Topic: Buying BTC with Paypal on a regular basis, willing to wait chargeback period (Read 273 times)

PM received.
Scdl2018 receives Paypal donations on his website, and wants to remain anonymous. His story sounds plausible, I've confirmed ownership of the website (through a signed message).
Note: this does not mean I'm vouching to trust scdl2018, it just means I see no reason to suspect funds come from an illegal source.

I will as soon as I have my PM quota back. Reserve those BTC for me;)

I have 170$ btc for sale i can accept paypal , if you want pm me back , 1:1 trade

bump

Exactly, way too risky to send you BTC for PayPal, no matter how you try and justify it.

Thanks, I updated my initial post.

Ok, that's a risk the seller has to take. Sorry, I don't know how I can protect the seller against that. The seller has to consider this risk and adjust their commission accordingly. If you have any ideas, I'm totally open for it.
Ha! I think I might have a solution to mitigate this risk. I would also send a deposit to our shared address. In case I chargeback, seller may keep my deposit. It might still be that the rate change is not covered with the deposit, but at least the risk is lowered a lot. I think with a deposit from my site, even a third signer is not necessarily required (for the chargeback case) as I also have a personal interest in getting my deposit back.

I'll pm you, whenever my quota is restored.

As far as I've seen, Paypal can be charged back up to 180 days later.

Hypothetical scenarios:
1. After 180 days, the exchange rate is the same, no charge back happened, multisig pays you your Bitcoin, all good.
2. After 180 days, Bitcoin went up five-fold, no matter what the seller thinks about this, either seller or multisig #3 will sign, and you get your Bitcoin. All good.
3. After 170 days, Bitcoin dropped 80%, and your 500$ in Bitcoin is worth only 100$. You don't want to take a 400$ loss, and charge back through Paypal. Seller complains, multisig #3 sends the funds back to seller, but seller lost 400$ anyway. NOT good.

In this setup, you don't have any risk of ending up with a worse exchange rate, but there's still a risk for the seller. I can't think of any way to prevent this though. Thoughts?

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Serious question: why? There are better and more trusted ways to buy Bitcoin.

Yes, that's the risk on a 2/2 multisig deal. My idea first idea was that the other party has to take the risk and compensate with an appropriate commission. Also I offer to start with low value deals, so that it might not hurt too much if I really would be such a troll. However I suggested to do a 2/3 multisig deal with an independent third signer. I'm asking here for such a signer: https://bitcointalksearch.org/topic/looking-for-reputable-signer-on-a-23-multisig-transaction-3648604
Now with a third signer, he can step in that case and sign the transaction with the other party. The only risk left, is that I and that third person are conspiring. But I hope to find somebody who has enough reputation. I could also offer to go for a 2/4 multisig, so that every party offers an independent third and fourth signer, but I think this makes it needless complicated. But I'm totally open for any suggestions.

WHAT IF the situation becomes like this, the other party send the bitcoins to the multi sig address, you send the paypal and after xx amount of time you do chargeback and refuse to sign the transaction for the other party to get his bitcoins back?

I am buying BTC with Paypal. The other party is selling BTC and receiving USD with Paypal. The seller has to send the BTC to me (actually to a shared Multisig address). I'm Sorry if I was unclear at some point.

There is no risk to the seller giving PayPal. The buyer has all the risk sending the BTC.

Hi
I want to buy BTC with Paypal. Before you wonder, yes I just created this account to do this, as I failed to find anything to do that in the internet. This is my last hope to achieve that.

I am aware of the risk that a seller has to take. Therefore I suggest to hold the BTC on a 2/3 multisig address until the Paypal charge back period (181 days) is over. We find a reputable third signer on this forum (https://bitcointalksearch.org/topic/looking-for-reputable-signer-on-a-23-multisig-transaction-3648604) who might step in in case of a dispute. To mitigate the risk of me charging back in case of a rate change, I will also fund the multisig wallet with a deposit. I'm planing to have a long term partnership in the region of 3000$/181days. Also I gave a reputable forum member more detail about my backstory, See https://bitcointalksearch.org/topic/m.36993786


The process

1. We agree on a price for your BTC which consists of the current GDAX rate plus your commission
2. We exchange our public keys for the new multisig wallet for this transaction (can be reused for follow up transactions)
3. I fund our shared wallet with a deposit which matches 100% of the agreed BTC from 1)
4. You fund our shared wallet with the agreed BTC from 1).
5. I send the agreed USD from 1) to you via Paypal
6. After the chargeback period (181 days) you will sign a partially signed transaction which I gave you before hand.

We both know that the rate might have changed drastically when 6) happens. There will be no discussions about the rate after we agreed on that in 1). In case of a dispute we might have the third signer of the 2/3 multisig address to step in.