Summary of the Best Ways to Buy BTC with PayPal
7 Best Exchanges to Buy Bitcoin with PayPal
VirWox is a peculiar blend on the cryptocurrency market, initially established to trade Second Life Lindens (SLL) and other virtual currencies in the year 2007. This Austria-based exchange was initially started to trade virtual currencies used for gaming. The site has over 740k registered users. VirWox is one of the most popular sites to offer PayPal as its major mode of payment.
This oldest exchange site is available worldwide.
How does it work?
Creating an account on VirWox is completely free and remember that, you cannot buy Bitcoins directly using PayPal on VirWox. You will have to buy Linden Dollars first then exchange it for Bitcoins. The process of buying Bitcoins using PayPal on VirWox is simple and is explained below.
At first, create an account by clicking on the option ‘not registered yet?’ you are asked to enter some basic personal information. Once the details are entered, you will receive an email with a password. You have to log in to the site using that password. The password which is sent is temporary and it is mandatory to change it within 24 hours. If the password is not changed within the specified time, then your account will be deleted. The password can be changed by clicking on the ‘change settings’ option. Once the new password is created, you can deposit from PayPal by clicking on the ‘Deposit’ option. Enter the amount you want to deposit and click on the option ‘checkout with PayPal’.
Next, you have to log in to PayPal and the amount you entered for deposit will be displayed. The amount displayed will be slightly less than what enter due to the fee imposed by VirWox. Next steps involve buying Second Life Lindens in exchange for your fiat currency. You will have to sell USD/EUR present in your PayPal account to buy SLL. you will get SLL in exchange for your fiat currency and complete the order. Next, select ‘BTC/SLL’ in the left sidebar to obtain Bitcoins in exchange for SLL. The process is similar and simple. You have to enter the amount of Bitcoin you want to buy and click ‘next’. You will see the balance in Bitcoin on left top corner if the process is successful.
VirWox respects the anonymous nature of the Bitcoins and does not ask for any verification by its users.
The site states that it does not share user details with third parties. VirWox is a part of Virtual World Services Gmbh and works on HTTPS protocol, which secures all the user details. The site follows stringent red-flag policy, which results in frequent blocking and suspending of accounts. Even credit card details are not stored on the site.
Fees and Limits
As the site was originally not established to buy BItcoins with Paypal, conversion of Linden dollars to buy Bitcoins through PayPal might slightly charge you an additional fee. Some users are ready to pay a lofty amount as there is no bigger competition for supporting PayPal to buy Bitcoins.
You are not charged any fee in exchange for Bitcoins and also for using My Virtual Community PayPal Terminal and the funds are available within two hours. Funds are instantly available with PayPal Express Check with fee (EUR 0.35+3.4%). Credit/debit card payment will charge you a fee (GBP 0.29+3.5%, USD 0.49+3.5%, EUR 0.96+3.5%) with instant funds. OKPAY is free of charge. Skill will cost you a fee (GBP 0.29+3.5%, USD 0.49+3.5%, EUR 0.96+3.5) with instant fund. Paysafecard will charge you 20% and funds are instantly available. Sofortbanking will charge you 2.5 % with instant funds.
PayPal will charge you 1 EUR plus 2% per withdrawal. Bitcoin exchange will cost you 0.002 BTC. Skrill, Bank transfer will cost you 1 EUR per withdrawal.
Inactive accounts for 12 months will be charged $2 per month.
Certain limits are imposed on using PayPal to buy Bitcoins. Your deposit will be curbed at 90$ after setting up your account. The trading limits on PayPal and Skrill are explained below.
The limits depend on the number of active days from the time you have registered. Limits are applied in terms of four levels.
Level 0 – you can immediately trade up to 90 EUR; 270 EUR.
Level 1 – after 10 days, you can trade up to 120 EUR; 900 EUR.
Level 2 – after 45 days, you can trade up to 200 EUR; 2000 EUR.
