The 5 Best Ways To Purchase Bitcoin With PayPal In 2022

The ways to buy Bitcoin have developed over time to appeal to a wider audience as it continues to gain popularity. PayPal is one of them options today. One of the regularly used payment options for purchasing bitcoin is PayPal. As an alternative to cheques and money orders, it is one of the largest online money transfer systems in the world. Although some nations permit people to acquire Bitcoin directly using a PayPal account, one of the best ways is to connect a PayPal account to a favorite cryptocurrency exchange, which makes it possible to buy Bitcoin and a variety of other commodities.

This article will outline the steps involved in purchasing Bitcoin using PayPal and list the exchanges that presently support this method of payment.

Can PayPal Be Used To Purchase Bitcoin?

PayPal is a method for depositing fiat money and purchasing Bitcoin that is supported by a select few cryptocurrency exchanges and services. Users can start looking for and buying Bitcoin on the exchange after the funds have been put from a PayPal account.

An example of a cryptocurrency exchange that has PayPal built into its payment processor is eToro. When funding an account using PayPal, eToro does not charge any fees.

Quick Guide For Buying Bitcoin With PayPal

The five stages to buying bitcoin with PayPal are as follows:

1. Open an account with PayPal: Users who don’t already have an account with PayPal must do so on the PayPal website. To enable funding from the account, they must additionally connect their PayPal to a bank account, debit card, or credit card. Users might additionally need to pass PayPal’s identity verification process.

2. Open an account on a cryptocurrency exchange: Look through platforms, P2P markets, and exchanges that let you to fund your trading account with PayPal. One reputable website that accepts PayPal deposits without charging a fee is eToro.

3. Complete ID verification is required by the majority of exchanges in order to comply with Know Your Customer (KYC) policies. A photo ID and address verification are uploaded as part of ID verification.

4. Deposit via PayPal: To fund the account, choose PayPal as the payment option and input the desired amount in fiat.

5. Purchase Bitcoin: Browse the list of digital assets for Bitcoin. Input your desired spending amount in the buying panel, check the transaction specifics, and submit your purchase authorization. Users can automate their Bitcoin transactions by setting up recurring buys, often known as dollar cost averaging.

How To Purchase Bitcoin Using PayPal

There are many platforms that now accept purchasing Bitcoin using PayPal. The top cryptocurrency exchanges that let consumers purchase Bitcoin with PayPal are reviewed below.

The Best For Zero PayPal Deposit Fees Is eToro

Over 24 million customers in over 140 countries, including the United States, Australia, Japan, and the United Kingdom, trust the well-known cryptocurrency exchange eToro. The platform has a solid reputation as the largest social investing community in the world and is well-known for its copy trading feature, which allows users to mimic the portfolios of profitable investors.

eToro abides by the stringent rules of numerous agencies from various jurisdictions. The FCA in the UK, ASIC in Australia, CYSec in Cyprus, FINRA and FinCen in the US are just a few of the regulating organisations. In the unlikely case of insolvency, eToro also has insurance from Lloyd’s of London to cover up to 1 million AUD, Euros, or GBP.

Users must first register for an eToro account and finish the required ID verification process before they can purchase Bitcoin with PayPal. Then, users can utilise the search bar or the cryptocurrency page to look up Bitcoin. Users have two possibilities after finding Bitcoin:

• Trade. This enables a user to buy a specific amount of Bitcoin at the going rate.

• Order. This enables a user to choose a desired price and the quantity of Bitcoin to buy. When the target price is reached, eToro puts this order into action.

Users can click “Deposit” to fund their accounts after selecting the quantity of Bitcoin to purchase. If you choose PayPal as your deposit option, eToro will safely reroute you to PayPal to finish the deposit. When the deposit is successful, users can finish the purchase.

Although there are no fees associated with PayPal deposits, the minimum is $10. The minimum withdrawal amount with PayPal is $30, and there is a flat $5 fee for each withdrawal.

Unless they fall under the jurisdiction of the Australian Securities and Investments Commission, users who trade BTC are purchasing the underlying asset. Within a few seconds of the asset reaching the desired price, buy orders for BTC at that price are fulfilled.

After purchasing Bitcoin, investors have the option of storing their funds with eToro or moving them to a separate hardware wallet for security.

Second-best for American customers is Coinbase

One of the biggest cryptocurrency exchanges in the world, Coinbase, offers millions of American clients a quick and easy option to purchase Bitcoin using PayPal. Currently, Coinbase only accepts PayPal from American consumers.

Users of Coinbase who already have a PayPal account can begin buying Bitcoin right away. Those without PayPal accounts must first register and connect them to a debit card or bank account. To add PayPal as a payment option, new users must complete all identity document verification requirements.

Click Payment Methods under Account Settings to get going. On your computer, open the Coinbase iOS or Android app and select Link a New Account or press Add a Payment Method. To be taken to the PayPal account, select PayPal. Users can only link one Coinbase account at a time to their PayPal account.

