PayPal makes transactions done online flat and easy. It is an intermediary between a physical bank and the internet. Bitcoins, on the other hand, is a currency and payment system that is independent of the flat monetary system, making an online purchase more like a cash purchase in real life. The question, therefore, becomes how can you buy bitcoins with PayPal so that you do not have to link your bank account directly to a bitcoin exchange.
This has been one of the biggest issues with Bitcoins since it is possible to buy them but not easily. Finding a credible place to buy Bitcoins using Bitcoins is still an issue to date. This difficulty arises from numerous situations where a charge-back is initiated by a person who claims he/she has not received their Bitcoins after buying with PayPal. Fraudulent merchants are favored by the current systems so most Bitcoin traders refrain from using PayPal to buy or sell Bitcoins for fear of losing their money.
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Buying Bitcoins With PayPal using Virwox
Virwox, is technically not a Bitcoin exchange site rather it is a market for a currency called Second Life Lindens (SSL). SSL is often used in a Second Life virtual world. It is not possible to buy bitcoins directly with PayPal through Virwox but you can buy Second Life Lindens and exchange them for bitcoins. This is a complex yet reliable system however all the associated fees add up to around 10%.
Visit VirWox and click “Not registered yet?” option to begin the sign up process.
Enter your Desired Username, email address and fill in the personal information with your user actual details just in case you will be asked for ID verification in future. Mark the terms of service checkbox and finally enter the recaptcha correctly before clicking the register button.
If you entered everything correctly in the above step, a congratulation message will show in the next page. After selecting “Register Now” your account will be created.
Check your email for a temporary password to login and activate the account. Note the password will only be active or valid for 24 hours. If you do not see the password, check the spam folder of your email.
You can now enter the username you created earlier and the password mailed to you by Virwox and click Login.
Upon the first login, you will see an option to change password click it and change password.
Enter the new password in both fields and click change password
Having successfully registered, it is time to make a deposit. Click the deposit link on the right side under My Account.
Scroll down to PayPal Express Checkout and enter the amount you wish to deposit. In the drop down menu, select the currency and finally click checkout with PayPal button. Note: VirWox limits the amount you can deposit by Paypal or credit card initially, but the limits grow over time. The limits can be found on the website.
PayPal login page will load in a new window or current window. For you to make a successful payment, you must have a fully verified PayPal with balance or a PayPal with card or bank account with balance greater than the amount you wish to deposit.
After you login, you will get a checkout page showing payment methods that will be applied. Click the Pay Now button. If you have enough balance or the card or bank you selected is valid and has enough balance, you will get a success page and you will be redirected back to Virwox.
On the Exchange section, click USD/SSL.
On the new page, enter the amount of USD you want to convert and either go with the market rate automatically selected or edit the rate to a specific value and click next.
Once the SSL is filled, it will show in Account balance under SSL. Now click BTC/SSL to exchange SSL to Bitcons.
Enter the amount of BTC you wish to buy and the rate of SSL you wish to pay per BTC and click next.
The next screen will show you whether you have enough SSL to buy the amount of bitcoin you chose. You can click back if you wish to go back to the screen shown above. If the total price is less than the SSL you have in the account, you will successfully place an order.
If you buy with market order, bitcoins will reflect in the BTC section under Account Balance instantly while if you bought with Limit Order, it may take a while before you find a deal similar to your order.
Withdrawing or Sending Bitcoins to Another Wallet or Address
Because of the limits and higher per-transaction cost in virwox it is often vital to move your bitcoins to another wallet like Local Bitcoins. Withdrawal might take up to 48-hours for new users because of verification process.
Click the withdraw link on the right side under My Account.
Enter the amount of bitcoins to withdraw and the address of the wallet you are sending bitcoins to. Note: the maximum withdrawal amount is indicated.
After clicking, Request withdrawal, the amount will be sent to your account in less than 2 hours if you are not a first time user. If you do not receive the Bitcoins after 48 hours you should contact Virwox by email.