The popularization of cryptocurrency trading has made it easier than ever to purchase crypto using a variety of methods. Although using a credit or debit card is still the preferred approach by many traders, the option to buy Bitcoin with PayPal is becoming increasingly common with many top brokers and exchanges.
In this guide, we’ll cover everything you need to know about how to buy Bitcoin with PayPal, including reviewing the top crypto trading platforms and showing you how to invest with low fees today.
How to Buy Bitcoin with PayPal – Quick Steps
Presented below is a quick overview of how to buy Bitcoin with PayPal using our recommended trading platform, eToro:
- Open an account with eToro: Head to eToro’s website and click ‘Join Now’. Enter your email address and choose a username and a password.
- Verify account: Verify your eToro account by completing the KYC checks and uploading photo ID (e.g. passport) and proof of address (e.g. bank statement).
- Deposit: Deposit at least $10 into your trading balance using PayPal as your preferred payment method.
- Buy Bitcoin: Type ‘BTC’ into the search bar and click ‘Trade’ when Bitcoin appears. Enter your position size in the order box (minimum $10) and click ‘Open Trade’.
If you are looking for a more detailed walkthrough of the investment process, you can find one at the end of this guide.
Where to Buy Bitcoin with PayPal
If you’re looking to buy Bitcoin with PayPal, your top priority should be finding a reputable trading platform to facilitate your trade. There is an abundance of trading platforms offering this functionality, meaning it can be challenging to narrow down the selection to one that suits your unique needs.
To help streamline this decision-making process, presented below are reviews of four top trading platforms that allow users to buy Bitcoin via PayPal:
1. eToro – Overall Best Trading Platform to Buy Bitcoin Online with PayPal
Our number one pick when it comes to the best crypto exchanges that offer PayPal functionality is eToro. eToro has an excellent reputation within the trading industry, with over 24 million users across 140 different countries. Much of eToro’s outstanding reputation comes from the platform’s high degree of safety, bolstered by regulation from top-tier entities such as the FCA, ASIC, CySEC, FinCEN, and FINRA.
eToro users can invest in Bitcoin and a wide array of altcoins using eToro’s browser-based platform or the dedicated mobile app, available on iOS or Android. In terms of fees, eToro makes sure the amount you pay is entirely transparent, charging a fixed 1% fee when opening or closing a trade, plus the raw spread. eToro had previously utilized a fixed spread approach, so this new pricing structure tends to work out much cheaper for most cryptos.
eToro is ideal if you’re interested in buying Bitcoin with PayPal, as the platform offers free deposits in USD with a minimum threshold of only $10. Non-USD deposits will come with a small conversion fee of 0.5%, although this can be avoided by converting to USD within the PayPal platform before making your deposit.
Finally, eToro also offers a range of exciting trading features that help optimize results, including the super-popular ‘CopyTrader’ feature. This feature allows users to instantly copy the trades of other successful eToro traders – thereby automating the investing process. eToro even has a dedicated ‘Academy’ service which features courses, tutorials, and podcasts designed to smooth the learning process.
Cryptoassets are a highly volatile unregulated investment product.
2. Crypto.com – Great Place to Buy Bitcoin using PayPal with Low Fees
Another option if you’re wondering how to buy Bitcoin with PayPal is Crypto.com. Crypto.com offers one of the best crypto apps on the market, along with a web-based exchange platform that will appeal to advanced traders. This trading platform offers over 250 cryptocurrencies to trade, including BTC and a variety of altcoins. Since Crypto.com accepts FIAT deposits, PayPal users can send over USD via a bank transfer.
Alternatively, Crypto.com allows users to top up their Crypto Visa Card balance using PayPal directly. Although this will come with a 2.1% top-up fee, it will arrive instantly, allowing you to begin generating rewards through spending. In terms of buying Bitcoin specifically, Crypto.com charges a maker/taker fee of 0.4% when trading via the exchange. Notably, you can reduce this fee by 10% if you pay your trading fees in CRO – Crypto.com’s native token.
Crypto.com is also packed with various handy features for traders, including ‘Crypto Earn’, which allows you to generate a return on your crypto holdings. This feature acts as one of the best crypto savings accounts since you can obtain up to 14.5% p.a. for certain coins. Finally, Crypto.com even offers a free crypto wallet app to store your holdings, featuring two-factor authentication and support for over 100 digital currencies.
Cryptoassets are a highly volatile unregulated investment product.
3. Binance – Respected Crypto Exchange with Huge Asset Selection
Binance is ideal if you’re looking to buy Bitcoin or any of the best altcoins, as the platform offers an impressive 500+ crypto assets to trade. The selection includes DeFi tokens and crypto-to-crypto trading pairs, which will appeal to experienced crypto traders. Although Binance is primarily used as a cryptocurrency exchange, users can still fund their trading balance using FIAT currency. However, the only way to buy Bitcoin using PayPal is to go through Binance’s P2P trading service, assuming another user offers that option.
