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Buying Bitcoin with PayPal can be both an easy task, as well as a hard one. In this tutorial, InsideBitcoins will teach you the best platforms to use, and the step-by-step you should take to buy your first Bitcoin.
Why do you need to know all of that before buying Bitcoins with PayPal? Because then you will know that the companies that accept payment for Bitcoin and cryptocurrencies with PayPal are safe and legitimate. InsideBitcoins will list the most well known brokers and exchanges, as well as review them in this article.
Compare Exchanges to Buy Bitcoin with PayPal
Best Exchanges to Buy Bitcoin with PayPal
How to Buy Bitcoin on eToro
eToro is one of the best platforms to buy BTC with PayPal. The reasons for that are many, but eToro is most known for its ‘CopyTrading’, or mirror trading feature, which allows their investors to copy the portfolio and trading trends of other users who are performing well.
eToro is also one of the oldest broker platforms in the market, and one of the first ones to adopt cryptocurrencies in their platform.
They recently launched an exchange in the USA, but eToro is mostly known for its CFD trading, which is different than buying the cryptocurrencies and storing in your wallet. Bitcoin and other cryptocurrencies were made popular due to buying and sell, and storing them in your wallet. Well, in 2017 Bitcoin reached sky high prices, and nearly surpassed the $20,000 USD mark. In 2018, however, Bitcoin crashed, and the cryptocurrencies had more than $700 Billion USD wiped out of their market cap. In summary, it’s much more profitable to buying and trading Bitcoins with PayPal, rather than just buying and storing in your wallet.
The first step to creating an account on eToro is filling out your information on their homepage. What you need to do is choose a username, password, and fill out the information with your first and last names, as well as a phone number and e-mail. You can also choose to perform a ‘fast’ login, by proceeding with your social media accounts.
Once you verify your account via the received e-mail, you will be ready to start familiarising yourself with the platform, and eventually buying your first Bitcoin with PayPal.
As soon as you get inside your dashboard and account with eToro, you will be able to explore all the different markets, and start building your watchlists and portfolio. You will also need to verify your account by replying simple questions on your profile menu, and uploading a photo ID (this will only be needed once you want to withdraw the funds. You don’t need to verify with an ID yet to start trading).
The next step is deposit an initial amount on your account. There is a minimum deposit required by eToro, which is of $250 USD. That’s fine though, because you have many payment methods to make your first deposit, and PayPal is one of them.
Once you have selected PayPal to make your first deposit, you can begin buying Bitcoin.
To Buy Bitcoin with eToro, simply go to your watchlist, select the Bitcoin Market, and click to either Buy or Sell Bitcoin.
So click on ‘Buy‘, then you will be able to spend your top-up cash made with PayPal to place your first buying order for Bitcoin.
After you’ve placed your first buying order, you will be able to accompany your purchases on your portfolio. Remember, before you withdraw your first profits with Bitcoin, you need to submit your photo ID for the KYC compliance.
If you want to buy the Bitcoin physically, you can download the app for the eToro wallet on iOS or Android.
Local bitcoins is a P2P website that sets up a marketplace for users to buy and sell their Bitcoins. If the word eBay comes to mind, then you’re exactly right. LocalBitcoins is like an eBay for cryptocurrencies.
You will find users buying and selling cryptocurrency, and some of these users might just as well take PayPal as a payment method.
Usually the way it works is, you browse their platform and look for a user that is selling bitcoins at the price you’re looking to buy, then you initiate conversation with the buyer. Once all the details have been agreed to, you proceed on to buy bitcoins with PayPal.
LocalBItcoins is sought after by many users, as the cryptocurrency there are rather cheaper than the ones bought from other exchanges.
To create an account, you need to first go on their homepage and fill out your details like name, last name, phone number and email. Once you confirm those details, you will receive a confirmation email to activate your account.
Now the next step is to locate the users that are willing to let you buy btc with PayPal. You can filter searches on LocalBitcoins to match that.
Once you’ve found a user that is selling at a reasonable price (always research the price), you can either drop them a message and try to haggle the price a little bit, or proceed on to buy Bitcoin with PayPal.
Once everything has been agreed to, your funds will remain in LocalBitcoins’ escrow to prevent any fraud or scamming.
Once both parties have accepted and released funds, you will be able to receive the bitcoins bought with PayPal.
You can even check how much you will receive with an updated price on their calculator widget.
Coinbase is one of the oldest and most trustworthy exchanges in crypto history. In fact, Coinbase has been hacked in the past, but it is actually one of the only exchanges that are up to date with SEC’s rules and regulations for cryptocurrencies.
Coinbase is actually sought after for its wallet feature. They allow their users to create an account and a wallet without needing to perform a KYC process. You only need to identity yourself if you want to buy cryptocurrencies via Coinbase.
A few things to consider before Buying Bitcoins on Coinbase:
- PayPal at the moment is strictly enabled for withdrawals, so theoretically you cannot link a PayPal account and purchase Bitcoin directly with it.
