Introduction – How to buy or sell Bitcoin instantly using PayPal
Attention: The method in this guide is no longer working as VirWox has permanently closed its business on January 6, 2020.
In this article you will learn how to buy Bitcoin with PayPal and how to exchange Bitcoin to PayPal. There are numerous reasons why people want to use PayPal to buy or sell Bitcoin, and it’s possible, it’s just not directly possible. PayPal doesn’t offer you to exchange Bitcoin, but there is a workaround to use PayPal with Bitcoin. Don’t be afraid, it might look tricky at first, but once you understand it will be quite easy and you can start to buy or sell Bitcoin via PayPal.
One of the only instant and secure ways to buy or sell Bitcoin using Paypal, is to use an exchange called VirWox. Through this site you will be able to buy and sell Bitcoin with PayPal. But there is a problem, the fees are quite high and the reason is that they need to compensate the risk of customer chargebacks. To understand this, you must know why there are not many exchanges or people who offer you to trade Bitcoin with people who offer to pay with PayPal.
- People that buy with PayPal can perform a chargeback. For a Bitcoin seller this is very risky as Bitcoin transactions are permanent. This means that a Bitcoin seller has the risk that he sends the amount of Bitcoin, while the buyer could demand his money back even if he received the amount of Bitcoin.
- In the past there have been many hacked PayPal accounts, this makes it even more risky for a Bitcoin seller to trade using PayPal, remember the mentioned possibility of chargebacks.
So, as you can see, VirWox is taking a risk by offering you to buy Bitcoin via PayPal. It’s likely that they have high fees to compensate the risk of customer chargebacks. Many people say they have too high fees, but you must understand it from the point of an exchange that takes the risk to sell Bitcoin via PayPal.
Apart from this disadvantage, there are several benefits to use this exchange. You finally can exchange Bitcoin through PayPal, you can exchange your PayPal balance to Bitcoin or exchange your Bitcoin balance to PayPal. Exchanging works almost instantly and you don’t have to use your bank account for the trade.
Information – What you should know before you use VirWox
- The exchange is legit and does offer a service since 2007. Initially created as an exchange for the virtual world currency of Second Life, they did add the possibility to exchange other currencies as well. They do have over 100,000 registered users.
- If you are new user, they will hold your first transactions in queue for up to 48 hours. This is a valid precaution, future transactions will be faster once your account is audited.
- They have a comprehensive collection of answers to the most frequently asked questions, check out the “About VirWox” link on their site. For any questions you can contact them at firstname.lastname@example.org.
- There is further precaution. There are limits depending on your account level.
Getting started – How to create your account
Visit VirWox and check out the “Customer Login” panel on the left side. Below that panel you will find some links, one of them is called “Not registered yet?”, click on the link. This will load the registration page where you need to fill out some informations to set up your account.
Type in all needed informations, important are the fields “Basic Information” and “Personal Information”, also don’t forget to mark that you have read the terms in the field “Terms of Service”. Fill out the captcha and wait for the email with the temporary password, and login within 24 hours. Finally, it is also advised to change your password via the “Change Settings” page. Think out a very strong password for good protection.
Tutorial – How to buy Bitcoin with PayPal through VirWox
- To buy Bitcoin through this exchange, you need to click on “Deposit” in the “My account” section in the left panel. On the following page you need to find the “PayPal Express Checkout” section. There is a field where you can type in what you want to deposit and you can choose the currency. After that, click on the “Check out with PayPal” button.
- Now we need to exchange the added amount to the virtual world currency of Second Life (SSL). Check out the “Exchange” section on the left panel and click on the link “EUR/SLL” or “USD/SLL” depending on the currency you added to your account.
- Finally we just have to click on “BTC/SLL” link in the “Exchange” section of the left panel. From there we can now exchange our SSL currency to Bitcoin.
- Although this is optional, we could send our Bitcoin to any external Bitcoin address, for example to our own wallet. To do this, click on the “Withdraw” link in the “My account section” of the left panel. On the following page you will find a section called “Withdraw to Bitcoin”. Type in the amount of BTC you want to withdraw and the target Bitcoin address. After that you just have to click on “Request Withdrawal”.
Tutorial – How to sell Bitcoin with PayPal through VirWox
- To sell Bitcoin through this exchange, we need to generate a Bitcoin address there. Click on the “Deposit” link of the My Account” in the left panel. On the following page you will find a “Bitcoin” section. Click on the button “Generate my Bitcoin address”. The site will generate a Bitcoin address for you where you can deposit the amount you want to sell.
- Now transfer the amount of Bitcoin you want to exchange to the address you generated in the earlier step and wait until all confirmations go through.
- When your payment is arrived, you should see your Bitcoin on the left side under “Account Balance” and “BTC”. Now click the “BTC/SLL” exchange link in the left “Exchange” menu. On this page you need to pay attention to the “Exchange BTC to SLL” tab and there you read “I want to sell…” where you just have to type in the amount you want to exchange. If you typed the amount in, you need to click on “Next”. Pay attention to the added fees and if you are ok with it, click on “Place Order”.
- The order should now be placed and filled completely. Since you exchanged BTC for SSL, you should now see your SSL amount on the left side under “Account Balance”. Next we need to click on the “USD/SLL” link in the “Exchange” menu. On this page under “I want to buy…”, type in the amount of USD you want to get. Also here click on “Next” and if you are ok with the fees, click on “Place Order”.
- Under “Account Balance” you should now see that you do now have USD balance. In the last step we need to withdraw our USD balance. Check out the “My Account” tab and click on the “Withdraw” link. On this page you can see the “Withdraw to PayPal” area where you can type in the amount you want to withdraw and your PayPal email address where you want to receive the amount. Double check if everything is right, because you won’t be asked for confirmation after you click “Request Withdrawal”. With this last click you should now see a message that your withdrawal has been processed. It’ll take some time until you receive the amount on PayPal, usually an hour.
I hope you liked this guide about VirWox and I hope you learned how to buy Bitcoin with Paypal or how to withdraw your Bitcoin to PayPal. Let me know in the comments if you are happy with my guide or if you want to add some information’s.