Buy Bitcoins With PayPal Instantly – Avoid Scams, 100% Safe

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Buy Bitcoins with Paypal – step by step tutorial

Note: If you’re looking to buy Bitcoin with Paypal or a credit card for trading purposes only check out AvaTrade or Plus500 Bitcoin CFD trading. For more information read this post.

Don’t like to read ? Here’s the video version of this guide

One of the biggest issues today in Bitcoin is the fact that you can’t buy it very easily. Even though Paypal has been very favourable of Bitcoin in the past 2 years, it’s still an issue to find credible places to buy Bitcoins with Paypal in 2015.

Why won’t Paypal allow this ?

Simple. There are numerous chargeback cases created by scammers who buy Bitcoin with Paypal from you and then claim they didn’t receive anything. This way they get to keep their money and their Bitcoins. Here’s a really simple video illustrating this:

Now since no exchange currently allows a way around the charge back issues of buying Bitcoins with Paypal we are going to have to go through VirWox – The Virtual World Exchange. We will use a virtual currency called SLL (Second Life Linden Dollars), This currency is used for one of the biggest virtual worlds today – Second Life. After buying this currency with Paypal (which is acceptable) we will then trade it to Bitcoins.

My guess is that Virwox is able to do this method since they are not directly selling you Bitcoins with Paypal but rather selling you SLL with Paypal which they can prove if you received (unlike Bitcoin since it’s anonymous in nature).

Things you should know about Virwox before we get started:

  • Because of chargeback risk Virwox is taking on themselves they are limiting the amount you can deposit initially through Paypal or a credit card, here are the exact limits according to their website from April 30th 2015.

virwox limitations

  • This process hold within it more transaction fees than usual. This may still be a valid solution since the soaring numbers of BTC compensate for this. It’s important for you to be aware of the different transaction fees.
  • VirWox is delaying new user transactions for up to 48 hours. This means that it can take you 2 days to complete this process (still way faster than using a wire transfer).
  • If you still don’t receive the Bitcoins after 48 hours (which is very unusual) you can contact Virwox at support@virwox.com.

If you find yourself getting stuck at any point don’t hesitate to contact me through the contact form on the site.

Step 1: Go to VirWox.

VirWox is an exchange of virtual currency, you can buy there Lindens, Bitcoins, and more. It has more than 400,000 registered users and is a Second Life Lindens authorized reseller.

Step 2: Open a free account

Click on the “not registered yet”  on the top of the left sidebar to open up a new account as shown here:

buy Bitcoin with paypal - open account

Step 3: Fill out our personal details

Fill out your username and email address. Where it asks for “avatar name” just leave it at “No Avatar”,  it  doesn’t matter, since you’re not going to play Second Life.

buy Bitcoin with Paypal - fill details

Continue filling out all of the personal details and click “register”.

Step 4: Activate your account

Once you clicked “register” you will get an email confirmation with your password. Open the email, copy the password and log back into VirWox.

Step 5: IMPORTANT!!! Change your password!

After clicking the confirmation link it is advised you change you password as shown below since you will be transferring money through this site.

buy Bitcoins with Paypal - change password

Do not worry about the message saying “Your avatar connection has not been validated yet” – it is irrelevant.

Step 6: Fund your account through PayPal

Click on deposit on the left side and choose PayPal Express. Fund the account with how many USD you’d like.
Buy Bitcoins with Paypal - fund account

Note: From now on for each transaction you will make there will be a fee – make sure you are aware of the relevant deposit and withdrawal fees.

Step 7: Buy SLL with USD 

Go to Exchange->USD/SLL on the left side. You can also go to any other currency you’d like. Buy SLL (which mean Second Life Lindens) . We will later on exchange these SLL to Bitcoins.

USD/SLL exchange Bitcoin

Note: If you haven’t made a deposit yet you will get the screen shown above requesting you to deposit before you buy SLL.

Step 8: Buy BTC with SLL 

Once you have SLL in your account, go to the BTC/SLL and buy Bitcoins with your SLL.

Buy Bitcoins with SSL

Important!!!
Sometimes a manual review will be required by VirWox after this step. This can take up to 48 hours but usually takes around 6 hours.

 Step 9: Withdraw your Bitcoins

Choose “Withdraw” on the left side and send the Bitcoins to your wallet.

