Buy Bitcoin With PayPal or Credit Card Online

Would you like to buy bitcoins with PayPal? Unfortunately, now it is impossible to buy bitcoin using PayPal directly. This option is now banned due to numerous cases of fraud. There were many chargebacks, when a person who had bought bitcoins claimed that he/she received nothing. In this way, a scammer ended up having both bitcoins and money back. Of course, this does not mean that buying cryptocurrency via PayPal is impossible. However, now you will need to use third party services.

There are two main categories of assumptions on why PayPal bans bitcoin operations:

  • PayPal tries to prevent fraud;
  • PayPal perceives bitcoin as its competitor.

As to the first assumption, one of the biggest advantages of PayPal is its readiness to handle complaints. PayPal is reversible within up to 60 days from the moment of a deal. At the same time, one of the biggest advantages of bitcoin is inability to trace it. Bitcoin is like cash. You can buy, sell and have it anonymously. If you lose it, you have no chance to find it on the web. The anonymity of using Bitcoin cuts both ends. On one hand, it provides endless opportunities. On the other hand, it creates additional risks. As a result, a lot of scammers decided to make use of this feature. They claimed they have never received bitcoins they have paid for and it was impossible for PayPal to check if it was true.

Buy Bitcoin with Credit Card or Cash

One more conspiracy theory why you cannot buy bitcoins with PayPal directly is that PayPal considers bitcoin as its competitor. This theory, however, lacks consistency. As one of the most popular e-wallets, PayPal does not allow any currency exchange operations. PayPal bans not only cryptocurrency which might potentially be their competitor in some spheres of influence, but other money exchange operations as well.

At the dawn of bitcoins, when complaint rate was relatively low (because the amount of deals was relatively low), PayPal allowed operations with bitcoins. At that time, Bitcoins were treated as goods. Later on, PayPal re-categorized bitcoins as cryptocurrency. The growing popularity of bitcoin escalated the amount of related scams. As a result, there were cases when PayPal froze accounts for selling and buying bitcoins. Though in this way, PayPal tries to prevent fraud, it creates difficulties for honest users, at the same time.

To overcome this problem for those who want to buy and sell bitcoins online, a lot of exchange websites have appeared. However, not all of them are good enough and worth of your attention. Some of them are willing to steal your personal information. Others have inadequate exchange rates and service fees.

The common rule of thumb for those who want to purchase bitcoin with PayPal and minimum risks is to follow the following simple principles:

  1. Think twice before sharing your personal and login info on websites you can't trust;
  2. Never link your bank account and id to websites you don't know well;
  3. Be careful with verification procedures, never ever share codes you receive with someone;
  4. Choose one of the following trusted resources.

Three Best Places to Buy Bitcoin, Ethereum or Ripple Instantly

1. Coinmama
Coinmama

Coinmama is a reputable resource for buying Ethereum, Ripple and Bitcoins with a credit, debit card or cash. After a short verification procedure, this site allows buying bitcoins instantly. One of the core reasons for its popularity is the opportunity to buy cryptocurrency without ID verification. In some cases, you will need to make selfie with your credit card in your hands. Make sure that the first and last four digits on your credit card are visible. You may cover the middle eight digits if you want to.

However, if you are not going to spend more than $150 on buying bitcoins, you are not likely to need even that photo.

The terms of use page warns users on the potential risks of losses dues to exchange rates fluctuations. Emphasizing the fact that you may increase or lose value in your assets, the website reminds you of the potential risks of bitcoin becoming worthless.

A practical hint is to create a Bitcoin wallet before signing up with Coinmama. The reason is that this website sends cryptocurrency directly to your wallet.

2. LocalBitcoins
LocalBitcoins

LocalBitcoins is the service for buying and/or selling bitcoins near you. This service is similar to ebay. The main difference is that all the offers are about cryptocurrency. Anyone can create a post and sell or buy bitcoins here. The users agree on terms, which are the most suitable in their case. It is possible to use this service without ID verification if you choose cash deposit or personal meeting as your preferred payment method.

Among the biggest advantages of choosing this service are a wide range of sellers and a variety of available payment methods. Thus, you may buy bitcoins via PayPal by finding someone who sells them and accepts this payment method. Importantly, with LocalBitcoins, you will receive your cryptocurrency faster than with some other services. The disadvantages of this service include high fees and risks of scam. Sellers are taking risks when they use this peer-to-peer platform for cryptocurrency deals. For this reason, they want appropriate compensation.

3. CEX.IO
CEX.IO

CEX.IO is a bitcoin exchange platform using advanced algorithms for matching buying-selling orders. This trusted resource invites you to deposit funds using your prepaid card, bank transfer or American Express. The website guarantees fair pricing and security of operations. Though the service was started not so long ago, its popularity is rapidly growing. First, throughout the history of this service, there were no cases of users fund theft. Security is one of their top priorities. The service has reliable protection against DDOS attacks, while all the data is encrypted. The website has all the necessary licenses and strong relations with banks.

The service is available in 99% of countries all over the world. Not only has it no fees, but also this website offers special conditions for high-volume traders. The service is user-friendly and rather convenient. You may easily check your transaction history and download clear reports with transparent fees and real-time balance. It allows trading Bitcoins (BTC), Ethereum (ETH), Ripple (XRP) and Bitcoin Cash (BCH) not only online on their website, but also in their mobile app.

The Fastest Way to Buy Bitcoin with PayPal

Virwox is arguably the easiest way to buy btc. The following quick steps will guide you through the process:

Step 1 – Sign up with Virwox, clicking on the 'not registered yet' link in the left sidebar.

Step 2 - Fill in the fields of the signup form. Provide your basic and personal information and tick the box 'I agree to the Terms of Service' (of course, after visiting this page and reading it carefully). The field 'Link to avatar' is optional and it can be left empty unless you are going to play Second Life (SL).

Step 3 - Confirm your registration. Check your email for a message with your login info and a confirmation link. Sign into your account using the provided ID and password.

It is highly recommended to change the password the system has generated for you to ensure your security. After your account confirmation, click the 'Change settings' link and create a new password. Then login to your account using your new password and ignore a message saying 'your avatar connection has not been validated yet'.

Step 4 – Deposit money via PayPal or credit card. To put funds to your account, use the button 'Deposit' in the left sidebar. Along with PayPal and credit card, you may use UKASH, Neteller, Paysafe card, Sofort banking or Money Bookers, depending on your personal preferences.

Step 5 – Buy SLL. This one is a bit surprising. You might exclaim, 'But I don't need SLL'. However, the answer to the question 'how to buy bitcoin' consists of two steps – exchange USD for SLL, and then exchange SLL for BTC. As you now have a certain amount of money on your account, you may easily covert USD into SLL. To accomplish this, look at the left sidebar, at the 'Exchange' block and choose your currency pair.

Then you will need to decide between 'trade order' and 'limit order'. Go for 'trade order' if you want to buy currency right away and have no time to wait for a better deal. Simply choose the cheapest available rate and perform the operation. If you have time and patience to wait for a better rate, go for 'limit order' and post your desired rate. Note that in the latter case the operation can be completed only if someone accepts the terms you offer.

Step 6 – Exchange SLL into BTC. Repeat the exchange operation described above, choosing the SLL - BTC currency pair this time.

Step 7 – Withdraw bitcoins. Find the 'Withdraw' link in 'My account' section it the left sidebar. Add the address of the recipient, the amount you want to withdraw and click the 'withdraw' button. That’s it. Now you are a happy owner of bitcoins.

If you still have some doubts or need some more detailed explanation check the following video.