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Author Topic: Is buying bitcoin using ewallets like Paypal safe?  (Read 204 times)
gentleman2019
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December 15, 2019, 11:37:26 PM
 #1

I'm looking to invest in BTC in small transactions. I've been reading on the risks of using Paypal to Sell BTC (payment reversals etc).

I wanted to know if at least buying BTC using traditional e-wallets like Paypal is safe, or can third party type scam be pulled even there?

Thanks..
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December 16, 2019, 12:36:29 AM
Merited by hugeblack (1)
 #2

When buying, you are safe as long as you use a reputable escrow or the seller sends you the bitcoins first.
The risk when selling bitcoin against PayPal is that the buyer can raise a chargeback and get his money back even after the transaction had been cleared, whereas, you can't reverse the bitcoin transaction.

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December 16, 2019, 01:21:21 AM
Merited by hugeblack (1)
 #3

Most businesses that are willing to accept PayPal in exchange for bitcoin are either going to charge you rates well above what is commercially competitive, or will be trying to scam you.

Your best bet is to convert any money you have in your PayPal account to money in your bank account and either buy bitcoin for cash, or use your bank balance to fund a deposit at an exchange. 


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December 16, 2019, 01:53:22 AM
 #4

I wanted to know if at least buying BTC using traditional e-wallets like Paypal is safe, or can third party type scam be pulled even there?

Once the coins are sitting in your wallet, that's final. The only scam that can be pulled off against you in this scenario is they don't send the coins at all, and even then you could probably chargeback. The seller shoulders all the risk, basically.

I should also note that offering to buy Bitcoin with Paypal in this forum can get you red-trusted unless you already have a good trading reputation, so I would advise against it.

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December 16, 2019, 03:15:02 AM
Merited by DdmrDdmr (1)
 #5

There are people here on Bitcointalk that will be willing to sell BTC for PayPal. But in your case, with a new and a not-reputable account, forget it. People will be assuming that you're going to do a chargeback.

In your case, as you're the buyer, the only scam a bitcoin seller can do on you is to doublespend the bitcoin sent to you. That's why it's very important to wait for at least 3-6 confirmations before settling with the money.

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December 16, 2019, 04:31:10 AM
Merited by OgNasty (1)
 #6

one thing that people sometimes overlook is the terms of services of that other e-wallet that they are trying to use. some of them have strict rules when it comes to using their services for trading bitcoin and can even block your account or close it permanently. bitcoin is their competition after all! so make sure to check the ToS of that e-wallet (like PayPal) and see if they let you use it for purchasing bitcoin.

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December 16, 2019, 04:49:26 AM
 #7

I'd say it's safe, as you will be getting BTC which can't be reversed (do receive BTC first, before paying money via PayPal).

It's always a good idea to use trusted escrows to mitigate the risk.

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December 16, 2019, 05:23:07 AM
 #8

I'd say it's safe, as you will be getting BTC which can't be reversed (do receive BTC first, before paying money via PayPal).

Well, for the seller it's not safe. Especially with a new account without prior trade history.

Why not use debit/credit cards? If you're in the US you can use something like Privacy to mask your card details. Assuming you're fine with giving them your details though.

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December 16, 2019, 06:39:00 AM
 #9

As you can see, for people that are new to the forum as a buyer, it is likely you will be rejected by those sellers because you can easily reverse the transaction. You'll get the bitcoin as your purchase from the seller while refunding your balance with PayPal.

So, if you are dealing with someone(p2p) don't be surprised if most reputable sellers will decline to that kind of deal. Before it was easy to purchase bitcoin through PayPal with Virwox but they are about to end their service.

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December 16, 2019, 06:48:12 AM
Merited by Coolcryptovator (1)
 #10

It's totally safe considering you'll be recieving the bitcoin first before crediting the seller assuming you're carrying out the transaction through peer2peer means like how many buyers does on the forum and for transactions you're mandated to pay before your recieve the bitcoin, you can utilize the service of a third party users to stand as escrow.

If you're using the service of a Exchange provider via website, you can research on the site to avoid falling victims to scam and feel free to ask for favourable recommendation on the forum and users wih the right knowledge will be willing to assist but still carryout personal research on the recommendations.




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December 16, 2019, 07:51:45 AM
 #11

Depends. Peer to peer transactions are the hardest types to ensure the legitimacy and security of the transaction, but it is by far the easiest to perform. If you'd like, ask for a trusted middleman, but that may cost more. Idk if it's possible but just load up fiat to exchanges through your bank accounts linked to your paypal, though this is KYC at its finest already.

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December 16, 2019, 10:04:53 AM
 #12

When buying, you are safe as long as you use a reputable escrow or the seller sends you the bitcoins first.
The risk when selling bitcoin against PayPal is that the buyer can raise a chargeback and get his money back even after the transaction had been cleared, whereas, you can't reverse the bitcoin transaction.


Even if he is buying and the other guy send you first the Bitcoin, he can still report your account and your account will possibly get limited, it's better to not transact using Paypal or to a guy who is using Paypal, I don't like Paypal because they are very strict they will always ask for transactions that looks suspicious.

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December 16, 2019, 10:08:31 AM
 #13

Why would you want to use a questionable service like PayPal, when you can use an exchange like Coinbase, and you can control the price you pay for the coins.

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December 16, 2019, 12:52:05 PM
 #14

Why would you want to use a questionable service like PayPal, when you can use an exchange like Coinbase, and you can control the price you pay for the coins.

My guess: OP wants to buy bitcoin online, without letting his bank know about the transaction. Whereas you can use PayPal fine(mostly, if your account doesn't get locked for crypto transactions) if you aren't transacting like thousands and thousands every month.

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December 16, 2019, 11:41:59 PM
 #15

Even if he is buying and the other guy send you first the Bitcoin, he can still report your account and your account will possibly get limited
Yes, Paypal may freeze your account if they find out that you used it to buy/sell cryptocurrencies.
But why would the seller report you! His account will be banned too and he will lose 2x more than you.

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December 17, 2019, 06:26:19 AM
 #16

E wallets like PayPal are very risky to use because you can never tell what the instinct of the person that wants send the PP is. We can't blame PayPal here because they believe and want to protect their customers, it's in their T&C too


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December 17, 2019, 08:04:56 AM
 #17

I don't think it's safe to buy Bitcoin using wallets like PayPal Because it is so risky In most cases new services are scammed And they provide less protection. Use PayPal Account That's why stay away from using PayPal accounts That is why before you use wallet toss to see if you are getting your Bitcoin.

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December 17, 2019, 11:47:07 AM
 #18

I've been reading on the risks of using Paypal to Sell BTC (payment reversals etc).

You can sell to Coinbase and they'll pay out in Paypal. That's about as legit as it gets but also the only viable option at all.

Anywhere that sells BTC for Paypal is either nuts or very brave and no matter what they'll make you pay for it.




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December 18, 2019, 08:51:45 PM
 #19

I consider it as a safe way of payment. Personally, I always pay on CoinDeal with Skrill and everything works fine. CoinDeal doesn't accept PayPal, but it accepts Skrill or E-pay, it's the alternative to Paypal. These are reliable platforms so there is nothing to worry about.
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December 20, 2019, 09:58:38 AM
 #20

It actually depends on a platform you are using to exchange your paypal to btc please be very careful to some imitations very similar to legit websites why dont you cashout first your paypal balance into your bank account and then from bank you can buy bitcoins easily like in Coinbase or Abra but it depends on your location or here in this forum many trusted members are willing to exchange pp to btc. 

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