Table of Contents
- 1 Why it is Difficult to Buy Litecoin with PayPal
- 2 Where can you Buy Litecoin with PayPal?
- 3 How to Exchange Bitcoin for Litecoin
- 4 Buy Litecoin with PayPal: Conclusion
Why it is Difficult to Buy Litecoin with PayPalCryptocurrency exchanges don’t seem to like PayPal because of the risks involved.
Where can you Buy Litecoin with PayPal?
LocalBitcoinsThe first option I wanted to discuss with you was LocalBitcoins. They are a peer-to-peer exchange that allows you to buy and sell Bitcoin directly with other users. Based in Finland, they were first launched in 2012 and now serve customers in more than 248 different countries! When you access the platform, you will find a long list of individuals that are looking to sell their Bitcoin, with the price that they are happy to sell it for and their preferred payment method.
FeesWhen buying coins at LocalBitcoins, the platform doesn’t charge any fees to the buyer. Instead, the seller chooses the rate that they want to charge. The prices can vary quite a lot, meaning that you can sometimes pay at a rate which is much higher than the current market price. As you will see from the above screenshot, the price of buying Bitcoin with PayPal starts as low as £5,779.87 and goes all the way up to £6,975.70! That’s a difference of almost 20%!
Payment OptionsOn top of accepting PayPal, LocalBitcoins now supports more than 20 different payment methods. This includes everything from a local bank transfer, SWIFT, Pingit and even cash in the mail!
However, I wouldn’t recommend sending cash or meeting in person as you would not be protected by the LocalBitcoins escrow service!
How to Buy Bitcoin with PayPal on LocalBitcoins
- The first thing you need to do is visit the LocalBitcoins website, which you can do by clicking my link here!
- Look for the green Sign up free button and click it! You will now need to enter some personal details. It is probably best to use your real name, as some sellers will ask you to verify yourself with them before they accept the trade.
- When you’ve completed the account opening process, click on Buy Bitcoins at the top of the screen.
- In the first box, enter the amount of Bitcoin you want to buy. The currency will be based on the country you are located in, but you can change this if you want. You can also change the country that you want to buy from if you can’t find any sellers that accept PayPal.Now click on the All online offers box and look for PayPal. Then click on Search.
- Once your search results load, you will see a list of sellers that are happy to accept PayPal. They are ranked based on the price that they want to charge. On the left side of the screen, you will see the seller’s feedback score and the amount of previous trades they have completed. Ideally you want to choose a seller that has 100% feedback, and a good amount of trades (50+). You should also take a look at the limits box, which is the amount of Bitcoin that the seller is looking to trade. In my example, the top seller has a feedback score of 100% and they have completed more than 100 trades. They are also offering the cheapest exchange rate, so I am going to choose them! Once you have selected your seller, click on Buy.
- At this point, the seller hasn’t been notified that you want to trade. So, before you continue, make sure that all of the details are correct. Another thing that you will need to look for is the sellers’ terms on the right side of the page. Every seller lists their own individual terms and conditions, so just make sure that you are happy with them. Sometimes they ask for ID, or like in my example, they say that they will only trade with a buyer that has completed more than 30 successful trades. If you don’t meet their terms, all you need to do is go back to the search result page and choose another seller!
- If you want to continue, scroll down and click on Send Trade Request.
- The seller will then be sent an instant notification with your request. They will check the information and then send you their PayPal address. You can speak to the seller using the chat box if you have any questions.
- Go to your PayPal account and transfer the funds. Don’t forget to enter the reference number that the seller provides.As soon as you have sent the payment, click on Payment Sent.
- The seller will now receive a notification that you have paid. At this point, the Bitcoin is still locked in the escrow. The seller still needs to check that you have actually sent the payment! Once they can see the payment has arrived, they will release the Bitcoins from the escrow.
