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 one that was legitimate, they had hardly any real-world payment methods available. 

Fast forward a few years and voila! It is really easy 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. The majority of them that allow fiat currency deposits still won’t support it. 

Paypal Specifics The reason is mostly attributed to the way that Paypal’s chargeback policy works. Basically, when customers buy products using PayPal, they are offered buyer protection, which means they can lodge a claim with PayPal if they would like to attempt 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 prove that the buyer didn’t receive the funds, even if they did receive them; so it’s understandable that 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 mostly quite 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 for buying the amount you wish to. Then you can choose your seller. You can either make your choice manually or let the site choose an appropriate seller for you. Once the trade is initiated, an online chat dialogue box will open up where you can finalize the deal.

Once you both agree, the seller’s Bitcoins will be sent into escrow until your payment has been sent. The coins are then released into your account. Bear in mind that the will be a time-limit restriction in which to finalize the deal (usually 30 minutes). If payment is not received by the seller within that time, the deal will be automatically cancelled. These are built-in mechanisms that would guarantee the safety of transactions for both the buyer and the seller.

The escrow function of these 3rd party peer to peer platforms makes dealing with strangers on the internet and PayPal itself a lot more secure with a lot less risk when buying/selling bitcoin. Just make sure you choose a reputable one and once there, choose your buyers/sellers carefully. Always remember that Bitcoin is money, and the same common sense would apply.