Can I buy Bitcoins with PayPal in Canada?
Canadians can buy Bitcoins with cash, credit card and other payment modes easily with so many reputed online exchanges. One such popular is Coinbase where you can purchase bitcoins with a credit card. The fees are 3.99% per purchase, and your bitcoins are delivered instantly. Coinmama is another which allows customers in almost every country to buy bitcoin with a credit or debit card. They charge a 6% fee on each purchase. If buying less than $150 worth of bitcoins with coinmama, you won’t need to verify your identity. This convenience makes small purchases quick and easy. Similarly there are many exchanges that allow you to buy Bitcoins (BTC ) with credit card.
But the question here is can you buy Bitcoins with PayPal in Canada? You can buy it with Paypal but it seems a bit expensive affair. One of the main reasons why it’s difficult is the potential for chargebacks. Major exchanges won’t allow PayPal transactions because it would be too easy for people to buy the Bitcoins, then use PayPal’s support system to chargeback their purchase and receive their original purchase fee back. That would be an unscrupulous and fraudulent way to buy Bitcoin, even when using the services below so is not encouraged but you can try if you want.
As you know that to receive any BTC regardless of any payment mode you need to have a Bitcoin wallet to store BTC as well as a Paypal account to do the transaction, after this you can follow the below steps to buy Bitcoins with PayPal.
You can buy Bitcoins with Paypal through direct trade
This is because cryptocurrency exchanges don’t allow you to buy Bitcoin with PayPal. Online sites that facilitate these kinds of peer-to-peer transactions help put you in touch with someone who is looking to sell Bitcoins who accept PayPal as a payment method.
The two main websites for conducting these kinds of transactions are LocalBitcoins and Paxful. Both offer a multitude of payment methods for Bitcoin, from gift cards to cash, but PayPal is a popular choice.
To buy Bitcoin with PayPal on either service, just visit any of the above mentioned online site that is LocalBitcoins or Paxful and create an account.
You can use the respective site’s search tools to select the amount of Bitcoin you want to buy (or CAD you want to spend), with PayPal as your preferred payment option.
Choose an offer based on the relative Bitcoin price, user rating, or customer reviews. Click the “Buy” button on the right-hand side.
Make sure to read the specific terms of the deal with your chosen seller. Some request ID, others a contact number.
Then confirm the amount of Bitcoin you want to buy and click the large “Buy” button to continue the transaction.
You will then be put into direct contact with the seller. The specifics of the transactions will be up to you to discuss and confirm with them, but once the process is complete and you have sent your payment using PayPal, your newly acquired Bitcoin will be sent to your specified wallet.
You can buy with PayPal as Bitcoin Loans
Most exchanges don’t accept PayPal payments; however, you can use the VirWox platform to exchange fiat currency for SLL (Second Life Linden Dollars), which you can then use to acquire bitcoin.
One online site named XCoins offers an automated system to buy BTC than the pure direct trade sites as mentioned above. xCoins is a peer-to-peer lending platform for bitcoin lenders and borrowers. It accepts PayPal as a payment method for people wanting to access a “secured loan” of bitcoin. XCoins operates what it describes as a Bitcoin secured loan system, whereby it allows Bitcoin owners to “lend” their cryptocurrency to potential PayPal buyers who can then do with it what they will. They loan it, in exchange for payment and one of those payment options is PayPal.
XCoins touts itself for offering low fees for Bitcoin purchases, though for the convenience of using its service you pay a lenders fee, which at its lowest is 15 percent. You also pay a “loan origination fee,” at 7.5 percent of your investment and a PayPal processing fee of several percent plus a flat rate of a few cents on top of that. As with buying through direct trade websites, PayPal transactions on Xcoins are not cheap.
Simply visit the XCoins homepage and click “Get Bitcoin” in the top menu.
Sign up for an account and verify it with the link emailed to you.
Set up two-factor authentication through your cell phone device.
Input the amount of Bitcoin you want to buy in Bitcoin or your chosen currency. Xcoins will then search for a suitable lender for your transaction.
When a lender has been found, you’ll be shown the details of the transaction, including processing and lender fees. If you are happy to go ahead with the purchase based on those figures, read the linked loan agreement and tick the corresponding box to show you have done so. Then click “Continue to Payment.”
You will then be redirected to your PayPal account, where you will need to login and validate the transaction as usual.
Once you have returned to Xcoins, your Bitcoin will be sent straight to your Xcoins wallet, at which point you can send it to a more secure wallet of your choice.
If you’re considering buying crypto with PayPal, make sure you’re aware of all fees involved:
- Many trading platforms impose high fees on PayPal transactions. These could be as much as 10% of your transaction amount.
- If you’re buying through a platform that doesn’t accept CAD, currency conversion fees may also apply. If you’re converting to US dollars, PayPal’s fee is 3.7% above the exchange rate plus a fixed fee. For all other currencies, the fee is 3.9% above the exchange rate plus a fixed fee. The fixed fee differs depending on the currency you’re converting to, Click here to find the fees.
Finally it is advised that the best way to buy Bitcoins in Canada is with credit cards as PayPal is costly. You should sell bitcoins them for cash in person meet ups or sell them for only money transfers and make sure they send you a picture with the bank receipt and it says No Refund to secure your transactions.