As the PayPal payment processor is one of the most widely used tools worldwide for transferring and storing Fiat currency via the Internet, many wonder how to buy Bitcoin with PayPal.
First of all, we must clarify that PayPal announces in its Acceptable Use Policy that it is not allowed to use its platform for transactions or marketing of crypto currencies. This prohibition does not only apply to crypto currencies, PayPal does not actually allow you to use its platform for the marketing of any currency. The Policies expressly mention that the platform does not function as a Bank.
However, despite the bans, there are some options that allow us to buy Bitcoin with PayPal and today we have decided to explore them to explain to all our readers what are the safe ways.
How to buy Bitcoin with PayPal through LocalBitcoins?
We have mentioned LocalBitcoins several times, highlighting that it is a platform to buy Bitcoin safely. Well, within the options presented to us by this P2P platform is possible to buy and sell Bitcoin with PayPal account. In fact, it is one of the most popular options within the platform, which generates that there are always offers.
However, you have to be very aware of scams when you use this portal together with PayPal. While LocalBitcoins is a completely secure platform for the Bitcoin purchase process, the use of PayPal could complicate things a bit.
The problem is due to the option of reversibility of transactions by its consumer protection process in PayPal and the irreversibility of transactions in crypto currencies. The person who sends the PayPal balance in exchange for Bitcoin could ask for a refund of money because he considers that “he did not get the service or the good agreed” and because operations in crypto currencies are not recognized by PayPal, the person who sent Bitcoin would be unprotected.
In addition, it has been known by various comments within the web space that a procedure of hacking PayPal accounts has become popular and hackers often use the balance in them to buy Bitcoin. So when legitimate owners regain access to their accounts, they become aware of these operations and are unaware of them. In the vast majority of cases PayPal returns the funds to the accounts while Bitcoin sellers cannot return the transaction because of the same irreversibility of Blockchain.
How to buy Bitcoin with PayPal by Coinbase?
In the middle of last year the popular North American Exchange confirmed that it was working to expand its payment and withdrawal options within the platform. PayPal was precisely one of the options included for both the purchase and sale of cryptoactives.
However, the use of PayPal for the purchase of Bitcoin in Coinbase is limited to users in the United States and is being tested with users in several European Union countries. It is expected that throughout 2019 the option will be available to all countries where Coinbase operates.
As far as we can see, Coinbase charges a commission of 3.99% on the balance used to purchase Bitcoin via PayPal. The positive thing is that the transactions are executed very quickly and the Bitcoin is received immediately.
How to buy Bitcoin with PayPal by Paxful?
Paxful is another of the P2P platforms we have evaluated for the purchase of Bitcoin and other crypto currencies. In this American portal the option to buy Bitcoin with PayPal is established and it can also be sold without major problem. Gift cards from Amazon or Wallmart and other payment processors such as Skrill, NetSpend, OkPay, Paxum and PerfectMoney can also be used.
It works very much like LocalBitcoins. An account must be opened within the platform and with it an internal purse.
The system works with an “Escrow” system that also supervises that the operations are carried out properly. One of the most positive aspects within Paxful is that the commission is only 1% on the amount of the operation.
How do I buy Bitcoin with PayPal by AirTM?
AirTM is a P2P platform that is not only oriented to crypto currencies but also functions as a space where a large number of payment methods come together in one place. PayPal and crypto currencies are options that are contemplated within the platform.
Thanks to its “Escrow” function, this portal is very useful. Users mainly use it to exchange local currencies for dollars or euros while others use it to exchange cryptoactive assets and balance in local currency payment processors.
Within all the available options, it is possible to buy AirUSD (the local currency of AirTM) with PayPal balance and then use those AirUSD to buy Bitcoin or any other crypto currency (you can issue a purchase request for any crypto currency thanks to the platform gives you the option to set the one you want) By using this process, it is possible to buy Bitcoin with PayPal.
One of the negative aspects of the platform is that it has very high commissions (ranging from 12% to 16%) for the purchase of AirUSD with PayPal balance. There is also a commission for the purchase of crypto coins ranging from 3% to 5%.
Cryptonit’s situation with PayPal
Cryptonit is a British crypt coin exchange where you can buy and sell Bitcoin and other crypt coins for euros and dollars. In the early years of the platform could buy cryptocurrencies using PayPal, however, over time this option was no longer available and only maintained the ability to withdraw balance by PayPal. The maximum that can be withdrawn by the payment processor is 1000 euros within 24 hours.
Evonax/ExchangeMyCoins situation with PayPal
Evonax (formerly known as ExchangeMyCoins) functions as an Exchange that supports purchase-sale transactions of Bitcoin, Litecoin, Bitcoin Cash, Dash, Ethereum, Dogecoin and Monero anonymously. Previously they offered the option to buy and sell crypto coins through PayPal but this was canceled after PayPal closed its account within the payment processor to determine that it was a company linked to the crypto coins, this according to a statement that presented the portal itself within its website.
The options that we have expressed here are not the only ones that exist in the market. There are other options that can be taken, however, here we have mentioned those that we consider safer. If the other options are to be explored, it is important that, before any operation is carried out, the safety and reliability of the options be evaluated in order to avoid scams and unfinished operations.