The act of purchasing bitcoin has become more and more convenient over the course of recent years, with a plethora of payment options popping up here and there. There is no surprise there; after all, investing in bitcoins has shown to be a very appealing and profitable endeavor. A lot of users would like to get their hands on some cryptocurrencies without going through the tedious process of setting up mining equipment, accounts on exchanges, and going through the verification processes.
Casual investors would simply like to acquire bitcoins by using payment methods that they are comfortable with, such as PayPal. However, acquiring bitcoins with PayPal can be deceptively complicated. Luckily, this post will clear up the confusion and put you on your way toward acquiring digital assets with PayPal.
It’s Not that Easy – But Possible
There are no ways through which you can buy bitcoins using PayPal directly; there simply isn’t any support for that action currently. Thankfully, though, there are some ways to work around that and there are marketplaces online that allow bitcoins to be purchased with PayPal. Sure, it’s frustrating, and many people don’t understand why this is overly complicated.
However, there are a few good reasons why bitcoins can’t be purchased directly through PayPal. One major explanation is the fact that bitcoins are a direct competition to PayPal. Bitcoins also don’t allow chargebacks, and fake or even fraudulent charges are frequent due to bitcoin accounts being constantly targeted by hackers and scammers.
The Simple Reason why it’s hard to buy Bitcoin with PayPal is, a PayPal payment is reversible; Bitcoin is not.
You would simply need to take a few extra steps to successfully acquire bitcoins with PayPal. There are exchanges out there that allow you to make such purchases; however, many of these exchanges place holds onto a user account until certain verifications are passed. It should be noted that PayPal doesn’t exactly appreciate users buying bitcoin through the platform, and it might occasionally scold users who try to do so. Thankfully, there are a few workarounds so you do not get into trouble.
Check out VirWox
You should know that the PayPal terms of service allows for the use of Second Life Lindens, or SLLs, to make bitcoin purchases. Thanks to this, several exchanges have sprung up that provide SLL services, and the best of these exchanges is VirWox. Despite this designation, it doesn’t function quite like a full-blown exchange. Instead, it’s a platform that serves the famous Second Life game as a means to purchase in-game collectibles. The game is actually big enough to be fully accepted by PayPal, and that creates a gray area for using in-game money to purchase bitcoins.
To start purchasing bitcoins through VirWox and PayPal, you first need to establish a budget for yourself, do some research pertaining to cryptocurrencies, study up on some exchanges and platforms, and set up a bitcoin wallet. Following this, you should visit VirWox and open up an account there, fill in the appropriate information boxes, and confirm your account via email. Then, you can deposit money into your VirWox account through PayPal.
After this, you will have the option of exchanging your balances for SLL, after which an option to convert SLL to bitcoins will be presented to you. Generally, VirWox will place a 10 percent transaction fee on users due to PayPal; unfortunately, the fee is inevitable. After purchasing bitcoins through VirWox, it is recommended that you transfer your bitcoins to your personal wallet. Transfers to wallets can usually take up to two days.
Other Platforms to Consider
Many other platforms and services besides VirWox have been popping up on the web, providing users with the option to purchase bitcoins through PayPal. They might not be as popular and frequently used as VirWox; yet, they are still worthwhile and great alternatives.
LocalBitcoins is a highly reputable bitcoin exchange platform used all over the world. It provides a virtual setting through which buyers can connect with sellers and conduct their exchanges through a variety of payment platforms, including PayPal.
If you decide to utilize LocalBitcoins, you would have to find and connect with an individual who is willing to accept PayPal as a form of payment for bitcoins. LocalBitcoin users are responsible for conducting their own due diligence pertaining to the sellers that they communicate with. Generally, the platform is quite safe and reputable. Take a look at our full review of LocalBitcoins here.
Paxful is a service that allows users to create accounts, find sellers, and exchange funds in PayPal accounts for bitcoins. What’s great about Paxful is that it uses an escrow service to provide additional security for buyers. Overall, Paxful is nice; however, it has yet to have reached optimal public acceptance.
Despite PayPal being quite safe and trusted, as well as there being exchanges that accept payments through PayPal, it is very important that you keep your bitcoin wallet as safe as possible. Whether you store it on your personal computer, use online wallet services, or employ some kind of cold storage method, remember to never give out your private key to anybody. Nobody needs to know any information pertaining to your recovery seed or private key. After all, you don’t want anybody stealing your efforts, time, and assets!
Out of the various ways through which you can buy bitcoins using your PayPal account, it’s up to you to decide which exchange method best suits your needs and preferences. Keep in mind that in order to use PayPal for bitcoin purchases, your account must first be fully verified, meaning that you must link your bank, link your debit cards, and go through some identity verification controls.
Bitcoin is a highly volatile cryptocurrency, which can bring about great destabilization to the financial world, as well as awesome returns for investors. You now should better understand some of the ways in which you can get on the path to purchasing bitcoins with your PayPal account.