Bitcoin and Skrill
The fastest, the safest and the cheapest ways to buy with Skrill
- Quick links
- Skrill and Bitcoin
- Buy Bitcoin with Skrill: The Fastest Way
- Buy Bitcoin with Skrill: The Safest Way
- Buy Bitcoin with Skrill: The Cheapest Way
- …And the workarounds
[no verification] Buying Bitcoins with Skrill
[no verification] Selling Bitcoins for Skrill
- Coinimal - You can withdraw to NETELLER which is now connected to Skrill. NETELLER though supports Bitcoin deposits by itself for 5% fee - you will have this cheaper directly. As a side note, don’t leave money on NETELLER, they charge inactivity fee.
[fully verified only]
- BUY: Coinimal. You have to verify the ish out of yourself to be able to buy with Skrill. By ish I mean everything, including either a special selfie or a Skype chat.
Skrill and Bitcoin
Skrill was known as MoneyBookers for a very long time. It is an online wallet quite similar to PayPal. Skrill has couple more neat features though - sign up is fast and easy, fees relatively low and withdrawals very easy. You can even withdraw your funds on a Visa debit card. The disadvantage is that Skrill payments are easily reversible. When you are dealing with an unknown person who buys Bitcoin from you, there is always a chance they will reverse the payment. The Bitcoin transaction is irreversible so you will end up screwed. Since Skrill officially does not support Bitcoin the customer support might close your account if you complain about reversed payment for Bitcoin.
So this happens, but far less often than you stumble upon a report on this on some Bitcoin forum. It makes sense - people will never write emotional reports about success trades. It is better to be safe than sorry though: Trade smaller amounts, do not go for couple of grand at once. No matter how much you trust the other side, they can always scam you. It is Bitcoin business, not family.
Buy Bitcoin with Skrill: The Fastest Way
No two ways about it. The fastest way to buy Bitcoin with Skrill are LocalBitcoins (the link goes directly to the list of Skrill trades on LocalBitcoins). The whole process can take about 4 minutes in total if you catch a seller who is at the moment sitting at their computer.
How to buy Coins with Skrill on Localbitcoins
Open an account at LocalBitcoins. You can trade with only your email verified but you will get more options if you also verify your phone and state your real name. Many traders will not do any business with you unless you provide at least some identification. If you do not want to have this information on your profile, you can sort it out by direct messages with the seller. Your profile stays on forever but direct messages on LocalBitcoins get destroyed after three months.
List all available Skrill trades - here (opens in new tab)
The list will automatically put the most trusted traders up. People tend to choose someone with 100% positive feedback and decent amount of trades but most new people will not scam you either.
The really important thing is to choose someone who is already online (the green dot). That will make the trade much faster. Click “buy” on the left-hand side and read seller’s conditions.
Like you see on the picture, there are quite a few Bitcoin sellers who will want you to use Skrill iT (international transfers). Follow the link they provide in terms, enter the amount to spend in correct currency and choose sellers location. You will need to get seller’s country and later also their name and phone number. There is a fee that will be added to the sent amount of money. If you are not logged in you will be asked to do so in order to confirm the transfer.
The payment is instant, your seller will get a text message. Mark the payment as complete, the seller will release your coins. Now say thanks for God’s sake!
Your Bitcoins are now in a wallet built in your LocalBitcoins account. If you are not planning to sell them, request a withdrawal to a safer place, like an Electrum wallet on your computer (More on Bitcoin wallets)
- Trade average: 403 EUR/BTC
- LocalBitcoins: 448.34 EUR / BTC (10% margin)
- LocalBitcoins trade: Buy BTC for 450 EUR via Skrill iT
- Bitcoins released: 1.0037000 BTC
- Transfer fee Skrill: 4.50 EUR
- Transfer fee LocalBitcoins: 0.00006874 BTC
- Received 1.00365817 BTC for 454.5 EUR (effectively 452.84 EUR/BTC, more than 11% margin compared to trade exchange average price)
- Trade exchange with 0.2% trade fee: Trade of 450 EUR costs 450.9 EUR and by 403.00 EUR/BTC yields 1.11662531 BTC
Pros and cons
Pros are clear. It is very fast, no AML/KYC shit, just pure barter. You do not even need a verified Skrill account. (Some vendors might want you to have a verified account, some not - but by itself it’s not obligatory.)
If you take one more look at the pictures above you will see the biggest con of LocalBitcoins: Traders sell with margin. By the time I requested a Skrill trade the LocalBitcoins price was about 515 USD per BTC while the average current price on trade exchanges was about 460 USD per BTC.
The prices are dynamic, sellers usually do not set a fixed price. The listed price is most often a Bitfinex price multiplied by margin.
Skrill and eWallets in general are far more expensive on LocalBitcoins than bank transfers. It is so because of the fear of fraud, quite understandably. If you are buying Bitcoins with Skrill or Paypal, you are on the safe side, not the seller. The Bitcoins you receive don’t carry the risk of chargeback. You have to pay more for this advantage.
If you want to buy Bitcoins to sell them later and dearer, there are better places to get the coins. Notoriously, the more verification you need to do the cheaper the Bitcoin will be, but it’s not an absolute rule. LocalBitcoins is a great place to sell Bitcoins you got cheaper elsewhere: If Bitcoin price has gone up in the meantime you will profit both from this difference and from margin, since margin is on LocalBitcoins expected.
If you buy Bitcoin to hodl, all die-hard bitcoiners will tell you that the margin doesn’t matter anyway, since some 1000 USD per coin will be a laughable price in the future. I believe that too. Still there there are better ways than buying coins on LocalBitcoins at peak price. So if you have some spare cash on your Skrill and cannot move it to a bank account, at least wait for a price dip to go get a coin or two.
