Last Updated on
Beginners can many times find buying Bitcoin very confusing due to cryptocurrencies’ generally complex nature. As a result, using a PayPal bitcoin exchange can streamline the process exponentially.
Within this guide, we’ve compiled and analyzed the best and top-ranking Paypal bitcoin exchanges. We found eToro to be the best Paypal Bitcoin exchange for 2019. Keep in mind, having an already created and verified PayPal account will be needed to proceed.
What are Paypal Cryptocurrency Exchanges?
How to Use a Paypal Exchange to Get Cryptocurrencies
Best Paypal Cryptocurrency Exchanges
Let’s review some of the best platforms that accept Paypal for buying Bitcoin and other cryptocurrencies.
eToro is one of the most outstanding cryptocurrency exchange platforms for a number of reasons. First, the company came into existence in 2007, a year before the first crypto was launched. It has therefore been there through the inception and rise of the industry and has lots of experience on the space.
One of its most unique aspects is the fact that it is a regulated platform in a number of jurisdictions. Currently, it complies with the FCA, CySEC, FinCEN, MiFID and ASIC.
Though initially it only allowed users to trade digital assets using CFDs, later after the launch of its crypto wallet, it incorporated crypto trading. It currently supports a relatively good number of crypto assets.
Coinbase is one if not the best Paypal exchanges as it CFD trading and physical asset ownership, all under net of financial regulation.
As a regulated and financially registered exchange, Coinbase is compliant with the FCA as well as CySEC which makes it one of the first exchanges to do so. Keep in mind PayPal is restricted in certain jurisdictions on Coinbase. PayPal integration on Coinbase is extremely easy and fast. Coinbase also has its own very secure cryptocurrency wallet which you can use to transfer and hold your coins all under one, regulated platform.
Check out our review of Coinbase to see the pros and cons of the exchange and why we believe it’s one of the best overall options.
LocalBitcoins is a peer-to-peer Bitcoin exchange that accepts Paypal too. This means you’re buying Bitcoin directly from another seller. This additionally means you should be extra careful when looking to make purchases using PayPal.
Paxful, similar to LocalBitcoins, is a peer to peer Paypal Bitcoin exchange; this means you are buying Bitcoin from another person on the internet directly using the method of your choice. PayPal is one of the most common payment options used on Paxful and purchasing crypto with Paypal is pretty straightforward on their platform.
Coinbase is a San Francisco-based cryptocurrency exchange that maintains a very high emphasis on regulation and user safety/fund security. The exchange is one of the only exchanges that maintains registration and recognized abidance. At the moment, Coinbase cannot be used in accordance with PayPal to buy Bitcoin, however, only to withdraw/sell the Bitcoin.
It’s not entirely unlikely or impossible for Coinbase to re-implement PayPal as a valid method of funding for buying Bitcoin. At this time, however, PayPal can only be used to sell Bitcoin, not buy it.
4 Advantages to Using a PayPal Cryptocurrency Exchange
Many amounts of methods that are used to buy and sell cryptocurrency such as wire transfers or through additional third-party payment processors require additional premiums when looking to involve Bitcoin. Not only this but fees that are incurred when using these additional methods, such as credit or debit cards, can start to add up very quickly. PayPal offers a great solution to this, as not only is it one of the most cost-efficient methods on the market out there, in the case of centralized exchanges you’re not going to be paying direct premiums on the cost-basis of your purchases. Peer to peer exchanges are the opposite as they do incur direct premiums, however, you have control over which ones you directly choose.
In the case of Coinbase, you’ll simply deposit via PayPal and then you’ll immediately get the market price based on your purchase.
Using PayPal on various Bitcoin exchanges saves an enormous amount of time. This essentially enables you to just link a singular method for depositing/transferring your funds and getting started right then and there with the buying and selling process.
Unlike other payment methods of forms of depositing on the exchange, PayPal enables users to deposit and maneuver their funds through one singular login. This is in contrast to methods such as credit or debit cards, bank accounts, and so on where additional and thorough verifications need to be completed prior to linking.
Using PayPal to buy or sell Bitcoin is extremely easy to do and get started with unlike using other forms of payment methods. Although it may include specific fees due to PayPal’s nature, for absolute beginners, PayPal is the best option for getting started right away.
