With Bitcoin reaching a new all-time high recently, the cryptocurrency has gained unprecedented exposure in social media and financial reports. More and more investors are looking to get involved with cryptocurrency trading – and buying Bitcoin with PayPal is one of the most popular methods of doing so. On this Page:Contents [show] In this guide, we’ll show you how to Buy Bitcoin with PayPal in 2021, showing you the best trading platforms to utilise and providing you with all the information you need to trade safely. eToro - Our Recommended Crypto Platform CySEC, FCA & ASIC regulated Millions of Users Trading Crypto, Commodities, Stocks, Forex, ETFs Zero Commission Fees, only Spread Deposit via Debit or Credit card, Bank wire, Paypal, Skrill, Neteller Free Copytrading of Professional Crypto Traders - 83.7% Average Yearly Profit Buy Crypto 67% of retail investors lose money when trading CFDs with this provider. How to Buy Bitcoin with PayPal – Step by Step Guide 2021 If you’re looking to buy Bitcoin with PayPal right now, then look no further. By following the four steps below, you’ll be able to buy Bitcoin with PayPal in under ten minutes – all without paying a penny in commissions. 1. Open an account with eToro – Head to the eToro homepage and click ‘Join Now’. Provide your email address and choose a username and password. 2. Upload ID – Verify your account by uploading proof of ID (a copy of your driver’s license or passport) and proof of address (a copy of a bank statement or utility bill). 3. Deposit via PayPal – Choose PayPal as your deposit method – minimum initial deposit of $200 (around £142). 4. Buy Bitcoin – Type ‘BTC’ into the search bar at the top of the screen and click ‘Trade’ next to the first option. Enter the amount you’d like to invest, double-check everything is correct, and click ‘Open Trade’. How to Buy Bitcoin with PayPal Today – eToro Tutorial When you decide to buy Bitcoin, most brokers and trading platforms will offer various ways to fund your account. However, one of the most popular and safe methods is through PayPal, due to their stellar reputation worldwide as a reliable digital payments platform. In this section, we’ll show you how to buy Bitcoin with PayPal with FCA-regulated broker eToro – all without paying a penny in fees or commissions. Step 1: Open an eToro Account The first thing you need to do is open an eToro account. We recommend using eToro in this guide as they offer commission-free cryptocurrency trading and are regulated by some of the world’s most trusted regulatory bodies. To open your account, head to eToro’s homepage and click the Sign Up or Get Started links. On the page that follows, provide your email address and choose a username and password. Step 2: Verify your ID and Address Due to eToro’s strict security policies, new users must verify themselves before being able to invest. Luckily, this process is very straightforward and can be completed in minutes. Simply upload proof of ID (a copy of your passport or driver’s license) and proof of address (a copy of a bank statement or utility bill). eToro will then verify these documents; once verified, you can move on to step 3. Step 3: Fund your eToro Account eToro offers a wide variety of deposit methods, including credit/debit card, bank transfer, and a selection of e-wallets. Included in this selection is PayPal, so choose that option in the drop-down menu of the deposit screen. Notably, eToro does not charge any fees when you make a deposit. Step 4: Search for Bitcoin Once you have funded your account, click into the search bar at the top of the screen and type in ‘Bitcoin’ or ‘BTC’. Click on the first option in the drop-down menu, and then click the ‘Trade’ button on the next screen. Step 5: Buy Bitcoin with PayPal In the order box that follows, enter the amount you’d like to invest – eToro only requires a minimum investment of $50, equating to around £35. After this, double-check everything is correct, and click ‘Open Trade’. And that’s it! You’ve just bought Bitcoin using PayPal – all without paying any fees or commissions! Where to Buy Bitcoin with PayPal September 2021 When you decide to purchase Bitcoin with PayPal, it’s crucial to choose a licensed platform with a track record of allowing users to trade safely. There is a wide variety of options on the market, ranging from brokers to cryptocurrency exchanges, so it can seem challenging to decide which is best for you. In this section, we discuss three of the best trading platforms when it comes to buying Bitcoin with PayPal in 2021. 