Unfortunately, you just can’t use Bitcoin for everything. As much as I wish that I could pay my utilities and buy groceries using cryptocurrency I just can’t yet. That means that if you’re an enterprising individual who gets paid in Bitcoin that you will eventually need to find a convenient and quick way to cash some of it out. While everyone, including me, loathes Paypal, it has become a necessary evil, and when I needed to quickly transform some Bitcoin in USD for an unforeseen bill that had come up, it turned out to be the quickest method for me.
Unfortunately, most methods which involve Paypal are are either extremely annoying or expensive. If you’d like an option for cashing out to Paypal that could even put you a bit ahead, then keep reading. While most Bitcoin based ecommerce sites have fallen flat on their faces, there is one that continues to thrive at least a little. This site is called Bitify, and it’s an eBay style auction clone where people can buy and sell goods and services for Bitcoin or Litecoin.
While the selection of physical goods is still a little disappointing, you can buy some interesting virtual items such as gift cards or in our case, Paypal cash out services. Some of these services will even offer you a bit more over the USD value of your Bitcoin. Don’t get too excited. Paypal charges fees for receiving money, and that means you’ll most likely about break even here after the fact. The important take away here though is that by using Bitify you can sell Bitcoin for Paypal in a fast and safe way.
Why should you use Bitify to cash out to Paypal?
While the Virwox method is of course the default way to do this, I dislike it. For starters, it’s a huge pain, and you need to jump through a ton of hoops to do it. Second, you’re exploiting a loop hole which could suddenly be closed without notice, and I don’t want to deal with that crap.
What I like about Bitify is that they have an escrow system in place! This means that when you submit your Bitcoin to the seller it will be held in a safe, third party holding wallet by Bitify. The seller then delivers the goods or services to you. If you were ordering a physical item, then this would give you the opportunity to check out what you got in the mail before actually paying. However, in our case we can still take advantage of the escrow. It’s up to you, the buyer, as to when to release. That means you can wait until Paypal has approved the funds transfer, and you can even withdraw it to your account or take the money out using your Paypal bank card at an ATM first if you want. That makes this method pretty safe, and I have used it personally a couple of times myself. However, you should of course always be careful and do your research on the person you’re dealing with.
Here’s how to cash out your Bitcoin to Paypal accounts using Bitify.
When using this method you’ll be “buying” the Paypal funds with Bitcoin essentially. So use the search bar to find an offer. Enter something like “convert Bitcoins to Paypal” to find the right thing. Make sure to read the offer carefully.
Once you’ve found something that looks good, verify the seller’s feedback. You can easily check their feedback for any issues, part of what makes Bitify a great place to do this. Only purchase items where escrow is available for your protection.
When you pay for the listing your payment will be sent to the escrow. Your funds are safe here until you are satisfied with the result the seller provides. You do not have to release your funds immediately, and it’s perfectly acceptable for you to wait until the Paypal funds have cleared and you can withdraw them before releasing the Bitcoin to the seller.
If you have a new Paypal account then your ability to withdraw may be limited. Make sure that you ask the seller to mark the “item” as received so that Paypal will release your money sooner. This should speed things up significantly for you. Once the time has passed and Paypal gives you the okay to withdraw funds, do so, and then release the crypto you have in escrow.
I haven’t actually had to have an arbitrator step in, but if the seller does something fishy the option is available to you. Someone from Bitify will step in to examine the evidence, and you can present your case. If they determine that the seller did not deliver as promised your funds are returned to you.
When I did this method my Paypal account was pretty new, and I had funds within a week. If your account is older then it should be much faster, possibly even making a bitcoin to paypal instant transfer a possibility. Unlike other options available on other sites you also won’t be charged an exorbitant fee in order to make the transfer, making it a more attractive option if you need some quick cash.
By the way, if you’re going to be using your Paypal account to purchase something directly, but you’d prefer to do it without using your own account – there are several people who will provide this service to you on bitify as well. It works much the same way, but instead of them sending money to your Paypal account, you just send them the link to the item you want to purchase. They buy it using their account, ship the item to your house, you verify it upon arrival, and you release your escrow-ed Bitcoins to them! This option of course has the benefit of you not having to wait around for Paypal to approve a withdrawl, and it could be a faster option if you’re just looking to buy something rather than have cash in hand.
Normally these options are worded as “I will buy your amazon or ebay order” or something like that. A quick search using a similar combination will reveal multiple options for people willing to be your shopping assistant for sites that just won’t accept your sweet, sweet Bitcoins yet.