Bitcoins have topped the chart in the fastest growing cryptocurrency in the cryptocurrency market ever since it was first introduced. There are many ways to buy bitcoin with PayPal.
For investors who are seeking to purchase little or heaps of bitcoins through PayPal, there might be some questions regarding it.
This article tries to answer all of the critical issues regarding buying bitcoins with PayPal and suggest some top bitcoin traders purchase bitcoin with PayPal.
You can’t directly buy Bitcoins using PayPal, why?
For those of you who don’t know, there is no way that you can directly buy bitcoins using PayPal. Why is this? This is because bitcoin is a volatile currency thus it can be very risky for the seller.
Hence, there are not many sellers who are willing to offer this. The basic reasons why you can’t buy bitcoins using PayPal is because:
- There may be a chargeback from the buyer of bitcoins, while there is no way for the seller to contest that
- PayPal will perform a chargeback when they know that an account has been used fraudulently since there are numerous hacked accounts
- PayPal is not so fond of Bitcoins since the network of bitcoins stands as a direct competition to it. PayPal with immediately ban and freeze the account if they know of any activity related to Bitcoins.
However, it is not so frightening and confusing to use PayPal to buy bitcoins since there is indeed a way around it.
You can buy Second Life Lindens (SLL) with PayPal, using the Virtual World Exchange. Eventually, you can then convert your SLL to Bitcoins.
Although the transaction fee through this method will be around 6%, it will let you purchase Bitcoins more promptly than a wire transfer.
This way you will not be buying bitcoins directly through PayPal, but you will only buy SLL with PayPal. This is acceptable by PayPal’s TO. You can then legally exchange your SLL to Bitcoin.
What do you need to buy bitcoin with PayPal
PayPal is an acceptable and legal service for the online transaction. Due to its availability, it has been widely accepted by many merchants around the world.
Bitcoin, on the other hand, has developed its very own market in the economy for online transaction. This decentralized digital currency has affixed supply and has declined its need for fiat money in the present scenario.
PayPal is a prompt and easy way to make online, fiat transaction. Bitcoin, on the other hand, is not just a payment system but also a currency.
Due to the speed, security, and convenience of Bitcoin, its demand as a digital currency has been growing ever since it first came out.
Online Bitcoin exchanges have now become widely accessible for the transaction of Bitcoins. So, the question remains, what do you need to buy bitcoins through PayPal?
Many people who have gone through the process of buying bitcoins with PayPal have found it somewhat difficult due to various inconveniences they have faced.
This is because they use PayPal to buy bitcoins which initiate a chargeback. There the person claims to have never received bitcoins in the first place and demands a refund from the seller of bitcoins.
Ther are myths that PayPal usually favors fraudulent merchants hence bitcoin traders try not to use this system due to the substantial chance of getting their money stolen.
Ther are many ways to triumphantly use PayPal to buy bitcoins and sell them at a higher price via online marketplace like LocalBitcoins and eBay. Virwox and Credit Cards are the two prominent ways that allow you to buy bitcoins through PayPal.
Top 3 Bitcoin traders to buy bitcoin with PayPal
To make it clear, VirWoX is not a Bitcoin exchange, but it serves as a market for Second Life Lindens(SLL), which is a currency used in the virtual world, Second Life.
Buying bitcoins using PayPal is not directly possible with VirWoX. However, this is possible if you buy SLL and then eventually sell them for bitcoins. This process is often regarded as being complex but it is also very reliable.
Some of the advantages of using Virwox are:
- It is very easy and reliable method to purchase bitcoins using PayPal.
Some of the disadvantages of using Virwox are:
- There is a total fee of 10%
Step-by-step instructions to help make buying BTC with PayPal easier:
Step 1: Open an account on VirWoX
Enter the home page and click on “Not registered yet?”
Step 2: Enter the details for your account
Enter all the detail’s that VirWox asks for while creating the account. Do not touch the section titled “Link to avatar.”
