PayPal is a popular option when it comes to online transactions, transfers, and even shopping. Thus, we made this review where we provide you with exchanges where you can buy bitcoin with PayPal. We go over legitimate platforms that provide BTC to a global market, including LocalBitcoins, Paxful, VirWox, and Paybis.
Additionally, we investigate the development of the relationship between PayPal Company and crypto community. Due to numerous scams in the past, the guide also provides necessary steps buyers should conduct to avoid frauds. Lastly, we also review Coinbase in terms of its renewed PayPal withdrawal services.
PayPal and Cryptos: Recent Developments
There is nothing smooth about the relationship between PayPal and the crypto world. In May 2018, the company officially embraced an anti-crypto policy, shutting down accounts that deal with digital coins. It was a major blow to crypto enthusiasts but platforms as well that offered the transfer channel. Recently, however, the situation is changing ever so slowly, as PayPal’s management seems to have taken an interest in the blockchain.
Furthermore, Coinbase, one of the largest crypto exchanges in the world, started facilitating withdrawals to PayPal as well. Nearly the same time, PayPal field a blockchain patent that would improve cryptocurrency transaction times. Both events clearly show that mass-payment company is getting into crypto.
Careful with New Platforms
Although privacy is quite a feature of using PayPal, there is a drawback as well. There are numerous cases of platforms that offered PayPal as an option for bitcoin that turned out to be scams. Reasons are simple – PayPal endorses privacy, with little to no legal obligations regarding transactions. Thus, traders and investors alike lost thousands of dollars on exchanges that offered too-good-to-be-true deals.
1. Check if the company is a registered business
2. See if the site in question has any customer reviews
3. Investigate their business model
4. Use IP address sites to check how old is the website
Buying Bitcoins with PayPal At LocalBitcoins
Unlike centralized exchanges, LocalBitcoins does things quite differently. It is a peer-to-peer (P2P) marketplace, where investors buy and sell bitcoins using numerous methods of payment. Out of hundreds of purchase methods, PayPal stands as one of the most popular options in LocalBitcoins. Verification of your account depends solely on you, though sellers are mostly unwilling to work with unknown peers.
Fees are quite lax as well since you pay 2% of the transaction value for each purchase/sale you make. However, the market price is set by participants, often quite more expensive than values found in centralized exchanges. Additionally, since PayPal is ideal for private transfers, many a trader lost money on scam offers. Always check the history of an account when dealing with PayPal offers at this platform. If it is new, chances are that you won’t see your coins ever again.
As you can see in a snapshot below, profile information on individual seller would tell you all about its history. However, keep in minds that known sellers usually charge a premium, sometimes way above the market average.
Buying Bitcoins With PayPal at Paxful
Much like LocalBitcoins (or almost exactly like it), Paxful is a P2P online marketplace where you can buy bitcoins from peers. PayPal is quite popular here, with numerous sellers accepting the method of payment. Much of the same risks exist here as well, including fraudulent activity. You should be careful with new accounts, as they seem to be the most problematic ones out there and you should definitelly read our Paxful Review.
Apart from PayPal’s own costs, sellers should account for a 2% fee while buyers seemingly do not have any expenses. However, most offers include e the fee, transferring costs onto buyers nevertheless.
Buying Bitcoins with PayPal At VirVox
This option is not available since January 2019.
Although you cannot buy bitcoins with PayPal, you can now sell them and withdraw to your account instead. This particular feature was enabled on February 5 by the exchange. Now, clients from all 32 countries can use PayPal to get their money from bitcoin sale. The best part about this is that there are no fees, apart from those you incur from PayPal itself.
Additionally, there are no set limitations on your withdrawal amount, making it a good source of income from your crypto transactions. However, you do need to verify your account with scanned identity documents, meaning that Coinbase is not a privacy-oriented platform.
In this review, we presented choices of platforms where you can buy bitcoin with PayPal. Although a bit limited at the moment, the mass-payment network is seemingly warming up to the blockchain industry. However, it is important to keep in mind that transactions in most exchanges can be quite expensive.
Thus, we do see a bright future ahead for this payment method, especially once PayPal officially embraces cryptos.
Are you looking for exchanges that accept other Deposit methods?
We cover many different topics regarding cryptocurrencies at Cryptocoinzone. We have published an article about how to buy Bitcoin via Skrill if you prefer that online wallet over PayPal.