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.
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.
- The payment gateway protects its user’s financial information from being tampered with by integrated websites and merchant platforms.
- A PayPal account is free to open, and the entire process can be completed within a few minutes to make transactions. However, transactions can incur charges when it involves purchases that need you to convert currencies.
- It allows you to make business transactions and send and receive money from family and friends.
- PayPal uses end-to-end encryption to protect user data. Also, users can opt-in for two-factor account authentication to log in and email verification to confirm payment.
- Users can link bank accounts and cards with PayPal to make deposits into their PayPal accounts.
- PayPal makes cryptocurrency accessible to beginners and old investors. It has also integrated cryptocurrency exchanges for buying and selling cryptocurrencies to the list of integrated e-commerce websites and exchanges.
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.
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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:
- On your web browser, search for “paypal.com” or download the PayPal mobile app from Google Play or the Apple Store
- Click on the “Sign Up” button
- Select which account type (personal or business) you want to use, then click on “Get started”
- Choose your country, and input your phone number. You will receive a security code which you will enter into the box provided for use.
- Next, input your legal first and last name and your active email address, then put in a secure password.
- Enter your email address
- Now that your account is live, you can add your debit card, credit card, or bank account to your PayPal account.
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.
- “Sign in” to your account.
- Search for and click on “Buy and Sell” within the “Your crypto” area
- Next, tap on the “Bitcoin” key. Click on “Buy,” then enter the quantity of Bitcoin you want to buy.
- Select the payment method you prefer and click on “Next.”
- Again, click on “Buy now” to complete the buying process. Your coins will be sent to your Pay Pal digital wallet.
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:
- To use Paxful to buy Bitcoin, you will have to set up an account on the platform
- Once you have an account set up, verify your identity with the right legal credentials required
- Next, choose a preferred payment method and pick the desired amount you want to purchase.
- Pick a seller from a list of available sellers. You can buy from sellers manually, or you let Paxful pick the best seller to suit you.
- Once the trade is initiated, an online chat with the preferred seller will be sent to you. Here, you can strike a deal with the seller, after which the seller’s fund is moved into escrow (Paxful acts as an intermediary between buyer and seller).
- Make payments and click the button indicating that you have made payments to the seller, and the purchased Bitcoin will be released into your wallet.
- Note: If you do not make payments into the seller’s account within a given time (about 30 minutes), the payment will be automatically canceled.
- Sellers from different countries in the world are available for transactions
- There is a high risk in dealing with individual sellers on Paxful
- The exchange rates are poor in comparison with other exchanges
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.
- Several payment methods are accepted
- Transactions fees are relatively low compared to other cryptocurrency exchanges
- Users encounter complications when attempting to withdraw their funds from the platform.
- It is not available in quite a large number of countries around the world
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.
- Open your web browser, search for LocalBitcoins on the browser
- Input your country and how many Bitcoins you want to purchase
- Choose a seller from the available list of sellers. Go through each seller one by one, and check for some of these criteria:
- Customer feedback score
- How many users trust the seller?
- How old is the seller’s account?
- How many of the seller’s trades have been confirmed?
- What number of persons blocked the seller?
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.
- Once you get a reliable seller on the platform from which to trade, click to place a trade with the seller. You will be directed to the trade page, where all information concerning the trade limits of the seller, the location, and the payment window (given time to send funds and mark paid after you might have made payment).
- Always read through the trade requirements of each seller to be sore that you fulfill them. Trade requirements of sellers can be located on the right side of the page. It is important because each seller requires varying things from buyers, such as the buyer should have some reputation on LocalBitcoins before placing an order. They do this to avoid being victims of scams or fraudulent buyers. The best way to go about this is to run small transactions to build a credible reputation for yourself.
- Now, if you fulfill all requirements and it suits you, input the number of Bitcoin you want to purchase, then click on “Send trade request” to complete the trade.
- Available sellers from various countries around the world
- Delivery of Bitcoin is swift after payments are confirmed
- Exchange rates are considered poor in comparison to competitors
- Added risk of dealing with individuals directly
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.
- High limits of transactions
- It is a well-trusted exchange platform
- Purchases cannot be made directly using PayPal
- It is only limited to U.S customers only