Users should make sure their Coinbase email and PayPal email match for a seamless experience; otherwise, they will need to complete Two-Factor Authentication on the site. Additionally, the country stated for the PayPal account should coincide with the Coinbase account’s country of origin.

Users can use their PayPal account to buy up to $25,000 worth of Bitcoin each day. The software offers PayPal cashouts in EUR, GBP, and CAD with limits of $20,000, $20,000, and $30,000 correspondingly.

3. The Best Exchange For Low Trading Fees Is Binance

When it comes to trading volume and liquidity, Binance is the biggest cryptocurrency exchange in the world. Users have access to over 500+ crypto assets, including Bitcoin, on the highly recognised and trustworthy platform. Stablecoins, alternative coins, and DeFi tokens are some of them.

Users of the Binance cryptocurrency exchange can fund their accounts with the fiat money of their choice. Users must make use of the P2P trading platform in order to purchase Bitcoin using PayPal. The acceptance of the PayPal option by another user is necessary for this, though.

Users only pay 0.1% in fees on Binance, which are exceptionally low. Users who want to buy directly from the seller may be charged a higher fee of 5%. Users of Binance can also take use of extra benefits including a marketplace for NFT investments and a platform with sophisticated charting features and technical indicators for investors. Through Binance Earn, users may also stake their Bitcoin in order to increase their savings and earn interest.

4. Crypto.com – Best for Mobile App Funding

Founded in 2016, Crypto.com is one of the top cryptocurrency apps on the market, giving access to more than 250 cryptocurrencies to its 50+ million users. It enables app users to purchase Bitcoin at market value. Additionally, there is the advantage of having access to its entire feature set, which includes earning interest on Bitcoin up to 6% per year and using the Crypto.com Visa Card, which offers rebates of up to 5% on purchases. To keep track of their digital assets at their fingertips, users can set up price alerts and price movement notifications on the mobile app.

PayPal users can send EUR via SEPA and USD via ACH when making deposits using fiat currencies on Crypto.com. Additionally, users can simply top off their Crypto.com Visa Card with PayPal. Keep in mind that the Crypto.com app can only be connected to one PayPal account. Despite the fact that this top-up option is typically instant, a 2.1% top-up fee is charged. To add money to a Crypto.com Visa Card using PayPal, follow these steps:

1. Click the Card tab’s Top Up button.

1. Select Connect with PayPal. 2.

3. Log in with your PayPal account information.

4. Choose and verify the card to load.

5. Type the USD amount of the top-up.

6. Validate the transaction.

5. Paxful – Best P2P Marketplace For PayPal

Paxful wants to simplify the way consumers covert their PayPal funds to Bitcoin via a safe and user-friendly peer-to-peer marketplace. The portal accepts more than 350 different payment methods in addition to PayPal for buying bitcoin.

Paxful, one of the top P2Ps for cryptocurrencies, links traders to other traders so that Bitcoin can be purchased and traded directly. Users must locate offers from vendors who take PayPal in order to purchase Bitcoin. Users can always make their own offerings if they couldn’t discover anything suitable out of the many offers that will be offered.

For a more secure transaction, some Bitcoin vendors might ask other users to verify their identities. Users might be asked to submit paperwork, including screenshots, pictures, and official government identification. This lessens the possibility of fraudulent transactions and illegal usage of PayPal accounts.

Be sure to understand each seller’s requirements before beginning a trade as terms and conditions may differ between offers made by vendors. Users can estimate how much Bitcoin they can purchase using the amount in their choice currency by using the online Bitcoin calculator provided by Paxful.

Benefits of Purchasing Bitcoin Through PayPal

When compared to alternative payment options, purchasing Bitcoin with PayPal offers a number of benefits.

Pros:

• Speedy deposits and withdrawals: Many people choose to purchase Bitcoin through PayPal since it enables quick deposits and transactions. The process of linking a PayPal account to the exchange account is normally simple, and deposits are made almost instantly. In comparison to methods like bank transfers or debit/credit cards, where the transaction could take a few business days to complete, withdrawing money from PayPal through a cryptocurrency exchange happens quickly. For PayPal withdrawals, there can be a charge depending on the platform.

• Excellent security: PayPal, a well-known payment processor, has created a strong security system to guarantee consumers can conduct transactions securely across various platforms. According to the PayPal website, end-to-end encryption is used by the payment processor to protect data and transactions. Additionally, PayPal notifies users through email after each transaction. Users who notice an unlawful or questionable transaction can get in touch with PayPal right once to remedy the issue.

• Support for many fiat currencies: PayPal also has the benefit of supporting more than 25 fiat currencies, including widely used ones like the AUD, USD, GBP, and EUR. PayPal protects users from the fiat conversion fees incurred on most platforms by supporting multiple currencies. For instance, consumers will pay a 0.5% fee to convert deposits that are not made in USD. Before adding money to their trading account, a user can use PayPal to change the balance on their account into USD.

• Low fees: Purchasing Bitcoin through PayPal is quite affordable. PayPal deposits of cash funds are free on some services, like eToro.

