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How To Buy Ethereum Online With PayPal

Last updated 14th Jun 2022
Disclosure

Ethereum (ETH) is a decentralized cryptocurrency that launched in 2015 that offers smart contract capabilities.

Given the rise of online payment systems, many people have been wondering whether these services can be used to pay for digital assets.

In this article, we cover how to buy Ethereum with PayPal along with other important elements to consider. Read on to find out more.

Top Brokers To Buy Ethereum With PayPal

Nowadays, there are many platforms to choose from when it comes to buying Ethereum.

To save you time, we have listed the top beginner-friendly platforms below to help you get started right away.

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 Buy Ethereum With PayPal?

In 2021, PayPal announced support for buying and selling a number of cryptocurrencies on its native platform.

Customers can simply log in to their PayPal accounts, click on the ‘crypto’ tab and enter the amount of Ethereum they would like to purchase.

Notably, this feature may be subject to geographic restrictions so make sure you read the terms and conditions first.

Alternatively, PayPal can be used as a payment method on other platforms used for buying cryptocurrencies such as Ethereum. This will be covered in the next section below.

What Crypto Platforms Accept PayPal?

If you want to use PayPal as a payment method on other cryptocurrency services, here is a list of platforms where it is accepted.

  • Cryptocurrency Brokerages: eToro, Plus500

  • Cryptocurrency Exchanges: Coinbase

  • Peer-to-peer (P2P) Marketplaces: LocalCryptos

How to Buy Ethereum With PayPal?

Here, you will find a step-by-step guide on how to buy Ethereum with PayPal on all the platform types where it is accepted.

Cryptocurrency Brokerages

Step 1: Find a brokerage platform
Step 2: Sign up for an account
Step 3: Verify your account
Step 4: Deposit money
Step 5: Confirm the transaction

Cryptocurrency Exchanges

Step 1: Sign up for an account
Step 2: Verify your account
Step 3: Enter your PayPal details
Step 4: Deposit money
Step 5: Confirm the transaction
Step 6: Your account balance will be updated shortly

Peer-to-peer Marketplaces

Step 1: Sign up for an account
Step 2: Verify your account
Step 3: Find the search option
Step 4: Select Ethereum
Step 5: Set PayPal
Step 6: Look for a good seller
Step 7: Confirm the transaction
Note: you will need to create your own personal cryptocurrency wallet for this option. You can do this for free using a Coinbase Wallet or Trust Wallet

How to Deposit and Withdraw via PayPal

Deposit

Making deposits via PayPal depends on the platform you are using. You can refer to the guide above to help you.

Withdraw

The same also applies to withdrawals. If you wish to withdraw via PayPal, you need to close your existing positions by selling into a fiat currency such as USD or GBP and following the onscreen instructions to have the money transferred back into your account.

On P2P marketplaces, you can put your ETH holdings up for sale and choose your payment method to be PayPal. That way when a buyer wants to purchase your ETH, the payment will be made directly into your PayPal account.

What Should I Look for in a PayPal Ethereum Platform?

Before deciding on a platform to use, it’s worth looking at the list below to help you make a more informed decision. Through this, you can mitigate the risks involved when dealing with cryptocurrencies and maximize your potential gains.

Fee Charges:

  • Ensure you do some research to find the platforms that offer the lowest fees for the services you require. This can help you get more value for your money.

Ease of Use:

  • Read online reviews to gauge how easy a platform is to use. Through this, you can avoid platforms that are difficult to navigate. Brokerages such as eToro are perhaps a preferred choice for newcomers.

Regulation:

  • Unfortunately, scams are common in the cryptocurrency space. Stick to regulated platforms as these have to comply with certain guidelines and standards that can help to protect your money.

Availability:

Speed of Transaction:

  • When speaking with a potential seller on P2P platforms, ask how long it’ll take for them to send over the ETH you are buying. If your purchase is time-sensitive, you can avoid slow sellers through this. Since Ethereum is one of the four cryptocurrencies supported on the PayPal platform, the fastest option is perhaps buying directly from there.

Should I Buy Ethereum Using PayPal?

Pros

If you have an existing PayPal account, then the process is quick and familiar
Buying from the app means you can avoid the technical side of crypto in terms of setting up a wallet and interacting with the blockchain
PayPal offers a high level of security and protection for its users

Cons

PayPal is not as widely accepted as other forms of payment
You cannot withdraw your crypto assets from the PayPal platform
There may be some geographical limitations on which users can use PayPal for crypto purchases

Is Using PayPal the Best Method to Buy Ethereum?

Ethereum is one of the four cryptocurrencies that are available to purchase directly from the PayPal platform.

It is also accepted on a number of popular cryptocurrency platforms however, it is not the most widely accepted method. The next section takes a look at the alternatives.

What Are the Alternative Payment Methods to Buy Ethereum?

For the most convenient experience when buying Ethereum, it is worth considering these alternative methods of payment:

Credit and Debit Cards:

  • Credit and debit cards are widely accepted forms of payment at most crypto exchanges where you can purchase Ethereum.

Bank Transfer:

  • A direct bank transfer is a predominantly accepted form of payment. Most users can transfer funds to their brokerage of choice directly from their bank account using this method.

Final Thoughts

All in all, PayPal is a great method for buying Ethereum if you want to avoid the technical side of dealing with cryptocurrencies.

However, it’s worth remembering that at this present time, you are unable to withdraw your crypto assets from the PayPal platform.

To work around that, you can use PayPal as a payment method on other cryptocurrency platforms such as eToro, Coinbase, and LocalCryptos.

As always, remember that gains are not guaranteed and only invest with money you can afford to lose.

FAQs

Can I Buy Ethereum Anonymously With PayPal?
How Fast Is Buying Ethereum With PayPal?
Do I Need a Crypto Wallet?
Are There Low Fees When Using PayPal To Buy Ethereum?
Can I Hold Cryptocurrency in My PayPal Account?
Can I Buy Other Cryptos Using PayPal?
Can I Buy Ethereum With PayPal Instantly?
Is PayPal the Easiest Way To Buy Ethereum?
Does Coinbase Accept PayPal?
Amala Pillai

Amala Pillai

Amala is custom content and news editor based in London. She is a former financial journalist based in Singapore with 7 years of experience covering a range of business and financial topics. Now she focuses on crypto and macro-economics. She has also covered feature profiles, tech, business politics and ESG— she was the Environment Editor for the Solutions Newspaper, 2016 and worked in an editorial capacity at both News corp (Dow Jones) and JBN. She also has experience as a content creator, strategist and brand editor for various financial institutions and banks.