How to Buy Bitcoin with PayPal: A Step by Step Guide

Using PayPal to purchase Bitcoin is not only convenient but also a secure way to enter the world of cryptocurrency. Whether you’re a seasoned investor or just starting, this guide is here to help you easily navigate the process. We’ll walk you through the steps, highlight the best platforms to use, and offer tips to ensure smooth and safe transactions. Get ready to turn your PayPal balance into Bitcoin and start exploring the exciting opportunities digital currency offers!

How to Buy Bitcoin with PayPal

Buying Bitcoin with PayPal is a convenient and popular method due to its user-friendly interface and widespread acceptance. This guide will walk you through the process, covering various methods, including using exchanges, peer-to-peer (P2P) platforms, and crypto brokers. We’ll also discuss the pros and cons to help you make an informed decision.

Using Exchanges to Buy Bitcoin with PayPal

List of Exchanges

• Coinbase
• Bitstamp

How to Use PayPal on These Exchanges

1. Create an Account: Go to one of the exchanges and sign up for an account.
2. Link PayPal: Go to ‘Settings,’ select ‘Payment Methods,’ and add your PayPal account.
3. Buy Bitcoin:
   • Navigate to ‘Buy/Sell’ and choose Bitcoin.
   • Select PayPal as the payment method.
   • Enter the amount you want to purchase and confirm the transaction.

Using P2P Platforms to Buy Bitcoin with PayPal

List of P2P Platforms

1. Paxful
2. LocalCoinSwap

How to Use PayPal on These Platforms

1. Register: Sign up on these websites.
2. Find Offers: Use the search bar to find Bitcoin offers where the sellers accept PayPal.
3. Trade:
   • Select an offer and initiate the trade.
   • Follow the instructions provided by the seller for PayPal payment.
   • Use Paxful’s escrow service to ensure a secure transaction.

Using Crypto Brokers to Buy Bitcoin with PayPal

List of Crypto Brokers

1. eToro
2. Plus500

How to Use PayPal on These Brokers

1. Register: Sign up on eToro’s platform.
2. Fund Account: Go to ‘Deposit Funds,’ choose PayPal, and deposit money into your account.
3. Buy Bitcoin:
   • Search for Bitcoin on the platform.
   • Click ‘Trade,’ specify the amount, and confirm the purchase using PayPal.

More about how to buy Bitcoin: coinminutes.com/learn/how-to-buy-bitcoin

Pros and Cons of Using PayPal to Buy Bitcoin

Pros

• Ease of Use: PayPal’s interface is intuitive and user-friendly, making it easy for beginners to navigate.
• Speed of Transactions: Using PayPal for Bitcoin transactions offers the benefit of speed, often enabling instant processing. PayPal’s integration with cryptocurrency allows users to buy, sell, transfer, and hold cryptocurrencies like Bitcoin directly through its platform. Transactions between PayPal accounts are processed without network fees and occur almost instantly, facilitating timely investments. More specifically, for Paypal, it only takes 10 – 30 seconds to process a Bitcoin transaction, while Bank Transfers take 1-5 days to complete the transaction depending on the domestic or international bank. In reality, Credit/Debit Card Transactions take a few minutes to an hour depending on verification processes and for Cryptocurrency Exchanges it takes 10-60 minutes to complete the transaction based on required confirmations and network congestion.
• Wide Acceptance: 6 platforms accept PayPal in 2024, making it accessible to a wide audience such as Coinbase, eToro, Kraken, Bitstamp, LocalCoinSwap, and Paxful.
• Security: PayPal offers buyer protection and secure payment processing, ensuring a safe transaction environment.

Cons

• Fees: PayPal’s transaction fees for buying and selling Bitcoin can indeed be higher compared to other payment methods. Here’s a detailed fee associated with PayPal transactions on various platforms. We use eToro for comparison. Transaction fees on PayPal are about 1.55% higher than eToro. As a specific example, when trading 1,000 USD in Bitcoin, the fee charged when trading with Paypal is 2.3%, equivalent to 23 USD, while eToro only takes 0.75% for the Transaction Fee Percentage equivalent to 7.50 USD on eToro.
• Limits: Limits on the amount you can purchase or withdraw when using PayPal for Bitcoin transactions vary by platform and region. Here are some specific figures for various platforms: Coinbase users can withdraw up to $50,000 per day from their account​ (CoinWire). However, for the eToro platform, you can withdraw unlimited money and only have a minimum limit of 10 USD per withdrawal. Therefore, for convenience in the transaction and withdrawal process, you can refer to the eToro platform, we have a detailed article instructing how to buy Bitcoin on Etoro app.
• Availability: Not all exchanges or platforms accept PayPal, limiting options for users.
• Reversibility: The ability to reverse transactions can be a disadvantage in the crypto world, where transactions are meant to be final and irreversible.

The Bottom Line 

Buying Bitcoin with PayPal is a straightforward process, whether you choose to use exchanges, P2P platforms, or crypto brokers. Each method has its advantages and considerations, so it’s important to choose the one that best suits your needs and preferences. Always ensure to follow security best practices and stay informed about any fees or limits associated with your transactions.