Every website and blog that has ever published a How to Buy Bitcoin with PayPal article has some updating to do, as popular currency exchange platform VirWoX officially no longer offers PayPal deposits and withdrawals.

About a month and a half ago, I decided to cash out what little was left of my Bitcoin holdings. As usual, I transferred them to VirWoX, where I first converted it to Second Life Lindens (SLL) and then from SLL to USD. That task completed, I was all set to withdraw my funds to my PayPal account when I saw this:

Unfortunately, this withdrawal method is currently not available. We recommend Skrill for this withdrawal method.

What? When did this happen? There had been no announcement on social media, no email notice from VirWoX’s support team, not even an alert on the homepage.

So there I was, my funds stuck on a platform I couldn’t withdraw them from. I could have re-converted it back to Bitcoin and tried my luck elsewhere, but then I would have had to run the gauntlet of fees again, and who wants to do that?

In the end, I had to set up a Skrill account and spend several days waiting to verify my bank account before I could transfer my funds from Skrill to my account. It ended up being just a relatively minor inconvenience, but if I had needed those funds for an emergency, the situation could have been much worse.

So why am I telling you about something that happened practically last year?

Earlier today I once again decided to cash out a small amount of Bitcoin and when I went to the VirWoX website, they were still showing PayPal as a payment method that they accept (see red arrow below).

After I logged in, I looked at the available withdrawal and deposit options, and PayPal was still listed on both, although on the Deposit screen under the PayPal option, VirWoX does note “Unfortunately, this payment method is currently not available. We recommend Skrill for this payment method.”

Hindsight is 20/20, however, so before I transferred my tokens, I emailed VirWoX support to see if PayPal withdrawals had been re-enabled. Here is what I was told:

Hello, Unfortunately, it looks as if PayPal no longer allows deposits to VirWoX, as they can be used to buy bitcoin. We are still negotiating about withdrawals, but cannot tell if and when withdrawals can be resumed. We suggest to use Skrill instead. Sorry for the inconvenience, VirWoX Support

Well that sucks. I like VirWoX. Sure, the interface is a bit outdated and they hit you with fees every step of the way and the required Bitcoin-to-SLL-to-USD conversion was a little bit of a pain in the butt, but they were reliable. The fact that you don’t have to jump through KYC hoops to use their service is a nice perk, too, and no doubt one of the reasons why they are such a popular platform.

Of course, users converting Bitcoin to fiat currency can still withdraw funds using Skrill or their bank account, but being able to withdraw to PayPal was just so convenient. By the way, I haven’t actually tried to withdraw funds to my bank account, so I have no idea how simple or complicated that process is.

No More PayPal on VirWoX – So Now What?

I still want to be able to buy and sell Bitcoin with PayPal, but without VirWoX, what am I supposed to do? Thank the maker, there are other options out there.

p2p Marketplaces

These OTC (over-the-counter) platforms allow individuals to buy and sell bitcoins with their local fiat currency. The beauty of these types of services is that in addition to traditional means of buying and selling cryptos, users can buy bitcoins using gift cards (Amazon, Walmart, iTunes, Steam, etc…) as a means of exchange. They also tend to support a broader range of payment systems like Skrill, Neteller, GooglePay, and PayPal (of course).

p2p marketplaces are generally laxer regarding privacy and identity verification, although individual sellers can request buyer identification if they choose to do so. It is important to note that, since prices are set by individual sellers and not by market conditions, buyers on these platforms often pay a premium.

LocalBitcoins and Paxful are two popular examples of p2p Bitcoin marketplaces that offer PayPal as an option.

Coinbase

I know that Coinbase gets its share of flack from some members of the crypto community (including me), but they really have gotten much more user-friendly over the years. And ever since they started allowing customers to withdraw funds to PayPal instantly and fee-free, if you’re looking to buy and sell Bitcoins using PayPal, Coinbase is definitely worth considering.

Okay, technically Coinbase doesn’t let you buy bitcoins with PayPal, but they do let you use debit and credit cards. So if you have a PayPal debit card, it is a legit workaround that actually works.

Of course, Coinbase has its drawbacks too. One of the biggest – at least if you trying to keep your financial affairs private and fly below the radar – is that Coinbase does require KYC and they do issue a form 1099-K for US customers who have received at least $20,000 in cash from the sale of cryptocurrencies related to at least 200 separate transactions during the calendar year. For every customer that meets this threshold, a copy of the 1099-K is also filed with the IRS.

In case you’re wondering, since VirWoX is no longer an option for PayPal withdrawals, I ended up using Coinbase for today’s earlier transaction. I have to admit, it was much simpler to set up than I anticipated and was super fast. I would definitely consider using them again for the next 198 transactions totaling $19,999 or less. 🤣

Do you know of any other reliable ways to buy and sell Bitcoin using PayPal? Let us know in the comments below!

Images courtesy of VirWoX, DepositPhotos