Is it possible to sell Bitcoins on an exchange which then transfers your money to a PayPal account? I'd like to avoid using a bank account for this. MtGox doesn't seem to support paypal...
I'm going to avoid selling without an exchange website so I don't get scammed.
All I want to do is convert BTC to dollars in a paypal account, not the other way. Will PayPal block my account if I am doing this?
This probably isn't exactly what you had in mind, but i've not found an easy to convert BTC to paypal. I've taken to selling coins instead, which isn't that much effort.
What I do is advertise on noticeboards around colleges, business parks and anywhere else I think there might be people interested. I link them to this ad i've posted
http://www.gumtree.com.au/s-ad/chatswood/other-stuff-for-sale/bitcoins-for-aud-sydney-chatswood-/1001215988 and ask them to do the following
1. After selecting send funds enter in
bitcoinsydney@gmail.com in the "to" field
2. Enter in [SALE AMOUNT] in the amount [[SALE AMOUNT] X [BTC RATE]]
3. Select AUD for the currency
4. Select Person and "gift"
5. Press continue
6. Ensure "I will pay the fee" is ticket
7. Enter in your bitcoin deposit address in the subject field at the bottom of the screen [where it says "you've got funds"]
8. ignore the message field, it's not relevant to my automated process.
9. Press "send money"
10. Usually the bitcoin network will process your confirmations within 20 minutes to 2 hours
It's obviously a leap of faith, but so is using an exchange or any of the other services. Usually most people like to conduct a face to face trade, or give me a call to chat before going through the transaction. From this i've built up a small base of customers who trust me, which gives me a better way of converting BTC to cash rather than withdrawing through an exchange.
I've not had any problems with paypal, though it is in the back of my mind. I withdraw all funds as soon as they hit paypal for that reason. At least then if they freeze my account for whatever reason [not sure what that would be] i'll only lose a small amount.
