There’s no news to the fact that Paypal has been denying people the ability to buy Bitcoins with their services. It’s written loud and clear in Paypal’s TOS that they do not cover digital goods and this leads to the issue of chargeback. Hence anyone trying to sell Bitcoin with Paypal will probably be suspended from Paypal.
Having said that, there are still a few options to be able to purchase Bitcoins through the use of a Paypal account. Most of them are far from perfect but if you need to acquire a small amount and it’s a one time thing you may want to consider them.
Option 1 – Buy Bitcoins with Paypal through Virwox
This is probably the oldest and most tried out system in the book. We’ve written about this method many times and it seems to work pretty good. The main cons of buying through Virwox is that the fees are extremely high (can amount to around %15) and sometimes you just don’t get approved. The pros is that it’s tried and tested, meaning low scam possibility.
Option 2 – Buy Bitcoins with Paypal through Local Bitcoins
Local Bitcoins is a market place of buyers and sellers of Bitcoin. Using their interface you may be able to find someone who sells Bitcoins through Paypal. The cons of this method is that you don’t know who you’re dealing with and most of the seller there offer shady instructions in order not to get caught by Paypal. The pros are that you get your Bitcoin usually quicker than Virwox and the fees are much lower. For the full details read our tutorial.
Option 3 – Buy Bitcoins with Paypal through Bitcoin Insanity
You may have heard about Bitcoin Insanity. They claim to sell you Bitcoin with Paypal at a premium. However after I’ve done some research online I couldn’t find any online activity for the company after October 2014. I haven’t tested out the method myself but from the general looks of it on Bitcointalk the company started out well and then just plained vanished. Facebook and Twitter profile haven’t been updated in almost a year as well. Conclusion – I’d stay away for now…
Option 4 – Buy Bitcoins with Paypal through Brawker
Brawker takes a different approach to the whole chargeback issue. Instead of letting you buy Bitcoins with Paypal directly, it matches you up with someone who wants to buy something online. You buy the item for them with Paypal and they send you Bitcoins in return. The whole process seems pretty complicated to me as illustrated in this short video.
If you’re only interested in buying Bitcoins in order to speculate on the price and making a profit you can just buy Bitcoin CFDs through Avatrade or Plus500. I’ve written before about Bitcoin CFDs and basically it means you are trying to predict Bitcoin’s future price. This will not get you actual Bitcoins, but since you are not actually buying Bitcoins you can use Paypal for this method. Remember that when trading CFDs your capital is at risk and this is mostly suited for experienced traders.
There is still no easy way to buy Bitcoins with Paypal in 2015
To sum things up, even though almost 2 years have pasted since I’ve written my first tutorial about this issue there is still no easy way to do this. Paypal has shown a lot of interest in Bitcoin and even some partnerships but the simple solution to this problem is yet to be seen. Having said that the issue of buying Bitcoins with a credit card has improved significantly but about that in our next post.
Find the best exchange to buy Bitcoins
Latest posts by Ofir Beigel (see all)
- Indacoin Review – Is it a Legit Bitcoin Exchange? - March 19, 2017
- The Winklevoss Twins’ Bitcoin ETF Explained - March 9, 2017
- How to Buy Ethereum – A quick start beginner’s guide - March 6, 2017