1. eToro – Overall Best Broker to Buy Bitcoin with PayPal in 2021 Our recommended broker to purchase Bitcoin with PayPal is eToro. With over 20 million users worldwide, eToro is widely regarded as one of the safest and easiest trading platforms to invest with. Importantly, they are regulated in the UK by the FCA and in the USA by FinCEN – ensuring your capital and personal details are afforded the highest levels of protection. One of the best things about eToro is that they allow you to purchase Bitcoin with PayPal without paying any commissions. This contrasts with many other brokers and exchanges who tend to add on a commission of 0.1% to 3% of your position size. eToro also offers this 0% commission structure on all other cryptos they offer, including when you buy Ethereum, Ripple, and more. Aside from their attractive fee structure, eToro also offers some handy features. Notably, they provide a practical and safe digital wallet that will store your Bitcoin holdings. This wallet is available on the App Store and Google Play and allows you to manage your holdings on the go. eToro also offers an innovative ‘CopyPortfolio’ feature, which will enable you to invest in funds managed by eToro’s professional investors – all without paying any management fees. Finally, eToro allows you to fund your account via PayPal without having to pay any hidden fees or charges. The minimum deposit for new users is $200; however, this falls to $50 for subsequent deposits. If you’d like, you can also fund your account with FIAT currency via credit card, debit card, bank transfer, and various e-wallets. Pros 0% commission on crypto trading Supports debit/credit cards and Paypal No deposit fees Over 2,400 shares and 250 ETFs CFD markets also offered Social network with copy trading Regulated by the FCA, ASIC, and CySEC Approved by the SEC and FINRA Cons Small withdrawal and inactivity fees Buy Bitcoin Now 67% of retail investor accounts lose money. Avoid losses by investing responsibly. 2. Libertex – Zero Spread Broker to Buy Bitcoin with PayPal Our second favourite broker when it comes to buying Bitcoin with PayPal in Libertex. Having been in operation for nearly 25 years, Libertex offers around 250 different markets to trade, including forex, stocks, commodities, and cryptocurrency. It’s important to note, Libertex operates as a CFD broker – meaning that you will be investing in a CFD rather than the underlying asset. This allows Libertex to offer leverage when you buy Bitcoin with PayPal and currently offer 1:2 leverage on digital currencies. Put simply, this means that you can ‘double’ your position size – if you invest £1000 in Bitcoin and use 2x leverage, your position size will equate to £2000. Inevitably, this will increase potential profits; however, it will also increase potential losses, so be wary when using leverage. When it comes to PayPal Bitcoin fees, Libertex operates under a ‘zero spread’ structure, meaning there is no difference between their bid and ask prices. This allows traders to receive the best rates on the market when buying Bitcoin. However, Libertex does charge a commission when opening a trade, which can fluctuate depending on market conditions and the asset’s popularity. Much like eToro, Libertex allows you to fund your account with PayPal and then buy Bitcoin. The minimum deposit when opening your account is $100, and this drops to only $10 for subsequent deposits. In addition to PayPal, Libertex also accepts credit/debit card, bank transfer, and various e-wallets such as Trustly and Neteller. Pros Zero spreads when buying Bitcoin Fund your account via PayPal for free Also supports debit/credit cards and bank transfers 1:2 leverage when crypto trading Been in operation for 25 years Cons Commissions can rack up Only offers CFDs Buy Bitcoin at Libertex 83% of retail investor accounts lose money when trading CFDs with this provider. 3. Binance – Best Crypto Exchange to Buy Bitcoin with PayPal Although not technically a Bitcoin broker, Binance is one of the most popular cryptocurrency exchanges in the world when it comes to investing in Bitcoin. With over 13.5 million active users, and over $55 trillion in trading volume in the past 24 hours alone, Binance has solidified itself as the top crypto exchange in the world at the time of writing. Much of this has to do with its user-friendly platform and low-cost crypto trading. Binance offers 0.1% commissions when you buy Bitcoin with them – meaning that if you invested £1000, you’d only have to pay £1 in commissions! You can reduce these fees even further if you use Binance’s native token, Binance Coin (BNB). When it comes to buying Bitcoin with PayPal, it works slightly differently with Binance. As they are a Bitcoin exchange rather than a broker, you cannot instantly buy Bitcoin with PayPal. Instead, you’ll need to use Binance’s P2P service, which basically means buying and selling cryptos directly with other users or verified merchants. So, if you were looking to buy 1 BTC using PayPal, you could go onto Binance’s P2P service and find someone who is selling 1 BTC. You could then use PayPal to purchase the Bitcoin from the other user. Although this is a different method to other brokers, it essentially achieves the same thing. The great thing is, there are no fees when buying Bitcoin in this way. Pros Largest cryptocurrency exchange in terms of trading volume Hundreds of crypto pairs supported Commissions of just 0.1% Supports debit/credit cards and bank transfers P2P trading through PayPal Ideal for advanced traders that seek sophisticated tools and features Cons Not great for newbie investors