- In order to withdraw sold Bitcoin and FIAT currency to your PayPal account from Coinbase you’ll first need to find your account preferences.
In order to actually withdraw using PayPal on Coinbase, you’ll need to convert any of your cryptocurrencies into fiat amounts; then, you can go to “Withdraw” on the traditional homepage, and simply select your PayPal account. Currently, as of writing, you cannot deposit or purchase Bitcoin using PayPal, only withdraw fiat after the Bitcoin has been sold to regulated currency.
Coinbase used to allow their users to buy and sell Bitcoin with PayPal on their platform, but along the years that feature has been on and off. You will find web that Coinbase allows its American users to buy bitcoins with PayPal, but that’s actually a false statement. Recently, Coinbase has updated their method for selling cryptocurrency and sending payments via PayPal to their users. That is a major improvement, but you still can’t buy bitcoin with PayPal on Coinbase.
Although Coinbase has millions of users in their database, and many positive aspects, they have a few negative points that should be something to consider.
In the same year the announcement that users wouldn’t be able to buy Bitcoin with PayPal on Bitpanda was made, they won an award for the best Fintech company in Europe, which made them one of the most important exchanges that sell cryptocurrencies in Europe. They have in their platform over 1,000,000 users and accounts created.
VirWox is an online payment provider and forex exchange, that was made famous for allowing their users to exchange money for a virtual currency SLL (Second Life Linden Dollars) that is used in the virtual game Second Life.
If you think about that, this was actually one of the first original crypto currencies. Although it’s not decentralized, it still consisted in buying virtual currency to exchange for items and goods in game, or exchange the SLL back into USD.
The way you can Buy Bitcoins with VirWox on PayPal used to be very straightforward. All you needed to do was buy the SLL with USD via PayPal, and then buy the BTC with SLL.
That is quite a shame, as VirWox’s method of exchanging currency for SLL was very efficient in preventing any chargeback. Virwox issued a Proof of Purchase to whoever bought bitcoins, thus preventing any chargeback on the user end.
Buying bitcoins with PayPal on VirWox was actually one of the only reasons why they had such a high volume of bitcoin sales, as their commission fees are higher than the average exchange. Another negative aspect is that their KYC method is taking much longer now, and new users should get their accounts approved within 48 hours.
Wirex is a company that is similar to PayPal and VirWox in a sense. This company is also a payment provider, and what Wirex does is supply their users with Bitcoin credit and debit cards (virtual and physical).
Once you create an account with Wirex, you can use both the Virtual and Physical cards to buy bitcoins on their platform, so just select the one that is more convenient for you.
The next step is funding your Wirex account, which you can do by several payment methods, including PayPal. To add funds with PayPal, select the ‘Wallet’ option. This is not a Bitcoin wallet, rather it’s your wallet section that contains the payment methods in your Wirex account.
Once you’ve added a payment method, and added funds to your Wirex account, you just need to select the ‘Buy Bitcoin’ option, and you should be able to buy your bitcoins with PayPal via Wirex.
Paxful is a marketplace for buying and selling bitcoins. At core, Paxful is a platform that offers the service as a Bitcoin Wallet, as well as payment system. They offer many ways to buy bitcoins, including buying Bitcoins with PayPal.
Their website is one of the most friendly websites available for buying and selling bitcoins. They are not an exchange, but rather are a brokerage firm that earns its profit on the commissions made from trades by their users.
Once you’ve selected the amount of Bitcoins you want to purchase, you can select your preferred payment method and currency. You can choose between the option to buy or sell Bitcoins on the main page. Once you’ve entered the amount you want to purchase, click on either Search for random results, or ‘Give me the best’ for the best offers available. For this tutorial, we clicked on the ‘Search’ button.
Once the results load, you will see that you can scroll between the different options on the left hand side. The prices sometimes are unfathomable and just much higher than the normal. The reason for that, is because you don’t need to upload your KYC and identity if you want to buy Bitcoins with PayPal on Paxful. You can only buy a fraction, and raising the overall price, raises the price of the fraction. The sellers are pretty much taking advantage of the buyers’ privacy options.
As you can see, you don’t need an ID, receipt or verification needed to buy Bitcoin with PayPal on Paxful. You are, however, limited to a trade or purchase limit.
Buy Bitcoin with PayPal in Your Country
Now that you are familiar with all the methods that you can buy Bitcoin with PayPal, it’s time to show you the best method in the UK.
The best method to Buy Bitcoin with PayPal in the UK is via eToro. The reason for that is because their platform is regulated by CySEC (Cyprus Securities and Exchange Commission) and the FCA (Financial Conduct Authority)
What you need to do to buy Bitcoin with eToro is follow the steps above. Once you’ve bought you’ve made your initial deposit on eToro, you just need to Click on the Bitcoin market in the overview screen in the platform, and click on the buy button.