Those who are uneasy about putting sensitive information such as credit cards or bank accounts online will find that these types of bridges or so to speak like PayPal are great opportunities as you’re only inputting your information via encryption on PayPal.
PayPal maintains user funds and information in a safe and encrypted way. What this means is that user information is much safer in the hands of PayPal as opposed to a third party provider. Additionally, since PayPal is encrypted and serves as a bridge between exchanges and platforms, you can have a sense of confidence when using exchanges since you don’t need to input any information in a potentially unencrypted manner.
PayPal’s level of security is fairly advanced so you can maintain confidence in your purchases for Bitcoin.
PayPal on Centralized Exchanges vs Peer-to-Peer (P2P) Exchanges
As we briefly explained before, when using PayPal to buy or sell Bitcoin, you will traditionally move through one of two methods, either a centralized exchange or a peer-to-peer (P2P) platform. It’s important that we analyze the two and see what separates one from the other and which ones are potentially better than the other.
Centralized exchanges function in a more static and singular manner. These types of exchanges have a central intermediary that will process transactions for you through a static platform. Many times these types of exchanges can be considered safer because of the larger amount of analysis/audit that can be added to them. Examples of centralized exchanges include Coinbase.
P2P exchanges are more like a free-for-all in that you are buying and selling Bitcoin directly from other people in a decentralized manner. In this case, the exchange is simply connecting buyers to sellers or vice-versa, like a bridge almost, but not in a main platform-like manner. When interacting with P2P exchanges you’re not interacting directly with markets, but rather in direct contact with other people.
Using PayPal to buy Bitcoin can be a very efficient method of navigating an otherwise complex digital atmosphere, and can also even save you money in the process due to the lower fees associated with PayPal relative to other methods. While PayPal has previously been enabled on a much larger number of cryptocurrency exchanges, the payment processor has since cut back on its supported platforms. It’s unclear whether or not PayPal will pick up the pace once again in relations to supported websites and applications, however, the above will be suitable for most if not all compliant jurisdictions.
Using PayPal to buy or sell Bitcoin can help make an otherwise very complicated task much more easier and straight forward. Combining these two financial technologies can help you to hunt for profits and extract Bitcoin’s utility as fast as possible.
At this time, the amount of Bitcoin exchanges that support PayPal is very small, due to PayPal’s updated conditions and relative approach to cryptocurrency exchanges. As many have noted, there were once many Bitcoin exchanges that supported PayPal usage, but that number has since decreased.
There are now recently imposed laws that are particularly strict about the integration of PayPal on the usage of Bitcoin or cryptocurrency exchanges, and as a result, a plethora of exchanges that once supported PayPal have now pulled the payment processor from their list of supported payment methods. Some exchanges that have removed them have since tried to amend their replacement, such as Coinbase, who removed depositing via PayPal but then re-enabled withdraws for PayPal. The ecosystem and regulatory environment is constantly changing.
From a very general perspective, Coinbase seems to be the best overall option when it comes to Bitcoin exchanges that enable PayPal integration. This is because of various reasons, which include their high regard to regulation and compliance (Hence their registration/oversight with the FCA & CySEC), as well as their low-cost fees and high account security options. These are all factors that should be taken into consideration when assessing which exchange is the ‘best’ for using PayPal to buy Bitcoin. Additionally, in terms of customizability and negotiation, LocalBitcoins can be a viable option as well.
The simple answer to this is no – there are many different regulations and laws that pertain to PayPal and cryptocurrency in regards to jurisdictions. Exchanges that enable PayPal integration are regulated and governed uniquely in their own regard. As a result, it’s important that you do your own research to see if PayPal linking to the Bitcoin exchange of your choice is a possibility. However, as it stands, sites such as LocalBitcoins and Paxful enable you to buy using PayPal regardless of jurisdiction (Unless of course your jurisdiction has banned PayPal and cryptocurrency usage altogether).
In the future it is definitely possible that more Bitcoin exchanges add PayPal as a valid method of payment/deposit, however, as it stands, the regulatory environment in regards to combining PayPal and cryptocurrency is a bit disgruntled. There is no clear indication whether or not exchanges such as Binance and Coinbase will enable PayPal for purchases, however, Coinbase adding PayPal as a form of withdrawing was a very big step in the right direction. As a result, it can absolutely be possible for more exchanges to start integrating PayPal.