Debit/credit card fees can be costly Buy Bitcoin at Binance Your capital is at risk. PayPal Bitcoin Brokers Fees Comparison One of the most important things to look out for when choosing a broker is the PayPal Bitcoin fees that they charge. These fees could come in various forms, including deposit fees, commissions, withdrawal fees, and even monthly account fees. Often, these fees might not be as transparent with some brokers and exchanges – making the process of determining how much it’ll actually cost to buy Bitcoin with PayPal quite challenging. To make this process easier, the table below presents a comparison of the PayPal Bitcoin fees charged by the three brokers we recommended earlier in the guide. This will allow you to get an idea of how much it’ll cost you to buy Bitcoin with PayPal and which trading platform represents the best value for money. eToroLibertexBinanceCommissions0%0.47% to 2.5%0.1%Deposit Fees$0$0VariesMonthly Fees$0$0$0Spread0.75%0%N/AWithdrawal Fees$5$0Varies Benefits of Buying Bitcoin with PayPal According to data gathered from Statista, PayPal had approximately 392 million active accounts as of Q1 2021. This is a staggering number and highlights just how popular the platform is for making digital payments. This section explores some of the main benefits of using PayPal to facilitate your Bitcoin purchases. Level of Security One of the main reasons to use PayPal to buy Bitcoin is the high level of security offered by the platform. When you fund your broker account with PayPal, you do not have to enter any personal details or card details when making the transaction. Instead, all you need to do is link your PayPal account to your broker and then make a deposit through the online platform. This ability to deposit without using card details means that you’re always under an additional layer of protection when using PayPal. Furthermore, PayPal monitors every transaction 24/7 to help prevent hacking and fraud. PayPal utilises high-level encryption on its platform, ensuring users’ data is protected. Finally, PayPal customer support is always on hand to help you if you ever have any security concerns – and will also step in to resolve any issues that may arise when you make transactions. Ease of Use Another great benefit of using PayPal is how simple it is to use. Linking your PayPal account to your chosen broker is usually just a case of logging in on the broker’s platform and confirming the account link. Once this is complete, it’s then just a few clicks before you can instantly deposit into your broker account. Furthermore, you don’t even have to have your card to hand when using PayPal to buy Bitcoin. PayPal store your card details in their encrypted online platform – meaning that all you need to make transactions is your email address and password. Any transfers that occur will either come directly from your PayPal balance (if you have one) or will come from a credit/debit card you have linked to your PayPal account. Speed When buying Bitcoin, most of us do not want to jump through hoops and instead want to buy as quickly as possible. PayPal ensures this is doable, as they offer instant deposits into your broker account. This is in contrast to some other deposits methods such as wire transfer, which can often take days to arrive – and sometimes come accompanied with additional fees. In addition to this, withdrawals are super easy too. Once you have withdrawn from your broker account to your PayPal account, you can opt to leave the funds in your PayPal balance or withdraw them to one of your linked bank accounts. PayPal offers both instant withdrawals (which will go into your account right away) or withdrawals which can take 2-3 working days. However, the former method comes accompanied by a 1% fee, so do be aware of this. Efficient Digital Method Finally, aside from all of the speed and security, using PayPal is simply much more efficient than most other payment methods. With the technology we have at our disposal these days, depositing via credit/debit card or wire transfer is not as streamlined as using a digital payments platform like PayPal. TechRadar recently reported that more than 61 billion people will use digital payments by 2023. This highlights just how popular platforms such as the PayPal app are becoming, as they offer all-in-one security features and speedy transactions. Also, more and more people are moving away from traditional retail banks and are looking to use digital methods as their chosen payment option. If you fall into this category, then PayPal certainly fit the bill. Buy Bitcoin with PayPal No ID – Is It Recommended? When you decide to buy cryptocurrency, as you can imagine, it’s essential to use a trading platform that has a reputation for being safe and reliable. Trading platforms such as these tend to require users to supply ID before they can invest; this ensures that all users are verified, which helps to prevent scams and hacking. Due to this, we would highly recommend that you do not buy Bitcoin or any other digital assets with PayPal without providing