Level 3 – after 90 days, you can trade up to 400 EUR; 4000 EUR.
Level 4 – on request, you can trade up to 1000 EUR; 10,000 EUR.
The first limit is counted per 24 hours and the second limit is counted per 30 days. A simple currency converter can be used to check limits in fiat currencies (USD, GBP and CHF).
Customer support involves an FAQ page that answers most of the questions. Well, customer support should be improved.
VirWox is one of the oldest exchange with more than 740k users across the globe. The site supports a wide variety of payment methods to buy Bitcoins and does not ask for a mandatory deposit to buy Bitcoins. The trading process is simple with instant transactions.
Buying Bitcoins with this site for the first time might require some time. Customer support is subpar, needs to be upgraded. The exchange rates on VirWox is slightly high.
The oldest and the most popular peer-to-peer exchange site was launched during 2012, which serves users across the globe. The site is unique for enabling face-to-face, in-person trading. As a buyer, you can select a seller of your choice based on the list of advertisements of the sellers displayed on the site. You can meet the person for further trading. Even though, LocalBitcoins offer in-person trading. it is trustworthy and reliable. The site acts as an escrow system and upholds security and privacy of its users.
LocalBitcoins serves globally except Germany and New York due to regulations. The operation of the site completely depends upon the liquidity of its users in a country.
How does it work?
LocalBitcoins has a simple and an intuitive interface. Creating an account just takes 20 sec to signup with your email address. The site supports various payment methods. Now that you know the steps of buying Bitcoins with cash, let us discuss the process of buying Bitcoins via PayPal.
At first, you have to create an account using your email address. As a buyer, you can choose any seller of your choice from the list of sellers displayed on the page or you can add an amount and enter PayPal as a payment method. List of sellers who are ready to accept PayPal will be displaced. You can choose an appropriate seller as per your choice and carry out the further trade. You will be landed on a page, where you have to enter the amount for purchasing Bitcoins. You can see the limits and trading terms as mentioned by the seller. Some sellers might ask for ID verification along with the verification of your phone number. There is a feedback section on the seller’s profile, which will help buyers to opt for an optimal seller. Buyer should check for the seller’s trading history with feedback from other users. The fee applied by is site is slightly high compared to other sites. The premium is about 20% compared to the local Bitcoin exchange rates. In addition to that, 1% fee is levied by the site.
LocalBitcoins upholds user’s privacy by respecting the anonymous nature of the Bitcoins. Hence the site does not ask for any ID verification or personal details. An email address is the only criteria required for creating your account. As this is a P2P site, linking your bank account is not mandatory. Well, some traders might ask for your ID and other details. Buying Bitcoins in exchange for your local fiat currencies is an added bonus to a user.
LocalBitcoins has not at all compromised with its security setup. The site is encrypted with HTTPS protocol with a Login Guard as an additional security measure. The site has enabled two-factor authentication via SMS and email. Security researchers should definitely count on this site because the site has an excellent white hat program that knocks out the competition.
The excellent escrow system of the site restricts buyers from getting scammed.
Fees and Limits
It is a good news for all the buyers. LocalBitcoins does not impose any fee on buyers, but sellers have to pay a fee of 1%. Anyhow, Bitcoin network fee will be applied to all the transactions. The sellers get the advantage of customizing the exchange rates, which is a matter of concern for buyers. Some sellers charge high to cover up the fee levied on them by the site.
The site does not apply any limit on the number and amount of transactions between traders. However, traders can have limits with mutual consent.
You can definitely rely on the site’s customer support to resolve all your queries. The FAQ section of the site answers most of your queries. At last, you can contact LocalBitcoins via email and the site’s response is pretty quick as well.
Along with being a user-friendly site, LocalBitcoins is fast and reliable as well. Users privacy is preserved.
