Welcome! You are interested in the purpose behind the Litecoin project and want to buy Litecoin with Paypal, but you don’t know how? No need to worry! In this opportunity, I will give you a guide.
While there are hundreds of different cryptocurrency exchanges that allow you to buy, sell and exchange Litecoin, not many accept PayPal as a payment method.
As a result, there is no direct way to buy Litecoin with Paypal. You need to first buy Bitcoins with your Paypal account, and then exchange those Paypal Bitcoins for Litecoin on an exchange. Here I will walk you through each step.
In this ‘Buy Litecoin with PayPal’ guide, I’ll cover the two different platforms that facilitate PayPal and explain how they work.
After that, I will give you a simple step-by-step guide on how to complete a Litecoin trade via PayPal from start to finish!
So what are you waiting for? In the first part of this ‘how to buy Litecoin with PayPal’ guide, we will start by finding out the reasons behind the difficulty of buying cryptocurrency using an e-wallet like PayPal!
Why Buying Litecoin with PayPal Is Difficult
Many crypto exchanges avoid using PayPal because of the risks involved.
One of the main reasons is that PayPal has something called “Buyer Protection”. This feature allows buyers to request a refund if someone sells something that doesn’t match the product description.
In most cases, PayPal is on the buyer’s side. This means that the seller has no other choice but to return the payment.
In the case of Litecoin and other cryptocurrencies, there is no definitive way to prove that the seller sent the coins. This means that buyers can pretend they never received them and then ask for a refund from PayPal!
As a result, sellers often charge higher fees to protect themselves from chargebacks! Therefore, it is important to know that the options I am about to give you will be much more expensive than other payment methods!
Having learned that the process of buying Litecoin with PayPal can be more difficult, the next part of this ‘buy Litecoin with PayPal’ guide will cover which platforms allow such transactions.
Where Can You Buy Litecoin with PayPal?
The first option I will cover is LocalBitcoins. This platform is a peer-to-peer exchange that allows you to buy and sell Bitcoins directly with other users.
As a Finland-based company, they were first launched in 2012 and currently serve customers in over 200 different countries and territories!
When you access the platform, you will find a long list of people who want to sell their Bitcoins, with their preferred selling price and their preferred payment method.
The process is very simple. Once you find a seller that accepts PayPal, enter the amount you want to buy and once the seller accepts it, they will send you a PayPal address.
At this point, Paypal Bitcoins are locked into the platform and released as soon as the seller confirms your payment.
There are also cool rating systems like eBay, where buyers and sellers can provide feedback after a trade is completed!
The time it takes to buy Bitcoin with PayPal using LocalBitcoins is not long. It won’t take more than 10 minutes to complete a trade!
Now you know what LocalBitcoins is. In the next part of this ‘Buying and selling Litecoin with PayPal’ guide, I will examine the costs.
When buying coins on LocalBitcoins, the platform does not charge the buyer any fees. Instead, sellers choose the rates they want to charge.
Prices can vary widely, meaning that sometimes you may end up paying a much higher price than the current market price.
As you can see from the screenshot above, the purchase price of Bitcoin with PayPal varies from £5,779.87 to £6,975.70! The difference is almost 20%!
In addition to accepting PayPal, LocalBitcoins now supports over 20 different payment methods. It covers a variety of methods from local bank transfers, SWIFT, Pingit, to cash transfers by post!
However, I myself do not recommend cash transfers or face-to-face meetings as the LocalBitcoins escrow service cannot guarantee any protection!
The best thing about LocalBitcoins is that the country you buy from is irrelevant considering that PayPal is a global payment method. This means that if you find a cheaper seller based in a different country, you can still buy from them.
Now you have the details about the fees and payment methods available on the respective exchange.
The next part of this ‘buy and sell Litecoin with PayPal’ guide will provide you with a step-by-step guide to making transactions on LocalBitcoins.
How to Buy Bitcoin with PayPal at LocalBitcoins
The first thing you need to do is visit the LocalBitcoins website, which you can do by clicking here!
