How to buy Bitcoin with PayPal [step-by-step] | finder.com

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PayPal crypto allows you to buy, hold and sell four cryptocurrencies in the US: Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH). Once you verify your identity, you can make a purchase through PayPal’s app or website and get started with as little as $1.

However, if you don’t want to buy cryptocurrency directly through PayPal, there are also exchanges that support PayPal as a deposit method. This allows you to transfer funds from your PayPal account on the exchange and then trade them for crypto.

How to buy Bitcoin with PayPal instantly

Buying and selling cryptocurrencies through PayPal can be done through the PayPal mobile app or by accessing your account via a web browser on your desktop and following a few simple steps.

1. Sign up for a PayPal account.

   If you do not currently have a PayPal account, you will need to sign up before buying Bitcoin.

2. Go PayPal’s Finances section.

   At the bottom of the app’s screen, click on the icon that reads ‘Finances’. Once there, click on the icon that reads “Crypto’ found at the top of the screen.

3. Select Bitcoin and choose your amount.

   PayPal displays a choice of all their crypto assets which include Bitcoin, Ethereum, Litecoin and Bitcoin Cash. Select Bitcoin and set the quantity you’d like to purchase, then click ‘Buy’. If this is your first purchase, you will need to confirm your account after reading through PayPal’s terms and conditions.

4. Enter payment method.

   You can typically use bank accounts, debit cards or your PayPal balance to buy cryptocurrencies. Review the details of your purchase and click ‘Buy Now’ to make your purchase. After buying cryptocurrency through PayPal, you’ll be able to see your total balance in your account.

PayPal crypto fees

Transaction fees are applied to your purchase when you buy or sell. Sometimes you can save on fees by buying a bit more cryptocurrency. For instance, you’ll pay less in fees to buy $201 in crypto than you would to buy $199.

Fees are accurate as of January 4, 2023.

Buy or Sell amountFee$1 – $4.99$0.49$5 – $24.99$0.99$25.00 – $74.99$1.99$75.00 – $200.00$2.49$200.01 – $,1000.001.80%$1,000.011.50%

Pros and cons of buying Bitcoin on PayPal

Pros

• Easy to use. Buy cryptocurrencies through the PayPal app or through the website in a few clicks.
• Track your portfolio. See your current crypto portfolio’s worth at a glance.
• Flexible payment options. Pay with a debit card, from your bank account or using your existing PayPal account balance.
• Instant transactions. Buy and sell crypto through PayPal instantaneously.
• Purchase with crypto. Make purchases through PayPal’s network using cryptocurrency.
• No need to self-custody. If you prefer not to manage the private keys to your crypto (known as self-custody) and want a third party to manage them for you, PayPal is a convenient option. PayPal custodies your crypto through Paxos.

Cons

• High fees. You’ll be charged a fee based on the total amount of your purchase and the fees are higher than most crypto brokerages and exchanges. The fees get more expensive as your purchases approach the $200 threshold and reduce after said threshold.
• You don’t control your private keys. PayPal doesn’t give you access to your cryptocurrency keys, so you won’t be able to store your purchase in an external wallet.
• Limited crypto options. PayPal currently only supports Bitcoin, Ethereum, Litecoin and Bitcoin Cash.
• No transfers. PayPal does not currently let you move cryptocurrency in or out of your wallet. You will only be able to make purchases with the crypto you bought through the PayPal wallet.
• You can only sell your crypto back to PayPal. Since you can’t transfer your assets when you’re ready to sell, you can only sell them back to PayPal, which might not offer the most competitive rate.

Quick look at PayPal supported cryptocurrencies

Although PayPal may add support for more cryptocurrencies in the future, currently only four are supported.

• Bitcoin was released in 2009 and it is known as the world’s first cryptocurrency utilizing blockchain technology.
• Bitcoin Cash was released in 2017 as a hard-fork (copy) of Bitcoin.
• Ethereum was released in 2015 and has since brought thousands of software applications to the blockchain through the use of smart contracts.
• Litecoin was released in 2011 and is thought of as the silver to Bitcoin’s gold

Buying crypto from an exchange using PayPal as a payment method

You can now use PayPal as a payment method on a number of different crypto exchanges and brokerages. These include but aren’t not limited to Binance.US, bitFlyer, Bitstamp, CEX.IO, Coinbase, eToro, Gemini, Huobi, KuCoin, LocalBitcoins, Paxful, Revolut and SoFi.

When you are ready to make your crypto purchases at these exchanges, select PayPal as the payment option. PayPal will then deduct the money from the balance that you hold on the app or the primary bank account or credit/debit card that you have linked to your PayPal account.

• eToro is a social trading platform that caters to traders of all experience levels. To buy Bitcoin on eToro using PayPal, follow these steps:

  1. Create an eToro account and sign in.
  2. Go to the cryptocurrency page and select Bitcoin or use the search bar.
  3. You’ll then be presented with two options: “Trade” or “Order”. If you select Trade, you can buy a certain amount of BTC at a specific price. If you select Order, you can set a BTC price target as well as the number of coins you’d like to purchase at that target. Your order is then executed automatically when and if the price of BTC hits your order target.
  4. Choose the amount you’d like to buy and click “Deposit”.
  5. Select “PayPal” as your deposit method.

• KuCoin is a crypto exchange that offers an extensive selection of altcoins. To buy Bitcoin on KuCoin, follow these steps:

  1. Create a KuCoin account and sign in.
  2. Click the “Payment Method” tab and then click “Add”.
  3. Click on “Bank” and then scroll down and click on “PayPal”.
  4. Enter your full name and email address and click “Confirm”.
  5. Click on “Trade” and make sure that you are trading “Spot”.
  6. Select “Bitcoin” and click “Buy BTC”.

