Buying crypto with Paypal
To date, there are still a lot of traditional banks that do not like cryptocurrencies. They might even consider clients purchasing cryptocurrencies as a high-risk client.
We are pretty sure that this will change soon as the world is only heading towards more adoption of digital currency and there is no way it’s going to change.
Regulation of digital currencies is around the corner and this will make it easier for anyone to buy and sell his cryptocurrencies whenever or wherever they want.
In the meantime, if you don’t want cryptocurrency transactions showing on your bank statement, it is understandable. Especially if you have a mortgage or any other obligations towards your bank, you’d better play it safe.
How to solve this problem?
In this case, the best way to purchase cryptocurrency would be using an e-wallet.
Undoubtedly Paypal is one of the major e-wallets used and a very common question that we have been receiving lately is ‘How can I buy Bitcoin with Paypal?’ or ‘How can I buy Altcoins with Paypal?’
Back in October Paypal have announced that they will be supporting the purchase of cryptocurrency on their platform. The catch is that they only offer this to US customers and any cryptocurrencies purchased can only be used within the Paypal wallet.
This means the cryptocurrencies bought on Paypal cannot be transferred to an external wallet or to any other crypto exchange, but it has to be used within Paypal’s network.
This might be enough for a number of users, but let’s be honest why would I limit myself to this when purchasing cryptocurrency?
One of the most important attributes of cryptocurrency is that they provide its users flexibility. We are living in a world where the needs of one individual is totally different then another.
This makes Paypal’s cryptocurrency offering a very limited option. There is a better way to purchase cryptocurrency using Paypal with NO LIMITATIONS!
Here is the solution!
So far there isn’t a super easy way to buy cryptocurrency with Paypal but we will be giving you a step by step instructions on how you can do this through Paxful which is still pretty straight forward.
Paxful is a peer-to-peer cryptocurrency marketplace where buyers and sellers are connected for business. Imagine Paxful as the E-bay of cryptocurrencies. Paxful provide over 300 payment methods with Paypal being one of the most used payment methods.
Instead of using a crypto exchange, whereby the exchange acts as an intermediary in the cryptocurrency transaction, we will be showing you how to use Paxful and get your hands-on Bitcoin.
It will only take you a few mins to get used to the platform and do your first purchase.
Step by Step Guide to Paxful Platform
To start off, head to Paxful website and create an account.
At minimum, you need to have a valid email address and mobile number to verify your account. This will give you access to the platform with an account limit of level 1. This means that your account is limited up to 824.3 EUR worth of purchases.
But don’t worry, if you want a higher limit.
You can provide an identification document to be provided with a level 2 account and a limit of €8,243.
If this is not enough, you can verify your address and have no amount limits.
This will depend on your needs.
Next step, would be to proceed to the ‘buy section’ on the top left corner of your screen where you’ll be prompted to choose:
1. ) The cryptocurrency you want to buy.
2.) The payment method – in our case we will be selecting Paypal. However, they have up to 340 payments options.
3.) The currency you will be using.
Once you click on ‘Find Offers’ a list of sellers which match your criteria will be shown. It is important to note:
1.) The reputation of the seller (Note 1 below). The higher the more reputable.
2.) The selling price compared to the market price of the crypto. In this case, the seller is asking 2.68% less than the market price.
3.) The verification type required to buy from the seller. This will depend on the seller. Some sellers prefer to deal only with buyers that have verified their identity.
We suggest that you only deal with sellers that have a good reputation and requires you to have your account verified. This gives you more comfort that the seller is legitimate. Once you initiate the trade, you will be sent to an online chat with the seller, where you can finalize the deal.
The seller’s bitcoins will be sent into escrow, and once you mark that you’ve sent your payment, they will be released into your account. Keep in mind that if you don’t finalize the deal within a certain timeframe (usually 30 minutes), the deal will be automatically cancelled.
Yes, it’s that simple.
The main limitation with Paxful is that they only support Bitcoin (BTC) and Tether (USDT). This is another limitation considering the wide myriad of cryptocurrency. However, Paxful allows you to take the purchased crypto to an external wallet and exchange them to any other crypto you prefer.
As highlighted earlier, Paypal is only one of the many payment methods that Paxful offer. There payment options are vast, so they give the opportunity to people from anywhere around the world to purchase crypto using an alternative payment method to credit card or bank transfer.
If using a credit card or debit is not an issue, then we suggest that you do your purchase through a normal cryptocurrency exchange. You can find a list of reputable ones here. Although they still require verification, you will be dealing with experts in the field and offer more coins and services then the ones offered on Paxful.
Paxful are well trusted in the industry and have made a difference in many people’s live. Their high quality service is noticed in the number of satisfied customers they have served in the last 5 years they’ve been in the market.
P.S. This is not an investment advise and you should be aware that investing in cryptocurrencies involve a level of risk.
