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How to buy Bitcoin with PayPal in the UK

Last updated 27th May 2022
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Bitcoin is the hottest cryptocurrency on the planet, and despite its high price, it continues to draw investors in their droves. Several ways to buy Bitcoin or invest in cryptocurrency exist, but one that had been a little more difficult until recently is buy Bitcoin with PayPal.

But no more. Thanks to recent developments, investors can now buy, hold and sell Bitcoin with a UK PayPal account — and they can use both the website and app to do so.

In this guide, we’ll reveal the best ways to buy Bitcoin with PayPal (UK). We’ve also provided answers to frequently asked questions, along with explaining how to buy Bitcoin.

Top Bitcoin Brokers That Accept PayPal in the UK

When looking for Bitcoin brokers accepting PayPal in the UK, you’ll find a broad range of options. But to save you time, we’ve narrowed these down to the best and put them in the table below.

Also, our guide best Bitcoin Brokers can help you to find out more and make an educated decision on how and where to buy Bitcoin.

1
eToro
Minimum Deposit
$200
Exclusive Promotion
User Score
10
More than 3,000 assets, including currencies, stocks, cryptocurrencies, ETFs, indices and commodities
Buy crypto, or trade cryptocurrencies via CFDs
This ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, no EU protections & not supervised by the EU regulatory framework. Investments are subject to market risk, including the loss of principal.
2
Coinbase
Minimum Deposit
$50
Exclusive Promotion
User Score
6
Trade and invest in over 25 cryptocurrencies
Extremely simple user interface
Over 68 million customers

Can You Use Paypal to Buy Bitcoin in the UK?

Yes. PayPal is one of the most popular payment services in the UK, and you can buy Bitcoin with PayPal directly from the platform if you wish to. On top of that, you can also use your account to fund BTC purchases with several online platforms.

What Crypto Platforms Accept Paypal in the UK?

While PayPal isn't as widespread as bank transfer or debit and credit card payments for cryptocurrency purchases, you can still use it to buy Bitcoin in a selection of places.

With all of that said and done, we've listed the most popular choices below. Moreover, we've also highlighted their benefits and drawbacks.

The PayPal App

If you don't want to buy Bitcoin from an exchange, you can buy Bitcoin through your UK PayPal account if you live in the UK. Once you've purchased your coins, you can sell them at a later date or keep them in your wallet.

Pros

Easy to buy Bitcoin
If you already have a PayPal account, you don't need to sign up for something else

Cons

You can't withdraw Bitcoin with PayPal
High fees
You could get a better market rate elsewhere

Peer-to-peer Marketplaces

Peer-to-peer marketplaces (P2P) like LocalBitcoins or Paxful allow buying and selling of Bitcoin directly between traders. Thus, sellers have the freedom to determine their exchange rates and preferred payment methods.

Some P2P marketplaces will require that you sign up for an account and verify your identity. Others, however, will not.

Pros

Many exchanges accept PayPal
You can talk to sellers before buying, which increases transparency
Easy to use, even if you're a beginner

Cons

Because anyone can use them, you need to be careful of scams on P2P marketplaces
Transactions can take longer if communication isn't constant

Cryptocurrency Exchange Platforms

Some centralised exchanges support PayPal deposits for buying Bitcoin in the UK. However, your options are somewhat limited compared to other payment methods.

Pros

Fast transactions
Less of a scamming risk

Cons

Most centralised exchanges don't accept PayPal at the time of writing

How to Buy Bitcoin With Paypal in the UK?

Buying Bitcoin in the UK with PayPal is pretty straightforward. To buy Bitcoin with PayPal in the UK, first, we'll talk about how to do so from an exchange or brokerage:

Step 1: Open an account
Step 2: Verify your identity
Step 3: Deposit funds into your account
Step 4: Buy your Bitcoin
Step 5: Confirm your Bitcoin investment

After completing the steps above, you would have successfully bought Bitcoin using PayPal. Your tokens will remain in your portfolio until you are ready to sell them or trade with them.

If you'd prefer to buy Bitcoin with your PayPal account, you can follow the steps below instead.

Step 1: Sign in
Step 2: Tap on Bitcoin
Step 3: Enter the amount
Step 4: Hit Buy

Are There Any Fees and Additional Costs When Buying Bitcoin With Paypal in the UK?

When you buy Bitcoin with PayPal (UK), you'll need to keep several additional fees in mind. The platform you use to purchase your coins will determine how much you pay — and what you pay.

Below is a list of the commissions and fees you can expect when using PayPal to buy Bitcoin.

Deposit Fee:

  • After finding a platform that supports PayPal transactions, you need to look at the deposit fees before signing up. Many providers will add significant surcharges for using PayPal, which in some cases can rise to 10%. However, several FCA-regulated exchanges will charge you much less. For example, eToro has a deposit fee of 0.5%.

Commission:

  • After making a deposit, some platforms may charge you a flat fee — also known as a commission. In some cases, you'll need to pay a fixed amount. But with many platforms, you'll have to pay a percentage of your stake's size; the higher it is, the bigger the commission.

