Bitcoin Forum

Mod:  Please move this if I posted to the wrong sub forum.

I'm new to BTC and see a good number of ads on LBC for people buying BTC for Paypal (sent as payment for goods/services) at slightly higher than market rate.  How much risk is associated with this?  Some of these sellers have 100% feedback and 1k+ confirmed trades.  

I am aware of the whole charge back issue with Paypal MC cards purchased with CC.  Does the same principle apply here?

you can move it yourself there are options at the top right

localbitcoin is pretty safe if you deal with high trusted users, there were some casual scammer here and there, i don't know if those scammer were new user or they hacked a trusted user to ask, i think it's the latter

You need to know that Paypal not officially allowing trading Bitcoin. Even if the seller is trustable you never know if Paypal is going to block or close your account because of money laundering suspicions. I don't recommend to buy/sell crypto currencies via Paypal.

I don't know about others but paypal for btc is not an option for me. First is the chargeback and even if you have a user having more than a thousand positive rating there will not be a guarantee that the person can be fully trusted. There's always a way to get your funds to coinbase or if there no option have transfer it via paypal, have someone close purchase on your behalf and you pay back to him via paypal.

I'm sure there are trusted buyers and sellers of bitcoin for paypal on there, but even if they've done plenty of trades and received a lot of feedback that doesn't mean to say they can't chargeback at some point. It wouldn't surprise me if some sellers just try the long con building up  few trades than attempting to do a mass chargeback. I'd just be weary of the risks and do you research on the buyers but I personally wouldn't risk it.

I'd personally stay away with using PayPal for any crypto transactions, as there are better options to use anyway and for the most part keep your anonymity that bitcoin was founded on.

Absolutely. The chance for chargeback is always there. You need to access the risk associated with a higher tier trade when it comes to Local Bitcoins. If you are trading hundreds of dollars worth of Bitcoin, only trade with a reputable seller who has been around for an extended period of time. Keep in mind, you can charge back the payment LONG after the transaction is done. So for example, the sellers you talked about in the OP, if they were to take an "exit", they could charge back EVERY outgoing payment for the past months. If you're doing hundreds of dollars worth of trades, then you need to consider this. My recommendation is stay away. Think of it like this, only trade what you can afford to lose.

Thanks everyone for the advice.  I will definitely take the risk of charge back  into consideration and may still end up trading a low amount that I am ok with losing if it came down to it.

Do exactly that. Localbitcoins is actually the safest and best place to trade bitcoins for paypal, if you are comfortable sending your ID if they request it. But it does happen that if you send a big amount, then they might just charge back in that case and not mind the negative rating left by you. So as long as you are trading small amounts in the 45-day intervals, it should be fine.

Hi this is not the right board also a suggestion from me , beware of paypal and those methods
and read rules first in this thread .

Xing Ming .

What I dont get is, why they don't allow that when they had an advertisement mentioning Bitcoin? didnt you see the Youtube video??

They are talking heads. Use localbitcoins with national bank transfer. Other payment options are also possible, moneygram and the like, it should be safe. Or cash, if there is a seller in your area. Most people you meet are normal, non violent, just like the donutsellers and shop attendants you meet daily. Localbitcoins has a working system for disputing trades. (Never used it, has not been necessary).

Don't do it!   I had 2 PayPal accounts closed this week because of localbitcoins and PayPal.   For some reason, the second paypal even thinks you are trading BTC, they close your account without notice and hold all funds for 180 days.