VirWoXCreated in 2007, VirWoX are a platform that allows people to trade a digital coin called ‘Second Life Lindens’ (SLL). This coin is a currency that is used in a game called ‘Second Life’ and it allows players to buy a range of virtual goods. It is not a cryptocurrency like Bitcoin or Litecoin, and it can’t be used anywhere other than in the game. You might be wondering why I am telling you this!? Well, the VirWoX platform also allows people to trade Bitcoin too! And guess what? It also accepts PayPal! The way it works is like this: you fund your VirWoX account with PayPal, and then exchange your fiat currency for SSL coins. Once you have done that, you will then need to exchange your SLL coins for Bitcoin. After that, you will be required to withdraw your Bitcoin to a cryptocurrency exchange and then trade them for Litecoin!
FeesOne of the biggest disadvantages to using your PayPal account at VirWox is that the fees can get really high.
Source: finderWhen you make your initial deposit, you will need to pay a 3.4% transaction fee. After that, you will then need to make two separate trades. Firstly this will be EUR>SLL and then SLL>BTC. Depending on the exchange rate that the other sellers ask for, this could start to add up quite significantly.
And finally, don’t forget that you will then need to transfer your Bitcoin to a cryptocurrency exchange to trade them for Litecoin, which will also cost you additional fees!
How to Exchange Bitcoin for LitecoinIf you have followed my ‘Buy Litecoin with PayPal’ guide up to this point, you should now know how to use your PayPal account to buy Bitcoin. However, you’ve come here to buy Litecoin — not Bitcoin — so I am now going to show you the final stage of the transaction… I have decided to use LocalBitcoins in my example, as I find the process much easier than using VirWoX. The fees are also cheaper and there are less steps involved. Also, there are hundreds of cryptocurrency exchanges that will allow you to trade Bitcoin for Litecoin, however I have selected Binance. The reason for this is that their trading fees are one of the lowest in the industry, they have the largest trading volume and security is high too.
Get your Binance Deposit Address
- Visit the Binance homepage by clicking here.
- You will need to open an account, which should take no more than 2 minutes. You don’t need to provide any personal information, meaning you can trade anonymously!
- Once you are all set up, click on Deposits at the top of the page.
- In the drop-down box, search for Bitcoin. Be very careful here as there are lots of variations. Make sure you are selecting BTC – Bitcoin, which should look the same as my screenshot below.
- You will now be shown your unique Bitcoin deposit address for Binance. Click on Copy Address.
Transferring your Bitcoin from LocalBitcoins to BinanceNow that you have set up your Binance account and copied your deposit address, you now need to go back to your LocalBitcoins account!
- At the top of the screen, click on Wallet.
- Now you need to paste your Binance deposit address in to the Receiving Bitcoin Address box.You also need to enter the amount of Bitcoin that you want to transfer. LocalBitcoins also allows you to enter a description, which is basically just a reference.
- Finally, click on the blue Continue box to complete the transfer. The coins should show up in your Binance account within about 10 minutes!
Trading Bitcoin for Litecoin on BinanceIf you have followed my step-by-step instructions so far, you should now have a Binance account that is funded by Bitcoin. The final part of my ‘how to buy Litecoin with PayPal’ guide is going to look at how to make a Bitcoin-to-Litecoin trade on Binance!
- At the top of the screen, hover your mouse over Exchange, and then click on Basic.
- Now we need to find the Bitcoin (BTC) / Litecoin (LTC) trading pair. On the right hand side of the page, click on BTC and then search for LTC in the search box.
- Now click on the LTC/BTC pairing that appears from your search result.
- You are now on the main trading page for LTC/BTC! I know at first it can look really scary, but its simpler than you think!
- Scroll down below the trading charts and look for the Buy LTC box. Now click on Market. This will allow you to buy Litecoin at the current market price.
- Now you need to enter the amount you want to buy. You can either enter this in to the Amount box.
- Finally, to complete your Bitcoin to Litecoin trade, click on Buy LTC. If you bought using this method, your trade should go through straight away!