There’s a whole bunch of ways to buy bitcoin, and PayPal is one of them.
Buying bitcoin with PayPal is just one of a ton of different ways to get ahold of some sweet, sweet crypto of your own. The way people choose to buy their cryptocurrency or bitcoin can actually say a lot about what they plan on using it for, where they want to store it, and whether or not it’s going to need a good bitcoin tumbler.
PayPal isn’t just good for buying crypto, in fact, PayPal can buy just about anything. For bitcoin users who are looking for a more secure way to purchase coins from peer-to-peer (P2P) networks or from an exchange, PayPal has got you covered. And here’s how.
Buy Bitcoin with PayPal: Why Use PayPal for Cryptocurrency Purchases?
PayPal is great for just about any online purchase because it’s secure, reliable, and accepted by just about everyone, everywhere. From large businesses to everyday people. It’s also a great way to keep from giving out your personal banking information to corporations. While this is a pretty nice peace of mind to have, almost all PayPal/coin exchange transactions will incur fees or chargebacks.
That being said- PayPal is not anonymous. This means that if you do wind up purchasing your bitcoins with PayPal if you don’t want your personal information attached to them, you’re going to need a bitcoin mixer. This is because In order to get a Paypal account, you have to enter your personal information- like banking info, credit card numbers, name, and address. This information can get tied to the blockchain when you buy your coins, and anyone with a bit of blockchain analytics knowledge can then figure out your identity and even your address.
This is because, in order to use a PayPal account, you have to submit to the company’s KYC procedures. That means that banking information and identity confirming documents must be submitted in order to use Paypal. However, if you’re not worried about the ID, but more concerned about giving you personal bank details to exchanges or unknown persons on a P2P network, then PayPal is the purchase platform for you.
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With PayPal, once you have your payment details submitted and verified, transactions are instant. There’s no waiting for banks or credit cards to verify transactions or process them- PayPal instantly secures your payment for your bitcoins. Which is great especially during high market volume times, which can force bitcoin transactions to see some serious wait times.
Chargebacks are one of the backbone features of PayPal, and one that can be really nice, especially if you’re using PayPal on a P2P network. If you make a payment with PayPal and you don’t receive the service as promised, or if someone has stolen your PayPal identity and racked up fraudulent charges, users can request to be reimbursed via the chargeback feature.
Buy Bitcoin with PayPal: Buying from an Exchange
Many of the most recognizable global exchanges accept PayPal payments for bitcoin. Places like eToro and Coinbase accept the payment system, with more rumored to be on the way. Purchasing bitcoins with PayPal on these sites is fairly simple.
Keeping in mind that if you’re using eToro, you’re only speculating on bitcoin’s price, and any profits can only be withdrawn in fiat- not bitcoins, so if you’re looking to purchase actual coins, you’ll have to look elsewhere. P2P exchanges (explained later) are generally your best bet.
Exchanges are a great way to snag yourself some bitcoin if you plan on using it as a value asset, as opposed to a currency. Most exchanges offer on platform wallets so that you can have instantaneous access to your coins, enabling you to trade them readily during market spikes.
Buying from a Peer-to-Peer (P2P) Network
Local bitcoins and Paxful are two of the biggest names in peer-to-peer networks that accept PayPal as payment. However, quite a few P2P platforms accept PayPal because you’re not dealing with a whole exchange, but individuals. Which means that the type of payment accepted is wholly up to the seller.
Peer-to-peer networks work by hooking up buyers with sellers. Buyers can put up offers that detail what they’re looking for and what they’d like to spend, where sellers can put up offers detailing what they have and how much they want for it.
PayPal is a great way to purchase bitcoins through P2P networks because of the platforms inherent security and the chargeback function. However, the downside here is that because of the chargeback function, many sellers will charge a premium for any buyer looking to purchase with PayPal.
This is largely because bitcoin transactions are irreversible, so if a buyer is transferred coins, and requests a chargeback for whatever reason- the seller can be out both the coins and the money gained in exchange. So it’s a pretty big gamble for many sellers.
Before purchasing coins from a P2P network- either with PayPal or any other way, make sure that you understand the seller rating program, and only purchase from well-vetted traders. Sellers that have a high feedback score and multiple confirmed trades.
Buy Bitcoin with PayPal: Which Choice is for You?
IF you’re certain you want to purchase your bitcoins with PayPal, then the next thing you need to figure out is what you plan on doing with those coins once you have them. As mentioned before, if you plan on using your coins as a tradable asset- like stocks or bonds, then purchasing them on an exchange with KYC procedures isn’t a bad idea.
If you’re hoping to own bitcoin as a type of anonymous currency on the other hand, you’ll want to buy your coins from a peer-to-peer network, and then transfer them to a bitcoin mixer and clean wallet before you start using them. This way you can be sure that your identity isn’t tied to the coins you’ve just purchased.