Note: If you’re looking to buy Bitcoin with Paypal or a credit card for trading purposes only then read this post first - it will better suit your needs.
Option 1 (less commissions | medium risk): Local Bitcoins
If you decide you want to buy from an individual you can use Local Bitcoins. Local Bitcoins is a market place that allows you to buy Bitcoins from people online using a rating system for their trustworthiness and a Bitcoin escrow service.
Just open an account, go to “Buy Bitcoins”, click the “Show more” link on the bottom left and select Paypal. Many time there will not be a Paypal option since sellers of Bitcoin who use Paypal are at risk of fraud.
Option 2 (no risk | more commissions): VirWox
We will do this through a marketplace called VirWox. Since no exchange currently allows a way around the problem of buying Bitcoins with Paypal we are going to have to go through a virtual currency called SLL (Second Life Linden Dollars). This currency is used for one of the biggest virtual worlds today – Second Life.
IMPORTANT: This process hold within it more transaction fees than usual. This may still be a valid solution since the soaring numbers of BTC compensate for this. It’s important for you to be aware of the different transaction fees.
Step 1: Go to VirWox.
VirWox is an exchange of virtual currency, you can buy there Lindens, Bitcoins, and more…
Step 2: Open a free account
Click on the “not registered yet” to open up a new account as shown here:
Step 3: Fill out our personal details
Fill out your username and email address. Where it asks for “avatar name” just fill out any name you like it doesn’t matter, since you’re not going to play Second Life.
Step 4: Activate your account
Step 5: IMPORTANT!!! Change your password!
Do not worry about the message saying “Your avatar connection has not been validated yet” – it is irrelevant.
Step 6: Fund your account through PayPal
Note: From now on for each transaction you will make there will be a fee – make sure you are aware of the relevant deposit and withdrawal fees.
Step 7: Buy SLL with USD
Note: If you haven’t made a deposit yet you will get the screen shown above requesting you to deposit before you buy SLL.
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