Buy Bitcoin with PayPal
I am often asked whether it is possible to buy Bitcoin with PayPal, and whilst I have yet to come across any digital currency exchanges that will allow you to buy Bitcoin using that popular web wallet, there are a couple of ways you can do so.
However, they do come with a certain level of risk, and as such you do need to be fully aware of those risks if you intend to buy any amount of Bitcoin or for that matter any other cryptocurrency with your PayPal account.
Probably the most utilized way for people to turn a fiat currency into Bitcoin using PayPal is by making use of one of the many online matching sites, when utilizing such a site you will find a list of people who are interested in selling Bitcoin and will allow you to buy any quantity from them using your PayPal account.
But, and this is a big but, you have to do your own due diligence in regards to the seller of that Bitcoin, and most sites that do offer a matching service will have some form of rating system that allows their users to rate sellers they have used.
You are of course going to have to send the seller your payment using PayPal before they will then send over to your digital wallet your Bitcoin, and you are going to be taking it on trust that they will send you that Bitcoin.
Why Do DEX’s Not Accept PayPal?
There is one very good reason why digital currency exchanges are not going to allow their users to buy Bitcoin or any other digital and cryptocurrencies with PayPal and that is due to the risk of those customers charging back their transactions.
One of the services that PayPal offs their users is that chargeback feature, and as such any of their users can ask for their payment to be returned to their account simply by saying they have not received the goods they have purchased, in this case the Bitcoin.
As such many unscrupulous and fraudulent users of PayPal could simply purchase any quantity of Bitcoin from someone else, send their payment and then say they never received it, and PayPal will then refund their money and take it from the seller of that Bitcoins account.
There has been a couple of websites launched that will allow you to buy Bitcoin, but to ensure they negate the risk of their users charging back their purchases, they will require their customers to go through a vigorous know your customer type of identification process, before they can use their services.
However, do keep in mind that there are going to be some fairly hefty fees that you will have to pay if you do decide to make use of any services that allows you to buy Bitcoin using PayPal, and those fees and charges will be on top of the spot price of the Bitcoin you are buying.
Alternatives to Buying Bitcoin with PayPal
Due to the excessive fees charges by PayPal when buying and selling, you should try and do some research at ways that you can buy Bitcoin but by using a different payment options, and there are going to be plenty of different ways you can do just that.
One thing I am a great believer in is doing a person to person exchange when using any digital currency, for buy doing so you are going to cut out all of the middlemen of performing an exchange and by doing so you cut out all of their fees and charges too.
As such if you do have a wide circle of friends or even family members that use Bitcoin then do ask around to see if anyone is prepared to do an exchange with them for that way you are going to be able to hopefully trust the person you decide to do the trade with and they can then send it to your digital wallet and you simply agree of the fiat currency you will pay for it and hand it over to them.
Just be fully aware of the risks of doing a simple Google search in regards to companies that will allow you to buy Bitcoin using PayPal, for when you do such a search there are never any guarantees that the websites and companies you will be presented with are legit, and you will risk losing your funds when you do not take the necessary precautions.