Would you like to buy cryptocurrency with PayPal? Unfortunately, now it is impossible to buy bitcoin using PayPal directly. This option is now banned due to numerous cases of fraud. There were many chargebacks, when a person who had bought bitcoins claimed that he/she received nothing. In this way, a scammer ended up having both bitcoins and money back. Of course, this does not mean that buying cryptocurrency via PayPal is impossible. However, now you will need to use third party services.
There are two main categories of assumptions on why PayPal bans bitcoin operations:
- PayPal tries to prevent fraud;
- PayPal perceives bitcoin as its competitor.
As to the first assumption, one of the biggest advantages of PayPal is its readiness to handle complaints. PayPal is reversible within up to 60 days from the moment of a deal. At the same time, one of the biggest advantages of bitcoin is inability to trace it. Bitcoin is like cash. You can buy, sell and have it anonymously. If you lose it, you have no chance to find it on the web. The anonymity of using Bitcoin cuts both ends. On one hand, it provides endless opportunities. On the other hand, it creates additional risks. As a result, a lot of scammers decided to make use of this feature. They claimed they have never received bitcoins they have paid for and it was impossible for PayPal to check if it was true.
