For the better part of the last two decades, making transactions has been a lot more practical thanks to the fact that it went online to services such as PayPal. Then, a decade ago, Bitcoin appeared, promising an even faster, cheaper, decentralized method of making payments. Over the years, methods of acquiring Bitcoin became much simpler and faster, with more new payment options appearing all the time.
These days, it is easy to obtain coins without having to buy and set up mining equipment, exchange accounts, and going through long, slow verification processes. These days, even casual investors and traders can buy Bitcoin almost instantly by using older and more comfortable payment methods such as PayPal.
However, while it is still much easier to buy BTC now than it was a decade ago, investors might still run into complications and tricky processes. Because of that, we have decided to make a guide that will explain what to do and how to do it in order to get your hands on BTC quickly and easily via PayPal.
Buying BTC With PayPal
The first thing to understand is that you still cannot buy Bitcoin by using PayPal directly, which already makes the process more complicated than many would want it to be. At this point, PayPal is still strongly against cryptos, which might change over time, but not yet. However, there are a bit longer roads to buying Bitcoin with the money originating from PayPal, which may be frustrating, but it will ultimately serve a purpose.
The biggest reason why you can’t buy BTC with PayPal is the fact that Bitcoin transactions are irreversible. In addition, Bitcoin is also decentralized, while PayPal remains a centralized service, which only deepens the gap between the two.
Add the fact that PayPal is a huge company that has been around for quite a long time now, and that Bitcoin and crypto threatens to disrupt this firm just like any regular bank. As such, PayPal has a lot to lose, which does not make Bitcoin rise in its eyes.
Unfortunately for the company, the crypto trend continues to grow and spread, and even if the prices are currently down, this is not something that will stop cryptos from advancing. While there is still a long way to go until crypto reaches mass adoption and gains the reach that PayPal already has, it is undeniable that digital coins are advancing toward that goal.
PayPal does have other advantages, such as full regulatory compliance and innovation which put it at the top of the industry, but it is not as innovative as cryptos, which is why the company is still in danger of becoming obsolete.
How To Bypass The Restrictions
Buying Bitcoin with PayPal is still possible, even if not directly. Luckily, there are only a few steps that you have to take to do so, and while there are different routs that you might take, it should be noted that some solutions will be cheaper than others. In addition, there is no set transaction time, and each platform needs to be examined in order for you to choose the best one.
Also, while there are some exchanges that will allow you to make this kind of purchases, there is a possibility that PayPal will not appreciate the fact that it is used for buying Bitcoin. As a result, it may scold users who try to use it in such a way.
The company wants to hold your money in a similar way to traditional banks. And, as long as it does this, your money is not really yours. This is why most people are more than willing to buy crypto, where they will be owners of their own funds. While PayPal cannot exactly stop you from doing so, it will certainly not offer to help.
There are currently three different ways of buying Bitcoin with PayPal simply, as well as a fourth one that will require more effort. However, whichever method you choose, you will end up with some BTC in your possession. It should also be noted that none of these methods will be as fast as using a crypto exchange. With that in mind, here are your options:
1. P2P marketplaces
P2P marketplaces are similar to exchanges in a lot of ways, but the difference lies in the fact that there are no intermediaries between coin buyers and coin sellers. You buy your cryptos from another person directly. Meanwhile, the seller chooses the payment method they will accept, which is where PayPal comes in, at least when it comes to those willing to use it.
The positive thing about this method is that you do not have to verify your identity, which technically allows you to remain anonymous. The negative aspect is that you will have to deal with higher prices and less liquidity.
2. Crypto Exchanges
As mentioned, most cryptos cannot work with PayPal. However, there are exceptions, and VirWox is one of the best-known ones. This is still a fully-operational crypto exchange, but it was not designed as one, which allows you a unique opportunity to buy Bitcoin via PayPal.
3. P2P Lending Platforms
P2P lending platforms work in a different way, and their purpose has been mostly to borrow BTC, not to buy it. However, you can still do so by borrowing the coins and then paying the loan immediately and in full by using PayPal. There are several platforms that you can choose, with one of the best-known ones being xCoins.
After cryptos exploded in 2017, banks around the world realized that cryptocurrencies are becoming a serious threat, which is why many of them banned the use of their services on crypto exchanges. Their biggest concern was anonymity, which is why regulators quickly forced exchanges to implement KYC policies, and most of them had no choice but to do so.
After this was done, a lot of banks decided to reconsider their willingness to work with these exchanges, which makes it possible to use bank transfers to buy coins on exchanges. If you have funds in your PayPal, you can withdraw them into your bank account, and then deposit them on an exchange directly, which is quite a go-around, but it remains an option.
How To Actually Buy Bitcoin With PayPal?
We have already listed a few options, but let’s take a look at how this works on a real example. In the case of VirWox, you can use PayPal thanks to the fact that the service allows the use of Second Life Lindens (SLL). This loophole inspired several other exchanges to start providing SLL services and make it easier for their customers to buy coins via PayPal. However, VirWox remains the best one.
And, as mentioned earlier, it is not designed to be a real exchange, but rather a platform that serves the Second Life game, where users can buy in-game collectibles.
To start, you need to open an account on the platform and fill your information, which will allow you to deposit funds from your PayPal. After that, you will have several options when it comes to exchanging your balances for SLL. One of them is to purchase Bitcoin. The purchase will have a 10% transaction fee on those using PayPal, which is unfortunate but inevitable. After buying your coins, you should immediately send them to your personal Bitcoin wallet, in order to secure them and truly make them yours.
Then, there is xCoins, which does not allow users to sell BTC directly, but to lend it to others. This platform will also require opening an account, and it might not be available to you, depending on your location. Once you open an account, the process is pretty easy — and you can set up an offer to borrowers, and a person offering Bitcoin will eventually respond. You cannot choose a specific seller, but you can choose whether or not to go through with the deal.
If the deal is to your liking and you agree, you will have to pay the appropriate amount to the seller. The amount will include the price of BTC, plus the fee. You will then receive your coins, and the process will be completed. This is not a perfect solution, but it is a method to bypass PayPal’s barrier and still obtain cryptocurrencies.
Buy Bitcoin Via Paypal Conclusion
It is too bad that PayPal does not allow users to make use of its service for buying cryptocurrencies directly on different exchanges, but it is also understandable, considering how disruptive the crypto trend is. In the end, there are methods of bypassing the restriction, although they will involve less liquidity, higher fees, and similar issues.
However, these methods still exist, and you can always withdraw the money to your bank account and use it to buy cryptos on regular exchanges. In the future, things might change between cryptos and PayPal, but if not, there are plenty of ways to go around the barrier.
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