Your important questions
Can I buy Bitcoin instantly with PayPal?
Almost. Trading Bitcoin with PayPal involves some manual effort, however the process is very quick.
You need to search for a PayPal seller, and exchange payment details using encrypted messages. The PayPal transfer also needs to be made manually outside the platform.
Can I buy Bitcoin with PayPal without ID?
It's up to the seller. PayPal traders on LocalCryptos set their own verification policies, including what kinds of details they need from you.
In order to protect themselves from fraud, people who sell Bitcoin for PayPal may ask for your identity, or choose to only exchange small amounts with you until you verify yourself.
What is LocalCryptos?
LocalCryptos is a peer-to-peer crypto marketplace. People post ads on LocalCryptos to buy and sell crypto with all sorts of payment methods—including PayPal.
When two people agree on a trade, the buyer pays the PayPal half directly to the seller's account—that's why LocalCryptos is so fast.
What if the other person doesn't pay me?
An escrow account holds the crypto side of the trade. This provides a guarantee of funds to the buyer, and an abort path for the seller in case they don't receive a PayPal transfer.
The buyer of crypto should never initiate a PayPal transfer before the Bitcoin is in escrow. Similarly, the seller shouldn't release the escrow until they see the money in their PayPal account.
If payment never arrives, either party can raise a payment dispute. This allows an arbitrator to decrypt messages, verify evidence, and get the crypto to its rightful owner.
How does the escrow work?
LocalCryptos is the first and largest P2P platform to offer a non-custodial escrow system.
The technical details of the escrow depends on the crypto chosen. Ethereum escrows use a smart contract, and Bitcoin escrows use a P2WSH transaction.
All blockchains are unique. Whenever we add a new crypto, our engineering team develops a new escrow script to fit the protocol.
A non-custodial escrow system makes it impossible for LocalCryptos to steal from escrow accounts. By the same token, the platform's non-custodial nature makes it immune from common hacks and thefts.
Is buying Bitcoin with PayPal risky?
If you are selling Bitcoin for PayPal, you need to look out for chargeback fraud. That's when a buyer attempts to reverse a transaction after the escrow is released.
To mitigate the risk of fraud, some PayPal sellers choose to only exchange freely with people they've met previously, and apply additional terms or restrictions to new buyers.