In terms of fees, Binance will appeal to traders looking to minimize costs as the platform charges only 0.1% per trade. However, Binance users who prefer to buy crypto instantly without using the exchange will be charged a higher fee of 0.5%. Finally, Binance is also popular amongst traders due to the platform’s various additional features – including a marketplace where users can invest in the best NFTs to buy with low trading fees!
Cryptoassets are a highly volatile unregulated investment product.
4. Coinbase – Huge Crypto Exchange Allowing Direct Bitcoin to PayPal Purchases
For investors wondering how to buy Bitcoin with PayPal instantly, Coinbase offers a streamlined way of doing so. Coinbase is one of the world’s largest cryptocurrency exchanges and provides over 95 cryptos to trade. Notably, once you have completed Coinbase’s verification process, you can link your PayPal account directly to your Coinbase account. Only US-based users can buy crypto through Coinbase using PayPal, although all other customers can cash out using the service.
At present, Coinbase allows cashouts in USD, EUR, and GBP, with high daily limits that will appeal to advanced traders. In terms of trading fees, Coinbase charges a taker fee of 0.6% and a maker fee of 0.4% when using the Coinbase Pro exchange service. However, users who wish to purchase crypto through the Coinbase App instantly must pay a transaction fee based on trade volume and payment method, plus the spread – meaning this approach can be costly.
Cryptoassets are a highly volatile unregulated investment product.
Why Buy Bitcoin with PayPal?
When researching how to buy Bitcoin with PayPal, you’ll likely become aware of the various benefits associated with using this approach. This is understandable, given that PayPal now has over 390 million active users worldwide. With that in mind, presented below are five of the main advantages of using PayPal to purchase Bitcoin:
Speedy Deposits & Withdrawals
One of the main reasons traders opt to use PayPal is the platform’s ability to facilitate deposits and withdrawals quickly. Assuming you have an account with a trading platform that accepts PayPal (e.g. eToro), it’s easy to link your PayPal account to your trading balance and make instant deposits. The entire process is streamlined, usually only taking a few minutes to complete.
If you’re looking to transfer Bitcoin to PayPal, this can usually only be achieved by first closing out your position on the trading platform and then withdrawing the proceeds to your PayPal balance. However, the withdrawal timeframe for PayPal tends to be much quicker than other payment methods. For example, eToro offers PayPal withdrawals within two business days, whilst bank transfers or credit/debit card withdrawals can take up to ten business days.
High Degree of Security
The level of safety that PayPal offers is another reason why this approach is so popular amongst cryptocurrency traders. As detailed on the PayPal website, the platform employs end-to-end encryption to keep your data and transactions secure. This also includes data protection compliance and ‘key pinning’ to protect your confidentiality.
Another great security feature is that PayPal sends out email confirmations after every transaction. This is extremely useful as if a transaction is unrecognized, you will be able to notify PayPal immediately and remedy the situation. Finally, PayPal even has a dedicated security team that monitors payments 24/7 and will alert you if anything suspicious occurs on your account.
User-Friendliness
The process of how to buy Bitcoin with PayPal is incredibly user-friendly and even rivals popular payment methods such as credit or debit cards. PayPal users can fund their PayPal balance via bank transfer, with the funds being safeguarded through PayPal’s extensive security features. Once funded, it’s then simple to connect your PayPal account to a broker or exchange that supports this payment method.
Using eToro as an example, all that’s required is to make a deposit and choose PayPal as your preferred payment method. You’ll then need to link your PayPal account to your eToro account by entering your login details in the portal that appears. After this, you can instantly make your deposit and begin investing in Bitcoin or the best DeFi coins using the funds you just deposited.
Can Use Mobile App
PayPal’s mobile app has a fantastic reputation due to its user-friendliness and great features. The app itself is available through the App Store or Google Play and allows users to send money anywhere in the world using the recipient’s mobile number or email address. This is extremely useful if someone else is sending you money which you will then use to fund your trading account.
The PayPal app also allows you to track your transactions in real-time, which is ideal for ensuring no fraudulent activity is occurring on your account. You can even turn on notifications to alert you the second that there is some account activity.
Multi-Currency Support
Finally, one of the best features you’ll encounter when researching how to buy Bitcoin with PayPal is that the platform supports 25 different currencies. This includes widely-used currencies such as GBP, USD, EUR, and AUD, along with lesser-used ones like CAD, DKK, and BRL.
Ultimately, this feature helps you avoid any currency conversion fees charged by trading platforms. For example, eToro will charge a 0.5% conversion fee for non-USD deposits. By using PayPal, you can convert your funds into USD before making the transfer to eToro – thereby making the process much more cost-effective!
Is PayPal a Good Place to Buy Bitcoin?
Following the explosion in popularity of day trading crypto and other investment approaches, PayPal decided to get in on the act and begin offering functionality to invest in digital currencies directly through the PayPal platform. This was initially only available to US-based traders, although it is now offered in the UK. At present, PayPal allows users to buy Bitcoin, Bitcoin Cash, Ethereum, and Litecoin using their account balance.
Although there is no functionality to buy Bitcoin with PayPal Credit, the process will still appeal to people who value safety and ease of use. PayPal allows users to invest in the four supported cryptos from only $1, although you will have to complete a verification process and fill out a W-9.
