Apr 132014

Buy Bitcoin with PayPal and Credit Cards

Have you been wondering how to buy Bitcoin with PayPal? Or credit card? This wouldn’t appeal to the veterans, but it sure as hell would appeal to a lot of people who are new to the cryptocurrency space, and is a great way to introduce your grandma to Bitcoin.

I am here to introduce an interesting service today, called Bitcoin Insanity, that makes it possible to buy Bitcoin with PayPal or credit card. This is a great way to conveniently buy some Bitcoin online through the most used payment processors of the day. Obviously, owing to the additional risk and the fees charged by these services, you’ll end up paying a premium on the current market value of Bitcoin but if you’re looking to introduce someone to Bitcoin for the first time and they don’t want to jump through hoops to create an account at an exchange, Bitcoin Insanity is a nice way to get your first Bitcoins without hassle. This service will probably not appeal to the seasoned traders and professionals out there.

The service allows you to buy a small amount of Bitcoins through PayPal or check out with credit card. They use Mijireh Checkout to process their transactions, so you don’t have to trust them with your credit card information. If you’re buying Bitcoin through PayPal, then you will just be redirected to the PayPal’s page and you can enter your credentials directly on PayPal’s site. This should help you trust a new service more with your payment.

Remember that both PayPal and credit card involve reversible transactions, so the site needs to take care of any possible chargebacks and avoid fraud. This is one of the reasons you are limited to only small quantities of Bitcoin you can buy, currently up to $25.

As of this writing, the current charges are –

18mBTC for $18
28mBTC for $28
40mBTC for $20
50mBTC for $25

As you can see, the prices are higher than the Bitstamp prices, which reflect the increased risk of chargebacks, the payment processing fees and their own profit of course. Bitcoin Insanity joins a troupe of smaller businesses who are gearing up to capture a smaller niche of the market who are new to Bitcoin and want to get their first Bitcoins as easily as possible. There are several sites out there today that offer this service, and it reduces the risk to consumers because both PayPal and credit card transactions are reversible. You can’t blame the average person curious about Bitcoin to want more protection, especially after the MtGox fiasco.

Also, they have an active Twitter account that you can follow for latest updates on price and other services.

The site has granted the readers of this blog a special coupon code – BTCGEEK. Use this at checkout to get 10% off on your purchase! Happy Bitcoin buying with PayPal!

Photo Credit: ryanne lai

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