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When buyers and sellers meet in a market, there is always room for exploitation. Not everybody is going to be reputable, especially in the anonymous world of cryptocurrency trading. Given the lack of incentives towards proper trading behavior, and disincentives pushing away from negative trading behavior, it becomes imperative that each participant in the sale be wary of the fine print.
Right now, Bitcoin is at a critical point where it needs public support to break through into the mainstream, and it’s essential to maintain good relations to maintain a positive public opinion to draw in more enthusiastic participants. In order to maintain Bitcoin’s reputation, safeguards need to be put in place to ensure that there are no loopholes for scammers to exploit and further abuse the system. Essentially, buying Bitcoins with PayPal in specific should be secure, risk-free, and with mechanisms in place to hold both sides accountable for unequal transactions, and if PayPal wants to get into cryptocurrency trading, they’re going to improve their security to protect both sides of the transaction better.
There is no doubt that Bitcoin is the most exciting topic at this moment all over the places. After so many people made a lot of profits from investing in Bitcoin market, many more got interested in buying and exchanging this form of cryptocurrency. However, many potential buyers have pushed themselves back because of payment methods, as those seemed problematic to them. If you are one of those people, then congratulations, you are in the right place and by the end of this article, you will be a pro in buying Bitcoin as easily as purchasing it through PayPal.
How to buy Bitcoins with PayPal?
Instead of asking, ‘can you buy Bitcoin with PayPal?‘– The question needs to be, ‘how can I build a substantial financial base by purchasing BTC with my PayPal Account?‘
There are many websites available for users to purchase Bitcoins via PayPal. You can buy Bitcoin with PayPal from the following Bitcoin exchange websites.
This site is a Finnish-based Bitcoin exchange, started in 2012. Unlike many exchanges, it enables users to be able to trade with people who live nearby. This provides the possibility of in-person trades in cash if the user so desires. Fees are one percent for buying bitcoin with PayPal and are the same as any other trade using the site. Given the risk associated with using PayPal over a site like Localbitcoins, there is the probability that the seller will charge a considerable sized premium to ameliorate the risk associated with this means of sale. It comes in addition to requiring an already respectable reputation prior to the sale.
Linking a PayPal account to the site is a simple process compared to linking a bank account or credit card.
VirWox is a very old company in terms of the crypto market. They have been trading in Bitcoin since 2011 but had already been in business for four years by then. They even have their own arbitrary cryptocurrency – Second Life Linden dollars or SLL.
Using PayPal to fund your crypto-trading via VirWox requires four easy steps. The first step is to deposit your fiat currency into your account using PayPal. Next, purchase SLL dollars using the SLL/USD exchange. The third step is to buy Bitcoins with your SLL dollars, using the SLL/BTC exchange. Then, all that’s left is to withdraw the Bitcoins.
There is a commission fee attached to the use of PayPal to make cryptocurrency exchanges. This is possible because PayPal accepts SLL, and the transfer is made on the exchange for Bitcoin.
There are also limitations to trading for the first few trades due to the chargeback issues that come along with trading with PayPal based on a tiered level system. The catch is that there will be a fee for every transaction made in the chain of acquisition from funding, to purchasing SLL, to transmission to BTC, and finally to retrieve the BTC. And the fee itself is not a flat fee, which means that it’s always changing in response to the market value of all of the trade-able items.
The UPCoin exchange offers both digital to digital and digital to fiat exchanges, including up to 1,000 trading pairs. The beta test ended at the end of February 2018, and trading went live in March. It charges two different role-dependent fees based on what they call a Maker and a Taker schedule. Makers place orders below the present ticker price for buying above the price, thus adding liquidity to the market. Makers pay 0.1 percent. Takers, by contrast, take liquidity from the market and pay 0.2 percent. Beyond that, there aren’t any extra fees for using PayPal. Furthermore, actually logging in to the site doesn’t have any discernible security measures, and only asks for the client to set up 2-factor identification to make the first trade.
UPCoin is questionable in that it doesn’t actually list any information regarding physical offices in any country, with only a domain name registration for November 21, 2016. The site includes a $1 fee for joining, and prior to its opening offered $500 to be used for trading fees.
Using PayPal with UPCoin includes a simple formula of depositing the money into the account, selecting the currency, and copying the wallet or PayPal address and amount and then sending the funds.
Founded in 2015, London-based Wirex has made their name as a provider of cryptocurrency wallets. As such, having a Wirex account enables users to store Bitcoin securely. Adding money to a Wirex account is the same for PayPal as it is for using a local debit or credit card, except that instead of linking to one of those two aforementioned cards, the prospective customer will need to link to a valid PayPal account. The customer is required to request and load a physical card from his or her PayPal account, and use that card to buy Bitcoin with PayPal. Best part? The account with all transfer options is available for free.
