Want to know how to buy Bitcoin with Paypal? Let’s get started on your first purchase.
Paypal, though a highly popular online payments platform, doesn’t quite gel well with Bitcoins. Finding a credible source to purchase Bitcoins using Paypal can get tricky especially if you are new to this arena. That’s because of chargeback issues that plague this route and Virwox’s withdrawal from Paypal in January 2019.
Let me be clear from the start that buying Bitcoins is an irreversible process. Paypal is a preferred method when direct purchase of Bitcoin is not possible. Nevertheless, Paypal is still a viable alternative to many people in various countries where direct purchase isn’t the preferred method. We will explore different purchase methods such as:
- How to buy Bitcoin with Paypal using LocalBitcoins
- How to using Coinbase
- How to buy using Paxful
Without any further ado, let’s delve deeper into this realm and show you how to exactly purchase Bitcoins safely and securely using Paypal.
Buying Bitcoins with Paypal using Localbitcoins
- Registration – Make an account with LocalBitcoins
- Search for sellers as per location and currency
- Choose the seller from the list. You can start chatting to clarify doubts.
- Make the payment and complete the transaction
LocalBitcoins, a peer-to-peer exchange service, is the most trusted way to make the famed purchase. It is so popular that it can even be called the ‘Amazon of Bitcoins’.
Simply put, it just lists the potential sellers with most of them preferring Paypal as default payment method, and you just purchase right there. The same process is followed for selling as well. It bridges the gap between buyer and seller with an easy-to-use platform having multiple functional features thereby allowing them to complete the transaction safely.
Once the deal is agreed upon, both parties transfer the Bitcoins and the funds to a LocalBitcoins account. After funds confirmation, respective transaction is completed by transferring currency and Bitcoins into individual accounts. Here, you can choose Paypal as the preferred mode of transfer.
Pros and cons of using LocalBitcoins
- It is trusted and simple offering quick and easy transfer.
- Perhaps the most cost-effective Bitcoin purchase method using Paypal.
- No set transfer limits.
- Availability of buyer and seller can delay transactions.
- The rates are dependent on the deal you are able to negotiate.
- Every seller may not agree to accept Paypal.
Here’s a step by step guide to purchasing Bitcoins through Paypal.
Step 1 – Define Search Parameters
Begin by entering the search parameters that suit your purchase requirements. You should enter the number of bitcoins you want to purchase and the location. For example, United States users must enter ‘USD’ in currency dropdown and choose ‘United States’ from the location drop-down menu. There’s no global search which means you will see sellers from specific countries only, one at a time. Here’s what a search operation looks like on LocalBitcoins.
Step 2 – Select the Seller from the Search Results List
Choose a seller from the search results list. You can click on the seller’s name and get further credentials and details like feedback, reviews, transaction history, credibility, and trade volume, etc. All this information gives you an idea about the seller’s overall credibility.
In the below screenshot, you can observe the various characteristic features of a seller’s online profile.
You should normally lookout for feedback score, confirmed trades, age of the account, trusted seller rating and more. However, there is no sure shot way to evaluate the reliability of a seller. Experience and common sense are the final frontiers here.
Step 3 – Complete the Purchase
After you have zeroed in on the seller, it is now time to move towards the final purchase. In the trade screen, you are greeted with useful information such as location, trade limits and payment window. Here’s a screenshot of the final purchase/trade screen.
The ‘Terms of Trade with…” on the right side of the image above contains super important details that you should definitely read before completing the trade. Many sellers only sell to people with reputed profiles in order to avoid fraud/scams. You can improve your reputation on the LocalBitcoins platform by making small initial transactions.
After reading all the necessary information, enter the number of Bitcoins you want to purchase and simply click the ‘Send Trade Request’ button. And, it’s done! Every communication between both parties must be conducted within the LocalBitcoins platform including their escrow services.
- Register with Coinbase to create a personal account.
- Go to ‘Trade’ section, select Bitcoin and enter details.
- Click ‘Buy Bitcoin Instantly’ to purchase at current price.
Coinbase is another great way to buy BTC with Paypal. It is widely popular in Europe, USA and some Asian countries. Most importantly, a Bitcoin debit card is on offer that helps you spend cryptocurrency like any other fiat currency.
- Simple, easy to use platform with quick navigation
- Price charts on dashboard for research and analysis
- Strict ID verification ensures trusted profiles on platform
- Limited payment methods compared to peers
- Available currency pairs are regulated as per market price
- You cannot negotiate price with the sellers
The process to buy BTC is somewhat similar to other exchanges with a few minor differences. Let’s begin then!
Step 1 – Register to create an account at Coinbase
Reach Coinbase and click sign up. You will be sent a link and then your phone number will be confirmed.
