Home Trading How to Buy Bitcoin with Paypal in 2021?

How to Buy Bitcoin with Paypal in 2021?

by Aishwarya Gaikwad
How to Buy Bitcoin with Paypal in 2021?

Paypal has become one of the most favorable platforms of Bitcoins in recent years. To buy bitcoins with paypal in 2021, is still an issue to find credible places. Chargeback issues are the main reason for this. To overcome this issue, this article will help you by covering various methods. Now you can buy bitcoin with cash online.

Paypal now gives users the freedom to purchase bitcoin directly and you won’t be able to utilize your coins outside of its platform. Through a Paypal account, it is really hard to obtain bitcoins.  Infact, Virwox Paypal deposits shut down in January 2020. 

To buy Bitcoins through a Paypal account, it got really hard to obtain them. To buy bitcoins with Paypal there are still two main methods namely eToro (for all the users who are not looking for access to the actual coins and for the users who mainly wish to speculate on price) and LocalBitcoins (for the ones who actually want to withdraw bitcoins to their own wallet). 

Following are different ways to buy Bitcoin with Paypal:

  1. Buying Bitcoins with PayPal using eToro
  2. Buying Bitcoins with PayPal using LocalBitcoins 
  3.  Buying Bitcoins with PayPal using xCoins
  4. Buying Bitcoins with PayPal using Paxful
  5. Buying Bitcoins Directly through PayPal
  6. Buy Bitcoin with PayPal through eToro

 Pros: A variety of payment methods accepted and relatively low fees.

 Cons: Withdrawing profits in crypto is complicated, Not available worldwide.

Only for a limited purpose, the easiest way to buy Bitcoin with PayPal would be through eToro. To buy bitcoins with Paypal this platform will enable you to withdraw bitcoins to your wallet and it will take an extensive amount of time and steps. In order to buy the actual coin for using it, eToro is better suited to speculate on Bitcoin’s price, in other words. 

If you are just looking to profit from price swings, it is definitely one of the easiest and cheapest  ways. Continue reading this article, if you need the actual bitcoins to buy stuff or send them to another person. 

You don’t actually need a bitcoin wallet, if you use eToro to make money through speculation. 

  1. Buy Bitcoin with PayPal through LocalBitcoins
  • Pros: A wide variety of sellers from all around the world 
  • Cons: High fees and chances of getting scammed

LocalBitcoins is a marketplace where sellers and buyers contact directly, unlike eToro. You are dealing with an actual person when you use local bitcoins, it means that the seller’s credibility is another thing to look out for. Since they are taking a big risk of buyer chargebacks, sellers will usually charge a premium for that. You will usually get your bitcoins faster which is its upside. 

  1. Buy Bitcoin with PayPal through xCoins 
  • Pros: For a relatively long time proven method that’s been around 
  • Cons: High fees and unclear business model 

As a Bitcoin lending service xCoins.io (not to be confused with xCoins.com) describes itself. They are giving you bitcoins as a loan (to an extent), instead of selling. It is somewhat ambiguous whether it is a sale or a loan and can be left for interpretation. 

Say you (the buyer) want to “loan” some bitcoins while coming to the site. This is how it all works. How much you want to borrow + Paypal processing fees + the interest rate on the loan as a fixed amount , you will be requested to deposit the USD equivalent of that amount after a short ID verification process. 

How to Use xCoins

  1. Sign up to the site
  2. Select the amount you want to buy
  3. Agreeing to the loan agreement
  4. Payment should be made

The fees are comparatively high since this platform matches lenders with buyers.

  1. Buy Bitcoin with PayPal through Paxful 
  • Pros: From all around the world, wide variety of sellers 
  • Cons: The chance of getting scammed and high exchange rate

Paxful is a type of platform that resembles LocalBitcoins a lot. With almost anything to buy bitcoin  (e.g. Amazon gift cards and Skype credits), it is a peer-to-peer marketplace. At Paxful, the process of buying bitcoins is very simple: 

 How to Use Paxful

  1. An account should be created
  2. For buying and the desired amount, choose a payment method
  3. Select your seller. You can either let Paxful take the decision for you as who is the best seller or either you can choose manually. 

You can finalize the deal when you will be sent to an online chat with the seller once the trade initiates. The payments will be released into your account, once you mark that you have sent them and the seller’s bitcoins will be sent into escrow. The deal will be automatically canceled, if you don’t finalize the deal within a certain time frame and that should be kept in mind. 

  1. Buy Bitcoin directly through PayPal 
  • Pros: Low risk 
  • Cons: Coins can’t be withdrawn to external wallet, Only US is supported currently 

Through a partnership with Paxos, PayPal rolled out direct purchases of Bitcoin (and three other cryptocurrencies), in October 2020. Using Bitcoins they bought through the service this allows users to pay PayPal supported merchants. To use them anywhere else, users can’t withdraw them or send those coins to other accounts at the time of writing. Another big limitation is that this option is only available for US users. Hopefully this service will become more robust as the time goes by. Depending on the size of the purchase, it may vary between 1.5% and 2.3% as for fees.

How to Buy Bitcoin Directly on PayPal

1-  If you don’t already use PayPal, sign-up for an account

2- Under the “Your crypto” section, click on “Buy and Sell” (it is only available   to supported locations)

3- Tap on “Bitcoin” and “Buy”

4- Enter the particular amount of bitcoin that you want to buy

5- Choose your payment method and click on “Next”

6– Check the transaction fee and the conversion rate

Related Articles

Leave a Comment