As the site offers in-person trading, users should be careful from getting scammed. The seller is in complete authority to customize the exchange rates, which might cost the buyer to pay a lofty amount. This site is inappropriate for large buyers.
Paxful was launched in the year 2015 as a prominent decentralized exchange. This US-based peer-to-peer exchange offers diverse online payment modes for its users. The exchange can be considered similar to eBay, where it acts as a mediator for traders for trading. Paxful acts as an excellent escrow service.
Paxful does not restrict its area of operation. Any user can register regardless of the country they belong. Moreover, some sellers might impose diminution on the countries they are willing to trade. However, Paxful offers payment methods that are accepted worldwide, which is an advantage for the users.
How does it work?
Paxful has a sleek interface with all the information displayed in an easily understandable manner. The site offers a wide variety of payment methods such as cash deposits, credit/debit cards, Western Union, MoneyGram, national bank transfer, Gift cards and PayPal. Users have to follow few easy steps to buy Bitcoins via PayPal. The process is explained in detail below.
The users have an option to buy Bitcoins directly as in they enter the site or can buy Bitcoins after registering. Once you have registered, you can see a window with the options involving the amount, type of payment method, local currency to purchase Bitcoins. You can choose an appropriate seller according to your convenience or Paxful will choose for you. Once the trade is initiated, you will be directed to a chat feature, where you can negotiate with the seller. As in the buyer is on the verge of paying, Bitcoins of the seller are held in the escrow and buyer has to mark as ‘paid’ after the payment is done. The Bitcoins are released from the escrow once the seller confirms the payment. You have 30 minutes for confirming the deal, else the deal will be automatically canceled after 30 min.
An email address is required to register on this site. Two links will be enclosed in the welcome email that is sent to your email the site at the time of creating an account. One link is for verifying your email address and another to enable two-factor authentication. Two-factor authentication can be done via SMS and with Google Authenticator.
Paxful creates a wallet at the time of the trade, where the seller has to store the Bitcoins, which is completely secured with the site’s efficient escrow system. Further, Paxful is secured by Comodo, which means the site is encrypted using 256-bit SSL. to secure user’s environment, Paxful complies with PCI vulnerability standards. The site has an option to provide feedback for sellers, which helps other buyers to select an optimum seller.
Fees and Limits
Similar to LocalBitcoins, Paxful does not charge any fee for buyers, but yes, they will be charged by the seller. Paxful imposes 1% fee on the seller plus certain Bitcoin network fee will apply. Moreover, sellers are in full control of setting the fee. Sellers accepting gift cards will typically charge you high. The site does not apply any limit on the transactions. However, you must check the limits applied by a seller before trading.
You can contact Paxful through the given toll-free number or through its Facebook Page. The support system is quite comprehensive and also offers support via chat and email. It might take few hours for the representatives to respond via chat and mail.
Paxful accepts gift cards as a payment method, which is really cool. The site is very easy to use and has an advanced security setup. Along with low trading fee, the site also supports feedback system, which helps a user to select an appropriate seller.
As the site is a peer-to-peer exchange site, there is a risk of being cheated.
Cancoin, the new decentralized, peer-to-peer exchange site attracts users with its flexible toolkit of excellent features. The site offers a number of features with its prime focus on user’s security.
Currently, Cancoin serves in the US and Canada. You can send a send a request for supporting your region with the option of ‘support your site’ within the ‘Marketplace’ location of your site.
How does it work?
Buying Bitcoins on Cancoin is a tedious process. You can easily create your account using your email address with a password. Before buying Bitcoins, you have to generate a secure multi-signature wallet by clicking on the option ‘generate wallet’. The wallet is secured with a unique mnemonic seed phrase generated by the random behavior of your cursor is the master key for your account. After setting up these things, you can buy Bitcoins the marketplace of the site, where you can view the list of various sellers with their offers. You can select a relevant seller and can negotiate further on the site’s inbuilt chat feature. Later, you just have to enter the amount for purchasing Bitcoins from the seller of your choice. There is a time limit to carry out the transaction once placed. After placing an order from the buyer, the seller has to transfer the Bitcoins to the multi-signature wallet created by the site. After verifying the presence of Bitcoins in the multisig wallet, the buyer has to pay the seller using the desired payment method to complete the transaction. The funds are released only when you 2-of-3 signatures are obtained.
