If you had asked yourself a few years ago how to buy Bitcoins with Paypal, the answer you would have gotten would have been negative because, until not long ago, Paypal prevented buying and / or selling Bitcoins. However, this has changed and this virtual wallet service already allows you to make transactions with Internet currencies.
If you would like to know how to buy Bitcoins with Paypal, what you should take into account before doing it and also afterwards, and other topics that are interesting, don't worry, we have made a compilation of information here.
What is Paypal
First of all, we would like to define minimally what each of the important terms is. In this case, we are talking about Paypal, a company of American (American) origin whose function is the offer an online payment system. This is done through money transfers between Paypal users. That is In order to transfer money to another user, both must have a Paypal account.
There are several types of accounts and also transactions. The most common to use is sending money between friends, which has no commissions if the two people are in the same country. If transfers are made to other countries there would be a surcharge that can be 5 euros or more.
What are bitcoin
For its part, a bitcoin is a cryptocurrency and, at the same time, a payment system. It is characterized in that there is no single administrator, nor a bank, in such a way that transfers are made between users, all of them equal to each other, through software.
How to buy Bitcoins with Paypal step by step
As we have told you before, until very recently you could not buy bitcoins with Paypal. But nevertheless In early 2021, the company enabled this possibility, only for residents of the United States. Not just bitcoin, but you can also go for Litecoin, Ethereum, or Bitcoin Cash.
Of course, it is possible that it will expand to more countries over time if this first trial is successful. In addition, a point to keep in mind is that there are certain rules that must be met, such as exchanging between people who use Paypal, limiting other functions or, in case of problems, Paypal could requisition the balance. And one point to keep in mind is that You will not be able to have control of your cryptocurrencies, but only their balance.
So, so that you know how the theme works, we give you the steps you should take.
What to keep in mind
If you are in the United States or can operate in that country through other options, you have to take into account commissions. And it is that Paypal is not free, it requires paying commissions that are produced by the transfer that is made.
Normally, we speak of a a fee of 5,4% of the total transaction plus a fixed fee of USD 0,30. In other words, we will have to bear two fees, the fixed one and a variable one that will depend on the amount of money that is transferred.
In addition to those Paypal commissions, there are others that you should also consider, which are those of the platform you choose to get the bitcoin. And there are even other commissions on virtual currency transactions.
In short, the price you are going to pay is not going to be the real value for which you get these, but to that we must add several important commissions that, although they may not be high, they are important.
You need to verify yourself
In order to carry out the sale of bitcoins, one of the mandatory requirements that you must meet is that of register and verify your data. This is something that is required by regulatory regulations, hence you must comply in order to operate with bitcoin.
In the case of Spain, this is solved by sending an identity document (with the photo) or proof of residence in Spain.
You trade with dollars
The vast majority of cryptocurrency-related platforms always trade with US dollars, that is, USD, both to buy and to sell, in such a way that in Paypal you must do this.
It does not mean that you must have USD in your account, since the payment platform can perfectly change your currency for that of the operation. But you do have to take into account how much the currency conversion would be, since it may be the case that you lose money, or that some commission is applied.
Platforms where to buy and sell bitcoins with Paypal
As we have told you before, Paypal is a mere payment instrument. What you really need to buy and / or sell bitcoins is a platform that allows you to exchange between users and that, in addition, payment can be made by Paypal.
In this case, the most recommended are:
- Localbitcoins. It has its origin in Finland and has been operating since 2012. It can be bought and sold for free but if ads are created, commissions are charged (1%). It allows using Paypal, (after verification, of course).
- Paxful. It is one of the best known, the Old Capitol Trail and has been operating since 2015. It is regulated in Estonia and there is no purchase commission charged unless you are a seller (1% is charged there).
- eTorus. With origin in Cyprus, and operating since 2007, it is one of those that accepts Paypal to pay. Of course, it has commissions, a 0,75% differential and overnight commissions.
- XCoins. Regulated by the United States Financial Crime Control Network, it was founded in 2016 and currently has a significant commission: 2,9% plus $ 0,30 / 5% of the total loan.
Are payments with bitcoin accepted?
Now, you should think about whether it is something suitable or not to buy and sell bitcoins since there are very few businesses that, for now, accept foreign currency as a means of payment. In addition, the high price of a single bitcoin makes it a currency that very few can access with what, taking all this into account, for now it would not be profitable to buy or mine them, which is why very few have been ventured to sell those coins.
It does not mean that they do not, of course they do, but the use of those currencies is not yet so widespread that you need to buy Bitcoins.
Is it clearer to you how to buy Bitcoins with Paypal?