Step 3: Check your email.
After your account has been created, a temporary password will be emailed to the address. You must change the password within 24 hours or else your account will be deleted.
Step 4: Change your password
You should log in with your temporary password and then click on “Change settings” in the left sidebar.
Step 5: Create a new password
Enter a new password which is strong.
Step 6: Deposit from PayPal
After changing your password, click on “Deposit” in the left sidebar.
Step 7: Deposit and select amount
As you scroll down you will find the option to deposit with PayPal. Enter the amount that you wish to deposit. Click the “Checkout with PayPal” button.
Step 8: Login to PayPal
Open PayPal and Sign into it. If the amount that you entered is not what you chose, go back and enter a new amount.
Step 9: Verify account balance
You will now see a balance in your VirWoX account. The amount displayed in your VirWoX account could be slightly less than the amount you entered in step 7 which is because PayPal charges a 2.9% + $0.30 fee per deposit. Then click on “USD/SLL” or “EUR/SLL” if you deposited with Euro.
Step 10: Trade USD for Second Life Lindens
You will now sell the USD you deposited from PayPal and get SLL. For this, enter the amount of USD you want to sell.
Step 11: Complete order
Now you will have a balance in SLL. Click on “BTC/SLL” in the left sidebar to exchange the SLL for Bitcoin.
Step 12: Trade SLL for BTC
Enter the amount of BTC you want to buy and click “Next”.
Step 13: Buy Bitcoin!
You will see your balance in BTC displayed in the top left of the screen which means that you have bought Bitcoins with PayPal.
|Buy Bitcoin from VirWoX|
Paxful is a peer-to-peer bitcoin exchange which is a lesser known version of LocalBitcoins.
It allows you to buy Bitcoins using almost anything ranging from Skype Credits, Amazon Gift Cards and more.
It requires a very simple process to buy Bitcoins using PayPal. The seller will send their bitcoins once you have agreed to trade.
The buyer sends their fiat currency to escrow. The funds will be released to each party once the trade is confirmed.
The step by step process of buying bitcoins with PayPal using Paxful is:
Step 1: Go to Pixful and Create an account.
Step 2: Choose a payment method for buying. Enter the desired amount.
Step 3: Choose your seller manually or let Paxful decide the best seller for you.
After you begin the trade you will have an online chat with the seller.
There you can talk about and finalize the deal. The seller’s Bitcoins will be sent into Escrow.
Once you have marked that you’ve sent your payment the bitcoins will be released into your account.
The deal must be finalized in a short time frame, usually 30 minutes, or else the deal will be called off/auto canceled.
Some of the advantages of using Paxful are:
- It is straightforward, quick and easy to use.
- It is one of the most cost-effective ways to buy bitcoin with PayPal.
- There are no set transfer limits.
Some of the disadvantages of using Paxful are:
- You have to find a seller/buyer which can be tedious.
- The kind of deal that you find will largely determine the rates you get.
- The sellers might not accept PayPal which might cause a huge problem.
|Buy Bitcoin From Paxful|
LocalBitcoins is a peer-to-peer exchange service that helps you find bitcoin buyers and sellers around your local area.
It then helps you make the transfer in a way that is best suited for both of you.
The buyer and Seller are connected, and then the bitcoins and fund are transferred to a LocalBitcoin account. Eventually, the bitcoin and currency are sent to the respective party.
Step by Step process of buying bitcoins with PayPal using LocalBitcoins:
Step 1: Enter your search parameters:
Go to LocalBitcoins and enter how much you are willing to buy and from which country.
There is no global search option since it was made for the sole purpose of meeting traders face to face. So you will have to go through each country one at a time since there is not another way to see the people willing to sell you.
Step 2: Choose your seller
Go to the next screen where you’ll see a list of available sellers. After that go and browse them one by one. While doing so, please consider, the following things:
- Feedback score: The feedback score is located under the seller’s name, and it is suggested that you transact only with high feedback sellers.
