It in this guide we will tell you the best ways to buy Bitcoin with PayPal.
Bitflyer has just become the first Bitcoin exchange that accepts PayPal as a deposit method.
Before this you had to use a peer-to-peer bitcoin exchange.
On these peer to peer exchanges, there are always people offering their bitcoins for your PayPal money.
Remember, such a transaction usually comes with a higher spread since it is such a low volume between you and the peer (even if the exchange itself can handle large volumes).
In this guide, we provide a list of platforms where PayPal purchases are possible. Also, we delve deeper into how to buy Bitcoin with PayPal instantly with, or without, ID.
If you are interested in buying another cryptocurrency, like Ethereum or Ripple for instance, you must go with Bitvalve from the options presented below.
Also, you can read our other guides on how to buy Bitcoin.
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.
During 2020, PayPal has started to support to buy cryptocurrencies directly on the platform.
List: 4 Best ways to buy Bitcoin with PayPal
The list is not that big concerning the possible options to buy Bitcoin via PayPal.
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
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%.
For more information regarding LocalBitcoins, see our LocalBitcoins review.
– Possibility to buy Bitcoin instantly
– Possibility to buy Bitcoin without ID(see verification levels below)
– Good supply and lots of offers with low transfer costs
– 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. Also, we have a separated and more detailed step-by-step article on how to buy Bitcoin on LocalBitcoins with Apple Pay.
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.
Read our Paxful review if you are interested of more information regarding Paxful.
– You can buy Bitcoin with PayPal instantly
– You can buy Bitcoin with PayPal without verification (see verification levels below)
– Good supply and low fees
– There have been many cases of fraudulent activities
– BTC price can be a higher than with direct exchangers
3. Buying Bitcoins with payPal at Bitvalve
Bitvalve is a P2P crypto exchange that charges 0% commission fee on each and every trade. With BitValve, you can buy and sell bitcoin from anywhere in the world. Bitvalve also have an Android app.
They do have KYC for volume over $2.000 per account.
Example: How does Alice use Bitvalve to Buy Bitcoin from her Paypal account?
4. Deposit via PayPal to Bitflyer
Now it’s possible to deposit via PayPal to Bitflyer.
From the Bitflyer app, you are able to deposit money from PayPal.
- First, sign up with Bitflyer.
- After sign up, sign in to your account. Now, click either on the big blue PayPal button or “Account funding” in the left menu.
- Here, you will be asked to submit proof of identity and proof of address
After the verification process is finished, follow these steps.
- Under the “Funds” tab, click on “PayPal Deposit”.
- Please enter the amount you would like to purchase and click on ‘PayPal checkout’.
- You will be redirected to your PayPal account.
- You need to log-in and confirm the purchase from your PayPal account.
- Once the confirmation is done, you will be redirected to your bitFlyer account.
- If it is your first PayPal purchase, you will need to wait until the purchase is verified. If it is not your first PayPal purchase, the processing of your transaction should be instant.
- Your funds are available for cryptocurrency purchases and trading.
- In order to enable cryptocurrency withdrawals, please also make a regular wire/SEPA transfer to your bitFlyer account in your name.
Is it possible to buy Bitcoin with PayPal with no ID?
It is quite possible to buy Bitcoin with PayPal with no ID. At least up to a certain threshold.
VirWox used to be a pathway many traders took in the past, even with the complex purchasing process. Now, however, peer to peer 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.
See the tables below for the verification limits at LocalBitcoins and Paxful
First you can see the table for verification levels from LocalBitcoins.
Below you can see the verification table limits table from Paxful.
Step by Step Guide
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.
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.
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 BitValve all offer ways to buy Bitcoin without ID. However, you need to do the work of finding the right ads within these platforms.