Can you purchase bitcoin through PayPal? The short answer is “yes.” The long answer is “yes you can, but there are several barricades that often come with such a feat.” One can purchase bitcoin through a PayPal account, but there are very few platforms that allow this, as doing so has been deemed risky for the seller or sellers.
For starters, bitcoin buyers can always perform a chargeback, which is a demand by the issuing bank or credit card company that funds are returned to a buyer due to a disputed or fraudulent purchase. Unfortunately, there really is no way for a seller to contest such a charge, and so ultimately many bitcoin sellers would rather be safe than sorry and eliminate the option first hand.
The second problem is that there are many hacked accounts, and if and when PayPal recognizes that such an account has been used fraudulently or against the will of the original account holder, a chargeback is then performed, and the sale becomes null and void.
Finally, there is probably the largest reason of all… PayPal, for lack of better terms, simply doesn’t like bitcoin. As far as PayPal is concerned, bitcoin is competition, and PayPal will often ban accounts that have any association with bitcoin. Balances in these accounts are also often frozen.
In the long run, however, buying bitcoin through PayPal is not completely impossible. Under the right circumstances it can be done, although those taking part in such transactions will likely be stuck looking at higher transaction fees. However, if this is considered workable, one can easily use something like the Virtual World Exchange to purchase Second Life Lindens (SLL) with PayPal. The SLL can then be converted to bitcoins. Note that such a process will often charge fees of up to six percent, but the upside is that the process allows one to purchase bitcoins very quickly. Purchasing SLL is also acceptable to PayPal’s terms of service.
Finally, if one wants to take advantage of bitcoin’s price volatility or they happen to be a more experienced trader, they can always trade contracts for difference (CFDs) on bitcoin via PayPal on sites such as AvaTrade or Plus500.
PayPal and bitcoin prove that where there’s a will, there’s a way.
Image Courtesy of PayPal