Courtesy Post For All - Do NOT Sell Any Cryptocurrencies Through Ebay and PayPal.
This is a quick courtesy bit of information for any novice cryptocurrency investor but if you for any reason get an itch to attempt to sell Cryptocurrencies through the use of EBay thinking that you'll reach a large audience and be able to mark up your cryptocurrencies then you are making an overwhelming big mistake.
I have heard several people talking lately about doing this on forums I've read (mainly complaints about EBay and PayPal) and here's what I've gathered.
EBay
EBay apparently in its fine print somewhere buried in its policies states that the use of the EBay platform to sell digital currencies is either prohibited or not supported and that if you choose to use this site that you are supposed to list your cryptos under the classifieds which cost about $10 just to list.
Here is what actually happens though. You list your cryptocurrencies, someone buys them rather soon after you list and pays promptly and swiftly provides a wallet address. You believe since you got paid and received the funds to your PayPal that you're in the clear so you send your cryptocurrencies to the specified wallet address. Moments later or days later after your cryptocurrencies are gone, the owner of the account files a claim with EBay saying their accounts were hacked and that they did not make those transactions.
This happens countless time on EBay everyday which is mind boggling to me.
PayPal
Here's where it really gets bad. PayPall also has a fine print disclaimer buried somewhere in its policies that using their platform to collect money for the sale of digital currencies is prohibited. If you cannot provide a physical shipment delivery tracking number and txid's do not suffice then PayPal will automatically cause you to lose the open dispute case for the supposed fraudulent purchase and will swiftly refund the buyer the money from your account.
You will lose your cryptocurrencies plus you will lose the money you had collected originally from the buyer and will basically have lost twice your money.
You will never will an open dispute when it comes to cryptocurrency on PayPal and there is no one in their right mind Buying Cryptocurrencies on EBay instead of direct through and exchange.
Summary / Food For Thought
Why would anyone go on EBay and buy cryptocurrencies at a markup or premium when they could just buy it directly from an exchange? And why would anyone have a wallet address for the specified cryptocurrency and not be able to buy the cryptocurrencies themselves?
Just be smart and please do not by any means be a seller of cryptocurrencies on EBay because you will get royally burned and I'd hate to see anyone in the crypto space get burned because we all want to see this space succeed!
Watch out for all those Con Men out there!
You mind if I would resteem your post as I believe it's very useful?
Funny enough, I purchased some services lately from company that had word "coin" within their name and I received warning from paypal that they will not tolerate using their services to purchase crypto. Serious shit.
Yes please, by all means, resteem away! Thank you for helping me reach more people. I'll take any help I can get honestly.
Resteemed already.
ps. why are you following almost 10k people? damn. it is your strategy to get more followers?
Precisely. It did work for a while. I intended to later unfollow anyone that didn't follow me back but then I decided it wasn't worth the work. There's no penalty for following too many people on Steemit.
I forgot to upvote your post. Sorry. Fixed it already.
Again thx for your prompt reply. You're very responsive.
I work as a social media marketer and I think your strategy is good on instagram but it wouldnt really work on steemit.
Would you mind sending me short email to [email protected]? I would love to be able to keep in touch and support each other on Steemit.
No pressure of course :)
Cheers, Piotr
Crypto is not good for eBay/Paypal for a couple reasons...
Your considered a money transmitter. In order to legally sell currency, I realize crypto is in kind of a grey area in this regard, IRS considers it a commodity but some government agencies consider it a currency, you need to register with Fincen as an MSB and get Money Transmittr or MSB licenses in any state you sell to. This is incredibly expensive and requires a lot of recordkeeping in terms of compliance. Paypal prohibits MSB's form using their services so if you go about the proper way of selling you are no longer allowed to accept Paypal. Also Paypal and eBay both prohibit currency exchanges from operating using their services so it violates TOS.
Even if crypto wasn't potentially considered a security, your selling a non-tangible good ie your selling something people can hold in their hand. While people do sell gift cards and XBox live cards, they have over the years cracked down on ebooks and other non-tangible items. Even if it was allowed if you sell $100 worth of Crypto, I buy it and you send it to me. All I have to do is say I didn't receive it, they will ask you for a tracking number and without a tracking number you automatically lose the case, I keep your crypto and get my money back. It doesn't matter if you have a blockchain transaction as proof, they aren't gonna look at it.
I see people say "but I see other people selling crypto and even currency on eBay." Alot of people get away with stuff that's against policy, just because someone else is selling it doesn't mean its allowed
good information..thanks
i like paypal
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I've read something like this before that's why people don't really sell cryptos via ebay/paypal.
I was thinking of buying cryptos from there before since the price my local exchange are usually 10-20% premium compared to bittrex and other big exchanges.
I thought I could made easy money from arbitraging these 10-20% but it turned out quite hard unless I can have access to big exchanges like coinbase.
Hope your picture is very good and better,thanks.......
Your Absolutely Correct sell If you want to sell your crypto coins than sell on other platforms.
Very nice and well researched
It seems obvious tome not to use EBay or PayPal. But knowing the details is really helpful.
I didn't think it was as obvious at first, I thought it could have been a potential means of selling since you can pretty much sell anything on EBay but once I read about all the fraud and scams and about all the shady business practices of both EBay and PayPal I knew I needed to stay away.
Also go on EBay later and search for cryptocurrency, it might blow your mind how many people are doing it although I bet most of them are going to learn the hard way that they're about to lose a lot of money from all the scams and EBay and PayPal protecting the buyers and not the sellers.
Ebay sales seem to be akin to the faults of centralization. Never would have even thought about purchasing through Ebay. Good article for a total noob's first buy. Cryptocurrencies could really do without battling the faults of fiat currencies. After all, much of the unwanted aspects won't be realities in a more mature crypto market.
Wow! super interesting post. never would have thought of that! Appreciate your insight here!
Great article and thank you for the information.
I wanted to point out that you have a typo in this sentence.
You will never "will" an open dispute when it comes to cryptocurrency