Virwox Review : Bitcoin Scam or Legitimate Exchange?

VirWox Review: Is it a Bitcoin Exchange?

What is VirWox?

VirWox stands for Virtual World Exchange

Virwox isn’t an exchange per se, at least in the conventional sense. It’s a place where one can deposit money, then purchase digital currencies, like Bitcoin. It’s primary purpose isn’t to allow people to trade Bitcoin, like Bitfinex does. It’s primarily a way for people to sell digital currencies for online games, mainly Second Life. Second Life utilizes an in-game currency called Linden dollars.

 

Buy Bitcoin with VirWox

Since it’s not a typical exchange, it allows a broad variety of ways to deposit funds. This includes:

  • Skrill
    • An credit/debit card agency that processes transactions for 30+ countries.
  • OKPay

°  An international eWallet service and a shopping cart interface / payment processing service.

  • Paypal
    • The world’s premier electronic payment platform will fund your VirWox account with USD, but only for verified accounts. This may be troublesome if you are looking to do this anonymously.
  • Paysafecard
    • Unknown to most Americans, one can add money to a paysafecard from one of their locations throughout the world via cash. This allows maximum flexibility and anonymity.
  • SOFORT Banking

°   Offer easy, quick, and secure online payments using your own online banking details.

  • Credit/ Debit Cards
    • This is done through the credit card agency (IE: Visa Checkout). The cards allowed are JCB, Visa, Mastercard, and Diner’s Club International.

Deposit Fees

Payment Method Funds Available Currencies Accepted Limit(1) Fees
Pay Terminal in My Virtual Community immediately MVC unlimited free
Bitcoin 1-2 hours BTC unlimited free
Credit/Debit Cards immediately EUR
USD
GBP
90 / 270
99 / 297
81 / 243
EUR 0.39 + 3.5%
USD 0.49 + 3.5%
GBP 0.29 + 3.5%
PayPal Express Checkout immediately EUR
USD
CHF
GBP
90 / 270
99 / 297
99 / 297
81 / 243
EUR 0.35 + 3.4%
Sofortbanking immediately EUR 250 2.5% (min. EUR 0.25)
paysafecard immediately EUR
USD
CHF
GBP
300 / 2000
330 / 2200
330 / 2200
270 / 1800
20%
Skrill immediately EUR
USD
GBP
90 / 270
99 / 297
81 / 243
EUR 0.39 + 3.5%
USD 0.49 + 3.5%
GBP 0.29 + 3.5%
OKPAY immediately EUR
USD
CHF
GBP
100 / 1000
110 / 1100
110 / 1100
90 / 900
free

VirWox Limitations

Buying Limits

Upon creating an account your deposit limit is maxed at 90 USD. Their trading limits are as follows:

Limits in EUR Level 0 Level 1 Level 2 Level 3 Level 4
immediately after 10 days after 45 days after 90 days on request
PayPal/
Skrill
Deposits
per 24 hours 90 120 200 400 1,000
per 30 days 270 900 2,000 4,000 10,000

 

Bitcoin Mark-Up

In order to buy Bitcoin on VirWox, one needs to convert their USD to SLL (Linden Dollars), then from their they need to exchange the SLL for Bitcoin. This makes calculating costs and fees difficult. At time of writing $1 buys 255 SLL. A Bitcoin cost 274,971 SLL. Using these prices the markup over spot of 1 Bitcoin cost $988 (according to Bitcoin Average). One Bitcoin cost 274,971 SLL, or $1078.32. This is 8.35% over spot price of $988 per Bitcoin. This mark-up does not include VirWox’s fess of making trades which is a whopping 2.9% and a fixed 50 SLL per transaction. If you trading fees of 2.9% on each trade and deposit fees, VirWox’s total mark-up for exchanging USD to Bitcoin is more than 12%.

This is above face to face (Over the Counter, or off the exchange transactions) of 2-6%, while under Indacoin‘s estimated mark-up of 8-12%. All Indacoin customers through CryptoCrooks receive the best exchange rate of 7%.

 

VirWox does not currently offer it’s services (at all) to New York customers. This is an issue for almost 20 million Americans, but the trouble of getting BitLicense means that this company won’t support New York state customers. Virwox does this by detecting the IP address, so technically a VPN might be able to get you around this. But we’re not sure of the legality of doing so. BitLicense is a pain in the butt, and we hope that New York will refine this legislation, but it’s probably for the best.

VirWox isn’t the Best Way to Buy Bitcoin, But it Works!

Virwox’s high exchange rates means that customers aren’t getting the best buy prices relative to where Bitcoin is priced on the spot. However it is suitable for someone who wants to buy Bitcoin quickly with a prepaid debit card. It can be useful if one has few solutions to obtain crypto. Virwox has a niche, digital entrepreneurs. This means that those making money in Second Life can cash out their earnings with VirWox to get cold hard Bitcoin.

Indacoin is a great alternative for those in New York looking to buy Bitcoin with a prepaid debit card. Virwox is similar to Indacoin in the fact that they allow quick Bitcoin purchases with minimal personal details and credit cards, but VirWox accepts Paypal.

Michael

We believe Bitcoin has importance past it's monetary value. Decentralized systems have applications beyond economic theory. Keep following us, even if everything we write doesn't interest you our plan is to keep you interested. The future is now!

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