How can you buy Bitcoin with PayPal?
PayPal is a worldwide online payments system, which was constructed to facilitate online money transfers and services, as a substitute for traditional money orders. It was established in 1998 as Confinity by Max Levchin, Peter Thiel, Luke Nosek and Ken Howery.
Later on, in 2000, it merged with X.com (online banking company), which was founded by Elon Musk. In 2002, PayPal had its first initial public offering, and later that year, it was acquired by eBay for $1.5 billion.
Some of the founders and early employees of PayPal developed Tesla Motors, LinkedIn, Palantir Technologies, SpaceX, YouTube, Yelp and Yammer. Six of them, Peter Thiel, Elon Musk, Reid Hoffman, Luke Nosek, Ken Howery, and Keith Rabois, have become billionaires.
How can you buy Bitcoin with PayPal?
Even though the history of PayPal is fascinating and it was a trailblazer in its early days, today, in 2018, it’s still hard to successfully buy Bitcoins with PayPal without the risk of fraud or complications. There are more ways than one to buy Bitcoins with PayPal, but not all of them offer the same level of protection or trading possibilities. Let’s dive into it.
- eToro - Is a virtual exchange platform that will allow you to buy Bitcoins with your PayPal account, but you can only sell them for fiat currencies (AUD, USD or EUR). ou don’t actually own the Bitcoins. Instead, you can trade them, but not withdraw them or send them to other people.
- Virwox - Is the most reliable method around, and you can read all about the procedure further in the article. The process of acquiring Bitcoins is a bit complicated, but proven, and you will, in fact, own your Bitcoins.
- Local Bitcoins - Is a marketplace for buyers and sellers of Bitcoins, and every third party is excluded. The risk for scams and the price of the Bitcoins is a lot higher, and this method is not recommended for beginners. However, if you wish to purchase Bitcoins from someone local that wants to sell them to you, Local Bitcoins is a useful tool.
- Wirex - Is a company that can supply you with virtual and physical Bitcoin debit cards, which you link to your PayPal account.
- Paxful - Allows you to buy Bitcoins with everything from an Amazon gift card, to Skrill and PayPal. Paxful is very similar to Local Bitcoins, so the chance for scams is probable.
Buy Bitcoins in Australia with PayPal
You can buy Bitcoins in Australia with PayPal through any of the methods described above. Other local exchanges in Australia provide additional payment options as well, some of them are:
- LocalBitcoins P2P Exchange
- xCoins P2P Bitcoin Lending
- Cryptonit Cryptocurrency Exchange
Australian exchanges are amenable to the Australian law and the AML/CTF guidelines charted by AUSTRAC. Since April 2018, every Australian exchange working with cryptocurrency must be registered with the authorities.
Buy Bitcoins with PayPal through Virwox
Virwox is a virtual exchange platform for cryptocurrency and an authorised re-seller of Second Life Lindens, and they are an essential part of the method. We will go step-by-step so you can understand the procedure of buying Bitcoins with PayPal through Virwox clearly:
- Create an account
- Provide the personal information required
- Activate the account through your e-mail address
- Change the password to your new account (security reasons)
- Deposit money from your PayPal account
- Buy SLL (Second Life Lindens)
- Use your SLL to buy Bitcoins
- Withdraw the Bitcoins to your cryptocurrency wallet
This is a proven method to successfully purchase Bitcoins with Second Life Lindens on the Virwox exchange.
The “Expedited Virtual Currency Transaction System” patent
On March 1, 2018, the U.S. Patent and Trademark Office (USPTO) published the request for a patent by PayPal. The company wants to create secondary wallets, which will correspond to their own unique private keys for buyers and sellers.
The idea behind the technology is to avoid waiting for the transaction to be included in the next block on the network. Instead, the system would transfer private keys matching the exact amount of any specified cryptocurrency.
As it was described in the patent:
“The systems and methods of the present disclosure practically eliminate the amount of time the payee must wait to be sure they will receive a virtual currency payment in a virtual currency transaction by transferring to the payee private keys that are included in virtual currency wallets that are associated with predefined amounts of virtual currency that equal a payment amount identified in the virtual currency transaction.”
This is the first significant shift between Bitcoin and PayPal since the partnership announcement in 2010, which allowed merchants to accept the Bitcoin through the company’s Payments Hub. Now that you know how to buy Bitcoins with PayPal, let’s move on to other payment methods.