Paypal is one of the most trusted and popular services for online transactions these days. Paypal is everywhere now, as many merchants and traders have adopted it with open arms.
Bitcoin is another method of conducting online transactions, which has carved out its own place in the market. Bitcoin is a decentralized, digital currency, with a fixed supply, that reduces the need for using the physical or “hard money.”
On one hand, Paypal makes online, fiat transactions fast and easy. On the other hand, Bitcoin is both a currency and payment system that operates independently of the fiat monetary system, thereby making online purchases more like an equivalent of cash purchases in the real world—whereas Paypal is merely an intermediary between the Internet and a physical bank.
The speed, security, and convenience of Bitcoin have of course created an ever-increasing demand for the digital currency. As a result, online Bitcoin exchanges—a popular avenue for buying and selling bitcoins—have popped up in droves.
However, one may ask the question: can I buy bitcoins using Paypal, so I do not have to directly link my bank account to a Bitcoin exchange?
Successfully Buying Bitcoins With Paypal
Many people who have used Bitcoin and Paypal say that using Paypal to buy Bitcoin is a very difficult process. If we take a glance at the previous track record of buying Bitcoin via Paypal, we will see that people have indeed faced many inconveniences with Paypal.
These difficulties arise due to recurring situations where a person uses Paypal to buy Bitcoin and then initiates a chargeback, in which the person claims to never have received the bitcoins, and demands a refund from the Bitcoin seller.
It is said that Paypal often favors fraudulent merchants, so most Bitcoin traders expect this system to be dangerous with a high chance of having their money stolen, and may opt to refrain from purchasing Bitcoins through Paypal.
It is possible to successfully use PayPal to buy Bitcoins, though, and sell them for a higher price through online marketplaces, such as LocalBitcoins and eBay.
There are two methods that will allow one to buy bitcoins with Paypal: Virwox or credit cards.
Virwox charges a commission fee for using its services, but it is, by far, easier to buy bitcoins through Paypal with Virox than by using a credit card. Therefore, we will show you how to use Virwox to successfully buy bitcoins through Paypal.
How to Buy Bitcoins With Paypal by Using Virwox
We have Created a tutorial to explain the Virwox method—here is a general overview of the steps you will have to take to use this process:
– Visit the website Virwox.com
– Register for an account on that website.
– Then, add funds to your Virwox account via Paypal
– Buy Linden$ (SLL) with USD/EUR
– Buy bitcoins with your linden$ (SLL)
– At least send your Bitcoin to your wallet.
*Note: Linden$ is the virtual currency used in the online game, “Second Life”
Visit the official website of Virwox and register for an account. You need to ignore the message, “your avatar connection has not been validated yet.”
Click on the “Deposit” button on the sidebar:
Choose how you want to deposit your money—you can use Paypal or Credit cards using Skrill payment. Note that you can only deposit limited amounts of money every 24 hours. Your 24-hour deposit limit will be raised as you complete successful transactions. A failed transaction will still be deducted from your daily limit, so be careful with the details enter while preparing your Paypal or credit card payments.
Once you finish your deposit, you need to convert the USD or EUR to SLL. Just click the “place a sell order” button or click the USD/SLL button on the sidebar:
Choose how much USD you want to convert to SLL and click “Next.”
After Clicking “Next,” you need to confirm your order.
After you have converted your USD to SLL, all that is left to do is to convert the SLL to BTC. To do this, Just click on the “BTC/SLL” button on the sidebar.
On the next screen, enter the number of Bitcoins you want to buy using your SLL.
After your transaction has been confirmed, you will be able to withdraw your bitcoins and send them to your wallet; click the “Withdraw” button on the sidebar.
Enter the number of bitcoins you want to Withdraw, then enter your Bitcoin address and click the “Request Withdraw” button.
Note: on your first time there, maybe a 48-hour delay until your bitcoins are sent to your wallet. This delay is placed to help prevent fraud. After your first transaction, though, the withdrawal will be instant, and it can be traced in the Blockchain.
In conclusion, this method is the easiest way to buy bitcoins using PayPal and credit cards; the only disadvantages are the fees (Papal fees, Lower rates for BTC & SLL).
Check this guide on buying Bitcoin anonymously.