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How to Buy Bitcoin With PayPal Using LocalBitcoins.com

How to Buy Bitcoin With PayPal Using LocalBitcoins.com

LocalBitcoins.com is a little different from other bitcoin exchanges and transfer companies because you are dealing with people in the general public. The best comparison I can think of is that it is the eBay of the Bitcoin world. It allows you to buy bitcoin from people all around the world, and you can pay however they see fit. It is a little bit like Amazon too because different people offer the same thing for different prices. If you are looking to buy bitcoin with PayPal, then look on LocalBitcoins.com for people who accept PayPal payments.

How to Buy Bitcoin With PayPal Using LocalBitcoins.com

Local Bitcoins is an online marketplace where you may buy and sell Bitcoin. You may sign up and sell your Bitcoins and set your own price for them. It also allows you to buy Bitcoins from strangers. There are some people on this website who will happily accept PayPal payments. Others want bank transfers, and some are willing to pay with cash.

Start by visiting the website and clicking the button at the top right of the screen to “Sign Up Free.” The screenshot below gives you an idea of what the website looks like.

 LocalBitcoins.com website homepage

Click the sign up button and you are taken to the registration page. Once you have registered, then you have your account on the website. There is no need to download anything. You will be taken to a page that explains how you use the LocalBitcoins.com website.

Register a new account with Localbitcoins

Here is how you use LocalBitcoins to buy bitcoin digital currency. The image below shows you their “quick buy” tool. As you can see, the settings are all wrong, so we will have to change them.

LocalBitcoins.com website quick buy tool settings

I started by changing the location. I selected the United States location. This will bring up sellers who live in the USA. You don’t have to buy from local sellers, you can buy from anybody on the website. The reason people prefer local sellers is because their payment methods are often more suitable, and there is a chance that the seller will be awake at the same time as the buyer. Being awake at the same time is important because the trader has to conduct the transaction manually. If your trader is asleep, you will be waiting a long time to buy your bitcoins.

LocalBitcoins.com website change the location on the quick buy tool

Another point about the trader being awake. Each trader sets his or her open and closed time. If you send a transaction request during a time period when a trader is open, then the trader should reply pretty quickly.

As you can see by the image below, I changed the “Online Offers” button to “Paypal.” You can view all available offers, which is the default setting, or you may select a payment method that suits you.

LocalBitcoins.com website change to paypal on the quick buy tool

In addition to changing the location and the payment method, I also wrote “10” in the search bar. Next to that search bar is a currency selector. The one I have selected is US dollars. I wrote “10” in the search bar, and when I run the search, it will bring up sellers who are willing to sell bitcoin for amounts as little as $10.

As you can see by the image below, my settings are ten dollars in the USA with PayPal as a payment method. It only shows for PayPal payment methods. If you are not happy with that, then you may click the “Show More” button. If you click the “Show More” button, you are given more options, such as being able to see all the traders who are accepting US Dollars.

LocalBitcoins.com website quick tool results page

The exchange rates on this website can really suck. For example, at the time of writing, Google says that the exchange rate for bitcoin is $3985.98 US dollars for one bitcoin, yet the lowest price a trader is offering in our selection (shown above) is $4590.76 dollars for one bitcoin. That is a pretty crappy exchange rate.

conversion rate for bitcoin in august 2017

If we were not restricting ourselves to using PayPal and were not restricting ourselves to just the USA, then we would easily be able to get a better exchange rate.

Purchase Attempt Number One With The First Trader

Let’s get started buying bitcoin. Let’s select the one with the best exchange rate, which is jinguo. If you are wondering what all the numbers mean, here is a quick rundown.

Explaining what the trader numbers mean on localbitcoins

As I say, we are going to choose jinguo to buy from. If you hover your mouse cursor over the dot next to the trader’s profile, it shows you how long it usually takes that trader to reply to offers.

Localbitcoin - hover over the traders button to see reply times

I clicked on the “Buy” button, and it took me to his page. As I mentioned, this is a brand new account, so I still need to do things such as set my name. On the right, you can see that jinguo has a lot of terms and conditions. That little essay goes on quite a bit down the page.

Jinguo terms of trade

Purchase Attempt Number Two With The Second Trader

I don’t like jinguo’s terms of trade, so I went back to the quick buy tool and found a trader with terms I agree to. The trader is selling in GBP, which is British currency. However, the PayPal website allows you to convert your currency and it allows you to hold lots of different types of currency, so GBP trading is not an issue. Below is an image showing the person I am looking to trade with.

From30 profile and trading terms on localbitcoins.com

The first thing I need to do is set my read name. Click the link that says, “Set real name.” You are only allowed to set your real name once, so make sure it is your real name.

Set real name page on localbitcoins

Next, I have to proceed to verify my identity. Click the link shown in the image below and it takes you to an identity verification page. After verifying, you will also need to confirm your phone number by SMS text.

If you don’t fancy doing all of this, then you may find another trader who has fewer terms. The trouble is that most traders require some sort of verification and such, and the traders with the best exchange rates are often the ones with the most terms and conditions.

My problem with the whole process is that you need to give away so many personal details. That is why I decided to try another trader who doesn’t ask for so many personal details.

Purchase Attempt Number Three With The Third Trader

I found v676v676 who had no terms and conditions at all. There were no restrictions when buying from this seller. I didn’t have to enter my ID or phone number, so I was happy. The minimum this guy allows me to buy is £30, so I converted my dollars to GBP using PayPal (I usually use Transferwise, but I was in a hurry this time). I entered my £30 value into the trade request and it showed me how many bitcoins I would receive. Despite the white message box, I didn’t enter a message, I just clicked the “Send Trade Request” button.

Buy bitcoins send trade request with Local Bitcoins

I sent a message asking for his or her email address to pay with PayPal. The trader replied saying that he/she wants my email address so that he or she may send a money request. I sent my email address, he sent a payment request, I paid it, and the trader sent over my new bitcoins.

Local bitcoins first three messages with v676v676

I then went back to the LocalBitcoins website and I confirmed the payment. The seller released the bitcoins from the website’s escrow, and the transaction was completed.

Local bitcoins - confirm payment - v676v676

As you can see from the image below, the trade is confirmed when both parties have completed their side of the deal. If you take a look in my wallet at the top right of the image, you can see that the number has changed from zero to 0.00364741. The exchange rate I got was double what you would normally pay, but I needed to show you how to use this website, and I will be damned if I am uploading a copy of my driver’s license into this website. I had to pick a trader who didn’t ask for verification.

confirmed trade with Local bitcoins with v676v676

How to Buy Bitcoin With PayPal Using LocalBitcoins.com

That is how you buy bitcoin with LocalBitcoins.com. My exchange rate was extortionate, but if you take the time to look through the website, you will find better deals. Plus, if you are willing to hand over your mobile phone number or submit your ID to the website, then you will be able to access cheaper deals too.

Conclusion – Should You Use LocalBitcoins.com

Yes you should, but not if you are in a hurry. If you are willing to scout around and wait, you can find some great deals. You have to find the people who are desperate to sell and so are willing to sell at a market rate or lower. Also, if you want to use PayPal, then there are still people on this website who will happily accept it without charging you silly fees. If you rush like I did, then you can end up paying over the odds for your bitcoin. You may also cultivate working relationships with traders who may be willing to sell you bitcoin for less than you can buy it elsewhere.

About The Author

Ash The Great

After a varied career in different industries from the hospitality industry to the financial consultancy industry, Ash now spends his days working as a professional writer.

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