This exchange is based in Delaware and was founded in 2015. On this site, the process used to buy BTC with PayPal is a simple one. Naturally, the first step is to create an account. The second is to choose a method of payment method and an amount. These are not limited to PayPal, either. These can be in Amazon gift certificates and other such sundry items. Last, you choose your seller. Paxful allows for the customer to manually choose who to do business with through a list of clients, or an option to allow Paxful to choose who the bestseller based on a series of criteria. The fees for converting between Bitcoin and PayPal are entirely dependant on the amounts involved; as such a definitive price list is not available on their website.
Pros and Cons of buying Bitcoins with PayPal
Pros of buying bitcoin with PayPal
- Websites like VirWox have allowed their users to buy bitcoin with PayPal instantly for a long time.
- PayPal is a safe method of payment.
- As a buyer, PayPal backs you up and in case of issues, and it supports its customers.
Cons of buying bitcoin with PayPal
- Some websites can be costly (they have high exchange rates).
- Some websites impose additional fees when buyers choose PayPal their preferred method of payment
- There is a high chance of scam. You have to be as careful as possible while choosing a seller and try to avoid scams.
- There are not many websites that accept PayPal as a mean of payment. This is because a payment made by your PayPal account is reversible, meanwhile, Bitcoin is irreversible.
What should you check before buying Bitcoins from a website?
If you do a simple search ‘How to buy Bitcoin PayPal’ on the Internet, you will come across a lot of websites which are going to offer cheap deals. The question is whether they are safe or not.
Below are ways to find out whether a site is safe or not to buy bitcoin through PayPal –
- Websites with perfect deals are risky. Avoid them. In case you find slogans like “buy bitcoin for 5% discount, less than market value. Save a lot of money!” it is most likely to be a fake one.
- Check site rating: After searching ‘where to buy bitcoin with PayPal’ on the internet and finding a website, search about the website and cross check with Google ratings, various forums and so on.
- Check whether the website is a secured one. Make sure there is an ‘s’ after the HTTP. This indicates that the web-traffic is secure and encrypted. All major bitcoin to PayPal websites have this.
- Use safe browsing tools. Norton Safe Web, WOT, McAfee Site Advisor are some tools to use while browsing these websites. These tools help in displaying site safety levels.
- Find the site’s reputation. What does the public say about it? Does it rank highly among users who have transacted with it?
How to Sell Bitcoin and Be Paid by PayPal?
Websites that allow users to sell Bitcoins and get paid directly into the PayPal accounts are easy to find.
These are some of the trusted bitcoin to PayPal websites. To access these websites:
- The user first needs to sign up.
- Next, you link your Bitcoin wallet to these websites.
- Remember to make sure that they are safe.
The websites are:
To use UQUID, follow the steps below.
- Deposit to UQUID with Bitcoin from the wallet.
- Buy Virtual UQUID Debit Card
- Load a small amount into the card
- Add this card to your PayPal account
- Sell your Bitcoin and receive payments
On this website, you can
- Sell Bitcoins.
- Withdraw them to your credit card or debit card, which is linked to PayPal.
- Exchange and deposit BTC.
- Once your account has a lot of BTC, you can convert it into USD or EUR.
Paxful allows the users to do the following:
- search for the amount they want to sell
- Find ways to transfer it.
It is safe, but it can be costly.
How to Secure Your Bitcoin after Purchasing It?
The question following ‘How to buy bitcoin by PayPal?‘ should naturally be ‘How do I secure my BTC?’
Crucial steps to securing your BTC are:
- Transfer your bitcoins to your hardware wallet. It is a device built like a USB drive. It carries your BTC physically.
- Store a small amount in a wallet app. It is useful at that moment when you need instant cash.
- Do not trust anyone with your security details; to avoid being scammed.
- Keep your private keys in a safe place. Make sure it is secure at all times.
Summing it up
There are definitely some pros and cons when it comes to using it to buy BTC with PayPal. For example, there’s the general ease and speed of the transaction within a trusted medium. But there are still some bugs to get out of the process itself. The problem lies with the difference in the two mediums. Bitcoin trades are irreversible. Once the trade is agreed upon by both parties the asset changes hands.
But PayPal uses fiat currency, generally through credit card or bank access, and both are reversible. Herein we have room for duplicity, and with the high visibility of Bitcoin in the news, we have more people getting involved, and a certain percentage of these people will be looking to run some variety of scam. There’s absolutely nothing to stop the PayPal side of the transaction from disputing the claim, and then after the funds have been reversed, un-linking his bank account or credit card post-transaction and disappearing without fulfilling his or her obligations.
The world of Bitcoins is an exciting one. It is possible to buy Bitcoins with PayPal. Using that amount in your PayPal account to purchase some BTC can benefit you considerably in the future! I hope you will make wise decisions as you engage in this venture. Please make sure to explore our website for more exciting articles about Bitcoins and other cryptocurrencies.