How to buy Ethereum online with PayPal
Ethereum is arguably the most important coin in the crypto world. Because it continues to evolve, innovate, and set industry standards, it is unlikely to lose its place as a top market cap crypto asset.
Ethereum is a great option if you are looking to start investing in crypto, and there are a variety of ways to buy Ether, including PayPal.
Keep reading to find out where you can buy Ethereum with Paypal today.
Top Brokers to Buy Ethereum with PayPal
Here are some top platforms that accept PayPal where you can buy Ethereum:
What is a PayPal Ethereum broker?
Some brokers allow other payment methods without attaching your bank information, such as PayPal.
Brokers either ask you to fund your account which you can then use to purchase crypto assets, or allow you to purchase crypto assets directly without having to fund your account first. In either case, simply select PayPal as the means of payment.
What crypto platforms accept PayPal?
An increasing number of platforms are accepting PayPal for purchasing crypto assets including Ethereum. For example, major crypto exchanges like eToro and Coinbase, P2P platforms like Paxful, and multiple instrument exchanges, like Markets.com, where you can buy stocks, bonds, and crypto assets.
Since 2020 you can also buy Ethereum and other top coins in the PayPal app directly, though they aren’t a crypto platform and don’t allow you to trade or transfer Ethereum.
How to buy Ethereum with PayPal
If you want to simply buy and hold Ethereum you can do so directly in PayPal using the steps below:
Go to the PayPal app on your phone
Navigate to “Finances” and select the “Crypto” tab
Select Ethereum (ETH)
Enter an amount
Click “Next” and choose a payment method
Execute the trade
If you want to trade Ethereum for other coins or tokens, or take Ethereum off of the platform to a wallet so you can transfer it to other individuals, you need to use an exchange. In this case:
Set up an account with a PayPal Ether broker. If you want to transfer Ethereum to another individual make sure the broker allows you to take crypto to a wallet.
In the home page of the broker click “Buy”
Search for Ethereum (ETH). Often it is listed as a top coin in the first page of the broker site or app.
Enter an amount. In some platforms you enter the amount of ethereum you want to purchase, in others you enter the amount of fiat currency you want to spend. Make sure to pay attention as the value of Ethereum is quite large
Select PayPal when it prompts you to select a payment method
The app should redirect you to log into your PayPal account to link your PayPal account
After you log in it should redirect you back to the app where you can execute the purchase
On many platforms you can also edit payment methods in the settings. After you link your PayPal account it will remain in your payment methods for future purchases.
How to deposit and withdraw Ethereum via PayPal
Depending on the platform, to make a deposit you either make a purchase of crypto directly with your PayPal account, or first you fund your broker account and then use the funds to purchase Ethereum or other coins and tokens. Either way, you link your PayPal account and the transaction shows up as a purchase with the broker in your PayPal statement.
To withdraw money to PayPal you should first sell your crypto assets for fiat currency in your brokerage account. Then you will be able to withdraw the fiat balance from your account to PayPal. Make sure that balance is correct, which should be reflected in your PayPal account immediately after the transfer.
What should I look for in a PayPal Ethereum broker?
Low Fees: Most brokers don’t charge for deposits from PayPal, but you should always check their fees structure before using any broker. Some brokers charge fees for every trade you make, typically between 3-5%. Others don’t charge you to make purchases or trade crypto, but charge to withdraw funds. Additionally, if you purchase crypto in PayPal the fees are only 1.5%.
Variety of Coins: After you start investing in Ethereum it is likely you will want to diversify your crypto holdings. Make sure the platform at least offers the top 20 altcoins. Otherwise you will likely have to open additional accounts with other platforms making it more difficult to keep track of your balances and earnings.
Staking: One of the most profitable ways to invest in crypto is to stake your coin. Proof of stake coins like Ethereum allow investors to “stake” their coin, similar to buying a bond. By staking you agree to leave your coin in the staking pool for a certain period of time, and in return you get a certain percentage APY of ETH taken out of the coin mined by the staking pool during the time it was staked. This increases the amount of ETH you own.
Reputation: Recently platforms like Robinhood and Crypto.com have landed in hot water in the news for being unavailable in periods of high trading volume when many individuals are trying to take their money out or get in. Make sure to pick a broker with a reputation for high bandwidth servers who stay online when you need them most. Crypto markets are highly volatile and nothing is more frustrating than missing out when you want to get in, or losing profits because you can’t get out.
Customer Service: Most crypto platforms offer basic customer service with chat and e-mail tickets, but some fall short. Check the reviews online and make sure that if you have an issue with your broker they will get back to you.
Should I buy Ethereum using PayPal?
Is using PayPal the best method to buy Ethereum?
PayPal may be the best method for you to purchase Ethereum depending on if you already have funds in your PayPal account, how soon you want to make the purchase, and which broker platform you use. If you already have the funds in your PayPal account and want to make the purchase of Ethereum immediately, and you are willing to pay fees for the convenience, PayPal is a good option to purchase Ethereum.
If you are willing to wait for your accounts to be verified with your broker, and you feel comfortable with the broker having your bank account information for KYC purchases, you can save on fees. However when you withdraw funds you will have to wait 2 days for ACH transfers before the balance will be reflected in your bank account, and withdrawals are instantaneous with PayPal. If you don’t want to set up a broker account and you just want to buy Ethereum to hold for investment purposes, PayPal may have the lowest fees for purchasing Ethereum in their platform.
What are the alternative payment methods to buy Ethereum with?
Most brokers also you to buy Ethereum with credit cards, debit cards or ACH transfer from linked bank accounts. Some also have wire transfer capability.
Most brokers do not allow purchase of crypto with prepaid debit cards though there are a few. If your intention is to protect your personal information it is usually not worth it as they will still ask you to verify your identity with an ID.
If you already have another coin or token in a wallet, you can use a DEX to trade your coin for Ethereum, though the fees are usually large, especially for Ethereum transactions.
Ethereum ATMs are another option for those who don’t want to set up a broker account. These are not very widespread, but in larger cities you might be able to find one.
While PayPal is a convenient and secure way to purchase Ethereum, this comes at a cost both on the PayPal app and via PayPal Ethereum brokers. Brokers generally charge for this convenience with extra fees for Paypal transactions. PayPal itself has lower transaction fees but does not enable the same functionality as brokers such as trading and transferring.
The decision to purchase with PayPal comes down to how fast you want to make the purchase and if you don’t want to share your account info with your broker. If you need to make the purchase now and you want to keep your bank account info private from your broker, PayPal may be worth the extra fees. If you are willing to wait to link your bank account, wait for withdrawals to transfer back to your bank, and you don’t mind your broker having your account info, then you should just link a bank account to avoid the fees.
If you simply want to buy some Ethereum to hold for investment purposes, or you want to dip your toe in crypto before you set up a broker account, buying Ethereum in the PayPal app is a great way to start investing in Ethereum.