A lot of consumers are looking to buy Bitcoin in a more convenient manner, but that process is not always as straightforward as people might want it to be. Buying Bitcoin from auction sites such as eBay might sound like a good idea on paper, but it is something experienced digital currency users will advise against.
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Bitcoin and eBay Do Not Mix Well
There are several factors to take into consideration when buying digital goods on eBay.
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First of all, selling Bitcoin on the auction site is neither legal nor illegal, and eBay might cancel the auction at any given time. Even though plenty of sellers have had listings for digital currency on the platform, the company is not too keen on dealing with potential issues.
Most people think of eBay as a platform where Paypal is the dominant payment method, and that is certainly true. When selling digital goods, sellers have to accept PayPal payments for that particular type of item, as both buyer and seller need to be protected during those trades.
But that does not mean every Bitcoin sale is completed through PayPal either, as sellers can specify alternative payment details in their listing. This type of action can be deemed a breach of the platform’s Terms of Service, though,
Even if all transactions on eBay were protected by PayPal, there is another issue to take into account.
Buyer and seller protection does not work all that well when paying for digital goods with PayPal.
Most of these transactions put the individual users at risk of what may happen next as transactions could get flagged, disputes can be opened, and there is usually no tangible proof to back up a claim.
Moreover, there is nothing keeping buyers from conducting a chargeback when someone sells Bitcoin on eBay. It is important to bear in mind exchanging between online payment methods is hardly ever possible through legal means, and anyone facilitating this type of transfer can be labeled as a “money transmitter” in their region.
When dealing with individual sellers, it is important to take into account that, if they ask for identity verification, these details end up in the hands of an unknown person.
When dealing with Bitcoin exchanges, the records are stored by the company itself.
But some of these listings may be disguised in an attempt to obtain personal information about eBay users, including a copy of their ID and utility bill.
All in all, it is not worth the potential hassle of buying or selling Bitcoin through the eBay platform. Users can get into a lot of trouble for doing so, ranging from an auction delisting to account suspension, and even fraudulent purchases of Bitcoin.
For those looking to convert fiat to digital currency in a convenient manner, peer-to-peer trading platforms may be more to their liking.
Source: Ebay UK
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