18% fee).