- Trade limits: Each seller has a minimum / maximum amount of Bitcoins that they are willing to trade.
- Payment window: Payment window denotes the time you have for paying the purchase and marking the payment done after you initiate a trade.
Step 3: Complete the trade
After you have found your seller, you must enter how much you will buy. After that, click on “Send trade request.”
|Buy Bitcoin From LocalBitcoins|
Some advantages of using LocalBitcoins are:
- It is very simple and prompt to use.
- It is one of the most cost-effective ways to buy bitcoin with PayPal.
- There are a wide variety of sellers from the globe.
Some disadvantages of using LocalBitcoins are:
- The fees are very high.
- There are chances of scam.
Top 5 Tips for New Bitcoin Investors
- Understand the blockchain
It is vital that investors who have not much idea about the market must first do their homework.
Bitcoins are the new source of opportunity in the market but if not appropriately treated might cause an enormous problem.
It is essential that you learn about Bitcoins through various papers that have been published. You are also encouraged to read the original 2008 Satoshi white paper.
It gives you an insight on investing in crypto coins or tokens. Investors willing to get into the cryptocurrency market must first get in the full terms of the blockchain.
If you aren’t so aware of how the blockchain stores and secures your coins and data then you are not ready for the ups and downs you are likely to face with bitcoin.
If you do not want to read articles or papers, you might even turn into YouTube tutorials or might also talk to a trusted person who knows all about the blockchain.
- Proceed With Caution
The risk in investment is very obvious in the blockchain system.
Since digital currency is at its infantile stage, we are not sure if it is simply a bubble ready to pop.
Therefore, it is necessary to understand that you are always at high risk of losing money, so do not invest what you cannot afford to lose.
It is suggested by many experts that you start with small amount of money and eventually increase the amount accordingly. Also, it is necessary that you do not run after the rumors regarding the price rise and drops.
The experts suggest that hen the bitcoin reached the right price you should not buy the bitcoins all at once but should “stage in and stage out”. This simply means that investors should wait for a bit from time to time and then invest some more eventually.
- Diversify Effectively
Bitcoin has been successful over the years and we have also heard many success stories about investors turning into millionaires.
These success stories must not entirely drive us since it might lead you to invest all of your money into bitcoin which is very dangerous.
You are merely recommended not to pull all your eggs in one basket. It is suggested that investors make a diversified portfolio and consider altcoins, stocks, and bonds.
Diversification runs merely on the principle where the increase in one portfolio will cover up the decline in the value of another portfolio so that there isn’t as much loss as that arising from investment in a particular coin.
Even if the price of bitcoin suddenly falls to $0, you still have a portfolio with a constant of say, $10 which causes you not much loss.
Your total diversified portfolio value will still be worth keeping. It is very much like investing in the stock market. It is essential that investors are careful when investing in altcoins.
There are numerous cryptocurrencies to select from while investing. Most of these cryptocurrencies are merely startups which have a high probability to fail.
Thus it is essential to choose that cryptocurrency which has a high stability in price. You need to do thorough research on the business model in coins or token.
- Keep Your Coins In Wallets
Purchasing cryptocurrency is made more accessible by cryptocurrency exchanges, but it is not a right place to store your coins since it can be hazardous.
Experts strongly suggest that you don’t keep your coins stored in exchanges because there have been many cases of hacking in the past.
It is best that you store your coins in Hardware wallet.
- Prepare For Volatility
It is very prominent that cryptocurrency is highly volatile so you must always keep yourself prepared for any loss that might occur.
You must keep yourself protected from the rapid fluctuation in prices of these currencies. One of the best ways to do so is by opting for diversity.
Another strategy that can be used is to buy the currency and hold it. Many experts suggest that you do not get tempted to make short-term bets.
A passive investment strategy in most cases is better than an active investment strategy. In most cases, it is best that you buy the currencies and forget about it for a time being.
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