First things first, buying Bitcoin with PayPal sucks.
That happens mainly due to how different both payment methods are. Bitcoin is a trustless, irreversible, anonymous payment method, while PayPal is a strictly regulated electronic money transfer on top of credit cards and banks.
PayPal always sides with the buyer whenever a dispute is open. That is the main problem with buying Bitcoin using PayPal – if you sell your Bitcoin for PayPal it’s gone forever, while your buyer can open a PayPal dispute saying he never received anything and get his USD or EUR back. As a result you will lose your BTC and the scammer will get his fiat back.
With that said, reconsider if you really need to use PayPal for Bitcoin purchases. If you are thinking of buying Bitcoin with PayPal only because you’re used to PayPal – use credit or debit cards for your Bitcoin purchases instead. Use Wirex or Bitpanda if you’re in the EU, use Coinbase if you’re in the US, or Indacoin if you’re elsewhere in the world and you will be able to buy Bitcoin fast using their secure plastic card gateways.
If you really insist on buying Bitcoin with PayPal read on.
PayPal to Bitcoin
1) The most advertised way of buying Bitcoin with PayPal is through a virtual goods marketplace Virwox.
Here’s your course of action to convert PayPal to Bitcoin using Virwox:
Sign up to Virwox -> Top up your account with PayPal -> Buy SLL tokens -> Convert SLL tokens to Bitcoin -> Withdraw Bitcoin to your wallet.
This is a very sketchy workaround. Virwox has limits that change constantly, they also have unclear fee schedule (there have been reports of 0.01 BTC withdrawal fees, which is insane), and they sometimes freeze accounts. We do not recommend using Virwox, just like we do not recommend using PayPal to buy Bitcoin in general.
2) Use Advcash and built in exchange services
Advcash is a platform for electronic currency wallet management and exchange. They used to offer a prepaid card as well but they have not recovered from the Visa ban yet. However, all other parts of their platform work well.
Here’s how you exchange PayPal to Bitcoin using Advcash:
Sign up to Advcash and get verified -> Go to “Deposit funds”- > scroll to the bottom of the page -> enter your transaction amount into the PayPal exchange locator and click “search”:
Pay attention to the “rate” column – this determines the fees you will pay. 0.85 means that you will be getting $85 for of Bitcoin for every $100 you spend with PayPal.
As we said the fees are somewhat high here but this is done by sellers to hedge against fraud risk.
2) Use LocalBitcoins or Paxful to buy Bitcoin with PayPal
LocalBitcoins and Paxful are two largest peer to peer marketplaces where Bitcoin buyers and sellers meet. If you wish them to buy BTC with PayPal you will have to find a reputable seller in your area, open a trade with them and follow their instructions.
This is a pretty safe way of transferring PayPal to Bitcoin, but you will pay a premium price – the seller will have to hedge against fraud we described at the beginning of the article. You won’t be risking much since you are subject to PayPal buyer protection.
Sign up to LocalBitcoins (preferred p2p marketplace)
3) Get a prepaid Bitcoin debit card and tie it to your PayPal
Wirex is currently the best working option for this (UK and EU residents only). Here’s what you do if you want to use this lifehack:
This method works well but only available to EU/UK customers. Technically any prepaid crypto card will work, there are many providers releasing new cards these days – follow this crypto debit card table to order the card that will work for you. Click here to read the full Wirex review.
4) Stay away from forex and CFD trading sites.
If you are googling how to buy Bitcoin with PayPal you might be getting a lot of ads from CFD trading sites
Bitcoin to PayPal
Withdrawing Bitcoin to PayPal is even more problematic than buying it. As a seller you become very vulnerable to the dispute scam we described at the beginning of this guide, since PayPal payments are reversible. So we do not recommend selling your Bitcoin for PayPal on LocalBitcoins or Paxful, although you can.
Prepaid bitcoin cards would help spending your Bitcoin through PayPal, so you can try attaching your Wirex or Spectrocoin card to PayPal and use it. This seems to be the only decent
Coinbase and Bitpanda used to