How to buy Bitcoin with PayPal

Buy Bitcoin with PayPal

Bitcoin is a cryptocurrency pioneered by Satoshi Nakamoto in 2008. It is the crypto with the highest market cap, exceeding upwards of $900bn.  

In a recent announcement in August 2021, Paypal will allow its user to buy 4 major cryptos, including Bitcoin, directly from its mobile app or website. 

Another option would be to use a crypto exchange to buy Bitcoin that allows deposits and payments via Paypal.

This guide explains the step-by-step process to buy Bitcoin with Paypal or from a crypto exchange. We also include some pro tips to help you along the way.

Best platforms to buy Bitcoin with PayPal – 2021

1
Minimum Deposit
$50
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10
More than 3,000 assets, including currencies, stocks, cryptocurrencies, ETFs, indices and commodities
Buy crypto, or trade cryptocurrencies via CFDs
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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when 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.
2
Minimum Deposit
$250
Exclusive Promotion
User Score
8.1
Trade the global markets. Trade with real-time execution and professional tools
Follow and copy Naga's top traders who have mastered their trading strategies
Free personal account manager
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.48% of retail investor accounts lose money when 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.
3
Minimum Deposit
$50
Exclusive Promotion
User Score
7.5
Over 4 million customers worldwide
Buy, sell and trade nearly 200 digital assets
Verified within 15 minutes

What is PayPal?

Paypal is an electronic payments platform operating across a majority of countries globally. It is headquartered in California, USA. 

USA and UK Paypal account holders can purchase Bitcoin on their accounts via the website or app. This is in conjunction with Paxos Trust Company. In the UK, account holders can buy Bitcoin from as low as £1. 

There are different options to buy Bitcoins using Paypal:

  1. Using Paypal -Users can purchase Bitcoin directly on Paypal.
  2. Peer to peer Marketplaces – Buyers and sellers trade with each other, for instance, Paxful and LocalBitcoins. Some sellers may accept Paypal as a payment method.
  3. Crypto exchanges – A majority of these platforms avoid Paypal as a method of payment. Some examples that accept Paypal include eToro.

The fees you pay will depend on which option you decide to pick. Charges are also dependent on location. Expect to be charged as high as 5% of the total transaction amount when using Paypal. 

Here are the fees users get charged purchasing Bitcoins directly on Paypal.

Transaction Amount (USD)Fees (USD)
$1-$24.99$0.5
$25-$1002.3%
$100.01-$2002.0%
$200-$10001.8%
Above $10001.5%

Care should be taken when choosing an exchange. For instance, if you choose a platform that does not accept GBP, you will get additional charges on currency conversion.

Note that some popular exchanges like Coinmama do not accept Paypal as a payment method for Bitcoins.

Buy Bitcoin with PayPal now at our preferred partner

1
Minimum Deposit
$50
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
CopyPortfolios: Innovative, fully managed investment strategies
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when 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.

ProsCons
Trustworthy – Paypal is a trusted online platform with layers of protection that secure purchases.Higher fees – PayPal users experience high transaction fees, especially on crypto exchanges.
User Friendly – PayPal is a user-friendly platform that is easy to use. Once you have funded your account, purchasing Bitcoin only requires a few steps.Limits – There are limits to how many Bitcoins users can buy using PayPal.
Paypal will allow buying Bitcoin using USD and GBPShortage of platforms that accepts Paypal as a mode of payment due to chargebacks
Availability – Buying Bitcoin directly on the PayPal platform is restricted to the US and UK.

How does Bitcoin work?

Bitcoin is a peer-to-peer digital currency that uses a decentralised ledger known as a blockchain to facilitate payments.

The key to the success of Bitcoin is that there is no central authority controlling the transactions. There are decentralised nodes that verify transactions which are then recorded on the blockchain. Records are immutable therefore trustworthy.

How to Buy Bitcoin using Paypal online

You can fund your Paypal using the balance in your Paypal account, bank, credit card, and debit card.

Users can use PayPal directly and two other ways to purchase Bitcoins:

  1. Peer-to-peer (P2P) marketplaces – These platforms match sellers and buyers. The sellers post the offers on the platform. 
  2. Crypto exchanges – These are centralized platforms where users can purchase cryptocurrencies, including Bitcoins.

Buying Bitcoin directly on the Paypal platform

Step 1: Open a Paypal account.

Step 2: Fund your Paypal account using standard deposit methods such as bank accounts.

Step 3: Tap on the crypto tab

Step 4: Choose buy Bitcoin from the cryptocurrency option and click on buy.

Step 5: Specify the amount you wish to spend (Users can buy Bitcoin worth as low as $1). 

Step 6: Complete the purchase.

Buying Bitcoin on a peer to peer marketplaces

Step 1: Open an account on the platform.

Step 2: See the sellers who are offering Bitcoins. Find a seller who suits your needs. Use a filter to choose your preferences, e.g., Currency, payment method (Paypal), number of coins, and seller reputation.

Step 3: Open a trade. When you find an offer that suits your needs, enter the amount you wish to spend, and lock the price.

Step 4: The Bitcoins you want to purchase are transferred to a decentralized escrow account that holds the coins in trust. Transfer the agreed amount from your Paypal to the seller’s account and confirm the payment. The seller will release the Bitcoins to your account.

Step 5: We recommend the transfer of the Bitcoin to a secure wallet like Exodus.

Examples of peer to peer exchanges include Cash App, Paxful, Remitano and LocalBitcoins

Buying Bitcoin from an exchange or broker using PayPal

Regular exchanges and brokers require you to open an account.

Step 1: Find a suitable exchange or broker. (Note that there are some geo-restricted exchanges while others have high fees. Some do not accept Paypal, so watch out)

Step 2: After account verification, deposit funds into your account with Paypal. Here, you will have to select Paypal as your payment method.

Step 3: Place your order: After connecting Paypal with the exchange, you can go ahead with placing an order.

Step 4: Confirm and finalize the purchase.

Step 5: Safe storage in a wallet: Wallets ensure your Bitcoins assets are secure. Example of wallets includes Ledger Nano S and Exodus.

Examples of crypto exchanges include Coinbase, eToro, Binance, and Kraken.

Congratulations, you’ve just bought your first Bitcoin with PayPal!

Top platforms to buy Bitcoin with PayPal

1
Minimum Deposit
$50
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
CopyPortfolios: Innovative, fully managed investment strategies
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when 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.
2
Minimum Deposit
$250
Exclusive Promotion
User Score
8.1
Trade the global markets. Trade with real-time execution and professional tools
Follow and copy Naga's top traders who have mastered their trading strategies
Free personal account manager
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.48% of retail investor accounts lose money when 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.
3
Minimum Deposit
$50
Exclusive Promotion
User Score
7.5
Over 4 million customers worldwide
Buy, sell and trade nearly 200 digital assets
Verified within 15 minutes