In today’s date purchasing of Bitcoin is a very in fashion trend that is prevailing. A recent survey shows that traders around the globe are especially taking more interested in purchasing Bitcoins than other variants of cryptocurrencies available.
The increasing demand has forced different cryptocurrency trading portals to provide various payment modes for purchasing Bitcoin to simply the process on a whole. There are more than hundreds of different modes by which one can purchase cryptos from a legitimate site which includes bank transfer, debit card, credit card, PayPal and other means of payment.
Today we are going to discuss the process that involves purchasing of Bitcoins via PayPal.
1. A PayPal Account
To purchase Bitcoin via PayPal, it is mandatory to have a Bitcoin wallet and a legitimate PayPal account by his name.
Now creating a PayPal account involves a process that is free of cost, very simple and requires few minutes to get started. Once you get into the PayPal website there is an option of sign up in the extreme right corner of the page.
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Just click and enter the page and you will be provided with three options for signing up as a shopper, business, and freelancing. Now according to your need, you will choose one option.
Then select your country, provide a valid email address, password of your choice and you are done. The PayPal team will provide you with a valid account which you can also connect directly with your bank account as per your requirement.
2. Purchasing Bitcoin With PayPal
There are different sites around the globe that supports the purchasing of Bitcoins via PayPal, but unfortunately, those who try to buy Bitcoins with PayPal often find the process quite tricky and full of confusions. Now the main reason for this difficulty can be due to the issues of chargeback.
For this reason, major exchanges do not encourage its customers to transact via PayPal as after transaction is a process there is a chance that the team of PayPal might chargeback their purchase and receive their original purchase fee back which would simply make the whole process look fraudulent and illegal.
Now there are two processes by which one can simply purchase Bitcoin by PayPal without any issues or concerns. One is via the process of direct trade and another one is through Bitcoin loan which is as discussed below.
3. Direct Trade
There are certain websites like LocalBitcoins and Paxful that simply facilitate peer-to-peer transactions and helps the purchase to get in touch with someone who is looking to sell Bitcoins and accepts PayPal as a payment method which involves:
- Enter the page of LocalBitcoins or Paxful and sign up to avail a new account.
- Once you are done select the amount of Bitcoin that you intend to purchase or the amount you want to spend for purchase Bitcoins.
- Keep PayPal as your preferred payment option.
- Now choose the best offer for Bitcoin with regards to the rating, the price offered and customer reviews.
- Click on the purchase option.
- Go through the specific terms of the deal in details to avoid any issues and request ID of the seller so in order to get a formal conversation before your final commitment.
- Now confirm the amount of Bitcoin that you intend to purchase and click on the buy button to continue the transaction.
- You will be then directly introduced to the Bitcoin seller and upon confirmation from your side you can wrap up the deal by sending a payment using your PayPal account.
- Once the payment is received by the seller then your Bitcoin will be transferred into your wallet ending up the process.
4. Bitcoin “Loans”
There is one legitimate Paypal supported site called “XCoins” which allows Bitcoin owners to “lend” their cryptocurrency to the PayPal buyers. They offer low fees for Bitcoin purchases. Here the lender’s fee is as low as 15%. You can also pay a “loan origination fee,” which equals to around 7.5% of your investment.
It will also charge a PayPal processing fee along with a few cents of flat fees added. In compassion to direct purchase, this process of transaction costs much. Now this process involves
- Just enter the site of XCoins and click on “Get Bitcoin” from the menu.
- Sign up to create a new verified account. Verify it with valid email id of yours.
- Set up two-factor authentication with the help of your mobile device.
- Now input the Bitcoin amount you intend to purchase. The search engine will search out the best lender according to your requirement.
- Once everything is set and done the site will show you all the details of the transaction that will include all the fees related to the transaction. Once you are satisfied with the process continue with the payment.
- You will then be redirected to your PayPal account.
- You need to validate your account and complete the transaction.
- Once the process is done you will get your wallet filled with your preferred Bitcoins.
5. Few Concerns
Though PayPal is one of the most convincing methods of payment with regards to purchasing of Bitcoin there are certain risks involved with the process. The risks include:
- Verification Problems: One of the most common issues is the verification problem while purchasing Bitcoins which in turn could lead to account freezing or payments being put on hold which is obviously a great concern.
- Transfer Fees: In order to purchase Bitcoin one must provide an additional fee of $.50 per transaction to the PayPal Team which is simply an additional burden for the purchaser.
- Transfer Times: Sometimes it takes a whole lot of time for the purchaser to actually get credited with the Bitcoins in real which is quite frustrating and annoying.
- Temporary Payment Holds: Often due to some unknown reasons PayPal temporarily holds off the payment directly affecting the overall transaction process.