Bitcoins are a cryptocurrency that were introduced back in 2008-2009 when the financial crisis was unfolding. In almost over a decade, they have come a long way but it is unfortunate to see that the masses still do not have awareness about it or the blockchain platform.
If you carry out simple analytics or simply do a random interview of people outside you will find that many people simply do not know how to purchase bitcoins and carry out transactions using them. This can be considered as a failure of the market to spread awareness. Perhaps if the people knew just how simple it is to purchase this cryptocurrency then maybe more and more people would have switched to using it.
Purchasing is as easy as making a random online purchase however for someone who has never used bitcoins, doing it the first time may require some understanding and explanation. If you are wondering about how to purchase bitcoins with PayPal then you are in the right place because we are going to go over the step by step process.
Pre-Requisites For Buying And Selling Bitcoin Using PayPal
You will need to fulfill certain preconditions. The very first precondition is to have a bitcoin or crypto wallet. A wallet is where your bitcoins will be stored. There are different types of wallets that depend on the individual needs of users. If you are just a beginner then an online wallet will be the best for you. Online wallets are free wallets provided by different sites. You will simply have to register on the site and then you can have your wallet. Usually, bitcoin exchanges provide their users with the facility of having free online wallets.
If you are purchasing bitcoins to carry out your daily transactions then you will be better off with a mobile app wallet, it will help you carry out transactions seamlessly on the go.
Once you have got your wallet, next you will need to make sure that you have got an active bank account with credit or debit cards. You will need to have funds in your bank that you will then have to transfer to your PayPal account in order to purchase this cryptocurrency.
The next prerequisite that you will need to fulfill is having a PayPal account. It is very easy to make one so if you haven`t got on, you can make it in a few minutes. You will need to verify your identity and sync up your bank account and then transfer your funds from your bank to your PayPal account.
Once you have fulfilled the prerequisites, now you are ready to get started. Now the question isn`t just can you do it. Well yes, you can, but the real question is that is it feasible to purchase through PayPal and where can you do so.
Let us answer the first question first.
Can I Purchase BTC Through PayPal?
The answer as stated above is yes. There are however very few options when it comes to purchase bitcoins using PayPal as a payment method because most exchanges prefer not to use the platform as a payment option due to the chargeback issue.
It is rumored that PP will be launching a cryptocurrency buying and selling service soon, so users in the future may be able to buy bitcoin directly from the interface.
Is It Feasible To Make Purchases Using PayPal Instead Of Credit Card?
The answer to this really depends on your circumstances. If you are asking about convenience then in my opinion then the most convenient way would be through a credit card because every exchange and P2P site accepts credit cards. They are faster and far more convenient than using PayPal. You can go to your trusted exchange and within a few moments purchase your bitcoins, whereas with PayPal you will need to carry out a search of exchanges that offer it as a payment option.
To be honest, there really aren`t a lot of bitcoin exchanges that do so, so you will end up using peer to peer platforms, where the risk of fraud will be higher, so you will have to carry out your own due diligence first.
Where Can I Buy?
As mentioned above, at this moment there aren`t a lot of exchanges that allow users to use PayPal as a payment option. CoinBase is the biggest crypto exchange but it only allows PayPal as a payment option for sellers and not for buyers.
Local Bitcoins and Paxful are P2P platforms that allow users to use PayPal as a payment option. Users can use these two P2P platforms to purchase bitcoins but only after carrying out their own due diligence because seller fraud has been reported on P2P sites. Make sure that the seller you deal with has got a good rating and history.
eToro is another site that allows users to purchase bitcoins but eToro isn`t an exchange or P2P platform. Instead, eToro is a trading platform and we all know what trading platforms are for. So with Toro, you cannot withdraw your bitcoins or use them for transactions. You will only be exposed to price movements.
There are a lot of other platforms as well but you will have to carry out your own due diligence to find them out. Here is a great guide by Smart Bitcoin Investments that will show you the most popular exchanges to buy bitcoin using PayPal.
Once again if you are looking for an easy and convenient way to buy bitcoins then you will be better off using a credit card but if that is not an option for you then you can use PayPal but your options will be very limited with PayPal.
