ok, so I keep reading alot of posts by people who want to buy BTC using paypal. It seems that the default response is "don't use paypal you can get scammed!!!!1!!"
. This is in fact not true provided you (or rather the buyer) can use paypal correctly. Here is a very short guide on how to SELL bitcoin on paypal and not get scammed:
1. Find person to buy your bitcoin.
2. Ask for the payment as a PayPal gift payment
, which is found under the 'Personal' tab in payment type.http://files.meetup.com/1307107/Paypal%20Send-as-Gift%20Option.jpg
3. When payment arrives send bitcoins.
4. Have a mojito.
The reason this works is that "gift" payments cannot be disputed through paypal. So once the person has sent the "gift" they cannot then cancel the payment. Note that I have said this is guide to SELL bitcoin without getting scammed. In fact the risk is just moved to the buyer, who has to trust that the seller will send the BTC after the paypal gift is received.
An added advantage of this method is that gift payment also HAVE NO FEES! So that is added incentive for both parties.
Hope this helps y'all
EDIT: This may not work in your country, check your own paypal site for detailsEDIT2: This is not fool proof. See comments below (particularly from MiningBuddy)