PayPal Holdings Inc. was established in 1998 as Confinity. It was handed over to various companies until 2015, when it started operating as an individual company.
PayPal was introduced as a global payment platform that supported online money transfers serving as an electronic alternative to traditional methods such as checks and money orders. They serve as payment processors for online vendors, auction sites, and several other commercial users. They charge a fee for services such as one-click transactions and password memory.
PayPal is one of the payment platforms that has been favorable for Bitcoin in recent years, but it’s still a big issue to find a suitable platform to buy Bitcoins with the help of PayPal. At first look, PayPal and Bitcoin look like they are made for each other as PayPal works for the payments without using any middle parties processing them. On the other hand, Bitcoin is a medium for exchange, a decentralized platform that works outside the mainstream financial layout.
However, it seems like complicated work to buy Bitcoins using PayPal as there is no direct way to buy them. The main reason behind this is the chargeback issues. On the other hand, the cryptocurrency world has found ways to fix this problem. Very few exchanges accept PayPal as a payment method.
How to Buy Bitcoin using PayPal
People have often found it hard to work with PayPal as a payment method for purchasing Bitcoins, but even though this looks like a tough task, it’s not impossible.
There are various ways in which PayPal can be used as a payment method, such as registering on an exchange that supports PayPal as a payment method. Another way to use PayPal as a payment method is by using the debit or credit card offered by PayPal. This card can then be used to pay on these platforms.
Earlier, Virwox was used for PayPal deposits, and from there, a user could obtain Bitcoins, but in January 2019, they shut down the deposits.
These exchanges still offer PayPal as a method of payment. These are:
1. eToro
eToro is an exchange that allows PayPal to be used as a payment method. eToro allows the user to buy Bitcoins with PayPal, but these Bitcoins are the speculations made on the price and not actual Bitcoins. So you can’t withdraw these coins or send them to other people.
eToro is a good platform to make a profit with the Bitcoin price swings, but for actual Bitcoin holding, you might want to select another exchange.
2. LocalBitcoins
LocalBitcoins is one of the well-known exchanges that act as the marketplace where buyers and sellers can fix a deal for the Bitcoins over the platform and meet directly to purchase the Bitcoins. Here, you have to watch out for the seller’s credibility.
The first step is to enter the number of Bitcoins you want to buy and from which country. Once you have selected the country, you move on to a list of sellers, and from here, you can choose a seller with a good feedback score. Another thing to notice here is the number of confirmed trades and how long the seller has been on the platform.
Once you choose a seller, the next window shows their location, trade limit, and payment window to make the transactions. It is essential to read the terms and conditions of the sellers to see for any specific instructions from their end. Once this is done, you can click the “Send trade request” option to complete the trade.
3. Paxful
Paxful is a less-known peer-to-peer marketplace that allows people to buy Bitcoin using almost any financial means like Skype credits, Amazon gift cards, etc. The process of obtaining Bitcoins here is similar to LocalBitcoins.
The user creates an account and then chooses their desired payment method for buying and the amount they wish to purchase. From there, you select the seller, and here Paxful’s algorithms determine the best seller for you, or you can also select a seller manually. The conversations during the trade are made on the exchange, and once the payment is made, bitcoins will be transferred to the buyer’s account.
Can you buy bitcoin with PayPal on Coinbase?
Frequently, people have asked if Coinbase allows the purchase of Bitcoin with PayPal, but there is no such provision on their exchange. However, Coinbase allows users to sell their Bitcoins, and the balance can be withdrawn to the PayPal account.
Bitcoin to PayPal
As we have mentioned a few exchanges that list PayPal as one of the payment methods for the purchase of Bitcoins, there is no way you can transfer those Bitcoin funds to your PayPal account. Coinbase is the only exchange that provides this service.
Conclusion
In the end, no matter how complex the task is, PayPal can be used as a payment method with the help of exchanges, but there is no way to transfer the Bitcoin funds to your PayPal account. The only exchange that provides the transfer of Bitcoin funds to the PayPal account is Coinbase, but you can buy Bitcoins using PayPal. It is confusing, but the only solution to this problem.
