First Things First: Can You Buy Bitcoin with PayPal?
PayPal is one of the most convenient payment methods for people around the world to send and receive payments. Back in 2015, PayPal announced that merchants on their platform could accept Bitcoin (CTRL / CMD + F for “Bitcoin”).
However, if you want to buy Bitcoin with PayPal, that’s another story. Due to how easy it is for buyers on PayPal to file chargebacks (dispute a transaction and get their money back), people usually don’t accept PayPal for Bitcoin.
Even if the dispute is fraudulent and the buyer did receive the Bitcoin, PayPal has no way of knowing this (Bitcoin, while traceable, isn’t as traceable as PayPal) and will usually side with the buyer in case of a dispute.
On top of the dispute problem, Bitcoin transactions are irreversible, making things that much worse for sellers if a buyer ends up scamming them.
That being said, there are some legitimate ways to buy Bitcoin with PayPal that we’ll guide you through, step by step.
Best Place to Buy Bitcoin with PayPal: LocalBitcoins
If you want to know where to buy Bitcoin with PayPal, your best bet is LocalBitcoins. LocalBitcoins connects buyers (you) and sellers with its peer-to-peer marketplace. There are tons of ways – let alone with just PayPal – to buy and sell Bitcoin on LocalBitcoins.
Buy Bitcoin with PayPal No ID
Want to buy Bitcoin with PayPal no verification? You’ll find that many sellers that accept PayPal for BTC will ask for ID verification to lessen the chance of scams. However, not everyone wants to hand over their ID to get their hands on Bitcoin.
One place where you can buy Bitcoin with PayPal without verifying your identity is Paxful.
Paxful is very similar to LocalBitcoins and connects buyers and sellers of cryptocurrency around the world. As with LocalBitcoins, the upside of this platform is that there are many sellers to choose from (though not as many as LocalBitcoins). The downside is similar – the exchange rate can be high for PayPal purchases of Bitcoin, and you have to deal with reputable sellers to make sure you don’t get scammed.
Bitcoin History With PayPal
Bitcoin history with PayPal is anything but simple. PayPal, as an e-payment system, operates under very strict rules. When transferring money, you provide a recipient’s email/website for PayPal to find it within its system. You pay 2.9% + $0.30 per transaction and see money going instantly. However, if you put words like “crypto” or “bitcoin” in the payment description, you might get in trouble.
The relationship between PayPal and cryptocurrencies, in general, is complex, to say the least. Back in 2014, the first sign of communication between crypto space and the e-payment company occurred. Namely, an alleged partnership between PayPal and three major bitcoin payment processors (BitPay, Coinbase, and GoCoin) happened.
Later on, PayPal invested in a blockchain startup called Cambridge Blockchain, an online identity storage space provider. Thus, it is evident that PayPal favors blockchain over digital coins. In 2018, the company started to unofficially hunt down accounts that deal with crypto transactions. Most accounts got closed and their balances were taken.
However, the company did involve itself with Facebook’s Libra, becoming part of its Association. The partnership signifies just how PayPal treats cryptos right now. It has nothing against the tech behind it but as a currency – that’s a different story.