With bitcoin showing signs of another lucrative bull run, it’s essential to position yourself quickly in the market. Pairing the ease and security of PayPal with a reliable exchange seems like a match made in heaven for a quick entry into the market.
There aren’t many reputable exchanges that give you the option to buy or deposit funds through PayPal, so we’ve narrowed them down to the best two – and a third option that’s great for PayPal withdrawals.
If you’re just here for the quick answer – eToro is the best place to buy bitcoin and other cryptocurrencies with PayPal.
Quick Guide: How to Buy bitcoin With PayPal
Step 1: Register an account on eToro.
Step 2: Once registered, click on ‘Deposit Funds.’
Step 3: Select PayPal from the dropdown menu and click ‘Submit.’
Step 4: Complete your profile. After completion, it will redirect you to PayPal and you can proceed with your deposit.
Step 5: Once deposited, type bitcoin in the top search bar and click ‘Trade.’
Step 6: Set the amount you want to buy and click ‘Open Trade’ to instantly purchase.
The Best Exchanges to Buy Bitcoin With PayPal
Established in 2007, eToro set out to simplify and make trading accessible to everyone. In 2018, the company was valued at $800 million, and now boasts a vast array of markets and services, including stocks, commodities, currencies, and copy trading. Its latest addition is cryptocurrencies.
eToro is available in the United Kingdom, United States and most of Europe – check here to see a full list of countries where eToro is unavailable.
The initial process of creating your eToro account is easy, allowing you to sign up with your Facebook, Google, or email account. After registering, you will need to complete your profile before the website lets you deposit or trade. The process is quite thorough and asks about your trading experience, alongside certain forms of ID verification (in the UK your National Insurance number is needed).
Fees on eToro are higher than average and vary per coin – with bitcoin’s average spread fee being 0.75%. Unfortunately, this is a high fee compared to the industry average of 0.25%, but if PayPal is your only purchase option then it might still be your best choice.
As previously mentioned, you’ll need some sort of ID verification for profile completion, along with a phone number and address. I didn’t require a driver’s license, photo, passport, or proof of address.
At the time of writing, there are 16 cryptocurrencies listed on eToro, shown below:
- bitcoin Cash/BCH
- Binance Coin/BNB
- Ethereum Classic/ETC
Please note that eToro requires a minimum of $200 dollars for your first deposit if you don’t reside in the U.S. or Australia, where the minimum is $50. You also need to spend a minimum of $25 for each crypto transaction.
LocalBitcoins is a peer to peer (P2P) marketplace established in 2012, for the sale of bitcoin in exchange for your chosen currency.
The website has an escrow system and conflict resolution centre that helps hold and complete each transfer. To ensure only trusted users are allowed to buy and sell, the website has a reputation and feedback system related to each user, akin to marketplaces such as eBay.
You can access the site from anywhere in the world besides Russia – although they’ve published methods for accessing the site even from there.
LocalBitcoins takes a little longer to make a purchase since it is down to you to find a reputable seller who is selling via PayPal and at a good price. On the main ‘Buy bitcoins’ page, you can choose PayPal as the payment method from the dropdown filter and search to find appropriate sellers.
There are no fees for buying or selling bitcoin, besides the normal bitcoin transaction fee which can vary in size (generally between $0.50-3). A 1% fee is charged to LocalBitcoins users who create advertisements that lead to a completed trade.
It is also worth noting that if you buy with PayPal on LocalBitcoins, the seller’s price tends to be higher than if you use ETH or a bank transfer. This is due to PayPal being an easily reversible transaction that creates higher risks for the seller, since sending bitcoin isn’t reversible. The escrow and conflict resolution centre is in place to help settle any disputes that might arise.
LocalBitcoins has 4 account tiers, starting with tier 0 that requires only an email, name, number, and country of residence, with a cap of €1000 yearly trade volume. Any tier higher requires identity and address verification.
It is worth noting that in 2019, hackers stole $28,200 from LocalBitcoins users’ accounts that the site blamed on third party software used on their forums. However, the affected users were granted refunds for their lost funds and the vulnerability was since addressed.
FAQ – How to Buy bitcoin With PayPal
Can I sell bitcoin back into PayPal?
Yes, you can sell it through the same methods you used to buy it. On eToro you can just sell it into your funds and then withdraw back into your Paypal account, and if you sell on LocalBitcoins you can make it the only payment option you want to receive. However, this is prone to scams due to the ease of PayPal’s reversible transactions. Coinbase, another large exchange, offers an excellent and very immediate way of withdrawing your fiat – and you’re also safe from being scammed
Can I buy bitcoin with PayPal without verification?
You can on LocalBitcoins and other P2P options. However, they’re generally unsafer and open to scammers.
Can I buy bitcoin on PaxFul?
Yes, although we recommend against using the platform. PaxFul is another P2P marketplace, though it has been prone to scams in the past. They now require ID verification for sellers. When buying, the seller often determines how much ID verification they require before engaging in a trade. We don’t recommend trading here, but if you do, use caution and check seller activity and reputation first.
Can I buy bitcoin with PayPal on Coinbase?
No. At the current time of writing this, you cannot purchase any form of cryptocurrency with PayPal on Coinbase. If you have access to a PayPal Business account, applying for their Business Debit Mastercard would be the closest way to do so.
How high are fees when buying bitcoin with PayPal?
Generally speaking, exchanges accepting PayPal charge no fee on the movement of money from your PayPal into your exchange fiat wallets. When dealing with P2P exchanges, the payment is often made directly to the seller, who may be charged a fee for using the platform.
Is PayPal adding the option to buy bitcoin and cryptocurrency?
Not currently, but there are rumours that it may be happening in the near future.
Can I buy cryptocurrencies other than bitcoin with PayPal?
Yes, although it depends on the platform you use. For instance with eToro, you are simply using PayPal to add funds to your fiat wallet, from which you can then purchase any of the other cryptocurrencies listed on the exchange.
Even if you use a platform like LocalBitcoins, you can buy bitcoin there and send it to any other exchange that offers a variety of cryptocurrencies for trading there.
Can I buy bitcoin without PayPal?
Absolutely. The exchanges mentioned above, or any on our list of the best exchanges to buy Bitcoin, accept bank transfers or credit/debit cards for you to buy directly or add funds.
Buy bitcoin with PayPal Today!
With the cryptocurrency market on the upturn and bitcoin back on people’s minds, it’s looking like a promising time to enter the market. eToro is our choice of exchange to buy bitcoin with PayPal, with LocalBitcoins coming in a close second.
If you aren’t too concerned about using PayPal for purchases, Coinbase is an intuitive and secure exchange with a wide range of cryptocurrencies and the option to withdraw into your PayPal account.