5 Best Ways to Buy Bitcoin With PayPal in 2023

5 Ways to Buy Crypto & Bitcoin With PayPal

After researching and analysing the different ways of buying Bitcoin with PayPal, we’ve come up with our top five recommendations below. Each method includes a step-by-step guide to simplify the process and help you get started.

1. Buy Bitcoin With PayPal on eToro

eToro is a multi-asset social investing platform and a great place to purchase Bitcoin with PayPal. It takes our top spot due to its reliability, ease of use, low fees, and innovative and unique features.

How to Buy Bitcoin With PayPal on eToro

1. Create a free account

Click the “Join Now” button on the website and fill in a username, password, and email address on the registration form that pops up. Once you’ve accepted the terms and conditions, you can hit “Create Account”.

2. Verify your account

Verify your email address by clicking the link emailed to you and complete your profile by providing extra details such as your name, date of birth, address, phone number, and proof of identity. You will also need to answer questions about your investing experience.

3. Make a deposit with PayPal

Click the “Deposit Funds” button, enter the amount you want to deposit and select your local currency. Choose PayPal from the dropdown list of deposit methods and click “Continue”. You will then be redirected to PayPal where you’ll need to log into your account to confirm the transaction.

4. Buy Bitcoin

Use the search bar at the top to look for Bitcoin and hit the “Trade” button. You can switch to “Order” if you want to choose a future price to buy BTC at. Otherwise, just type in how much you want to purchase and click “Open Trade”.

Why Use eToro?

eToro has built a strong reputation over the many years it has been in operation. As a regulated platform, it is trusted by millions of users globally, while its cold storage and industry-leading security practices make it one of the safest places to buy Bitcoin.

The BTC charts and research available may be useful for advanced traders, but the simplicity of the Bitcoin buying process means the platform is also perfect for beginners. What’s more, you won’t be charged a deposit fee when you use PayPal or any other payment method.

There is, however, a withdrawal fee of $5, and unfortunately, PayPal isn’t available as a deposit option in every country. There is a 1% fee plus spread on Bitcoin purchases.

If you’re not quite ready to make a deposit yet, you can switch to virtual trading to practise and get familiar with the platform. You can also make use of eToro’s unique CopyTrader feature to replicate the actions of the best Bitcoin traders around the world. Read our full eToro review.

Pros

• More accessible than many platforms

• Buy Bitcoin anonymously

• High liquidity

• No fees

• Escrow

• Free wallet

• Mobile app

Cons

• Users must watch out for scammers

• More complicated to use than other platforms

• You may not get the best exchange rate

2. Buy Bitcoin & Crypto With PayPal on Coinbase

Coinbase is a secure online platform for buying Bitcoin and more than 150 other cryptocurrencies, including Bitcoin Cash, Ethereum, Litecoin and Tether. It prides itself on being one of the easiest platforms to use, with its clear layout, simple navigation, and low trade minimums making Coinbase the ideal place for beginners to purchase Bitcoin with PayPal.

How to Buy Bitcoin With PayPal on Coinbase

1. Create a free account

Click the “Get started” button on the Coinbase website and fill in your name, email address, and provide a unique password. Sign in to Coinbase by clicking the verification link emailed to you, then provide your mobile phone number and enter the code you receive by text.

2. Verify your identity

Enter your name, date of birth, and address as shown on your government-issued ID and answer a few questions about your job and investing. In Settings, under Account limits, click “Verify photo ID”, select your ID type, and follow the instructions to upload it as a file or with your webcam or mobile camera.

3. Link your PayPal account

In Settings, go to Payment methods and click “Add a payment method”. Select PayPal and you will be redirected to PayPal where you will need to log in. You can now use PayPal to make a deposit (if you are a US customer).

4. Buy Bitcoin

Find Bitcoin on Coinbase and hit “Buy”, or click the “Buy / Sell” button at the top and select Bitcoin. If not using already deposited funds, choose PayPal as the payment method. Simply enter the amount you wish to purchase, click “Preview Buy”, and then hit the “Buy Now” button.

Why Use Coinbase?

Coinbase is a great platform to use if you’re just starting your crypto journey. It’s easy to navigate and the buttons are clearly laid out. What’s more, you don’t need to risk a lot of capital as you can buy as little as $2 or £2 worth of Bitcoin.