Step 2 – Trade on the Dashboard
Once on the dashboard, you can hit the trade button to begin purchasing Bitcoins. Remember to verify your identity before you start with the buying. The platform is very strict about identity verification.
Step 3 – Buy Bitcoins
Go to trade and you will see Bitcoin purchase options with relevant price and other information. Select paypal as the payment method and hit ‘Buy Bitcoin Instantly’. Once the platform completes the transaction, you will see Bitcoin in your Coinbase wallet.
- Create an account and enter relevant personal details.
- Choose a seller and start chat for for more information on price and confirmation.
- Once satisfied with price, hit the ‘Buy Now’ button to complete the purchase.
Paxful is another well known peer-to-peer exchange like LocalBitcoins. The process, too, is straightforward where you simply log in with an account, browse the relevant coin with appropriate sellers and then click ‘Buy’. The transaction process is completed when funds are exchanged via escrow to each party.
With so many similarities, it is no wonder that even pros and cons might seem familiar to LocalBitcoins.
- Simple, quick and easy.
- Cost effective since overhead costs are low.
- Offers no set transfer limits.
- Multiple sellers from across the globe.
- Multiple payment methods including Amazon gift cards, Skype credits etc.
- Effort will be required to find a good buyer/seller.
- Your deal determines the actual price of Bitcoin and not market forces.
- High exchange rate compared to peers.
- Not every seller will agree with Paypal payments.
Here are the detailed steps
Step 1 – Create an Account on Paxful
Simply go to Paxful official website and create an account using your credentials.
Step 2 – Complete the profile and explore the dashboard
Once your account is confirmed, you will reach the dashboard. Here you can see various options including profile, payment options, wallet and many more. Here’s what it looks like.
Step 3 – Search for Bitcoin sellers
Click on Buy link and you will be taken to a search screen where you enter the amount, currency and payment method. In the drop down menu for payment methods, simply select Paypal to view appropriate sellers.
Step 4 – Selecting Bitcoin seller and complete the purchase
After the search, you will be directed towards a page populated with various sellers and information such as reviews, price and payment requirements. Choose the seller that suits you and click ‘Buy’
Step 5 – Complete the Purchase
Once you have zeroed in on the seller, Click on ‘Buy Now’ button. Make sure all the communication happens within the cha client provided on Paxful. Once the escrow account clears transaction for both parties, the trade is complete. Congratulations, you have completed the purchase.
Updates/Developments – 20 Nov 2019
KPMG, the famous auditing firm, has reportedly shown a drop in the Bitcoin-related companies. The report was launched on 18 November 2019 and shows that even though Bitcoin ratings have fallen, the innovation in the industry is still robust.
Galaxy Digital’s, Michael Novogratz’s, has announced that they are launching Bitcoin funds that will be targeted at wealthy Americans between the age of 50 to 80. He wants to bring this generation into the crypto realm through a trusted fund route.
Grayscale Bitcoin, the publicly traded BTC fund Grayscale, has become the first fund to file with SEC. this development will improve the mainstream adoption of bitcoin as more funds are expected to follow the example.
Frequently Asked Questions
1. How safe is Paypal to buy Bitcoins?
Ans. Paypal is one of the safest methods to purchase Bitcoin after direct bank transfer and mining itself. In some countries, the regulations pertaining to Paypal may be slightly different. Make sure you comply with local regulations before putting your money on the line.
2. What other cryptocurrencies can be purchased using Paypal?
Ans. Depending on the platform/exchange you are using, you can literally purchase any cryptocurrency using Paypal. For example, Paxful and Localbitcoins have a range of crypto on offer along with multiple payment methods too.
3. What are the overhead costs associated with Paypal?
Ans. Most exchanges and websites are known to mention any overhead costs upfront during the purchase. However, it is recommended that you clarify with the support and the seller to be sure. Do expect some minimal overhead costs associated with the Bitcoin at every platform.
Typically, expect to pay around $0.30 per transaction on Paypal along with other transaction fees such as international transfer fees and currency exchange charges. Paypal is certainly less cost effective compared to wire transfers.
Paypal is not the most widely used payment method to buy cryptocurrencies. The process can get cumbersome in certain geographical locations since Bitcoins are regulations are not the same everywhere. Moreover, overhead costs can vary as per seller, platform and amount involved. Wire transfer, credit cards and debit cards are comparatively better options.
That being said, it is still a viable, safe and effective method to purchase Bitcoins despite all the hassles involved. That’s why it is still listed on many popular Bitcoin exchanges.
Have you ever purchased Bitcoins through Paypal and was it worth it? Share your thoughts in the comments below.