Is It Possible To Buy Bitcoin With PayPal?

Currently Paypal is trusted by millions of people as one of the most convenient ways to send and receive money worldwide. With Bitcoin trading is gaining more popularity, many people also wonder if is it possible to buy Bitcoin with PayPal. Here in this guide you will find out how to use your Paypal account to buy Bitcoin in the simplest ways.

Advantages and Disadvantages

So is it possible to buy Bitcoin with Paypal? The answer is yes, even though you cannot purchase it directly from Paypal, you can use it to purchase in Bitcoin exchanges that provide a trading platform or a peer-to-peer marketplace. Therefore the solution if you want to buy Bitcoin with Paypal is by finding a reliable exchange that accepts Paypal as one of its payment methods.

For buyers, there are a few great advantages when you use Paypal to buy Bitcoins. If you already an active, verified Paypal account, the process to purchase Bitcoin is actually pretty simple and fast. You would just need to find an exchange that would accept PayPal as a funding or purchase method. There are many legitimate exchanges where you can convert PayPal to BTC listed on Smart Bitcoin Investments.

But probably the greatest advantage is that Paypal gives solid protection for buyers, by allowing easy chargeback. The success rate for buyers’ chargeback in Paypal is extremely high, so any dispute involving money back request will almost certain won by buyers.

Another great advantage is when using Paypal identity verification is not always necessary, so you don’t have to give away your private info to strangers.

But Paypal also comes with some disadvantages when being used to buy Bitcoins. The biggest disadvantage is actually due to the fact that chargeback is made so easy for buyers that many buyers actually abused it for their advantage. Unfortunately Paypal has basically no way of knowing if a buyer’s chargeback claim is legit or not. So even if the buyer actually received the Bitcoins, the chargeback is most likely still be processed by Paypal, because their system really favor buyers.

That said, for sellers this creates a high risk, and for that reason a lot of Bitcoin exchanges do not accept Paypal as their payment method. As for those that accept Paypal, usually the processing fees are significantly higher than other payment methods. For the same reason in peer-to-peer marketplace, sellers usually give higher rates in order to mitigate the chargeback risk.

Types Of Exchanges Where You Can Buy Bitcoin With Paypal

As explained earlier in order to use Paypal to buy Bitcoin, you should find a reputable exchange that accepts Paypal as one of its payment methods. These exchanges are typically those that have Bitcoin trading platforms, peer-to-peer marketplaces, or lending platforms, because these are the platforms where Paypal is accepted as a method of payment.

• Trading Platform
  A trading platform is a place where you can invest in Bitcoin and hope to gain profit with the fluctuations of its value in the market. So when you buy Bitcoin in this platform you actually don’t take the Bitcoin and put it in your wallet, instead you put it to work for your profit.

• Peer-To-Peer Marketplace
  A peer-to-peer marketplace is a platform where buyers and sellers can meet and negotiate directly to trade Bitcoin. Usually a marketplace that accepts Paypal as one of its payment methods has an escrow system that works as an extra protection for both buyers and sellers. However, even if you find an exchange that has a peer-to-peer marketplace that accepts Paypal, it doesn’t necessarily guarantee that all sellers will accept Paypal payment.

• Lending Platform
  In this platform, you can get Bitcoin from a dealer directly, but instead of buying, the Bitcoin is loaned to you by a lender with fixed interest. This is done in a single transaction. However, some Bitcoin players consider this type of Bitcoin transaction is somewhat ambiguous and actually no difference that Bitcoin purchase.

• Exchanges For Buying Bitcoin Using Paypal
  Even though the options are limited, but fortunately some of the exchanges that provide platforms for buyers to buy Bitcoins with Paypal are quite reputable and known to be secure. Here are a few of the best exchanges where you can buy bitcoin with Paypal.

• eToro
  eToro is probably the exchange that offers the easiest process of buying Bitcoin with Paypal through its trading platform. However the catch is you can only use your Bitcoin to trade in its platform to try gaining profit out of it, and you cannot actually withdraw the Bitcoins to your wallet or send them to other people. You can only withdraw your profit in fiat currencies.

So if you want to buy Bitcoin in order to profit from its value’s volatility without the need to actually hold the Bitcoin, eToro is a nice option because the purchasing process with Pypal is relatively very easy.

• Paxful Paxful is a smaller size but reputable exchange that provides a peer-to-peer marketplace that can accept Paypal payment. In order to maximize its transaction security, Paxful has a working escrow system. This exchange only accepts a verified USA Paypal account, so most people outside of US still cannot use this platform to buy Bitcoin with Paypal.

Most sellers on this platform usually ask for ID verification when you initiate the purchase, but that’s pretty much the only hassle on the whole process. Once your ID is verified the following process is actually pretty simple.

However, there are also some sellers who don’t require ID verification, you just need to find those that have a “No Verification” symbol.

• LocalBitcoins
  This is probably the most popular exchange that offers Paypal payment. Similar as Paxful, it also provides PayPal payment method in its peer-to-peer marketplace. LocalBitcoins has a lot of members, so be sure to check your seller’s reputation before doing a transaction. Expect to pay premium fees for your purchase with Paypal, because these sellers are anticipating the chargeback risk.

• xCoins
  xCoins is a peer-to-peer lending platform that connects borrowers and lenders. Since it is a loan, it’s only available for a certain period of time and when the period ends, the Bitcoins will return to the lender.

The fees are relatively high and consist of several elements, including security deposit, lender’s fee, fixed interest, and Paypal processing fee.