When Bitcoin was released in 2009, the only way you could own Bitcoin was to mine it. In the early days of Bitcoin, it was feasible to use your computer’s CPU power to mine Bitcoin. But, with the growth of Bitcoin’s popularity, more and more miners joined the network, making it impossible to mine with CPUs. As of today, not even the most powerful graphics card can mine Bitcoin. The only way you could mine Bitcoin is to use ASICs (application-specific integrated circuits). These are powerful, power-hungry, expensive machines built from the ground up to do just one thing. That is to generate hashes. Because they are built to do just one thing, they are really efficient at it.
If you do not want to mine Bitcoin, you can always own some Bitcoin by buying from a cryptocurrency exchange. These cryptocurrency exchanges support a variety of payment methods. There is a handful of exchanges that accept PayPal as well. As you know by now, PayPal is one of the most convenient ways to buy not just Bitcoin, but anything. If you are wondering how to buy Bitcoin with PayPal, this article is for you. So here are some of the best ways to buy Bitcoin with PayPal:
LocalBitCoins is one of the oldest Bitcoin exchanges that accept PayPal as a payment method. LocalBitCoins does not offer Bitcoin brokerage services, instead, it provides a platform to interact directly with Bitcoin buyers and sellers. By using LocalBitCoins, you are transacting directly with buyers and sellers.
LocalBitCoins supports a variety of payment methods. PayPal is just one of them. If you plan on buying bitcoin with PayPal, there are some important things to know.
Firstly, PayPal is one of the most expensive ways to buy Bitcoin. This is because the sellers that sell Bitcoin for PayPal, mark up the price of Bitcoin excessively. This is because PayPal is one of the riskiest ways to sell bitcoin as a seller.
The majority of sellers that accept PayPal, require you to provide proof of identity and other personal information before transacting with them. They do this to combat charge-backs.
LocalBitCoins does not charge any fees from the buyer. They support almost every country in the world. You can easily sort through all sellers that accept PayPal for Bitcoin with a few clicks.
Paxful is another peer-to-peer exchange that supports a variety of payment methods, including PayPal. As a buyer of Bitcoin, Paxful charges no fee from you. However, when you are withdrawing Bitcoin to an external wallet from Paxful, they do charge a small fee. These fees are classified as below:
- $0 – $9.99 = 0.0001 BTC
- $10 – $19.99 = 0.0002 BTC
- $20+ = 0.0005 BTC
Just like any other peer-to-peer site, sellers may ask for your identity document or other personal information. If you are buying a significant amount of Bitcoin, especially with PayPal, you will always have to provide identity documents. Please be aware of scammers on this site. You may think that it is impossible for a seller of Bitcoin to scam you. This is how a seller scams you:
In advertisements these sellers create, they ask you to Whatsapp them on a number. Then they ask you to PayPal them money in order to receive Bitcoin. They ask you to PayPal money as “friends & family”. When they finally get the money, they block you and never send you any Bitcoin. Since you sent money as “friends & family”, you can’t charge-back.
That is why it is important to interact with users only on the Paxful platform. When you open a trade, the amount of Bitcoin you want to buy from the seller goes into escrow. There is absolutely no way the seller could run away with your money. If the seller doesn’t release Bitcoin that is held in escrow, the Paxful team will do it for you. When you successfully send money to the seller’s PayPal account, always remember to mark the payment as complete.
3) Cryptocurrency P2P Exchanges
There are many peer-to-peer exchanges for Bitcoin and other cryptocurrencies. You do not necessarily have to buy Bitcoin with PayPal. You can buy other cryptocurrencies with PayPal from one of these exchanges and later convert to Bitcoin. Here are some of the peer-to-peer exchanges for cryptocurrency other than Bitcoin that support PayPal as a payment method:
eToro is one of the fastest ways to buy Bitcoin with PayPal. However, this platform does not allow you to withdraw Bitcoin. Although, you can convert Bitcoin to fiat anytime you want. If you are looking to speculate on Bitcoin’s price and profit from price swings, this platform is perfect for you. Plus500 is another similar service.
You cannot buy Bitcoin on eBay. However, you can buy cloud mining contracts on eBay. There are so many sellers on eBay that sell mining contracts. A mining contract works in a way that a seller agrees to mine Bitcoin for you for a set period of time. So, you can keep all the mining rewards sent to you by the mining pool. When you buy one of these mining contracts with PayPal on eBay, you are essentially converting PayPal money to Bitcoin. Depending on the terms of the contract, they can last anywhere from a few hours to months or even years.
6) Discord and Telegram Groups
There are groups for Bitcoin buyers and sellers. We should warn you that this method of buying is one of the riskiest ways to buy Bitcoin with PayPal. Although there are many sellers on these groups that are willing to take PayPal for Bitcoin, the chance of you getting scammed is very high here. That is because these groups do not have an escrow service. As a buyer, you are required to send them money first without receiving any Bitcoin. Once the seller receives money, there is no guarantee that the seller will actually send you any Bitcoin. You are essentially relying on the seller’s integrity to send you Bitcoin. You can find Discord servers for Bitcoin buyers and sellers here.
It is no doubt that PayPal is one of the most convenient ways to buy and sell goods online. However, PayPal is not without its flaws. The charge-back problem has lead Bitcoin sellers to mark up the price of Bitcoin unreasonably. This also has lead sellers to request identity documents from buyers, prior to the trade. However, PayPal is still one of the fastest ways to buy Bitcoin. Above mentioned methods are some of the few services that enable you to buy Bitcoin with PayPal.