With PayPalMany people want to buy bitcoin with PayPal because it's a common way to pay online. But PayPal payments are reversible, while Bitcoin transactions are not. This makes it risky for dealers and exchanges who would let users convert PayPal to bitcoin.
However, buying bitcoins with PayPal is still possible although comes with high fees. There are only two decent ways to buy bitcoin with PayPal: VirWoX or LocalBitcoins.
Buying bitcoins with PayPal through VirWoX
Using VirWoX you're going to pay around 9% in fees, but this is still the cheapest, easiest, and fastest way to buy BTC with PayPal. You may need to wait a couple days after opening a VirWoX account before you can deposit money. After your first deposit, future deposits can be made instantly. Your initial buying limit is $88 per day or $261 per month, although these limits grow over time if you buy frequently.
VirWoX stands for Virtual World Exchange, and mainly serves as a way for people to buy Second Life Lindens, a currency used in the virtual world Second Life. You can't buy bitcoin with PayPal directly at VirWoX, but it's possible to first buy Second Life Lindens (SLL) and then trade your Second Life Lindens for Bitcoin.
1. Open an account on VirWoX From the home page, click on "Not registered yet?"
2. Enter the details for your account
Now you'll enter your details in order to create an account. Don't get confused by the section titled "Link to avatar". You can leave this untouched.
3. Check your email
At this point, your account has been created. A temporary password will be emailed to the address you provided in step two.
This password is temporary and MUST be changed. If you don't change this password within 24 hours your account will be deleted. We show you how to change your password in the next step.
4. Change your password
Once you login with your temporary password, click on "Change settings" in the left sidebar.
5. Create a new password
Enter a new password. Make sure you choose a strong password, since you're dealing with money!
6. Deposit from PayPal
Once you've changed your password, click on "Deposit" in the left sidebar.
7. Deposit and select amount
Scroll down a bit to find the option to deposit with PayPal. Enter the amount you want to deposit on the left and then click the "Checkout with PayPal" button.
8. Login to PayPal
Sign in to PayPal. Note on the left side that I'm depositing $2. This is the amount I chose back in step 7. If this amount is not what you chose, go back and enter a new amount.
9. Verify account balance
If you followed PayPal's directions successfully, you should now see a balance in your VirWoX account. Note that the amount displayed in your VirWoX account may be slightly less than the amount you entered in step 7. This is because PayPal charges a 2.9% + $0.30 fee per deposit.
After this, click on "USD/SLL". If you deposited with Euro then click "EUR/SLL".
10. Trade USD for Second Life Lindens
Remember how we said you'll have to buy Second Life Lindens and then trade those for bitcoins? Well, now we're buying the SLL. In this step you need to sell the USD you deposited from PayPal and get SLL.
Enter the amount of USD you want to sell.
11. Complete order
You can see in the top left of the image below that I now have a balance in SLL. If you now have SLL, that means everything has gone well.
Now click on "BTC/SLL" in the left sidebar. Now we're going to exchange our SLL for bitcoin.
12. Trade SLL for BTC
The process is the same here. Simply enter the amount of BTC you want to buy and click "Next".
13. Buy bitcoin!
That's it! You should now see your balance in BTC displayed in the top left of the screen. You've successfully bought bitcoin with PayPal.
To sell bitcoins to paypal, just follow this guide in reverse
Buy/Sell bitcoins from LocalBitcoins.comLocalBitcoins.com allows you to buy and/or sell bitcoins using various methods, from paypal and national bank transfer, to meeting up face-to-face and paying with cash. How to make your first transaction:
Register an account with LocalBitcoins. You get a free and secure online bitcoin wallet. No additional apps are needed. If you already have an account, skip to the next step.
Go to the main page and in the orange box fill in the form with the amount you want to buy in your currency, your location and choose a payment method. If you're unsure how you want to pay, choose "All online offers" as your paymenet method. The site will list bitcoin traders available in your region.
From the list of offers, choose one from a trader with a good reputation score and a high amount of trades. The online indicator shows if a trader is online right now (green), inactive (yellow) or offline (grey). You can click the 'Buy' button to view more information about an offer.
After you press the 'Buy' button you'll see more information about the offer, including the terms of the trade. Read through them before submitting the trade request, if you don't agree with them you can go back to the previous page and choose another offer.
To start the trade, type in the blue box how much you want to buy, enter a message for the seller and click the Send trade request button to the start the trade. Be sure you're ready to pay when clicking the button, if you don't pay before the payment window is over, the trade will be automatically cancelled.
Once you have made the payment, click the mark payment complete button. Once the trader has verified that your payment has been received your Bitcoin will be released from escrow and they are instantly availalbe in your LocalBitcoins wallet.
And that's all there is to it, congratulations on your first Bitcoin trade!