If you are looking to spend some spare dollars investing in Bitcoins, payment platforms can help you complete transactions, as they are easy and more cost-effective than they used to be. PayPal is an easy and fast payment gateway that can help convert your funds to Bitcoin and other cryptocurrencies quickly.

Buying Bitcoin with PayPal means you need to have an account with PayPal. This guide will teach you how to open and use PayPal to kick-start investing in Bitcoins. You will equally learn about several cryptocurrency exchanges that allow you to buy Bitcoin using PayPal.

Why PayPal?

With over 200 million active users from over 200 countries, PayPal makes online payment seamless and secure. It connects buyers and sellers seeking to transact. Any PayPal user can use the payment platform to purchase, sell, and receive funds from integrated websites and exchange platforms. It also maintains its status as one of the most cost-effective and easy ways to purchase, sell or hold cryptocurrencies.

PayPal offers intermediary services, serving as a middleman between your bank and other integrated merchants while keeping your financial information secure. PayPal provides a protective shield for sensitive bank details, so integrated merchants have no access to viewing them.

Features

How to open a PayPal account

Setting up a PayPal account only takes a few minutes to accomplish. Before you open an account, you need to choose from the two available types of PayPal accounts: personal and business accounts.

Top Recommended Platforms

MIN. DEPOSIT

$250

EXCL. OFFER

USER RATING

9.8

4.9/5

73% of retail investor accounts lose money trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

MIN. DEPOSIT

$50

EXCL. OFFER

USER RATING

9.7

4.8/5

CFDs are complex instruments and carry a high risk of losing money quickly through leverage. 78% of retail investor accounts lose money when trading CFDs from this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

MIN. DEPOSIT

$100

EXCL. OFFER

USER RATING

9.6

4.5/5

Trading with financial instruments carries high level of risks that is not suitable for all investors. Before making any investment decisions, you should seek advice from independent financial advisor to ensure you understand the risks involved.

A personal account is preferable for individuals who want to send and receive money and make purchases online. Business PayPal account allows businesses to accept and receive payments online from customers. Credit and debit cards are also acceptable means of receiving payments for Pay Pal Business accounts.

Here are the steps to follow to set up an account with PayPal:

Buy Bitcoin directly using PayPal

Buying Bitcoin is easy on PayPal, as they now support buying and selling on the payment platform. In a partnership with Paxos in October 2020, PayPal enabled the direct purchase of Bitcoin and other cryptocurrencies. It indicates that you can now buy and sell Bitcoin directly on the PayPal app by swapping your available funds on your debit and credit cards or your bank account for some Bitcoin.

Previously, Pay Pal users could not withdraw their crypto assets purchased on the payment platform, but since June 2022, withdrawals have been enabled. Users can withdraw their crypto assets to third-party wallets for storage or use them for transactions such as online purchases. The maximum limit on purchase is $10,000 weekly, and no specific limit annually. Transaction fees depend on the purchase’s size, ranging from 1.5% to 2.3%.

Here are simple steps to purchase some Bitcoin for yourself directly on the PayPal app.

Buying Bitcoin on Paxful using PayPal

Paxful is a peer-to-peer (P2P) marketplace that allows users to make Bitcoin purchases with virtually anything. From Amazon Gift Cards to PayPal to Skype credits, Paxful makes buying Bitcoin convenient.

Here is how to buy Bitcoin using Paxful:

Pros:

Cons:

Buying Bitcoin on eToro using PayPal

This exchange stands out as one of the best in the cryptocurrency trading markets. It is one of the few crypto marketplaces allowing users to buy Bitcoin using PayPal. However, some complications arise from buying Bitcoin on eToro: users find it very difficult to withdraw their Bitcoin assets to wallets on eToro. This implies that the exchange is better suited to trading on the price difference rather than buying and holding the Bitcoin asset itself.

Pros:

Cons:

Buying Bitcoin on LocalBitcoins using PayPal

LocalBitcoin is similar to Paxful, with buyers and sellers connecting directly on the marketplace. In LocalBitcoins, sellers are real-life persons whose credibility or not can be verified, especially when you do not hurriedly pick sellers. You can always look for sellers with good credit scores to make deals with.

Fees on LocalBitcoins are at sellers’ discretion as they charge premium amounts because of the risk of getting buyers chargeback. Despite the high fees, users get credited with Bitcoins very fast.

Below is how to buy Bitcoins using LocalBitcoins.

These yardsticks will guide you through picking the right seller to place a trade. You do not want to trade with an unreliable seller in the marketplace.

Pros:

Cons:

Buying Bitcoin on Coinbase using PayPal

Coinbase is one of the most reputable and reliable cryptocurrency exchanges worldwide. It was not until 2022 that the platform began accepting PayPal as a payment method. However, users cannot make Bitcoin purchases using their balance on PayPal but can do so using a credit or debit card or bank account linked directly to their PayPal.

Coinbase allows users to make as high as $25,000 daily limits on deposits which is fine for those looking to invest big. The platform charges a commission of 4% on credit or debit card purchases, while direct bank payments to PayPal costs 2.5%. Finally, users can withdraw their fiats from their wallets to PayPal.

Pros:

Cons: