Buy Bitcoin with PayPal

Buy Bitcoin PayPal

It is quite hard to find a good platform where you can buy Bitcoin with PayPal these days. Although the situation changed for worse recently, there are ways to utilize the e-payment system. Thus, we came up with all possible options on how to transfer money from your PayPal account to BTC.

In this guide, we provide lists of platforms where PayPal purchases are possible. Also, we delve deeper into how to buy Bitcoin with PayPal instantly and/or without ID, and PayPal options Coinbase offers.

Bitcoin History with PayPal

Bitcoin history with PayPal is anything but simple. PayPal, as an e-payment system, operates under very strict rules. When transferring money, you provide a recipient’s email/website for PayPal to find it within its system. You pay 2.9% + $0.30 per transaction and see money going instantly. However, if you put words like “crypto” or “bitcoin” in the payment description, you might get in trouble.

The relationship between PayPal and cryptocurrencies, in general, is complex, to say the least. Back in 2014, the first sign of communication between crypto space and the e-payment company occurred. Namely, an alleged partnership between PayPal and three major bitcoin payment processors (BitPay, Coinbase, and GoCoin) happened.

Later on, PayPal invested in a blockchain startup called Cambridge Blockchain, an online identity storage space provider. Thus, it is evident that PayPal favors blockchain over digital coins. In 2018, the company started to unofficially hunt down accounts that deal with crypto transactions. Most accounts got closed and their balances were taken.

However, the company did involve itself with Facebook’s Libra, becoming part of its Association. The partnership signifies just how PayPal treats cryptos right now. It has nothing against the tech behind it but as a currency – that’s a different story.

List: 5 Best ways to buy Bitcoin with PayPal

The list is not that big concerning the possible options to buy Bitcoin via PayPal. Since e-payment company took a negative stance on digital coins, rare are platforms that include PayPal within its funding repertoire. Most are P2P (peer-to-peer) platforms, where traders buy and sell BTC between each other.

Majority of exchanges continues to bypass PayPal as to not get their large funds blocked in the process. However, there are few that dare to pass the barrier in order to get increase the number of market participants.

Here are known places where you can buy Bitcoin via PayPal:

PayPal to Bitcoin Exchanges

LocalBitcoins Bitcoin Exchange Logo
  • Buy Bitcoin Instantly
  • Buy Bitcoin without ID
  • Liquid Paypal to Bitcoin market
Paxful Bitcoin Exchange Logo
  • Buy Bitcoin Instantly
  • Buy Bitcoin without ID
  • Liquid Paypal to Bitcoin market
  • Low Fees
VirWox logo
  • Buy Bitcoin without ID
Xcoins logo
  • A site for loans
Hodlhodl logo
  • Buy Bitcoin without ID
  • Low fees

1. Buying Bitcoins with payPal at LocalBitcoin

Buying bitcoins at LocalBitcoins with PayPal is a rewarding experience for those that seek privacy. The Finland-based company started operations in 2012. It is a peer-to-peer (P2P) platform, meaning that users buy and sell BTC between each other. The platform offers hundreds of payment means, PayPal included. This is possible due to the fact that accounts set acceptable means of payment themselves.

Usually, there are no fees connected with the trade itself but posting an ad costs 1% of the transaction value. Additionally, if you wish for escrow services (platform takes BTCs under protection until payment is complete), fees are 0.5%.

Pros

– Possibility to buy Bitcoin instantly

– Possibility to buy Bitcoin without ID

– Good supply and lots of offers with low transfer costs

Cons

– Lot of scams since some users misuse privacy option

– High BTC purchase value compared to other platforms

You can find a detailed step-by-step guide on how to buy bitcoins with PayPal via LocalBitcoins in the separate subheading further in this article.

2. Buying Bitcoins with payPal at Paxful

Much like LocalBitcoins, Paxful is a good place for PayPal transactions. It offers a P2P marketplace where bitcoin buyers and sellers meet. In fact, these two platforms are very similar. You have escrow service and can construct a profile according to your wishes, much like at LocalBitcoins. Additionally, service is available globally, with over 300 payment methods available for use, PayPal included.

