Paypal has increasingly become one of the most favorable methods to buy Bitcoin lately, however finding credible exchanges that allow payment with Paypal is still a challenge. The main problem is usually due to Paypal’s chargeback policy. It’s so easy for Paypal users to file a dispute and get their money back after making a purchase, even though the dispute is actually not legit.

Actually, until a few months ago, we have a pretty solid platform that allows us to buy bitcoins using Paypal quite easily, the exchange name is Virwox. Unfortunately in January 2020, the exchange was shut down, so we need some new alternatives.

Fortunately, PayPal recently announced that they might be releasing a cryptocurrency buying and selling service rendering the service to be much more bitcoin-friendly. If this goes into effect, PayPal would likely become one of the dominant financial services companies of our time.

Here are some of the best exchanges where you can buy Bitcoin with Paypal:

1. eToro

eToro provides a relatively very easy way to purchase Bitcoin with Paypal, but this platform is only good for those who just want to speculate on price and gain profit from it and not to actually obtain the actual Bitcoin. That’s because eToro doesn’t allow you to withdraw your Bitcoin, you can only withdraw what’s in your account in a form of fiat currency.

So if you’re a trader type that’s just expecting profit from the fluctuations of Bitcoin’s value in the market, buying buying Bitcoin with Paypal on eToro could be the cheapest and easiest way for you to purchase Bitcoin with Paypal. However, if you need to have the actual Bitcoin in your account for some reason, then you should be checking other options.

That’s just how this exchange works, therefore when you purchase any cryptocurrency in eToro, you won’t need to prepare a crypto wallet, because you won’t get the actual coins.

2. LocalBitcoins

If you want to withdraw the actual Bitcoins to your wallet, then LocalBitcoins is worth to try. Basically, LocalBitcoins provides you with a marketplace where buyers and sellers can meet and negotiate to trade Bitcoins. So that means you will be dealing with a real person, and that also means that you have extra homework of checking each seller’s credibility to make sure they can be trusted before you initiate the deal.

Usually, in this platform you will be paying premium fees, that’s because sellers usually consider the high risk of a chargeback when buyers are using Paypal. However, on the upside, you can expect to get your Bitcoins much faster.

Here is how you can buy Bitcoin on LocalBitcoins with Paypal.

- Enter Search Parameters

The first step is to enter the amount of Bitcoin you wish to buy, choose your currency and country. The downside is it doesn’t provide worldwide search, you need to choose each country one at a time, which is a bit time wasting.

- Choose A Seller

After you click ‘Search’ you will get a list of sellers to choose from, you can go through each of their profiles to see which one is most likely trustworthy. Some important things to look out for when checking their profiles are the age of the account, feedback score, the number of ‘trust’ the seller has, the number of ‘block’ the seller has, and the number of confirmed trades the seller has.

There is no specific method to evaluate the trustworthiness of a seller, in the end you just need to use your commonsense and best judgment when reviewing their profiles.

- Complete The Deal

After you choose a seller, you will see the trade page. Here you’ll see some info on the seller’s trade limit, payment window and the location. There is also an additional terms set by the seller on the right side of the page. If everything seems right for you, then you can continue by entering the amount of Bitcoins you want to purchase then click ‘Send trade request’.

Please note that if you are new to the site, some sellers may not want to deal with you before you gain enough reputation. In order to get some reputation some new members usually start by making small purchases.

3. xCoins

This is xCoins.io, which is sometimes confused for xCoins.com. This is a somewhat unique exchange that describes its service as a Bitcoin lending service. So instead of buying Bitcoins from the exchange, you actually get a Bitcoin loan. However, some people might find it quite ambiguous whether it’s a loan or actually a purchase, different people can see it differently.

So basically when you get the site and ask for a Bitcoin loan, you will be asked to verify your ID and deposit the fund based on how much Bitcoins you want to borrow + processing + the total interest of the loan. If LocalBitcoins matches Buyers with sellers, xCoins actually matches borrowers and lenders.

4. Paxful

This is a relatively small exchangea as compared to the others above, but when it comes to buying Bitcoins with Paypal, Paxful is a pretty good option. It also provides a peer-to-peer marketplace where buyers and sellers can meet and negotiate directly with a quite simple process.

Step 1: Register an account.

Step 2: Enter the desired amount of Bitcoin you want to buy and chose Paypal as the payment method.

Step 3: Find your seller manually, or you can also let Paxful recommends you the best seller.

Step 4: When you have selected a seller, you will be taken to an online chat where you can negotiate everything with the seller and complete the deal when you have come to an agreement. At this point the Bitcoins will be sent to an escrow account, waiting for you to make the payment. When the payment is confirmed then the Bitcoins will be sent to your account.

Even though it’s not that much trouble, but in general, buying Bitcoin with Paypal takes more effort as compared to other methods, and also you have to be ready to pay extra fees. But if you still prefer using Paypal rather than other payment methods, the exchanges on this list could be are definitely some of the best available options for you.

If you didn’t find an exchange that suits your interest check out the full guide by Smart Bitcoin Investments for more great tips.

Author's Bio: 

Jeff is an Entrepreneur whose mission is to create optimized technology systems to help others. Jeff is passionate about Bitcoin.