The fees are competitive at up to 0.6% plus spread and you can take advantage of the recurring buys feature if you want to automatically purchase Bitcoin with PayPal on a regular basis.

Unfortunately, only US customers can currently use PayPal to purchase Bitcoin and make deposits. There is a 3.99% fee for making purchases via PayPal on Coinbase, or a 2.5% fee when using PayPal to make a deposit. Users in the UK and Europe can use PayPal to cash out.

You can add Bitcoin to your Coinbase watchlist to keep up with the latest moves in the market, and if you want access to more advanced trading tools and indicators, you have the option to switch to the Coinbase Pro platform. Read our full Coinbase review.

Pros

• Easy to use

• Clear layout

• Low minimum order size

• Recurring buys feature

• 150+ other cryptocurrencies to trade

• Regulated and secure

• Mobile app

Cons

• Minimum deposit higher than some competitors

• Fees for using PayPal are significant

• PayPal purchases/deposits unavailable in UK and Europe

3. Buy Bitcoin With PayPal on Binance

Binance is a popular platform for buying crypto with PayPal, especially for more experienced traders. There are over 600 other cryptocurrencies on Binance so it’s a great place to build a diverse crypto portfolio including new and obscure coins.

How to Buy Bitcoin With PayPal on Binance

1. Create a free account

Click the “Register” button at the top of the website. You can sign up with Apple or Google, or click “Sign up with phone or email”, after which you’ll have to select your country and provide an email address or phone number and password. Enter the verification code sent to your email address or phone number.

2. Verify your identity

Hover over your user icon at the top right and select Identification. Click “Verify” under Identity Verification and select your country. Fill in your details and select your ID type. You will then need to upload an image of your ID or take a photo of it and let Binance access your webcam to confirm your identity through facial recognition.

3. Add PayPal as a P2P payment method

Go to your dashboard and select the Payment tab on the left. Click “Add a payment method” and then “More” to find and select PayPal. Input your Paypal accounts information and authenticate it with a verification code.

4. Buy Bitcoin on Binance P2P

Go to Binance P2P under Buy Crypto or Trade. Make sure to select, “Buy”, “BTC”, and your local fiat currency. You can choose PayPal as the method and also filter by amount and region. Click “Buy BTC” next to your chosen ad, enter how much you want, and follow the onscreen instructions to complete your payment through PayPal.

Why Use Binance?

Binance is one of the best platforms to use if you’re interested in buying new and obscure coins as well as Bitcoin. The advanced tools, indicators, and derivatives also provide everything an experienced trader needs.

The benefit of using Binance P2P to purchase Bitcoin with PayPal is that there are no fees—once you choose an offer with an exchange rate you’re happy with, there will be no other cost added to it.

Users will need to be wary of possible scams when dealing directly with sellers through Binance P2P. However, your funds will be held securely in escrow and you should not release them until you receive your Bitcoin. Less experienced users can also switch to the Express tab for a simplified Bitcoin P2P trading process.

Once you’ve bought Bitcoin on Binance, you have the opportunity to use Binance Earn to generate interest on it through a savings account, liquidity farming, or DeFi staking. Read our full Binance review.

Pros

• 600+ other cryptocurrencies available

• Technical analysis tools available in Spot trading

• No fees for P2P trading

• Simplified P2P process for beginners

• All P2P sellers have been verified through KYC

• Earn interest on your Bitcoin

• Educational resources

• Mobile app

Cons

• Limited order types compared with Spot trading

• You may not get the best exchange rate

• Regulatory issues in some places

4. Buy Bitcoin With PayPal on Paxful

If you’re looking to acquire Bitcoin without an ID or a bank account, then Paxful is the top platform for purchasing BTC anonymously with PayPal. Paxful is a people-powered platform that aims to provide everyone with equal access to the global economy.

How to Buy Bitcoin With PayPal on Paxful

1. Create a free account

Click the “Register” button at the top of the page and provide either your phone number or email address. Create a strong, unique password and click “Create Account”.

2. Verify your account

You will need to verify your email address and phone number by entering the verification codes you receive by email and text. Depending on where you live, you may have to verify your identity to access all of Paxful’s features, but you can buy BTC with PayPal from some vendors straight away without going through KYC.