How to withdraw Bitcoins

Remember: If you’re only looking to buy Bitcoin with Paypal or a credit card for trading purposes only you may want to check out AvaTrade or Plus500 Bitcoin CFD trading.

Will this method actually work ?

Probably yes. I’m saying probably because I have received a handful of emails from people who weren’t able to get their Bitcoins. having said that, from all of the people who didn’t get their coins I haven’t gotten one email stating their money wasn’t returned to them. So yes, the process is a bit irritating but I have been using this method since 2013 and it hasn’t failed me yet.

How much fees will be deducted from my deposit ?

This is probably the second most asked question I get. It’s important to understand that when you buy Bitcoins through Virwox you are actually conducting two transactions. USD to SLL and SLL to BTC. This means you’ll need to pay a fee for each of these transactions.

The problem is that Virwox’s fee structure is always changing that is why I advise to check each case in person before proceeding.  There is a pretty cool site which shows you the current BTC/USD rate after all of Virwox’s fees. I’m not sure how reliable the site is but you can check it out for yourself here.

Additional methods for buying Bitcoins with Paypal

At the time of writing this paragraph (April 2015) this is the only known way to buy Bitcoins with Paypal. If you’re still looking for additional ways you can take a look at LocalBitcoins and try to find sellers that perhaps will be willing to sell you Bitcoin with Paypal. Click here for a tutorial about how to use LocalBitcoins.

16 Comments

  1. What a helpful video! You weren’t kidding when you said “step by step tutorial”! I’ve just bought my first Bitcoins with Paypal thanks to your tutorial! Thank you for taking the time to explain and show on video what I needed to do!

  2. I’ve heard of people getting scammed by buyers who complained to Paypal they never received the Bitcoins just like you said in the video! VirWox is a great option to buy with Paypal because they make it so easy to do and there is no risk for you.

  3. I for one don’t like VirWox because of their huge fees! I’d rather not be able to buy Bitcoins with Paypal than to use this service.

    • You are right, their prices are above average but I think for what you get this is ok. I’ve bought some Bitcoins using them and it was ok – hard at first before I figured out how it all works – I didn’t have this neat tutorial by Ofir ;)!

  4. Well, there are some limitations when working with VirWox but that is understandable considering the chargeback risks they are taking on themselves.

  5. Virxow is a joke. I deposited 50 usd dollars and transferred them to Bitcoins. Sent them to my wallet address and got a message stating it could take 48 hours. Ok thats understandable. ….. but then after 48 ho ur s there are no bit coins in my wallet so I email virwox. With in 5 min i get a Response saying they had to reverse my transaction and cancel my account completely due to suspicious activity. Yeah right. It was my first time ever trying to purchase bitcoins. So now im stuck with No bit coins and no money. They said it cpuld take u p to 7 days to go back on my credit card. Very pissed off and disappointed. Who knows if Ill even get my money back. VIRWOX ARE SOME SCAMMERS!!!! WOULD NOT GO ON THERE EVER AGAIN

    • Ofir Beigel on

      Hey Jesse, thanks for posting this info. I received a few emails in the past stating cases like you described but the original money was always returned to its owner. I have no idea why Virwox are doing this but I guess this has to do with their charge back issue also.

  6. Had no idea you could use Paypal to buy Bitcoins; always thought you couldn’t because of the risks involved. Great to hear!

  7. garyliang on

    I’m still currently waiting for the 48 hours new user reason for my bitcoin I paid approx 0.112 for it, I paid by skrill via visa. Can anyone confirm virwox a scam or not or will I be able to get back my money if it’s a scam? It’s been 38 hours now and still no news really worried it’s a hoax

      • garyliang on

        Hey virwox actually works perfectly just that that 48 hours process gave me a little scare but now I’ve got what I purchase 2 days back! Just that there are too much fees to pay for.. if I can find a less fee paying website I wouldn’t pick virwox but overall it’s not a scam and will prolly use it till I find an alternate way.

        • Ofir Beigel on

          Thanks for the update, like I stated before, this usually is what happens with many users. That’s why I don’t get alarmed anymore :)

  8. Even with the 48 hours delay it’s still a lot faster than doing a wire transfer so I will be trying out VirWox. I actually like their security measures of delaying transactions and setting those limits for each level. I get it and this means they are paying attention to what happens and I like to work with such a service.

  9. Thank you for all the details and tips for getting started with VirWox! This was one of the most helpful articles I’ve read recently and your printscreens have helped a lot!

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