Ultimately, PayPal is an okay option if you’re looking to buy Bitcoin, especially if you use the service regularly. However, it’s no substitute for using a dedicated broker or exchange, both in terms of fees and trading features.
Buying Bitcoin On PayPal vs Buying Bitcoin Using PayPal on Crypto Exchanges
Given the information presented in the previous section, you may wonder whether to use PayPal to buy Bitcoin directly or link your PayPal account to a crypto exchange and make your trade utilizing that approach. There are pros and cons to both options, so let’s review each method individually so you can gain a clearer understanding:
Buying Bitcoin On PayPal
As noted, PayPal now allows users in the US and the UK to purchase crypto directly through the PayPal platform. Users can instantly buy BTC, BCH, ETH, and LTC for only $1, which is a factor that will appeal to beginner investors. However, although this appears valuable at first glance, there are some significant limitations to using this approach.
Firstly, PayPal doesn’t allow users to transfer their crypto off of the PayPal platform. Ultimately, this means that if you use PayPal to make your Bitcoin investment, you will not be able to move your holdings to an external wallet. This isn’t ideal for several reasons, especially if you’re looking to bolster your security by keeping your holdings in one of the best crypto wallets that offer cold storage.
Secondly, PayPal’s fees can be high relative to other options. Investments between $25 and $100 will accrue a fee of 2.30% – however, this fee is also charged on the other side of the trade. Overall, this means that you can be charged upwards of 4.5% when buying and selling BTC using PayPal – and this doesn’t take into account any currency conversion fees when withdrawing the proceeds back to your bank account.
Buying Bitcoin Using PayPal on Crypto Exchanges
Through our research and testing, we’ve found that the best way to buy Bitcoin with PayPal is to use a dedicated crypto exchange. As noted earlier in this guide, numerous exchanges now support PayPal as a deposit method. These tend to be centralized exchanges like eToro, Crypto.com, and Coinbase, which will require KYC before making the transfer.
Making the PayPal deposit with these exchanges is as simple as linking your PayPal account to the platform and facilitating your deposit. Much like credit and debit cards, these deposits tend to arrive instantly, allowing you to immediately take advantage of trading opportunities.
However, the key benefit of using a crypto exchange is the abundance of trading features offered through this approach. Using eToro as an example, users can view price charts and real-time information, with options to employ a variety of technical indicators.
There are even automation options such as the CopyTrader and CopyPortfolio features, both of which are ideal for beginner traders. Finally, unlike PayPal, eToro allows users to transfer their crypto holdings off-platform – although there also is the option to use eToro’s dedicated crypto wallet app for safekeeping.
Cryptoassets are a highly volatile unregulated investment product.
How to Buy Bitcoin with PayPal on eToro – Tutorial
Finally, now that you have a comprehensive understanding of how to buy Bitcoin with PayPal, let’s look at the investment process. As you’ll be aware by now, we recommend using eToro to facilitate your BTC investment due to the platform’s extensive regulation, low fees, and user-friendly nature.
With that in mind, the five quick steps below will walk you through how to make your Bitcoin investment with eToro today – all with minimal trading fees.
Step 1 – Open an eToro Account
Head over to eToro’s homepage on your computer, or download the eToro mobile app, and opt to ‘Join Now’. You’ll then be asked to enter your email address and choose a username and a password, which will be used as your login credentials.
Cryptoassets are a highly volatile unregulated investment product.
Step 2 – Verify your Account
eToro requires all new users to verify themselves to comply with anti-money laundering laws. This can be done by clicking ‘Complete Profile’ and entering the necessary personal details for the KYC checks. Following this, you’ll then need to upload a photo of the following documents:
- Proof of ID (e.g. a passport or driver’s license)
- Proof of address (e.g. a bank statement or utility bill)
eToro will then need to verify these documents, although you will be notified via email once the process is complete.
Step 3 – Make a Deposit
Click ‘Deposit’ on your account dashboard and enter your deposit amount in the box that appears (minimum $10). Following this, choose PayPal from the drop-down menu and follow the on-screen instructions to link your accounts and facilitate the deposit
Step 4 – Buy Bitcoin with PayPal
Type ‘BTC’ or ‘Bitcoin’ into the search bar and click ‘Trade’ when the crypto appears. An order box will appear, much like the one below, in which you can enter your desired position size (minimum $10). Once you are happy with everything, click ‘Open Trade’, and eToro will execute your position immediately.
How to Buy Bitcoin with PayPal – Conclusion
In conclusion, this guide has taken an in-depth look at how to buy Bitcoin with PayPal, covering everything you need to know about the process. As you’ll now be aware, various brokers and exchanges enable seamless PayPal deposits, making it simple to buy BTC (and other cryptos) instantly using your PayPal balance.
If you’d like to buy Bitcoin using PayPal right away, we’d recommend creating an account with eToro. eToro can link directly to your PayPal accounts and enables free deposits, with a minimum of only $10. What’s more, eToro doesn’t charge any hefty trading fees and offers a free crypto wallet app for safe storage post-purchase!
Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.
FAQs
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