How to buy cryptocurrencies with Paypal
How to buy cryptocurrencies with Paypal

How to buy cryptocurrencies with Paypal

By Fabio Lugano - 7 Oct 2018

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Entering the world of cryptocurrencies can be complex: KYC procedures are necessary for exchanges to operate legally and be consistent with national and international regulations, but they are often complicated, not to mention that some credit institutions refuse to make IBAN transfers corresponding to activities related to cryptocurrencies.

Therefore, using Paypal, the simple international payment system connected to the email address, would seem to be the natural solution to buy virtual currencies but, in reality, this payment solution is not very widespread in the industry for non-trivial reasons:

  • Paypal is an expensive solution;
  • While Paypal transactions are reversible in case of disputes, the movements in cryptocurrencies are not, so there is a possibility that a person receives BTCs and requests a refund from Paypal claiming not to have received the virtual currencies.

Despite these disputes, there are some ways to make crypto purchases through Paypal, albeit indirectly, going through external companies.

Let’s list some possible solutions:

a) LocalBitcoins is a peer to peer platform where the parties meet directly to exchange virtual currencies for fiats, without any intermediation. If the counterparty accepts Paypal, payment quickly verifiable, it will then be the responsibility of the two parties to verify the legal quality of the counterparty.

b) Paxful is another platform similar to Localbitcoins, where you can buy cryptocurrencies directly. After accessing it, various offers and payment methods are proposed, even with rather extravagant options such as Amazon vouchers or Skype top-ups. However, among the options, there is also Paypal. Again, it is recommended to immediately transfer the purchased bitcoins to a personal wallet. But beware of the prices: they are higher than those of ordinary exchanges.

c) Wirex is a company that offers debit cards that can be connected to a Paypal account. You can then transfer funds from Paypal, and then buy bitcoin with Wirex. The costs are not high, but the problem lies in the time required to carry out the operation which, between opening and transfer, can reach ten days.

d) eToro. Etoro allows you to buy bitcoin quickly and inexpensively but has some limitations: the BTC that cannot be withdrawn, but it is useful if you want to trade within the system.

Fabio Lugano
Fabio Lugano

Graduated with honors from Bocconi University, Fabio is a consultant for companies and wounded shareholders of the Banche Venete. He is also the author of "Scenari Economici", and lecturer and analyst of cryptocurrencies since 2016.

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