On the side of fees, you pay 1% for all online transfers. Thus, you should add that 1% cost when buying bitcoin with PayPal. Also, bitcoin transfers cost 0.0005 BTC which includes miner expenses and wallet maintenance.

Pros

– You can buy Bitcoin with PayPal instantly

– You can buy Bitcoin with PayPal without verification

– Good supply and low fees

Cons

– There have been many cases of fraudulent activities

– BTC price can be a higher than with direct exchangers

3. Buying Bitcoins with payPal at VirWox

It is not easy to buy BTC at VirWox, even with the PayPal option available. The platform is one of the oldest platforms that offer PayPal as a payment getaway for Bitcoin. Well, sort of. Back in the day, users could indirectly use PayPal to get bitcoins without providing any sort of verification. You deposit money through PayPal, exchange it with Second Life Lindens (SLLs), and then swap those with BTC.

Fast-forward a few years later until today and you have even more complex process. Whereas you could purchase SLLs at VirWox, now even that is not possible. You have to purchase coins at the Second Life website (virtual reality platform) and then transfer them to VirWox.

In short, the process looks like this now:

Step 1) Go to Second Life website and buy SLLs with PayPal (pay PayPal fees + $1.49 per each SLL transaction)

Step 2) Transfer SLLs to VirWox (pay 3.9% for the SLL deposit)

Step 3) Exchange SLL to BTC (pay 50 SLL + 3.9%)

Step 4) Withdraw Bitcoins to an external wallet (pay 0.0005 BTC)

Lengthy and very expensive exchange, especially if compared with platforms that offer direct BTC purchases.

Pros

– No ID or any sort of verification

Cons

– Indirect way to get Bitcoins

– Very high Fees

– Purchase limits quite small for the first month

4. Buying Bitcoins with payPal at Xcoins

You can also loan Bitcoins at xCoins instead of buying them through PayPal. It is a P2P lending website, where users lend money to bitcoin owners and receive the crypto as interest payment. Moreover, you can cancel the transaction anytime if you find better exchange rate elsewhere.

However, it is important to mention that you do not exactly get the whole amount immediately. Fees also depend on lenders, meaning that it can go quite low to quite high, depending on the market.

Pros

– Possibility to get loans with low-interest fees

– It is possible to change contracts if volatility is too high

Cons

– A lending platform, thus getting BTCs is not instantaneous

– ID verification is necessary to ensure a safe marketplace

5. Buying Bitcoins with payPal at HodlHodl

HodlHodl is relatively new P2P platform that offers a marketplace for people can buy and sell BTC with PayPal. Since users set their own payment preferences, PayPal is part of the portfolio. You can also engage in OTC trade if your goal is large Bitcoin transactions. You do not need to conduct verification of your identity, which is standard for P2P websites.

 All trades carry a small 0.6% fees, payable by both buyers and sellers. Moreover, you can use Multisig (P2SH) contracts to secure your funds without looking at the seller’s profile.

Pros

– offers a private environment for PayPal purchases of Bitcoin

– Very low fees, compared to even other P2P websites

– Multisig contracts as an additional layer of security

Cons

– Supply can be low depending on the market trends

Is it possible to buy Bitcoin with PayPal with no ID?

It is quite possible to buy Bitcoin with PayPal with no ID. VirWox used to be a pathway many traders took in the past, even with the complex purchasing process. Now, however, P2P platforms reign supreme, even with many security issues regarding sellers. Here are steps that will ensure you get BTCs with PayPal account without compromising your privacy.

