At first glance, it would seem Paypal and Bitcoin are made for each other. Paypal is a well-organized platform which was designed for transferring money simply and quickly over the Internet without the use of financial emissaries. Bitcoin is a means of exchange that is specially designed to work outside the financial mainstream.
Yet the union of these two has looked like mixing oil and water. There have been times when it appears that they are mixing well together. At other times they seem to have pronounced differences that cannot be settled. These distinct periods are covered with the always exciting and changing cryptocurrency markets. So, what are the best options to purchase Bitcoin with PayPal?
Bitcoin and PayPal – Roadblocks
At the time of writing, there are no means to buy Bitcoin with the payment coming straight from a PayPal account. PayPal will block transfer of funds allocated for bitcoin purchases. The fact is that PayPal may see Bitcoin as a competitor when it comes to transactions between individuals. This opinion would be harmonious with that of the banking industry. It is also possible that PayPal holds their credibility in high esteem, and so is reluctant to get associated with cryptocurrencies. The number of fraudulent transactions in the world of cryptocurrency supports this theory. It would be in line with their hesitation to let users access funds to pay for services on pornography websites or illicit market operation on darknet.
The cryptocurrency sector has, however, created many workarounds for using the PayPal platform to pay for purchases of coins and tokens. These include the use of different forms of intermediaries.
Global Currencies, National Restrictions
Operating across international boundaries is one of the PayPal’s biggest problem, as this requires adhering to various rules and regulations. PayPal has expertly sailed that minefield. Cryptocurrency exchanges are displaying that same expertise, but are not there yet. This means that exchanges do not operate in all countries.
Such is the problem with eToro, a renowned online Forex brokerage and social trading platform that has a significant listing of cryptocurrencies and different trading options. The platform provides the option to fund a trading account by PayPal transfer but does not operate in the US. Luckily for non-US citizens, the platform allows funding an account with PayPal and further use the funds for opening trading orders on Bitcoin and other cryptos.
It is worth noting that direct transfers from PayPal are not the only ways of using the PayPal platform for transactions. PayPal also issues a credit and a debit card that give a convenient means of transferring funds through the existing credit card network.
Using this method of paying with PayPal is easy, although it is not a direct way of paying for Bitcoin with PayPal. It involves creating a debit or credit account with PayPal and then using that account at an exchange to buy Bitcoin. To the extent that this credit/debit card would be used for other purchases, this may be a sensible approach.
Besides using PayPal MasterCard debit card to purchase Bitcoin, other methods use an intermediary connection to achieve the same purpose. One of these creative routes is through the Wirex app.
People who want more convenience in handling business with Bitcoin may find creating an account on Wirexapp very beneficial. Wirex is an integrated digital currency platform that supports many functions, including purchasing and transferring Bitcoin. It also gives a Bitcoin wallet and a debit card. This card is the link to the PayPal platform.
After opening an account with Wirex, on your account dashboard on the website, click on “Request a card” on the upper right-hand corner of the screen. You can choose either a physical or a virtual card. Once you get the card information, log in to your PayPal account and link this card to your PayPal. You can now transfer money from your PayPal account to this card.
Once your Wirexapp card has gotten the US dollars from your PayPal account, you can then head back to the Wirexapp and buy Bitcoin.
Coinbase is one of the Bitcoin exchanges that allows withdrawal of funds with PayPal. You should also note that Coinbase charges a fee of 3.99% on funds transferred to a PayPal account. Some traders may find this too high, as transfers through ACH are done free of charge.
Although not buying Bitcoin with funds on PayPal technically, two other methods create the same financial position. These are approved by PayPal and have other benefits as well. The first of these is buying a CFD (Contract for Difference) which provides the owner the right to make money from a change in the value of Bitcoin.
On services like Primecrypto users have access to CFD contracts on a number of digital currencies and can easily fund their account with PayPal. Please note that this broker does not involve buying Bitcoin and that the financial instrument concerned includes the use of leverage. Leverage amplifies both gains and losses. Financial leverage is a powerful tool but is not advisable for novice investors.
Buying Bitcoin directly with your PayPal is not possible. Some exchanges report that sales proceeds can be transferred to PayPal, but those same exchanges have also reported blackouts. It is reasonable to say that PayPal’s hesitation to get involved in the cryptocurrency market has been effective. Some third-party mediator is required to complete a direct purchase of Bitcoin with PayPal.