ID. Trading platforms that allow you to buy Bitcoin without ID are much more likely to be unregulated and unsafe, thus jeopardising your capital and crypto holdings. Instead, we’d suggest using a licensed trading platform like eToro. Although eToro does require ID to verify your account, they make this process super easy, and users can complete it in minutes. Once verified, you’re able to buy Bitcoin with PayPal under the protection of both the FCA and the FSCS. These regulatory bodies provide oversight to eToro, ensuring that they abide by the strictest guidelines and policies to protect users. How to Transfer Bitcoin to PayPal If you are wondering how to buy Bitcoin with PayPal, you’re probably interested to know whether you can transfer your Bitcoin holdings back to PayPal after purchase. Unfortunately, at the time of writing, this feature is only available to US residents. PayPal’s crypto service, which launched recently in the states, allows users to buy, hold, or sell Bitcoin directly within the online platform. If you are in the states, certain Bitcoin accounts such as Coinbase will provide the functionality to transfer your crypto assets directly to your PayPal account. Usually, it involves going to the withdrawal screen and choosing your PayPal account as the destination. Your holdings will then be transferred to your PayPal account for storage. How to Send Bitcoin From PayPal Much like the previous section, this feature is only available to users in the US. PayPal’s crypto feature is relatively new and currently only offers support for Bitcoin, Bitcoin Cash, Litecoin, and Ethereum. You can buy Bitcoin through the platform and then send it elsewhere. This could be to another crypto wallet, another person, or even use it to fund a purchase. If PayPal’s crypto feature continues to expand in popularity, there’s every chance it could be offered in other countries around the world, allowing users within these countries to buy and sell cryptocurrencies directly through the online platform. eToro – Best Broker to Buy Bitcoin with PayPal With Bitcoin’s popularity increasing week-on-week due to the recent all-time highs, more and more investors are entering the crypto market for the first time. If you are one of them, this guide has discussed how to buy Bitcoin with PayPal safely and securely. Using PayPal is one of the quickest and best ways to invest in the crypto market – and is the favoured method of many crypto traders worldwide. If you would like to buy Bitcoin with PayPal, we’d recommend opening an account with eToro. This well-known cryptocurrency exchange has a stellar reputation for security and is regulated by top organisations, including the FCA and the FSCS. Furthermore, eToro does not charge any fees when you fund your account via PayPal – and they also let you buy Bitcoin without paying any commissions whatsoever! eToro - Our Recommended Crypto Platform CySEC, FCA & ASIC regulated Millions of Users Trading Crypto, Commodities, Stocks, Forex, ETFs Zero Commission Fees, only Spread Deposit via Debit or Credit card, Bank wire, Paypal, Skrill, Neteller Free Copytrading of Professional Crypto Traders - 83.7% Average Yearly Profit Buy Crypto 67% of retail investors lose money when trading CFDs with this provider. FAQs How can I buy Bitcoin with PayPal? Certain brokers, such as eToro, will allow users to fund their account via PayPal. Once the account has been funded, it's easy to buy Bitcoin through the online trading platform. How do I buy Bitcoin with PayPal with no ID? Buying Bitcoin with PayPal without ID is not something you will be able to do. Trustworthy and reliable brokers such as eToro will always require you to verify yourself before being able to buy Bitcoin – this is a sign that they use strict security processes. If you use a trading platform that does not require ID, it’s likely this platform isn’t regulated, and therefore your capital may be at risk. Where can I buy Bitcoin with PayPal? In our experience, the best place to buy Bitcoin with PayPal is with eToro. This is because eToro allows fee-free PayPal deposits to fund your account and also do not charge any commissions when you buy Bitcoin. How do I withdraw Bitcoin to PayPal? PayPal now allows users in the US to buy, sell, and store Bitcoin (and some other cryptos) using their online platform. However, this feature is only available to US residents, so currently you cannot directly withdraw Bitcoin to PayPal if you don't live in the US. How much does it cost to buy Bitcoin with PayPal? This depends on which trading platform you use. If you go with eToro, you will not have to pay any commissions or transaction fees when buying Bitcoin. What's more, PayPal deposits do not come with any charges attached, meaning you can cost-effectively invest in Bitcoin. How to buy Bitcoin with Paypal instantly? As long as your account has passed the verification process on the broker you use - for etoro this involves uploading a copy of your government issued ID such as a passport and proof of address - Paypal deposits and bitcoin trades are processed instantly.