Buy Bitcoin with Skrill: The Safest Way
The safest way would be buying Bitcoin through VirWoX.
You are buying Second Life Lindens with Skrill, not Bitcoin, so that is officially allowed.
And you eliminate the barter element, so the transaction is less risky.
How to buy Coins with Skrill on VirWox
Sign up with this link to get 10% off the fees. At sign up, leave pretty much all default choices.
Select “Deposit” on the left-hand side and deposit money from Skrill. You will need to be verified.
You will see your credit in a minute. If you are new you will only be able to send in 80 EUR (or whatever currency) of which a fee is deduced. You will end up with about 76 EUR worth of credit. Change it all to Lindens (trade EUR/SLL).
There is a fee on this trade too so set up at least a limit order to get more Lindens once the price spikes a bit. You will get an email once the order is executed.
Once you have Lindens, go buy the Bitcoin. Again, this is a new trade with fees and all. Go for limit trade, the price changes a lot.
When your order is filled, request a withdrawal to a safer wallet. Do not leave the Bitcoins on VirWox. (More on Bitcoin wallets)
- Trade average: 403 EUR/BTC
- VirWoX Deposit: 80 EUR via Skrill
- VirWoX Received: 76.81 EUR
- VirWoX Limit Order EUR/SLL: Filled few hours later, 76 EUR x 280.2 SLL, 4% fee. Received 20464.69 SLL.
- VirWoX Limit Order SLL/BTC: Filled some hours later, 20,364.40 SLL with 4% fee yields 0.2 BTC.</li>
- Transfer to a safe wallet: Flat fee 0.005 BTC (very high!)
- Received 0.195 BTC for 80 EUR (effectively 410.26 EUR/BTC, about 1% margin compared to trade exchange average price at the beginning - the price rose in the meantime though.)
- I have used a referral link to sign up which makes my transaction fees 10% lower. Also note my orders were limit orders and I had to wait a few hours to get the deal.
- Trade exchange with 0.2% trade fee: Trade of 80 EUR costs with fee 80.16 EUR and by 403.00 EUR/BTC yields 0.198908189 BTC
Pros and cons
You see it is not fast if you want it cheap. You have to do twice the amount of trade on VirWoX, that comes with twice the fees. So go on and use a referral link to get something off and set up limit trades to cover the expenses a little.
VirWoX is a relatively trusted exchange, the price is not completely off. But you have to sit on it a little, don’t go for market price to execute trade immediately. If you go the fast lane the margin will be higher. If you think the numbers through better than I, you could get better deal than on a trade exchange.
A big con is the trade limit, 80 EUR per day totaling at 240 EUR per 30 days. The fee for withdrawal is too high as well. It is 10x the fee on Localbitcoins and many trade exchanges have free Bitcoin withdrawals.
Last but not least: I should probably warn you. VirWox is not a good place to get Bitcoin like this, or to play with limit orders to get a good rate.
What they want to see is people depositing Bitcoins and getting Skrill cash for them as fast as possible. That is fine. Depositing fiat and getting Bitcoins as fast as you can, even though you will get a thick margin, that is also alright.
But it is not a trade exchange. If you play it smart like I just described, you might end up with your account blocked just like many people before. No reason for worry, they will reverse your deposits so you are not losing money. You only lose your time.
Buy Bitcoin with Skrill: The Cheapest Way
Sad but true: The cheapest way to buy Bitcoin with Skrill? On a trade exchange with deposit from a bank account.
That is already basically a workaround. Other options are:
- Virtual credit cards that might accept Skrill deposits and Bitcoin withdrawals.
- Buying Bitcoins with Skrill credit card which is possible at Coinmama if you verify.
- Money changers that are mostly dodgy and have high fees.
How to get Bitcoin cheap, if you can transfer money to an EU bank account.
In your Skrill account, if you can, withdraw funds to a bank-issued debit card. This is especially useful if you have a Skrill account in a different currency than the debit card: The transaction will be executed as return of payment and you will get better exchange rate. (This is not a glitch, that is how debit cards work - there is not supposed to be a reason to send in money apart from returns. Use it while you can, it is not available with MasterCard anymore, Visa only).
The funds will be ready in a few days. The money will appear on your bank account as usual, even if you sent them to your debit card. When you have them, send them to a trade exchange where you are verified (Bitstamp, Kraken, Bitfinex)
Buy Bitcoin with fee 0.2-0.3% and withdraw your Coins for free.
- Skrill Withdrawal: 100 USD on EUR debit card.
- Exchange rates in bank: 0.9158/0.9232 EUR per USD. Received 92.32 EUR.
- Funds to exchange: Free SEPA payment, received 92.32 EUR.
- Trade average: 403 EUR/BTC
- Trade: 92.184 EUR (with 0.2% fee) into 0.22828784 BTC
- If you are not planning to sell the coins, request a free withdrawal to a wallet on your computer (More on Bitcoin wallets)
To sum it up, here’s what gives you more chances to get bitcoins for your Skrill money.
Have a Skrill plastic card. You can use it on CoinMama to buy BTC or ETH if you verify. The payment is listed as payment to SIMPLEX with is the provider of the payment gate and fraud detection. In the list of your transaction you will only see payment to SIMPLEX listed - there won’t be any information about you buying Bitcoin specifically. You will need to verify. More on buying Bitcoins with debit card
Have a bank account and a verified exchange account. Send money to the bank and from there to an exchange like Bitstamp. The very cheapest option. In some countries you can even use a debit card to buy at Bitstamp.
Use exchanger (money changer). Dangerous though. Here is a list of Money changers that are official partners of PerfectMoney.is. Since these are “unofficial”, there is a lot of scammers that use the same or very similar name on Localbitcoins or elsewhere and will get your money off you.