Look for the green button Sign up for free and click it! You now need to enter some personal details. It is better to use a real name as some sellers will ask you to verify yourself before trading with them.
Once you have completed the account opening process, click Buy Bitcoin at the top of the screen.
In the first box, enter the amount of Bitcoin you want to buy. The currency will be adjusted based on the country you live in, but you can change it if you want. You can also change the country of purchase if you can’t find a seller that accepts PayPal. Now click the All online offers box, look for PayPal. then click Search.
Once your search results have loaded, you’ll see a list of sellers who happily accept PayPal. They are ranked based on the price they want to charge. On the left side of the screen, you’ll see the seller’s feedback score and the number of trades they’ve previously completed.
Ideally, you need to choose a seller who has 100% feedback and a large number of trades (50+). You also need to check the box limit, which is the amount of Bitcoin the seller is ready to trade. In my example, the top sellers have a 100% feedback score and they have completed over 100 trades. They also offer the cheapest exchange rate, so I would go for it! Once you have selected a seller, click Buy.
At this time, the seller has not been notified that you want to make a trade. Before proceeding, make sure all the details are correct. Another thing you need to find out is the seller’s requirements on the right side of the page. Each seller lists their terms and conditions, so make sure you read and agree.
They may ask for an ID, or as in my example, they will only trade with buyers who have successfully completed more than 30 trades. If you don’t meet their requirements, then you need to go back to the search results page and choose another seller!
If you wish to continue, scroll down and click 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 chat with the seller using the chatbox if you have any questions.
Open your PayPal account and transfer funds. Don’t forget to enter the reference number provided by the seller. As soon as you send the payment, click Payment Sent.
The seller will now receive a notification that you have paid. At this point, Bitcoin is still locked in escrow. The seller still needs to check if you have sent the payment! Once they see the payment has arrived, they will release the Bitcoin from escrow
Safe! You just used our first method to buy Bitcoin using PayPal. I know what you are still waiting for, soon in this ‘Buy Litecoin with PayPal’ guide, I will show you how to exchange your Bitcoins for Litecoin! However, first I would like to discuss one alternative option… VirWoX!
Created in 2007, VirWoX is a platform that allows users to trade a digital coin called ‘Second Life Lindens’ (SLL). These coins are the currency used in the game called ‘Second Life’ and allow players to buy various virtual items.
This coin is different from cryptocurrencies like Bitcoin or Litecoin, and cannot be used anywhere other than in the game. You may be wondering, what’s the point of me knowing all that?
The VirWoX platform is also a platform that allows individuals to trade Bitcoin! And this platform 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 need to exchange those SLL coins for Bitcoin.
After that, you will be asked to withdraw your Bitcoin to a cryptocurrency exchange and then exchange it for Litecoin!
Although the VirWoX platform has been specifically designed for SLL coins, they accept a variety of other payment methods. Apart from PayPal, they also accept debit and credit cards (via Skrill), Klarna, Playsafe Cards, and OK Pay!
Due to the risk of use, the VirWoX team has set some deposit limits. When you first sign up, you have to wait 2 days before you can make your first purchase!
After 2 days, you will be able to use your PayPal account to deposit 90 Euros. After 10 days, the limit increases to 120 Euros. After 30 days, the limit becomes 200 Euros. 400 Euros after 60 days and lastly, 1000 Euros on request.
The team doesn’t explain the requirements that need to be met to get a limit of up to 1,000 Euros, but it is very likely that they will verify your identity by asking you to upload multiple IDs.
In addition, the PayPal account must be a verified account. Otherwise, VirWoX will not allow deposits!
Now that you know the payment options available on VirWox, the next part of this ‘Buy Litecoin with PayPal’ guide will focus on the fees!
One of the biggest drawbacks of using PayPal on VirWox is its high fees.
