How to buy Bitcoin using PayPal?
Hundreds of Crypto wallets now allow you to buy Bitcoin and other cryptocurrencies today. If you live in the USA or Canada, you might have many options to buy Bitcoin, but this is still not true for many counties in the world.
In earlier days, when the popularity of Bitcoin increased, people started looking for ways to buy them.
There were some Exchanges, which make it possible to buy cryptocurrencies through your debit card or direct bank transfers. But most of the time, these exchanges do not accept international cards.
In that case, you can buy bitcoin with Paypal. This article gives a detailed explanation of ways to do that.
The first platform to initiate it was VirWoX (closed now). In this platform, you can buy Second Life Lindens(SLL) through PayPal. After some time, you can sell them for Bitcoins. Then you can transfer it to your wallet. But it went offline in January 2020. Since then, many platforms have emerged that provide the same services. Let’s have a look at them.
LocalBitcoins is another popular platform to buy bitcoins through PayPal. It is a marketplace that has buyers and sellers of Bitcoin. The buyers of Bitcoin can directly contact the seller of Bitcoin. Factors that determine the credibility of a seller is-
- Feedback Score
- Time at which Account Created
- Verified Credentials like phone number, email id.
A trusted seller is one with a high feedback score, active in the platform for a long time, and has all credentials verified.
After you select your seller, you will be directed to the trade screen. It will have the trade limit of the trader and the payment window( time limit within which you have a deposit you fund after opening the trade). After that, enter the number of Bitcoins you want to buy. Then you will have to deposit the fund in the escrow contract. After everything is verified, the Bitcoins will be transferred to your account.
Pros and Cons of LocalBitcoins
- Seller showed according to your location.
- The fee associated is high ( charged by seller and the platform)
- It has some chances of fraud seller
Paxful is also one of the trusted and popular where you can buy Bitcoin through your PayPal account. It supports other payment options like GooglePay. It is similar to the marketplace like LocalBitcoin. You have to create your account and verify yourself. After that, you will be shown a list of sellers. Factors to consider while choosing a seller-
- Number of Positive feedback
- Number of negative feedback
- Whether the credentials like phone number and id are verified or not
- The time when he/she joined
- The number of people trusts the seller.
After you select your seller, you will be redirected to a chat room where you and the seller can finalize the deal. Escrow smart contract ensures that funds are exchanged safely.
Pros and Cons of Paxful
- A lot of payment options
- A lot of seller in the marketplace
- High fees
- Chances of fraud sellers are still there.
Xcoins offers an innovative way to purchase or to be precise borrow Bitcoin with Paypal. Unlike the marketplaces where users are allowed to choose the seller, Xcoin acts as an intermediate to overlook the proper transfer of funds.
The lenders deposit their Bitcoin into Xcoin’s wallet. You, as a buyer, have to open your account in Xcoin and link your PayPal account. Then the user enters the number of Bitcoins he/she wants to borrow.
After the user agrees with the feed rate, he has to pay the price of the Bitcoin bought along with the fee. As soon as the borrower makes the payment, Bitcoins will be transferred from Xcoin’s wallet to the user’s wallet. The whole process can take a few hours to complete.
Pros and Cons of Xcoins
- Low chances of fraud
- Comparably faster
- Trusted and Secure
- Transfer of Bitcoin can take time
- The fee is relatively high
These three are by far the most popular way to Bitcoin through PayPal. There is no direct method to buy Bitcoin through your PayPal account. Hopefully, Paypal will adopt direct payment using cryptocurrency in the future.