Spread:

  • Some brokers such as eToro operate a spread-only model rather than the more conventional commission fee. On eToro, the Bitcoin purchase spread is around 0.75%. As a result, your cost for buying bitcoin worth £400 worth would be roughly £3.

Withdrawal fee:

  • When you make a withdrawal, some platforms will make you pay a percentage of the transaction's value. The cost varies from broker to broker, so you'll need to check before signing up.

How to Deposit and Withdraw via PayPal (UK)

You can make deposits and withdrawals with brokers via PayPal without any hassle. The process is the same for all brokers.

Depositing With PayPal

Step 1: Log in
Step 2: Click on "Deposit Funds"
Step 3: Enter your desired amount and currency
Step 4: Set your payment method
Step 5: Confirm the deposit transaction

Withdrawing to PayPal

When you've sold your Bitcoin, you'll want to know how to withdraw your money into your PayPal account. Fear not, as we've got you covered. Follow these steps:

  1. Enter the amount you want to withdraw into your PayPal wallet.

  2. Choose PayPal as your withdrawal option.

  3. Confirm the withdrawal amount and accept the withdrawal fee.

  4. Complete the withdrawal request and wait.

Should I Buy Bitcoin Using PayPal in the UK?

Buying Bitcoin with PayPal in the UK comes with various benefits and downsides. To help you make a better decision, we've listed both of these below.

Pros & Cons

Pros

Fast payments: Payment is quick and convenient if you already have a PayPal account.
Security: PayPal uses high levels of encryption to secure your transactions. 
User-friendly: PayPal's interface is easy to navigate, even if you've not used the app before.
In-app buying: PayPal allows you to purchase cryptocurrencies, and you can do so using the GBP.
Buyer protection: PayPal has substantial buyer protection requirements, meaning that you've got help if something goes wrong.
Speedy withdrawals: Withdrawing to your PayPal account shouldn't take long, meaning you can use your money faster. 

Cons

Fees: Using PayPal to buy Bitcoin involves very high fees, which could dramatically increase the cost of your transaction. 
Currency: While many platforms let you deposit and withdraw using GBP, those that don't will result in you needing to pay additional conversion fees. 
Restrictions: PayPal imposes strict limits on the number of cryptocurrencies you can purchase using the service.
Availability: Most exchanges don't offer PayPal as an option.

Is Using PayPal the Best Method to Buy Bitcoin?

PayPal is one of the safest and easiest ways to buy Bitcoin in the UK. However, several factors prevent the service from becoming the most popular payment solution in this respect.

The platform supports chargebacks, and cryptocurrency transactions are irreversible. Consequently, it is easy for a person to buy Bitcoin with PayPal (UK) and complain that they did not receive the BTC — leading to a chargeback. Scammers could leverage this opening as a way to get Bitcoin for free.

It's also challenging to look past some of the fees you'll need to use when buying Bitcoin with PayPal. If you buy and sell regularly, these will add up and impact your profits. And of course, there's the added difficulty that many exchanges don't accept the service full stop.

What Are the Alternatives to Buy Bitcoin in the UK?

You can buy BTC via other methods than PayPal. Some alternatives include:

Credit/debit cards:

Skrill:

  • Like PayPal, Skrill is a digital wallet. You can use Skrill to buy Bitcoin. The service has low deposit and exchange fees, and you can use the service to make fiat-to-crypto withdrawals.

Payza:

  • Opening accounts and sending money is free on Payza. The platform accepts transactions involving credit cards and Bitcoin and is a reliable global PayPal alternative.

BitPay:

  • Just like Coinbase Commerce, this blockchain crypto payment solution allows users to make crypto transactions with minimal fees.

If you're elsewhere in the world other than the UK, you can still use PayPal to buy Bitcoin. Check out our guide on how to buy Bitcoin with PayPal.

Final Thoughts

PayPal facilitating Bitcoin transactions is huge for the future of cryptocurrency. If you're an investor, you can use the service to enjoy fast, convenient, and secure transactions — even if the fees involved are often relatively high.

There are different ways to buy Bitcoin with PayPal in the UK, but the easiest way is to buy using a P2P exchange as more of these platforms accept PayPal than centralised solutions. Remember to compare the fees and features of these platforms to determine the best for your transactions.

FAQs

Can I buy Bitcoin anonymously with PayPal in the UK?
Can I hold cryptocurrency in my PayPal account?
Can I buy other cryptos using PayPal in the UK?
Can I buy Bitcoin with PayPal instantly in the UK?
Is PayPal the easiest way to buy Bitcoin?
Khashayar Abbasi

Khashayar Abbasi

Khashayar discovered Bitcoin back in 2014 and has since spent countless hours researching the different use cases of cryptocurrencies. He has a bachelor's degree in International Relations and has been a writer in the financial services industry for nearly half a decade. In his spare time, Khashayar enjoys photography, cycling, and ice skating.