Cons:

Before using PayPal to purchase Bitcoin, keep the following disadvantages in mind:

• Limited options: Although PayPal may be well-liked by consumers for quick transfers, it isn’t currently supported by the majority of cryptocurrency exchanges. Even those who agree with it might impose geographical limitations. For instance, Coinbase exclusively allows PayPal for users in the United States.

• A debit card or bank account must be connected to PayPal: Users must link their PayPal account to a debit card or bank account in order to use PayPal as a financing mechanism for a cryptocurrency wallet. PayPal will restrict the amount that can be transacted if it is not linked to a card or bank account.

eToro Tutorial: How To Purchase Bitcoin With PayPal

Step 1: Open a PayPal account

Visit the PayPal website to register for an account. To make the account available for transactions, connect it to a bank or debit/credit card.

Step 2: Register for an eToro Account

Create an account on an exchange that accepts PayPal with no deposit fees by going to the eToro website. Users must choose an email address and a password in addition to providing their email address. These information serves as your account’s login credentials.

Step 3: Verify Your Account

All new eToro users must confirm their identities as part of the company’s Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) standards. Click “Complete Profile” to finish the verification process and enter the necessary personal information for the required KYC checks. The user’s ID (such as a driver’s licence or passport) and address verification (such as a utility bill or bank statement) must both be uploaded at that point.

The date on the proof of address shouldn’t be older than three months. To be qualified for trading, users must pass this verification process. Additionally, confirmed eToro users gain access to a quicker withdrawal procedure.

Step 4: Put Money Down

On your eToro account, click “Deposit” to see the funding alternatives that are offered. Select PayPal from the drop-down option, then type the required minimum deposit amount. Then, eToro will give instructions on how to link the PayPal account and make the deposit on the screen. PayPal deposits on eToro are free of cost. The PayPal option is only accessible after the initial deposit as of the time of writing.

Step-5 : Purchase Bitcoin

Users with funded eToro accounts can either enter “Bitcoin” in the search field or click “Discover” to find cryptocurrency among the available digital assets. Click “Trade” when the cryptocurrency appears to bring up a buying panel. The amount in dollars or units of Bitcoin to buy can be entered in this panel. A drop-down menu with the choices Trade or Order is also present. To instantly purchase Bitcoin, select “Trade.” To purchase Bitcoin at a certain market price, select the “Order” option.

Is It Possible To Purchase Bitcoin With The PayPal App?

People in the US and the UK can buy, store, and sell cryptocurrency straight through the PayPal app. Users can purchase various cryptocurrencies such as Bitcoin, Bitcoin Cash, Ethereum, and Litecoin with as little as $1 in their wallet balance.

At millions of supported stores throughout the world, customers can also use their digital currencies to pay for qualified online purchases while checking out. Users must first complete the W-9 tax form on the mobile app in order to use this cryptocurrency payment method. Users must report their earnings or losses when filing their taxes because buying and selling cryptocurrency is seen as a taxable transaction. PayPal will exchange cryptocurrency quantities for free into USD or any other fiat currency. Alternately, capital gains can be computed using the majority of crypto taxation software.

There are a few restrictions when purchasing Bitcoin using PayPal:

1. Users are unable to transfer their virtual currency out of their PayPal wallet. Users who choose to keep their assets in cold wallets may worry about security because they can’t move their holdings to an external wallet.

2. In comparison to alternative methods, purchasing Bitcoin via PayPal entails larger fees. A fee of 1.80% is charged for transactions involving cryptocurrencies valued between $200 and $1,000. 4% is charged for currency exchanges as well.

Users must first download the PayPal mobile app in order to purchase Bitcoin on PayPal. Click Finances on the dashboard, then choose Crypto. Select your preferred currency, then select Buy to complete the purchase. Beginner investors can use the extensive library of resources provided by PayPal to learn more about cryptocurrencies and how they operate.

FAQ

Is Using PayPal To Purchase Bitcoin Safe?

It’s quite secure to fund cryptocurrency exchange account wallets using PayPal in order to purchase Bitcoin (BTC). End-to-end encryption is used by the PayPal platform to safeguard all user information and financial transactions. Additionally, PayPal notifies users through email after each transaction.

What cryptocurrency exchanges accept PayPal?

PayPal is a supported payment method on various exchanges, including eToro, Coinbase, and Crypto.com. PayPal deposits are frequently almost instantaneous and occasionally cost nothing. Peer-to-peer websites that accept PayPal as a fundraising option include Paxful and the P2P marketplace on Binance.

Conclusion

One of the various ways that traders and investors can purchase Bitcoin through a crypto exchange is as a payment option using PayPal. Its simplicity, the quickness at which money may be transferred to the account wallet, and its affordability are just a few of its benefits. Regrettably, few cryptocurrency exchanges accept PayPal, and those that do have regional limitations. Investors can look into several payment options to buy Bitcoin if PayPal isn’t accepted, including bank transfers, Neteller, credit cards, Amazon gift cards, and prepaid cards.