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.

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 short video illustrating this.

Option #1 – Buy Bitcoins with PayPal through Virwox

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

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.
Fund account with 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

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

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

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.

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


Option #2 – Buy Bitcoins with Paypal through Local Bitcoins

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. Local Bitcoins, unlike Virwox is a marketplace where buyers and sellers meet. If you use this option you’ll be dealing with an actual person which means that credibility also comes into play. The way you can use Local Bitcoins to buy Bitcoins with Paypal is by finding a person that is willing to sell them to you. But since the seller is taking a big risk (as I explained in the beginning of this post) the will usually charge a really big premium (most of the times this will be more expensive than Virwox). The upside is that you will usually get your Bitcoins faster.

Step 1: Enter your search parameters

The first step will be to go to Local Bitcoins and enter how much you want to buy and from which country. Since Local Bitcoins was originally made for people to meet face to face there is no “worldwide” search which is a shame. This means that there is no way to see all of the people who are willing to sell you will Paypal worldwide other then going through each country one at a time. Local Bitcoins search

Step 2: Choose your seller

On the next screen you’ll see a list of available sellers, you can now browse them one by one. Here are the things to take into account: seller profile Feedback score – Located under the seller’s name. It’s advised to conduct transactions only with high feedback sellers.

Trade limits – Each seller has a minimum / maximum amount of Bitcoins he’s willing to trade.

Payment window – How much time you have for paying the purchase and marking the payment done after you initiate a trade. It’s also super important to read the terms of trade for the specific seller located on the right side. Here’s an example:

terms of trade local bitcoins Some sellers will require you have an initial reputation in order to buy from them so they can avoid scams or fraud. This means that you will perhaps have to conduct some small transactions just to get reputation.

Step 3: Complete the trade

Once you’ve found your seller just enter how much you will to buy and click on “Send trade request”. trade request Keep in mind that it’s crucial to conduct all communications within Local Bitcoins and preferably use their Escrow services (which are triggered automatically for all online sales).  This method is faster the Virwox but it can take you a lot of time to gain enough reputation, find your seller and also the premiums are really high (around %30 and more…).

Option #3 – Buy Bitcoins with Paypal through Circle

This option is a bit trickier since it will work only if you’re leaving in the US and you’ll need to have a Paypal Debit Mastercard (can be obtained here). Once you have the card you can connect it to your Circle account and get your Bitcoins through Circle using your Paypal balance.

Just got to “account” -> “settings” -> “linked accounts” and click on “add account”.

circle link new card

Once your card is connected you can now but Bitcoins and your Paypal balance will be the first to be used in this purchase. You can also sell Bitcoins and withdraw the dollar balance back to your card.

Not sure how long this specific method is going to last, but for now it has been confirmed through Reddit that it’s still available.

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Ofir Beigel

Owner at 99 Coins ltd.
Blogger and owner of 99Bitcoins. I've been dealing with Bitcoin since the beginning of 2013 and it taught me a lesson in finance that I couldn't get anywhere else on the planet. I'm not a techie, I don't understand "Hashes" and "Protocols", I designed this website with people like myself in mind. My expertise is online marketing and I've dedicated a large portion of 99Bitcoins to Bitcoin marketing.


  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!

  10. Mike Rosen on

    Bought my first btc from a guy named aussietrader on Paxful
    I’m in nyc but i started a trade with him and he walked me through it in the live chat, he asked for a selfie. and 10 minutes later I had some bitcoin. He only sold me $50’s worth but he keeps raising it each time we trade.

    I think paxful is basically the same as local bitcoins , just paxful is much easier to use and less scammers. anyway. this method works. and aussie dude was real nice.

    another dude on paxful named Paybis does bigger paypal deals.

  11. Doing your homework in such matters is a MUST. VirWox has **terrible** user reviews, when you check around online. About the only Bitcoin exchange I could find that seemed credible was Circle . . . but, they require a level of personal info that is unacceptable to me, as it easily paves the way for identity theft. (Even if they were a major, long-established player that I trusted, which is not the case.) PayPal has the advantage of being an insulating layer, that serves as a stand-off from your actual CC. Too bad there is no way of using it for this that does not involve acrobatic jumps through several flaming hoops, or other gotchas. I’m **still* looking for a direct, straightforward, and reliable way to do this . . . but I don’t see it here.

    • Ofir Beigel on

      I agree that these are all workarounds and that there is still no straight forward way for buying Bitcoins with your PayPal account. Hopefully PayPal will provide some sort of solution for this situation soon.

  12. Per my early reading up on this, there does not seem to be a clear path for doing this easily with a prepaid Visa credit or debit card, either ? :-(

    But after some further checking, it is looking like it may be worth taking a closer look at eBay. It had been the case that Bitcoin-related deals violated the TOS of eBay, as well as PayPal. But then I saw some mentions that eBay was in a process of rethinking this, and was possibly relenting, at least to some degree. Yesterday I found a considerable number of roundabout Bitcoin listings on eBay, though I don’t know what the details are yet. From what I had heard, there is apt to be a rather stiff commission involved. (Of course, eBay and PayPal, formerly vertically integrated, have been going their separate ways. PayPal is still the default or preferred payment method on eBay though, so it will be interesting to see how these transactions navigate the PayPal question,) Assuming that cost and any other terms are considered acceptable, it will still be best practice to do what I normally do for nearly all eBay transactions anyway: look for sellers with several years on eBay, a great many transactions behind them, and sterling feedback.

    btw, I really like what I’ve seen of your blog.

    • Ofir Beigel on

      Thanks for the detailed information.
      Buying on eBay has really huge commissions. If you’re looking to buy with a debit card I’d use or CoinMama. If you leave in the US take also a look at Circle.

    • i investigated further into buying bitcoin, and i found a few sellers on ebay. most were charging close to DOUBLE or more what the bitcoin is worth. but i did manage to get $2.33 worth for $4.37 thru ebay and paypal and luckily for me the seller didnt turn me down due to me having used ebay in the past very rarely. am also going to open a circle account too after reading this so i wont need to ever use ebay again. too bad they dont just have a local place to buy it in atlantic city

  13. 15$ fee on 70 dollars, too expensive, not worth it, almost a scam because u trade several times and dont know what the fees will be in advace, only before each stage, but at that point you have to follow through with it because BTC was the only reason you joined that website in the first place.

    • Can I please get reviews for Their fees are lower than Virwox and LocalBitcoins. LocalBitcoins users charge at least 18%!! I wish Coincano had a phone number or Skype for contact. Tim, can you describe your experience with them in more detail? This would really help.

  14. There is a very helpful article today i read. I wan to know, what is main reason to not trust any site there are so many sites like localbiticoin or paxful and other sites. why urging on virwox. is paypal reject them? or what paypal do for buying biticoins.

    • Hey Roxann, thanks for your comment. There’s no urging on Virwox. In the guide on this page we bring 3 different options including Local Bitcoins. I’ve heard of Paxful but haven’t tried it yet so I can’t review it. Hopefully I’ll get to adding this in the following week. Hope this answers your question.

  15. Thanks for this article Offir, I hate Paypal it has something to do with the currency in my country “The Rand ZAR” and the difficulty of funding Paypal with it. I have come accross a merchant however that only uses Paypal (why? it’s besides me) anyhow you don’t know of a way or service that would fund a Paypal account from BTC rather (ie. I add funds to Paypal account from Bitcoin Wallet)? Thanks for 99bitcoins it has become a valuable service to me. Al

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