Paypal was once among the favored methods for buying and selling bitcoin. This should come as no surprise. After all, Paypal is one of the Internet’s largest online payment processors while Bitcoin is the most popular digital currency. The two should be a match made in heaven, right? Actually, selling bitcoin may violate Paypal’s terms and services. For one, Paypal prohibits activity that “(h) involves currency exchanges or check cashing businesses.” While the debate over whether bitcoin is a digital asset or currencies continues to rise, the above prohibition adds complications for bitcoin traders. Second, scammers have been using a quirk in Paypal’s payment system to successfully scam people. Basically, someone will use Paypal to purchase Bitcoin, then claim that they didn’t receive anything. Since Bitcoin …