PayPal is no doubt the most widely used payment processor. PayPal is providing services in 202 countries in 25 currencies. While it’s a number one choice for majority of the people, there are certain downsides. One of such downsides is, charge-back. This is the reason why major BitCoin companies like BitStamp do not accept PayPal as a way of depositing funds.
According to PayPal’s Terms of Services Section 3.7:
If a buyer opens a Dispute, PayPal may reverse the transaction, and remove the funds from your Account without requiring the buyer to escalate the Dispute to a Claim.
Fraudsters exploited the charge-back feature, they used to buy coins with PayPal and after a successful transaction, they file a dispute to PayPal that they didn’t receive what was promised. Under section 3.7 the fraudsters get their money back. This caused a great discrepancy in the bitcoin community.
So why am I writing this post with such title? Read more to find out why.
How to Buy Bitcoins with PayPal:
In this article I will show you how you can purchase BitCoins easily in a secure way. We will use a virtual currency exchange VirWox.com What we are going to do is, buy virtual currency with PayPal credit and then we will exchange that virtual currency with BitCoins and voila!
Is this Method Safe?
Yes! It is as much save as buying on Amazon. VirWox is a well established trading network trading in Second Life Linden Dollars (SLL)
Things you’ll need:
Step 1: Open a new VirWox Account
Assuming you already have a shining PayPal account, Go to VirWox.com and sign up. [click on Not registered yet?].
On signup page, enter your desired username, email address, first and last names, country and note down you Terminal Identification Number and store it in a safe place as you would do to secure your ATM PIN code.
Step 2: Deposit Funds From PayPal
After successful sign up go to Deposit section.
Scroll down to PayPal Express Checkout. Enter the amount, select currency and click the check out with PayPal button.
Apart from PayPal there are a lot of other payment processors supported by VirWoX such as Skrill, Visa, MasterCard, etc.
Step 3: Start Trading your USD currency with Linden Dollars:
Depending on your currency click on the trade links in the exchange panel. USD/SLL or EUR/SLL or GBP/SLL. Clicking on any of the links will take you to the trading page. VirWox provide two types of trading: 1. Market Tade 2. Limit Trade
- Market Trade: Sell your currency at the highest amount that someone else has already agreed to pay for it.
- Limit Trade: Sell your currency with your set price that you are willing to pay.
If you are in a hurry, market trade is the best option for you otherwise, make sure that the price you set is reasonable compared to others.
Step4: Convert your Linden Dollar into Bitcoins:
Follow the previous step but this time with BTC/SLL trading. Enter your desired BTC according to your available Linden Dollars.
Now that you have your BTC, it’s time to transfer those BTC to your favorite wallet. In your My Account panel, click on Withdraw and you’ll be prompted to add your Bitcoin wallet’s address. You know the rest, don’t you?
Note: You can check the trading fees here.
You can also use this method to buy Bitcoins with your Credit Card.