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How to buy Bitcoin with PayPal

11th November 2021 Print

It’s much easier to buy Bitcoin now than it was just a few years ago, but it would be even simpler if you could use PayPal to do so, wouldn’t it? In most cases, crypto purchases made with PayPal are tricky—and expensive.

Buying Bitcoin with PayPal is difficult for various reasons, with the likelihood of chargebacks being the most evident. Many exchanges prohibit these transactions because it would be easy for users to buy crypto, then ask for a refund. That’s a fraudulent and unethical way to obtain Bitcoin, even when using the methods listed below, so we don’t recommend it.

While the process is somewhat time-consuming, it is possible to buy Bitcoin with PayPal via xCoins. Before receiving any crypto, you’ll need a PayPal account and a Bitcoin wallet. Once you’ve set them up, you’re ready to get started.

Cryptocurrency and PayPal: A Difficult History

Since its launch in 1998, PayPal’s goals have been like Bitcoin’s. The founders wanted to create a form of digital currency that made sending money as easy as sending emails. PayPal is centralized, though, so it’s never been as innovative as its founders hoped. With that said, PayPal has become the leader in online payments.

While it has a sizable market share, PayPal hasn’t played nicely with Bitcoin. That’s because, unlike crypto payments, PayPal transactions are not settled immediately. Due to these differences in payment processing, Bitcoin and PayPal have been deemed incompatible with one another—until now. The same applies to the use of PayPal to buy Litecoin, Ethereum, Tether, and other popular altcoins. If you want to sell or buy crypto with PayPal, you’ll need a go-between.

Buying Bitcoin with PayPal: Is It A Good Idea?

Though PayPal makes it easier to buy Bitcoin, these transactions aren’t handled in the same way as in a direct trade or on an exchange as you’re essentially purchasing an IOU. You can sell and buy the cryptocurrency on PayPal, but you cannot withdraw it to a different wallet. The only way to cash out is to convert it to fiat currency. Using PayPal comes with unique pros and cons, such as:

- Users’ level of comfort and familiarity. Despite the challenges associated with the process, many people still choose to buy crypto with PayPal because they’re familiar with the platform. Despite its limitations, PayPal is a viable option for anyone who needs Bitcoin fast because payments are instant.

- High fees. This is the biggest drawback to using PayPal as a funding source. Purchasing Bitcoin with PayPal comes with higher fees than if you’d used your bank account or credit card. Furthermore, there are low limits on the few platforms where PayPal is an accepted payment method.

In the Bitcoin world, “not your keys, not your coins” is a common mantra. If you don’t own the wallet in which the coins are stored, you don’t really own the coins. While PayPal allows users to invest in cryptocurrency in some form, there’s little control over the investment, which is quite worrisome for those who are looking for an anonymous, decentralized way to invest. Below, we’ll cover a few ways to buy Bitcoin with PayPal.

Use the PayPal Mobile App or Visit the Website

Since November 2020, eligible app users can sell, buy, and hold cryptocurrencies such as Litecoin, Ethereum, Bitcoin Cash, and Bitcoin. The company is also planning to allow the use of Bitcoin as a funding source, so users can make purchases from eligible merchants.

You can buy Bitcoin right from the mobile app. Just select Crypto. Alternatively, you can log in via the web and buy any of the above cryptocurrencies for $1 or more, with no exchange fees or middlemen involved.

Do a Direct Trade

Because the major cryptocurrency exchanges don’t allow users to purchase Bitcoin with PayPal, direct trades are a safe option. Websites facilitating these peer-to-peer transactions will connect you with crypto sellers who accept PayPal. For instance, many BCH (Bitcoin Cash) sellers take this payment method.

While direct trades are relatively safe, it’s important to choose exchanges wisely and ensure they offer features such as enhanced privacy, information security, and identity verification.

Get a Loan

If you don’t want to take your chances with an exchange, there are other options. For instance, xCoins has been around since 2016, and it allows users to pay with their credit or debit cards via PayPal.

To purchase Bitcoin on xCoins via PayPal, you’ll need to sign up for an account first. It only takes a few minutes, and the option is available to those in the United States and select countries. After a quick and easy verification process, you’ll be ready to buy and sell cryptocurrencies including Bitcoin.

To start, you’ll decide how much Bitcoin you want and make the payment. It’s up to you to confirm the specifics of each transaction. Here are a few tips on using xCoins.

- Go to the xCoins homepage and choose the “Get Bitcoin” option in the topmost menu.

- Create an account and verify it via the link sent to your email address.

- Use your phone to set up two-factor authentication.

- Decide how much Bitcoin you want to buy, either in the coin itself or in your country’s currency. xCoins will then find a lender who will accept the transaction.

- When a lender is found, you’ll learn the transaction’s details, including lender and processing fees. If the terms are acceptable, read the loan agreement carefully and accept them. Then, click the button to continue to the payment page.

- You’ll be redirected to the PayPal account page, where you’ll log in and approve the transaction as you normally would.

- When you’ve returned to xCoins, the Bitcoin will be sent to your xCoins wallet. From there, you can send it to any other wallet you choose.

xCoins is an easy and safe way to get Bitcoin with PayPal. With its peer-to-peer structure, it has built a community of honest, yet profit-making lenders and a safe, respectable cryptocurrency marketplace.

Closing Thoughts

Buying Bitcoin with PayPal is much like purchasing a financial contract. Because users can’t remove their coins from the platform, nor can they send them to others, it’s like they’re buying a Bitcoin derivative rather than the real thing. As with other options contracts, you stand to gain—or lose—a lot of money. After assessing your risk tolerance, consider using xCoins as a safe, easy way to access Bitcoin with PayPal.

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