Way back in 2009, when Bitcoin was first created, it was almost impossible to buy some for the first few years. There were hardly any exchanges that sold cryptocurrency at the time. When you finally find a legitimate one, they have few real-world payment methods available.
Fast forward a few years, and voila! It is straightforward to buy bitcoin now on all sorts of platforms. But there has been one area of difficulty in incorporating the traditional financial online giants: Paypal. Even today, the majority of cryptocurrency exchanges do not accept PayPal. Most of them that allow fiat currency deposits still won’t support it.
Paypal Specifics The reason is mainly attributed to how Paypal’s chargeback policy works. When customers buy products using PayPal, they are offered buyer protection, which means they can lodge a claim with PayPal if they want to get their money back.
Most of the time, if the seller can’t prove that the item was delivered, then PayPal will refund the money to the buyer. When it comes to Bitcoin, there is no way to confirm that the buyer didn’t receive the funds, even if they did accept them, so, understandably, the exchanges are concerned about it.
However, that doesn’t mean you can’t do it! There are companies out there who have created legitimate ways to do this and have become experts in BTC to PayPal payment methods, attracting a wide variety of sellers and buyers from across the world.
Transacting With BitcoinSome of these peer-to-peer marketplaces allow you to sell and buy Bitcoin with almost anything (even Amazon gift cards and Skype credits), and they are relatively easy to set up. Usually, you would be required to first set up an account.
Then you can get right into it. You would first choose a payment method to buy the amount you wish. Then you can select your seller. You can make your choice manually or let the site choose an appropriate seller. Once the trade is initiated, an online chat dialogue box will open up where you can finalize the deal.
These built-in mechanisms guarantee the safety of transactions for both the buyer and the seller. Once you agree, the seller’s Bitcoins will be sent into escrow until your payment. The coins are then released into your account. Bear in mind that there will be a time-limit restriction to finalize the deal (usually 30 minutes). The sale will be automatically cancelled if the seller does not receive a payment within that time.
The escrow function of these 3rd party peer to peer platforms makes dealing with strangers on the internet and PayPal a lot more secure with a lot less risk when buying/selling bitcoin. Make sure you choose a reputable one and select your buyers/sellers carefully. Always remember that Bitcoin is money, and the same common sense applies.
