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Paypal is one of most popular payment processor in digital world, so the ability to buy bitcoin with Paypal is something that make it easy and accessible to newbies.
Currently, a US user of Paypal can buy, sell, and hold cryptocurrencies directly through Paypal. Though, it’s not so simple because Bitcoin transactions are non-reversible, unlike usual Paypal transactions. Hence, different methods have to be used for different usage cases of buying bitcoin with Paypal.
In this post, all the currently working methods to buy bitcoin with Paypal as per the use case are listed.
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Best Methods to buy Bitcoin with Paypal
Buy directly through Paypal
In October 2020, Paypal has rolled out purchase option of three cryptocurrencies on it’s platform. This service is in partnership with Paxos.
The three cryptocurrencies you can buy on Paypal are:
- Bitcoin
- ETH
But there are big limitations with this approach right now:
- It is only available to US users.
- You can only use to pay on Paypal-supported merchants. You can not withdraw to any other wallet or transfer out the coins purchased directly through Paypal.
Hopefully, soon enough, these limitations will be eased out, but right now, it is what it is.
Localbitcoins – most popular (with a catch.)
Localbitcoins is the most popular site to buy Bitcoin with Paypal. But there is a small catch.
Localbitcoins is a marketplace for buying and selling cryptocurrencies. This means you connect with the buyer or seller directly through Localbitcoins.
Because you are dealing with an actual person directly, you need to use your own research to check for the reputation of the person.
This is not difficult at all. The reason Localbitcoin is most popular way to use Paypal to buy bitcoin is because with little bit of research, it works well.
How to safely use Localbitcoins to buy Bitcoin with Paypal
The first step is to use the search funtion to find the list of sellers. You need to enter the amount, currency and country for the list of sellers who will sell the Bitcoin and accept Paypal.
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Now, you need to check for trade volume of a trader and his feedback to check the reliability of the seller. You get this information when you click on the name of the seller.
[trader information screen]
Higher the numbers, better it is.
I have used Localbitcoins couple of time, and after performing these checks, it worked fine for me.
Coinbase – Best for people in USA & Europe
Coinbase is most popular crypto exchange website in USA with one of the highest trading volume. Now, the good news is that Coinbase also accepts Paypal to buy Bitcoin.
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So, if you are from the US, UK, or supported country of Europe then you can easily use this website to buy Bitcoin using your Paypal account.