When you make an initial deposit, you have to pay a transaction fee of 3.4%. After that, you need to make two separate trades. First of all, you make a transaction EUR>SLL then SLL> BTC. Depending on the exchange rate the seller is asking for, the fees can add up significantly.
And lastly, don’t forget that you need to transfer Bitcoin to the crypto exchange to exchange it for Litecoin, which will also incur additional fees!
Unfortunately, no matter which platform you choose, using PayPal to buy digital currency will always be much more expensive than traditional methods. Again, this is due to the higher risk!
Now you know how to buy Bitcoin with PayPal via VirWox. In the next part of this ‘Buying and selling Litecoin with PayPal’ guide, I will show you how to convert Bitcoin to Litecoin!
How to Exchange Bitcoin to Litecoin
If you’ve followed my ‘Buy Litecoin with PayPal’ guide so far, you now know how to use your PayPal account to buy Bitcoins. However, you came here to buy Litecoin – not Bitcoin – so I will now show you the final stage of the transaction…
I have decided to use LocalBitcoins in my example because I find the process much easier than using VirWoX. The cost is also cheaper and the steps are more practical.
Of the hundreds of crypto exchanges that allow you to exchange Bitcoin for Litecoin, I have chosen Binance. The reason is that their trading fees are one of the lowest in the industry. They also have the largest trading volume and state-of-the-art security.
Get Your Binance Deposit Address
- Visit the Binance homepage by clicking this link.
- You need to open an account, which won’t take more than 2 minutes. You don’t need to provide any personal information, meaning you can trade anonymously!
- When you’re ready, click Deposit at the top of the page.
- In the drop-down box, look for Bitcoin. Pay close attention as there are many variations. Make sure you select BTC – Bitcoin, which will look the same as my screenshot below.
- You will now be shown your unique Bitcoin deposit address for Binance. Click Copy Address.
Transferring Your Bitcoins from LocalBitcoins to Binance
You have set up your Binance account and copied your deposit address. Now it’s time to get back to your LocalBitcoins account!
- At the top of the screen, click Wallet.
- Now you need to copy your Binance deposit address into the Receiving Bitcoin Address box. You also need to enter the amount of Bitcoin you want to transfer. LocalBitcoins also allows you to enter a description, for reference only.
- Finally, click the blue Continue box to complete the transfer. Coins will appear in your Binance account in about 10 minutes!
Trading Bitcoin for Litecoin on Binance
If you have followed my step-by-step instructions so far, at this stage you have a Bitcoin-funded Binance account. The last part of this ‘how to buy Litecoin with PayPal’ guide will cover how to trade Bitcoin-to-Litecoin on Binance!
- At the top of the screen, hover your mouse over Exchange, then click Basic.
- You are now on the main trading page for LTC/BTC! I know the looks can overwhelm us but the process is actually simple.
- Now we need to find the Bitcoin (BTC)/Litecoin (LTC) trading pair. On the right side of the page, click on BTC and then search for LTC in the search box.
- Now click on the LTC/BTC pair that appears from your search results.
- Scroll down the trading chart and look for the Buy LTC box. Now click 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 enter this into the Amount box.
- Finally, to complete your Bitcoin to Litecoin trade, click Buy LTC. If you buy using this method, your trade will be completed smoothly!
- Congratulations, now you know how to easily buy Litecoin using PayPal!
Buy Litecoin with PayPal: Conclusion
If you’ve read this ‘Buy Litecoin with PayPal’ guide from start to finish, you now know how difficult it can be to use a PayPal account to buy Litecoin.
In fact, if you do need to use PayPal, then the only way you can do that is to buy Bitcoins first and then exchange them for Litecoin.
As a reminder, there are currently hundreds of crypto exchanges that accept payments via debit or credit cards. These options are worth considering to buy Litecoin quickly and practically!
While there are platforms like Coinbase (the world’s largest broker exchange) that allow you to withdraw funds to PayPal, users are not allowed to make deposits. Pretty annoying, right?
In the end, buying Litecoin with PayPal is possible, but be prepared to go through a lot of steps.