PayPal has hundreds millions of users globally. But their customers are always struggling to buy bitcoin with it. This is due to the implemented biased buyers protection policy which is always against the sellers. Buyers could claim they have’t received goods and requested charge back fraudulently after receiving bitcoin. Bitcoin transactions are virtual and PayPal don’t accept them as a proof of completing the trades. It is too risky for the bitcoin sellers. So there are no many sellers on the market place. Only limited number of services are accepting PayPal for Bitcoin and willing to take the risk but in return for high commission fees.
1. Buy Bitcoin from The Virtual World Exchange
Users are not directly buying BTC. After depositing USD through Paypal to the exchange, they buy SLL (Linden Dollars, a virtual used for Second Life) first, then convert SLL to BTC. It’s explained in detail here, or Youtube video.
Virwox limits the amount of deposits by Paypal, based on the account level. The longer your first successful Paypal deposit is, the higher level your account will get. At the beginning, a user is only allowed to deposit 90 Euro in 24 hours, no more than 270 Euro in 30 days. However, for new users, their transactions will be hold up to 48 hours. The commission fees is about 7.8%.
2. Buy Bitcoin from LocalBitcoins
Localbitcoins is trully P2P bitcoin exchange based on location, which automatically direct users to their local market and match the trades between the two parties. It offers paypal as a payment option. Users can buy BTC through Paypal after getting their identification verified. Nevertheless, BTC sellers are normally asking for around 10% of premium. This is the tutorial and Youtube video.
2. Buy Bitcoin from Paxful
Paxful is nearly operating the same way as Localbitcoins, which is a Peer to Peer Bitcoin marketplace connecting buyers with sellers. You can select Paypal payment method and buy bitcoin.