How To Securely Buy Bitcoins with Paypal
It is now possible to buy Bitcoin via PayPal but it’s quite the challenge. So, we decided to delve into the matter and share with you the best methods for converting your PayPal money into Bitcoin. The article below will give you the information you need. Happy reading!
Everyone knows that PayPal is the most popular e-wallet for storing fiat money and making online purchases. So it would be quite convenient if you could buy Bitcoin with your PayPal money, right? Unfortunately, the situation is not that simple. If this is your only payment method, you should consider some alternatives, for example credit/debit cards or wire transfers. However, we will show you how to buy Bitcoin with your PayPal account for the sake of revealing the diversity of options you have.
We hope that in the future, when Bitcoin burrows even deeper into our lives, buying the cryptocurrency with PayPal will become much easier.
Our article explores two methods for purchasing Bitcoin through your PayPal account: VirWox and LocalBitcoins. Both of them are quite demanding, so we need you to concentrate. Let’s start with a review of both methods, after which we’ll provide some comments.
VirWoX - Virtual World Exchange
VirWoX derives from Virtual World Exchange. It is probably the most popular place to convert your PayPal money into Bitcoin but, paradoxically, it is not even a Bitcoin exchange. Now, you may already be wondering how you can get Bitcoin then. Well, there is a transitional step you need to consider. You see, VirWoX is the place where you can buy Second Life Lindens, a kind of virtual currency used in a virtual world. Then you can go ahead and exchange these Second Life Lindens for Bitcoin. Sounds like a hassle? We know it probably does, but it’s the only safe method to get Bitcoin by paying with PayPal.
We don’t want to advertise it, but we’ll spare a moment for this virtual world. Second Life is a world simulator created by Linden Lab. It has over one million users and a virtual currency called Linden Dollar or Second Life Linden (SLL). Even though it resembles a huge video game, it’s quite more serious than that. Check this out: in 2015 alone, Second Life had a GDP of $500 million, which is more than the economy of some small countries.
VirWoX is the place where you can convert your money into SLL and other similar virtual currencies and tokens. Then you can exchange your SLL for Bitcoin on the same platform.
You may also want to ask why there is no direct and easy method to buy Bitcoin with PayPal. Well, the first reason is that there are many chargeback cases of scammers buying BTC with PayPal and then claiming they didn’t receive anything. By doing this, they can get Bitcoin on a secure wallet and spend no fiat money.
Until the arrival of a convenient service that allows this procedure, we will use VirWoX. The quick guide looks like this:
- Register with VirWoX and deposit USD or EUR from your PayPal account.
- Buy SLL with the deposited money.
- Buy Bitcoin with your SLL.
- Get your Bitcoin to a secure Bitcoin wallet.
So, the first thing you should do is create an account on the Virtual World Exchange.
You will have to fill in all the blank spaces, except for the one that requires an avatar name. The whole “link to avatar” section is optional, and you should leave the default setting.
Once you’re done with this page, you will automatically get an account.
At this point, you should verify your email and activate the account. You will also get a temporary password by email, which you should change within 24 hours. Otherwise, the account will be deactivated.
Once you sign in with your temporary password, you will land on the homepage, where you can click to change the password, like this:
The next step is to create a rock-solid password, using digits plus lowercase and uppercase letters.
You can then go back to the homepage and click on “deposit” because you want to transfer some money from your PayPal account.
On the deposit page, you will find the whole list of payment options plus the fees and the deposit limits. When you check the deposit method, you can fund up to $99 per day and up to $297 per month with PayPal, while the fee can reach 3.4%.
You should indicate the deposit amount and click to check out with PayPal.
Once you check your PayPal account and fund your VirWoX, you are free to buy SLL. Note that you should deposit at least 10 USD or EUR.
Go to the “exchange” section on the left side and click “USD/SLL” (or EUR/SLL). You will be able to place a market order. In the image below, you can see there isn’t enough money in our account, but you will be required to indicate the USD amount to sell in exchange for SLL. You can also see the rates and the charts showing the recent performance of USD/SLL.
If the order has been successfully executed, you will get a balance in SLL and it will be time to convert it into Bitcoin. To do this, you will have to return to the “exchange” section and click “BTC/SLL.”
Placing a market order, i.e. buying Bitcoin with SLL, looks the same as in the previous case. You need to indicate the amount of Bitcoin you want to buy, and you will see a proposed SLL rate, which will include a fee per transaction. You will see the prices and charts showing the past performance of BTC/SLL.
That’s it! Once you have completed the order successfully, you are free to withdraw your Bitcoin to a secure Bitcoin wallet. If you still don’t have a wallet, check our guide on how to choose the best one: link
Click “withdraw” on the left and go to the “Withdraw to Bitcoin” section. You will have to indicate the amount of Bitcoin you want to cash out and the Bitcoin address.
Now you can find your Bitcoin in your wallet. Yes, it was a challenging process, but we’ve done it!
While reading our guide, you were probably disappointed that the daily and monthly deposit limits with PayPal are quite low (up to $99 as mentioned above). Don’t worry! These limits are only for beginners. The threshold will rise over time, like this:
One of the most obvious drawbacks of this option has to do with the fees. You conduct a series of two transactions, and there is no way to avoid the high fees. Besides, there is the PayPal fee that comes directly from the e-wallet. We can’t tell you the exact size of the fees and commissions since VirWoX updates them regularly, but you can expect to lose about 10% because of them.
