Phase 1 - The Loop
Let's get started!
Please complete every step in order for best results starting with the Frequently Asked Questions.
Step 1 (Bank)
Risks!
Some users have had their PayPal and/or Coinbase accounts frozen in association with this method as it violates the terms of service of both merchants! Also, there have been reports of Wells Fargo closing accounts related to Bitcoin activity.
Message from PayPal:
"PayPal previously required accounts that were operating as a currency dealer or exchanger to obtain prior authorization before utilizing PayPal services. Your account did not obtain such authorization at that time. We have since decided to dissociate ourselves as a payment processor for transactions involving a currency exchange. Per our current Acceptable Use Policy for Money Service Businesses, PayPal may not be used to operate a currency exchange, bureau de change or check cashing business."
"Due to your failure to comply with the previous policy and the high risk associated with currency dealers including the sale of electronic media of exchange (such as electronic money or digital currency), PayPal has made the decision to sever its business relationship with you. While we wish you the best of success in your future business endeavors, we respectfully ask that you seek another method of payment for your online business."
"Your PayPal account has been permanently limited and there will be no appeals to the decision."
Use at your own risk!
Here is an article on the matter. https://themerkle.com/paypal-continues-crackdown-on-crypto-sellers-permanently-limits-accounts/
For this reason I have included the information on Alternative Funding Methods and Alternative Payment Processors sections.
Coinbase TOS:
Prohibited Businesses
In addition to the Prohibited Uses described above, the following categories of businesses, business practices, and sale items are barred from Coinbase Services ("Prohibited Businesses"). Most Prohibited Businesses categories are imposed by Card Network rules or the requirements of our banking providers or processors. The specific types of use listed below are representative, but not exhaustive. If you are uncertain as to whether or not your use of Coinbase Services involves a Prohibited Business, or have questions about how these requirements apply to you, please contact us at https://support.coinbase.com.
By opening a Coinbase Account, you confirm that you will not use Coinbase Services in connection with any of following businesses, activities, practices, or items:
High risk businesses: any businesses that we believe poses elevated financial risk, legal liability, or violates card network or bank policies
I have managed to fly under the radar since August of 2016 but you may not be so lucky. Make sure you have a plan "B"! Once you have $3,000 or more to invest you may want to consider starting Phase 2! This will add some variety to your investing strategy. Also consider more traditional forms of investing so as not to have all your eggs in one basket.
Please read this article in its entirety. Stay tuned for more great opportunities coming soon. Good luck and happy investing!
If you have any questions after reading this article in its entirety, please feel free to reach out to me at Edward@MakeMoneyWithBTC.com or through social media.
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The author of this article is not a financial advisor or tax professional. You should always consult with a licensed professional when regarding your financial investments and tax situations. Do your own research into all aspects of your investments and do not invest in something you do not understand. Remember the first rule of investing; never invest more than you can afford to lose!