In recent years, PayPal has been quite accommodating of the crypto industry, especially Bitcoin. The company was one of the founding members of the Libra Association before it later quite the association due to regulatory pressure. Despite PayPal being friendly to the crypto industry, it can still be a challenge to find places to buy BTC using a PayPal account.
This post will review LocalBitcoins and Paxful, some of the easiest places where you can buy BTC using PayPal.
Buy Bitcoin With Paypal – How Paxful Works
Paxful allows people to buy and sell BTC via their website or the Virtual Kiosk Link (VKL). The VKL is a widget that is placed on a site, YouTube Channel or mobile application. Anyone who has the widget gets a 2 percent commission when a sale is made through their kiosk.
The platform comes with an escrow account to protect sellers and buyers. In case of a disagreement, a dispute resolution is initiated. This has helped to improve the reputation of Paxful. The platform also allows anyone to add a ‘Pay with Paxful’ button on their site to accept BTC from users directly to the wallet.
Supported Coins
If you are wondering how to buy Digibyte or other altcoins on Paxful, it is not possible. The platform only supports the buying of BTC. One benefit of Paxful is that it supports 300 payment methods. On this platform, you buy BTC using XRP, ETH, LTC, BCH, Amazon Gift Cards, PayPal, and many others.
Only people from a few countries and regions are restricted from using Paxful. These countries and regions are:
- Somalia
- Burundi
- Yemen
- Darfur
- Crimea
- North Korea
- The central African Republic
- Iraq
- South Sudan
- Lebanon
- Iran
- Libya
- Syria
Limits and Fees
Paxful charges a one percent fee for each transaction. Sellers are allowed to sell their BTC at any price, as long as they can find a buyer to accept their offer. Additionally, buyers will incur the BTC network-processing fee for each transaction plus any processing fees charged by their chosen method of payment.
Step By-Step Guide for Buying Bitcoin with Paypal Using Paxful
- Create a Paxful Account
Once you visit the Paxful site, click on “Create Account” on the top right corner. Follow the prompts and fill in all the required details in the blank fields.
2. Fund the Paxful Wallet
If you are using PayPal, you will have to upload your ID to verify the account.
3. Buy Bitcoin with Paypal
Click on the “Buy Bitcoin” button and choose the amount you wish to buy, the currency you will use, and pick PayPal as your preferred payment method.
4. Pick a Buyer
You will find various prices listed. It is recommended that you use a Verified Seller with a rating of 200 or more. You should then pick the price that you think is fair for you. Review the criteria the seller has established; for instance, it can be a selfie with a photo ID. Enter the amount you are willing to spend and press “Buy Now.” The payment is sent to an escrow account, giving you protection until the seller sends the Bitcoin to you.
LocalBitcoins is one of the most popular peer marketplace if you want to buy Bitcoin using Paypal. It is essentially the eBay of Bitcoin, with members being able to exchange BTC directly. Not only will you bypass exchanges, but you will also be operating within a secure environment.
Initially, you could trade BTC anonymously on the platform. However, as volumes started growing, the platform implemented KYC requirements. This has helped to make the platform much safer. It is also important to note that the platform only lets you buy BTC.
How to Buy Bitcoin With Paypal Using LocalBitcoins
1. Create an Account
Once you register for an account, you will be given a free online wallet without having to install any apps.
2. Search for Ads
In the platform’s main page, visit the search box and indicated how many Bitcoins you wish to buy as well as the currency you will use. You will then pick PayPal as your chosen method of payment. After that, you will be able to see the Bitcoin traders in your region. It’s important to note that some sellers don’t require an ID verification which is usually riskier.
3. Select an Ad
Pick a trader from the list of ads that appear. Ensure that they have a high reputation score as well as many completed trader. To view more details about an ad, click on “Buy.”
4. Make the Payment
The “Buy” button will show you more details including the terms set by the trader. If you do not agree with their terms, go back, and chose another ad.
To begin a transaction, type in the blue box the amount you wish to buy, write a message for the seller and click the “Send Trade Request” button. Ensure that you are ready to pay. Otherwise, the trade will automatically be canceled once the trading window closes.
5. Complete Payment
Once you make a payment, click on “I Have Paid.” The funds are sent and once a trader verifies that they received the payment, the BTC will be sent to you from an escrow account. They will immediately reflect in your hot wallet.
How to Pick a Safe Seller on Local Bitcoins
Check these factors when choosing your BTC seller:
- Traded more than 100 BTC in at least 100 traders
- Their feedback score is 98% or higher
- Their account is at least a year old
- The account is verified
- They are trusted by at least 10 people
Summary
Both Paxful and LocalBitcoins are reliable places to buy BTC using a PayPal account. However, LocalBitcoins has been around longer. As a result, it has more traders and offers that are more diverse. Other than this, there is not much difference between the two platforms. They have both earned the trust of BTC traders around the world.
While both of these platforms only allow you to buy BTC, they are good platforms if you are wondering how to sell Ethereum. This is because they both let you make payments in ETH and a slew of other altcoins.