Step 1: Find Suitable Seller

LocalBitcoins and Paxful both offer filters for buyers and sellers to locate ads that suit their needs. Although we use LocalBitcoins as an example, Paxful has a very similar process as well. Use filters below to get best offers that contain PayPal as a payment method and that do not require ID-verified profile:

  • Set country to Global (take all PayPal offers)
  • PayPal as a payment method
  • Accepts Payments without a Verified profile

Now, however, commences groundwork. You have to locate those advertisements that do not require verification of your identity. The process can take time, as you check out ad after the ad. Moreover, the price can go considerably up if you really value your privacy. The snapshot below shows the space you should look at when locating privacy-friendly ads.

Buy Bitcoin with PayPal at LocalBitcoin

Image Explanation: Green square shows space where verification requirements can be found.

Step 2: Check Seller’s Transaction History

Go to sellers profile and check out comments people leave about transfers done with this particular seller. If all is well and the seller’s feedback score is near 100%, you can work with this individual. Verification of his/her profile helps as well, especially of the ID.

Step 3: Make the Payment

Once you have all ingredients up to the notch, it remains to commence the trade by chatting with the seller. Make sure all agreement points are met and use escrow service just in case. Verified users would have experience with this particular feature and would save you a lot of nerves when dealing with people in P2P platforms.

Is it possible to buy Bitcoin with PayPal instantly?

Paxful and LocalBitcoins both offer a platform where traders can buy Bitcoin with PayPal instantly. However, the length of the process depends on the seller’s ability and response rate. Thus, for instantaneous transactions, HodlHodl is a good platform to find reliable BTC selling ads.

As snapshot below shows, applying filters would get you the offer you need. They are marked with a yellow square. Simply choose PayPal and country to get best offers HodlHodl marketplace has to offer.

Buy Bitcoin with PayPal at HodlHodl

Image Explanation: Yellow Square shows filters that buyers should use when buying Bitcoins with PayPal at HodlHodl.

Once inside the ad’s page, you can check out how much time did the seller stated transaction would commence. It is under the “Payment window” and usually lasts up to an hour, depending on the necessary number of bitcoin confirmations. If miner network is fast – so shall be your transaction.

Is it possible to buy Bitcoin with PayPal on Coinbase?

Right now, it is not possible to buy Bitcoin with PayPal on Coinbase. However, PayPal withdrawals are within your reach, sine the crypto company successfully made deal with the e-payment firm. Additionally, you are able to sell Bitcoins and receive money to PayPal directly, accruing to this Coinbase announcement.

At this moment, accounts from U.S., EU, UK, and Canada have the PayPal option available to them. As for the fees, apart from regular buy/sell costs (1.49%), there are no additional expenses. However, it is not possible to purchase Bitcoin even with the PayPal credit card.

Risks with PayPal to Bitcoin

In order to be safe while buying Bitcoins with PayPal, one should be aware of the risks involved. Platforms that we provided here in this guide are all secure places to buy bitcoin. However, in the case of P2P platforms, it does not hurt to work with verified sellers, since some might come out as quite dishonest.

Outside of our list, there are many other sites that allow you to buy bitcoin with PayPal. However, many turned out to be either straight or exit scams. It is important to do good research when choosing a new platform to buy BTCs with PayPal account. E-payment system does not take any responsibility regarding your funds once they leave your balance.

Here are few steps that you can take to ensure there are no red flags when choosing a new platform:

  • Check if the company is a registered business
  • See if the site in question has any customer reviews, especially negative ones
  • Investigate their business model to determine whether it is profitable
  • Use IP address sites to check how old is the website as new ones probably have no reviews

Conclusion - Best way to Buy Bitcoin via PayPal

All in all, it seems that P2P platforms are the best bet if you wish to buy Bitcoin with PayPal. LocalBitcoins, Paxful, and HodlHodl all offer ways to buy Bitcoin without ID. However, you need to do the work of finding the right ads within these platforms. The only exception is HodlHodl but it also has the lowest market support in terms of the number of BTC ads.

VirWOX now has a too complex process for BTC purchase. Thus, traders that are looking for fast solutions can use HodlHodl as a way to buy Bitcoin with PayPal instantly.

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