On the other hand, the VirWoX platform is quite old and regarded as the most reliable one for converting your PayPal money into Bitcoin. The good news is that the platform is available worldwide.
We can also suggest buying Bitcoin with your credit or debit card. You can find our guide here: link
Some folks get confused and think that they can buy Bitcoin with PayPal on the popular Coinbase exchange. Unfortunately, it’s not possible – all you can do on Coinbase is SELL your Bitcoin on a PayPal account.
At the moment, no exchange or platform can rival VirWoX when it comes to a fast, safe and reliable purchase of Bitcoin with PayPal. There are some other options, but you get higher risk and processing is much slower.
Another great option is to meet a person on LocalBitcoins who is willing to sell Bitcoin in exchange for your PayPal money.
LocalBitcoins is another popular way to buy Bitcoin with PayPal. However, we don't recommend using this platform for such transactions as the rates are way higher and the limits lower than with VirWoX.
LocalBitcoins is a peer-to-peer system, which means that you buy directly from people around you and the conditions differ from person to person. This also means you can get scammed quite quickly, so you should be extra careful who you deal with. LocalBitcoins is a virtual place that makes it easy for buyers and sellers to meet and exchange cryptocurrencies for money. Yet, it’s not an exchange. Still, you can benefit from their escrow solutions, which adds safety to your transactions.
People publish ads and you should go through them to see what suits your needs. Be ready to pay much more when you buy on LocalBitcoins with PayPal. And when we say more, we mean up to 100% above the current BTC/USD rate and even more. Let’s browse some offers with the current rate.
First of all, you should have a LocalBitcoins account. The registration process is super easy.
Next, you can start the search process. Don’t forget to choose PayPal as the payment method.
We got a list of results with people ready to sell Bitcoin at different prices. Check it below and keep in mind that the BTC/USD rate at the moment is $3,396. You will also find the trade limits for each user.
As you can see, someone sells Bitcoin for $7,235! That’s 113% above the current rate. And we can’t even guarantee that the deal with turn out successful.
Anyway, you will be interested in the best rate and we’ll start with the first one. Once you find an ad that suits you, you can click on “Buy” to read the conditions and check the seller’s status. Here is an example with the terms of trade:
You will notice this user will only deal with those who have at least 30 trades with 20+ different users on LocalBitcoins. You won’t qualify if it’s your first time here. Also, you will have to send a screenshot of your PayPal account plus a picture of your ID. The user posts the list of opening hours that you should take into account.
Note that you can check the user history and feedback by clicking on their name.
This particular user has over 1,000 trades, a feedback score of 100%, is trusted by over 100 people and was blocked by two people. Well, seems kind of reliable, but you can’t trade with him or her if you’re a novice.
Once you find someone ready to sell you Bitcoin on the right conditions, you can send a trade request by indicating the amount to spend and writing an optional message.
In other words, LocalBitcoins is not the best way to buy Bitcoin with PayPal. We believe you should consider VirWoX first.
More Ways To Buy Bitcoin with PayPal
Wirex – Wirex, the former e-coin, is a service that offers virtual and physical Bitcoin debit cards. The good news is that you can buy these cards with your PayPal money. The short guide will run like this:
- Go to Wirex, register, and request a new card.
- Add your card to your PayPal account.
- Verify it. To do this, you need to have at least $3 in your balance so that PayPal could charge you. After it does so, you should find a four-digit PIN code on the Wirex account. You should use that code to verify your card on Paypal.
- Deposit cash in your PayPal account.
- Withdraw money from PayPal to your linked card (e-coin account).
- Buy Bitcoin with your funded Wirex account.
The whole process may take up to 10 days, so you should be patient.
Paxful – Paxful is another peer-to-peer system like LocalBitcoins though it’s less popular. You should register with it, choose your payment options (which include PayPal), search for sellers or wait for the service to suggest the best seller, and complete the transaction. We don’t know how safe it is, but you should make sure the seller has a solid history.
Cryptonit – Cryptonit is a less popular exchange quite similar with Coinbase and any other crypto exchange. It allows you to buy Bitcoin and other cryptocoins with PayPal, credit/debit cards, and other payment methods. However, you should pass through a verification procedure that may take up to twelve hours. You will be required to submit the following:
- A picture of your ID.
- A picture of a bill or a rental agreement.
- A picture of you holding the above-mentioned documents. Alternatively, you can agree to a Skype video chat with them.
Once you’re done, you can just trade on their platform and then withdraw the funds into your Bitcoin wallet. The great thing about Cryptonit is that they have low fees.
Personal – We have already discussed peer-to-peer services where you can buy Bitcoin, namely LocalBitcoins and Paxful. However, they are not the only ones. You can go to Meetup.com, a social media service, and search for Bitcoin groups. By doing this, you can meet face-to-face with someone willing to sell Bitcoin in your neighborhood for a good price. You can buy Bitcoin in exchange for cash or make some deals with the potential seller to use PayPal.
To sum up, here is a table comparing all the options for buying Bitcoin with PayPal:
|Limits||Up to $400 daily||Variable||Unknown||Variable||$2500 per withdrawal|
The Final Word
We have reviewed all the services, exchanges, and methods you can use to buy Bitcoin with PayPal, and now it’s your turn to choose the most convenient one for you. We think it is our duty to inform you that buying Bitcoin with credit/debit cards is a much better approach since it automatically gives you a wide range of reliable exchanges to choose from. If you plan to use your credit or debit card, consult our guide with the best exchanges that accept this payment method: link