Buy Bitcoins with Paypal – step by step tutorial
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.
Things you should know 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 December 21th 2013.
- 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.
- Since December 2013 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 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…
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:
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.
Step 4: Activate your account
Step 5: IMPORTANT!!! Change your 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
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
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
Step 9: Withdraw your Bitcoins
Additional methods for buying Bitcoins with Paypal
At the time of writing this paragraph (August 2014) 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.