• Gemini is a crypto exchange with an emphasis on abiding by local regulations. To buy Bitcoin with PayPal on Gemini, follow these steps:

  1. Create a Gemini account and sign in.
  2. Go to the payment methods page and click “Add Payment Method”.
  3. Select “PayPal”.
  4. Enter your PayPal information and select your payment instrument.
  5. Navigate to the “Market” page and select “Bitcoin”.
  6. Decide whether you want to make a “one-time” or “recurring” order and how much BTC you want to buy.
  7. Select “PayPal” as your payment method.
  8. Review your order and click “Confirm”.

• Paxful is a global peer-to-peer platform to buy and sell Bitcoin using over 350 payment methods. To buy Bitcoin with PayPal on Paxful, follow these steps:

  1. Create a Paxful account and sign in.
  2. Click “Buy Bitcoin”.
  3. Click on the “Select a currency” tab and select “US dollar (USD)”.
  4. Click on the “Select a way to pay” tab and select “PayPal”.
  5. On the “Open offers for PayPal” page, select the seller you’d like to buy from and click the “Buy” button to the right-hand side of the screen.

• Revolt is a British financial technology company that offers banking and investing services. To buy Bitcoin with PayPal on Revolut, follow these steps:

  1. Create a Revolut account and sign in.
  2. Click on “Cards”.
  3. Click on “Enable Virtual Card” and Revolut will create a virtual credit card for you.
  4. Write down the details of the card.
  5. Go to your “PayPal” account and click on “Link a card” to link this virtual card to the your PayPal account.
  6. Input the credit card number, the card type, the expiration date and the security code.
  7. Go back to the Revolut page or app and confirm that your PayPal account is linked via the virtual card. “PayPal” should be an option for online payment if it’s linked.
  8. Confirm via PayPal that you’ve linked a Revolut Mastercard.
  9. On Revolut, go to “Cryptocurrencies”.
  10. Select “Bitcoin”.
  11. Select the amount of Bitcoin you’d like to buy and click “Buy now”.

• 1. Create a Coinbase account and sign in.
  2. Complete all identity verification documents to make sure your country of residence is correct.
  3. Click “Settings”.
  4. Click “Payment Methods”.
  5. Click “Link new account” from a desktop device or tap “Add a Payment Method” in the mobile app.
  6. Select “PayPal” and you’ll be prompted to log in to PayPal. (Please note that your PayPal email address must match your Coinbase email address or you’ll need to take extra steps to link your PayPal account to Coinbase.)
  7. Make sure that you have either a bank account or a debit card linked to your PayPal account. Coinbase will charge your bank or debit card through PayPal and doesn’t accept prepaid cards or credit cards linked to your PayPal account.
  8. Click on the “Buy/Sell” tab.
  9. Click the “Buy” panel to select the asset you’d like to purchase.
  10. Enter the amount of BTC you’d like to buy denominated in US dollars.
  11. Select “PayPal” as your payment method.
  12. Click “Preview Buy” to confirm your purchase.
  13. If the details are correct, click “Buy” to complete your purchase.

Compare exchanges that allow PayPal as a payment method

There are many crypto exchanges and platforms that accept PayPal as a deposit method where you can use your PayPal funds to purchase Bitcoin.

1 – 4 of 4

How to sell Bitcoin on PayPal

Because PayPal doesn’t allow you to send your crypto to another wallet or exchange, you’ll only be able to sell your crypto back to PayPal.
To sell cryptocurrency

1. Using either the app or web browser version of PayPal, click the ‘Finances’ icon.
2. Under ‘Crypto,’ select one of your existing crypto holdings and click ‘Sell’.
3. Confirm your tax information (if it’s your first time selling).
4. Enter the amount you want to sell and click ‘Next’.
5. If you are sure of the amount you’d like to sell, click ‘Sell Now’.

Bottom line

Buying BTC or other cryptocurrencies on PayPal is easy and convenient, but the transaction costs are high and you can’t send your BTC or other cryptos from your PayPal account to another crypto wallet.

If being able to hold your BTC self-custody is important to you and you still want to use PayPal to purchase your BTC, you can do so through a traditional crypto exchange using PayPal as your payment method.

Many major crypto exchanges including Coinbase, Gemini and Paxful now support PayPal as a payment option and make it easy to buy BTC with your PayPal account.

FAQs

• Yes, you can buy Bitcoin with PayPal by either using their mobile app (iOS, Android) or desktop website. Alternatively, you can use PayPal as a payment method with several cryptocurrency exchanges and investing apps.

  Fees range from $0.49 to $2.49 for purchases between $1 and $200. Purchases between $200.01 and $1,000 incur a 1.80% fee while purchases above that range are charged 1.50%.

• If you don’t want to use the PayPal app or website to purchase BTC, then you can use PayPal as a payment method with several cryptocurrency exchanges or investment apps such as Coinbase, eToro, Gemini and KuCoin.

• Buying Bitcoin with PayPal can take you less than a minute if you already have a verified PayPal account.

  Simply use the PayPal app or desktop site and navigate to the “Finances” tab, then “Crypto”. Enter the amount you want to purchase then click “Buy”. You can pay with your PayPal account or another method such as a debit card or bank account.

Disclaimer: Cryptocurrencies are speculative, complex and involve significant risks – they are highly
volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of
future performance. Consider your own circumstances, and obtain your own advice, before relying on this information.
You should also verify the nature of any product or service (including its legal status and relevant regulatory
requirements) and consult the relevant Regulators’ websites before making any decision. Finder, or the author, may
have holdings in the cryptocurrencies discussed.