Creating an account on Cancoin requires your email address and password. Well, some sellers might ask for your ID verification with some other personal details. Cancoin offers 2-of-3 multi-signature wallet to secure all the transactions. A user must possess 2 signatures out of three (buyer, seller, and Cancoin) in order to buy Bitcoins.
Cancoin knocks out the competition in terms of its security setup. Although the multi-signature wallet secures user’s Bitcoins, a secure mnemonic seed phrase is created while generating the wallet. The users are in complete control of their private keys. User details are secured with AES-256 CTR file encryption. Users are directed towards a built-in encrypted chat feature for further trade negotiations. Frequent alerts via SMS and email enhance the security setup of the site.
Fees and Limits
Cancoin adheres to the transparent fee structure. 1% fee is charged on the seller side when trading on the marketplace. Additionally, a certain fee is added depending on the Bitcoin network.The fee is added during the order, which will be displayed on the Blockchain. Buyers are free from incurring any fee from the site.
Users can interact with various forums to resolve their queries or the site also has a Knowledge Base for further help. You can also connect with Cancoin through various social media sites.
Cancoin has an excellent security set up along with an exceptional reputation. The site ensures transparency with respect to the fee. Along with supporting various payment methods, there are many cool features and tools that are offered by the site for user convenience.
The site is required to evolve in terms of liquidity.
Wirex or also known as E-Coin earlier is marketed as ‘hybrid personal banking platform’ which supports both fiat and cryptocurrencies. Wirex is a debit card that integrates traditional money and banking services. This London-based company was launched in the year 2015 by supporting three fiat currencies ( US dollars, Euro, Pound sterling).
Wirex serves various countries in different part of the world. Unfortunately, Wirex does not operate in the US.
How does it work?
Wirex has a simple and user-friendly platform. Using Wirex is not at all complicated. The process is explained below.
At first, you have to choose the type of the card (physical or virtual) by clicking on ‘generate new card’. Next, link the card to your PayPal account and verify it. Verifying your card requires you to deposit at least $3 in your PayPal account so that PayPal will be able to charge you. Then, you can see a 4-digit PIN next to your transaction on your Wirex account, which will be your verification PIN for your card. You have to deposit funds into your PayPal account and later you can withdraw the funds from PayPal account into your Wirex account. At last, you can buy Bitcoins from your Wirex card. You will have to wait for few days to receive your Bitcoins.
Wirex does not adhere to anonymous nature of Bitcoins, as it complies with KYC and AML regulations. Wirex requires ID verification and address proof of its customers. The verified documents are maintained for at least 6 years and are submitted to regulators without the notice of account holders. A user can process transactions without verifying the account up to certain limits.
Wirex has joined its hands with BitGo ensuring security for all accounts. All the accounts are provided with BitGo’s Bitcoin wallet, which is a multi-signature wallet, with SSL encryption. There is two-factor authentication as well as money transfers and change in account details requires time-sensitive confirmation. Cardholders are compelled to enter their unique 4-digit PIN for all-over-the-counter transactions as per Wirex’s chip-and-PIN process.
Fees and Limits
The fee charged by Wirex is competitive. Activation of the card and adding card holder’s name will not charge you any fee. However, delivery of physical card via DHL will cost you $50 or $17 via Royal Mail. On the other hand, delivery of virtual card will cost you $3. No fee is applied to the transactions that are made using Wirex.