The best method to Buy Bitcoin with PayPal in the US and Canada is via LocalBitcoins.
Although they are a P2P platform, you will find that the offer for people selling Bitcoin with PayPal is really high. Remember though, before buying Bitcoin with PayPal on LocalBitcoins, make sure the seller is legit and trustworthy.
Tips on How to Buy Bitcoin with PayPal
Apply as much account verification, preferably maximum, as possible prior to trying to make purchases. The reasoning for doing this sooner rather than later is because not all exchanges and crypto providers that allow for PayPal integration have the exact same regulatory process. Therefore, you could find yourself continuously entering the same repetitive information over and over when after the whole time you could have taken a bit of time prior, filled out all parameters, and went from there.
Always check for phishing links. PayPal phishing links are not uncommon at all. Phishing links are fake pages that replicate real PayPal logins and popup asking you for your login tricking the user into thinking they are a verified processor. After entering the details, the window dissolves, and the phishing link takes the login information for the PayPal. To protect against this, always check for security on your popups as well as any cryptocurrency exchanges you’re using that enables PayPal integration. For example, try to find safety indicators such as these if you’re using Chrome.
Research as much as possible. If you’re unsure if you can buy Bitcoin on an exchange, try to contact an official team member. Do your due diligence as well. Lower-tier and lesser-known sites are more likely to be scams.
Bitcoin vs PayPal
Understanding the core differences and similarities between PayPal and Bitcoin are quintessential in extracting their absolute usability. It’s more beneficial to see how they are similar initially, as most users are more accustomed to either Bitcoin or PayPal already and simply want to learn more about the latter.
- Both Bitcoin and PayPal are payment methods
- Both are used as a P2P payment system
- Both are used to create fast, less costly transactions online
- Bitcoin and PayPal are both technology that aim to streamline the payment process for all users digitally
- Both Bitcoin and PayPal enable international transfers and direct integration with online platforms
- Bitcoin itself is a currency, whereas PayPal itself is not a currency or transferrable entity/asset
- PayPal works with banks and individuals to process their payments serving almost like a gateway; Bitcoin is decentralised
- Bitcoin uses a distributed ledger technology to show validated transactions. PayPal relies on Banks to verify the transactions
- Once a payment has been released with Bitcoin, it cannot be cancelled. PayPal has a chargeback feature to cancel payments
- Bitcoin uses cryptography and users do not need to be identified. You need to upload your passport/ID, or enter your bank details to open a PayPal account
Is Bitcoin better than PayPal or vice-versa?
Bitcoin is not necessarily better than PayPal and PayPal is not explicitly better than Bitcoin because they’re in two different playing fields.
Theoretically, Bitcoin enables faster transactions, settlement, and confirmation speeds at fractions of the cost that PayPal enables them, however, this is because PayPal accommodates to fiat currencies, the currently most liquid form of payment available.
Although Bitcoin may maintain an internal technical advantage, liquidity and adoption also come into play; virtually 95% of all modern day outlets that you use allow for PayPal integration, whereas only a small finite percentage allows for Bitcoin processing.
That is their tradeoff and the subsequent argument that arises. While Bitcoin can technically prove more efficient than PayPal as a form of processing, it has multiple growing pains that it must overcome to be named significantly better than PayPal.
To keep it Short and sweet, the answer to this question above is decentralisation. Bitcoin is a decentralised currency, that registers its transactions on a distributed ledger called blockchain.
PayPal, on the other hand, is a centralised and well known payment method, affiliated with centralised financial institutions. Basically, PayPal has no problem in sharing your information with Banks and other financial institutions, whereas with Bitcoin all of that is done anonymously.
No, at the moment you cannot send Bitcoin from PayPal or send Bitcoin to PayPal.
As a registered and FCA regulated firm, eToro is more than likely the safest and quickest option.
Yes! However, you have to use a cryptocurrency exchange that supports PayPal in order to connect it and buy Bitcoin.
You cannot sell Bitcoin directly to PayPal, however, you can sell Bitcoin to third party exchanges that enable PayPal integration.
You cannot convert Bitcoin to USD on the PayPal platform, you can convert Bitcoin to USD on an exchange that supports PayPal, and then withdraw the USD to your PayPal account.
No, you cannot directly convert Bitcoin to GBP with PayPal; you will have to find an exchange that supports Bitcoin to GBP listings as well as PayPal connections, convert your Bitcoin to GBP, and then withdraw GBP to your PayPal.
- 0.1 Compare Exchanges to Buy Bitcoin with PayPal
- 0.2 Best Exchanges to Buy Bitcoin with PayPal
- 0.3 How to Buy Bitcoin on eToro
- 1 Buy Bitcoin with PayPal in Your Country
- 2 Tips on How to Buy Bitcoin with PayPal
- 3 Bitcoin vs PayPal
- 4 Reasons to buy Bitcoin with PayPal
- 5 FAQs