3. Choose a vendor

Click “Buy” and select “Buy Bitcoin”. You can find vendors that accept PayPal by selecting it under the “Pay via” filter on the left. Choose your preferred vendor and hit the Buy button.

4. Buy Bitcoin

Enter how much Bitcoin you want to purchase in either BTC or your local currency. Click the “Buy now” button and follow the instructions on the next page to send the agreed amount to the vendor via PayPal. Click “Paid” when done and you should receive your Bitcoin.

Why Use Paxful?

While many people are excluded from the traditional financial system, Paxful provides somewhere for anyone to trade crypto via PayPal and over 350 other payment methods. You can even buy Bitcoin anonymously, without an ID or a bank account.

With millions of users and billions in global volume, there is always high liquidity on Paxful. There is a wide range of vendors to choose from on the platform offering different exchange rates and limits. 

Paxful doesn’t charge you any fees when you purchase Bitcoin, but the seller sets the exchange rate and may choose to add more of a mark-up depending on your verification status, payment method, local currency, and order size.

As with any P2P trading, you should be cautious about users with nefarious intentions, but as long as you follow the instructions and keep trades within Paxful, your funds will be secured by escrow.

Pros

• More accessible than many platforms

• Buy Bitcoin anonymously

• High liquidity

• No fees

• Escrow

• Free wallet

• Mobile app

Cons

• Users must watch out for scammers

• More complicated to use than other platforms

• You may not get the best exchange rate

5. Buy Bitcoin on PayPal Directly

Since 2021, it has also been possible to buy Bitcoin and a few other cryptocurrencies (Ethereum, Litecoin and Bitcoin Cash) directly through the PayPal platform. This is an easy and accessible way of purchasing BTC for anyone with a PayPal account.

How to Buy Bitcoin on PayPal Directly

1. Create a free Paypal account on the Paypal website

If you don’t already have any PayPal accounts, click the “Sign Up” button, select “Personal Account”, and provide your name, and email address, and create a password. You’ll be asked to enter your address, phone number, and date of birth on the next screen to complete your profile. After that, you can link your credit/debit card and/or bank account to start sending money with PayPal.

2. Confirm if you are within the USA or not

When you go to the crypto section and click “Buy”, you will be asked to confirm whether or not you are a US citizen. The next page will tell you some things to know before buying crypto and you will need to tick the box to confirm that you understand the risks.

3. Verify your identity

You will be prompted to confirm your identity before you can buy crypto. Click “Get Started” and complete your personal information on the next page. If asked to provide a photo ID, select your ID type and upload an image of it.

4. Buy Bitcoin

Click “Bitcoin” and hit the “Buy” button. You will need to select or enter the amount you wish to purchase, then click “Next”. Choose your funding source and click “Next”. You will need to review the transaction and fees. If you are satisfied, click “Agree and Buy”.

Why Use PayPal?

PayPal users who want to gain exposure to Bitcoin but don’t yet have the knowledge or confidence to make an account on a crypto platform will find PayPal’s new crypto features a quick and convenient way to make a BTC purchase.

There are educational articles on PayPal to help beginners learn more about crypto and you can purchase as little as £1 worth of Bitcoin if you just want to dip your toe in the crypto waters. PayPal lets you track real-time Bitcoin prices and you can sell or withdraw your BTC whenever you want.

Those who aren’t complete beginners may find PayPal’s crypto features somewhat lacking, however, as there are only three other cryptocurrencies available and there are no tools for more advanced trading.

It’s also useful to know about fees before deciding whether to buy Bitcoin on PayPal directly. When buying or selling crypto, PayPal will charge you a spread, as well as a fee of at least 1.5%, which can be much higher for small purchases. You can withdraw your BTC to a private wallet but you will need to pay a network fee which could be high when the network is busy. 

Pros

• Very quick and easy to buy Bitcoin

• More convenient than some crypto platforms

• Low trade minimum

• Some educational resources

• Accessible to anyone with a PayPal account

Cons

• Lack of charts and trading tools

• No choice of order types

• Only 3 other cryptocurrencies are available

• Fees can be significant for small purchases

• Withdrawal fees can be high