Domestic ATM transactions will be charged (2.5 USD, 2.25 EUR, and 1.75 GBP) fee. Whereas international ATM transactions will be charged (3.50 USD, 2.75 EUR, 2.25 GBP) fee. Moreover, an obligatory monthly SMS notification fee (1.00 USD/EUR/GBP) plus card transfer fee (0.25 USD/EUR/GBP) is applied. Changing PIN will also cost you a fee (1.00 USD, 0.80 EUR, 0.60 GBP). transaction charge equivalent to 3% of the total transaction amount is applied to the foreign transactions. However, POS and ePOS transactions are free of cost. Unlike other platforms, Wirex does not impose any inactivity fees.
Limits are different for verified and unverified accounts. A detailed summary of limits is imposed by Wirex. Bitcoin Account Limits and PayPal account limits are mentioned below.
|Bitcoin Account Limits||BTC|
|Add funds (from an external account)|
|Exchange currency (from the Wirex card)|
|Max single value||3|
|Max daily limit||20|
|Max monthly limit||100|
|Send funds (to external account)|
|Min single value||0.001|
|Max daily limit||20|
|Max monthly limit||250|
|PayPal and Third Party Payment Limits||USD/EUR/GBP|
|Number of transactions per 24 hours||2/2/2|
|Min single transaction value||1/1/1|
|Max single transaction value||500/500/400|
|Max transactions value per 24 hours||500/500/400|
|Maximum lifetime transactions value||No limit on any of the fiat currencies|
Wirex has a 24/7 support team to resolve all your queries along with a toll-free number. You can reach Wirex via email or social media. Well, Wirex offers a good support system.
Wirex platform is quite intuitive along with a mobile application to make it easier for its users. Wirex supports various currencies and also accepts altcoin funding. The site has a good security set up.
Wirex does not offer any anonymity and a user has to verify the account by providing various documents and details. The site does not support US residents.
Cryptonit allows you to purchase Bitcoins through PayPal by accepting the deposits from PayPal accounts. The deposit fee is quite lofty that stands at 9.8%, while trading is free of cost. The site has a stringent verification process. You will have to submit a scanned copy of ID, address verification and a selfie of you holding the documents.
How does it work?
Register your account by submitting all the documents mentioned as a part of verification process. Next, deposit USD by clicking on the ‘Finances’ tab. At last, enter the amount you wish to buy Bitcoins and select PayPal to complete the process.
eToro is a platform that allows you to buy Bitcoins through PayPal but will not allow you to withdraw or send Bitcoins to other people. You can only sell Bitcoins for fiat currencies. Unfortunately, this service is not available for Us residents. The site offers various payment modes with a low fee. Well, users are charged a withdrawal fee of $25 by the site along with conversion fee on other currencies. 12 months inactive accounts will be subjected to a monthly fee of $5. The site also applies limits on the transactions. Limit of $50 is imposed on withdrawal, whereas a verified user can deposit up to $10,000 per month into their account. Limits on PayPal deposits involve minimum single deposit ($50), maximum single deposit ($5000) and maximum deposit limit per month ($10,000).
eToro also upholds users security by enabling two-factor authentication and SSL encryption. The site also offers comprehensive customer support.
How does it work?
Initially, login to the website and register your account. Then link your PayPal account with your eToro account and you can get started.
Safeguard your Bitcoins with these methods
Even though you can store your Bitcoins online on the site, It is necessary to get a Bitcoin wallet. Check the reviews ratings of the site before buying Bitcoins from any site. Check out the feedback section of the seller when you are trading on peer-to-peer exchange sites. Get a secured Bitcoin wallet such as Ledger Nano S, TREZOR, KeepKey and much more available in the market.
In this article, you can see that various platforms allow users to buy Bitcoins through PayPal in a secured manner by reducing the risk of chargebacks. Some platforms sell Bitcoins at a premium while others at market rate. Well, we have reviewed the best sites to buy Bitcoins via PayPal and it is up to you to choose a convenient method and jump right into it.
Hektor E J
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