There was little information about the new technology, and exchange platforms were not as many as they are today. But more than ten years down the line, things have significantly changed.
Buying Bitcoin or any other cryptocurrency is not a challenge anymore.
Surprisingly, PayPal, which was for a long time considered a rival to the cryptocurrencies, is now allowing traders to use it in buying and selling Bitcoin.
You might be wondering; how can I buy Bitcoins with PayPal instantly? Well, in this review, we are going to breakdown how to buy bitcoins with PayPal on different platforms. Read on.
It is essential to highlight that PayPal is the largest online payment system in the world as it is used by millions of people across different countries. You only need an email address to open a PayPal account, and due to the ease of accessing their services, the company has seen tremendous growth over the years.
However, not all exchange platforms have given their users the ability to buy bitcoins with PayPal because of some reasons we will discuss later in this post.
Now, if you are here looking for ways through which you can buy bitcoins with PayPal, then it is essential to take note that the process of doing so varies from one platform to the other.
Also, there are some complications involved with this system, such as fraudulent buyers that ask for charge backs after getting the coins.
The following is a list of some cryptocurrency exchanges and online brokers where you can buy bitcoins with PayPal quickly.
Take a moment to look at this explosive chart of the price of Bitcoin. It looks like it’s about to start another imminent surge higher.
Paxful is one of the few exchange platforms that allow traders and investors to use their PayPal accounts to buy Bitcoin. Paxful has put in place measures to ensure that using PayPal to buy bitcoins is an easy process. Transactions are completed within an hour, which makes it so convenient.
Yow buy actual Bitcoin
Easy setup with PayPal
Crypto-to-crypto exchange too
Finding the right seller/buyer
The beauty of buying bitcoins with PayPal on Paxful is that you can buy from the many sellers available or sell your coins to other buyers.
This allows you to buy from any vendor that provides an offer that suits you. As a vendor, you have the liberty to set the rates and margins for selling your coins.
However, for you to initiate and complete the process of buying bitcoin with PayPal on Paxful, you will have to provide your identity verification documents to the sellers.
Some of the documents you should expect to provide are a bank statement, links to your social profiles to prove that you are an existing person, and a selfie of you holding a written note.
It is by implementing these measures that sellers can protect themselves from fraudulent buyers on Paxful.
To buy bitcoins with PayPal on Paxful, you only must visit the site, check out the various Bitcoin sellers, and pick the one with a suitable offer. The site allows you to see when the seller was last logged in, so you don’t have to contact a seller that was last active a month ago.
Once you click on the offer, you can view the reputation of the seller (reviews from other customers) and how much Bitcoin they have for selling.
If you are okay with all the requirements on the particular offer, click on ‘buy now’ and follow the instructions given to complete the payment.
It is important to note that buying and selling of Bitcoin on Paxful is not a direct process; an escrow company is involved to ensure that both the buyer and the seller are protected in the transaction.
Paxful uses Best bitcoin Exchange as their escrow partner.
It is important to note that Paxful has a user-friendly interface that even allows you to activate night mode appearance. In terms of customer service, Paxful makes it easy to get assistance at any time of the day with their live chat option. You can also reach the customer support team via email.
When it comes to pricing, the prices are not set by Paxful since it only acts as a marketplace connecting buyers and sellers. Therefore, the rate at which you will get your coins will depend on the seller you choose to trade with.
Just follow the instructions and add documents like ID and utility bill for proof of address.
💡 Pro tip:
Investing in Bitcoin along side traditional asset classes, such as stocks and bonds, is a great strategy as the price of Bitcoin is proved to be uncorrelated to the other assets. Hence, wisely investing in Bitcoin could improve your expected return for the same expected risk.
eToro is a social trading platform that allows traders to invest in the increase or decrease of prices of CFD instruments on different assets. It is available to many traders across the world, but its PayPal use is limited in some countries such as the US, Canada, and China.
Accepts US clients
Awesome social trading platform
Good for trading Bitcoin
Don’t own actual Bitcoin
The company was created in 2007, and at the time of writing this, it has over 5 million customers.
Unlike the traditional crypto exchanges, using eToro to buy bitcoin is quite straightforward. You only have to create an account (check out the guide to opening an account here), make deposits using PayPal, and bet on Bitcoin’s price.
It is important to note that you cannot withdraw Bitcoins from eToro; all the trade wins are converted to fiat currencies.
Here’s a step-by-step guide on how to buy Bitcoin with PayPal on eToro
If you don’t have an account, you will have to start by opening one. Visit their homepage and click on “create account.” The steps in the account opening process are easy to follow, so you shouldn’t expect any complications.
You will have to submit your first and last name, choose a username, email address, and a strong password to protect your account. You will also have to provide a working phone number for account verification and two-factor-authentication.
This is not the only process of opening an account. You can choose to sign up with Facebook or Google if you do not want to fill the form.
It is important to point out that eToro is a regulated platform, and for that reason, you will have to verify your identity before you can trade using PayPal on the platform. To complete the KYC process, you will have to upload your ID, a driving license, or a passport.
Once you’ve completed the sign-up process, you can now fund your account using PayPal. You will be redirected to PayPal’s website from where you will complete the transaction.
Now that you have your account funded, you can proceed to search for Bitcoin and click on trade. Enter the amount of Bitcoin that you wish to buy and execute the trade.
It is important for you to remember that you will not own any actual Bitcoin; you will only be betting on the price of the currency going up or down. The amount of Bitcoin that you choose to buy determines the profits that you will get from the trade.
If there’s a reason as to why eToro is a good option to trade with, it is its customer support service. The platform provides a help section where there is a library of questions and articles that try to answer most of the questions that are asked by traders.
Additionally, if you are not able to find what you are looking for from the articles, you can have a chat with a representative regarding your issue.
Since eToro does not sell actual currencies or commodities, they do not set Bitcoin prices. If you choose to trade with eToro, you will only have to pay the withdrawal fee, which is usually $5 of the amount you are withdrawing. The minimum amount you can withdraw is $30.
How to buy/sell Bitcoins with PayPal using Plus500
Plus500 is a United Kingdom company listed on the London Stock Exchange’s market for limited companies. It currently has more than 200,000 active customers and more than 35 million positions opened by traders.
This makes it one of the most trustworthy companies that you can Bitcoins from using PayPal.
To start buying or selling Bitcoins with PayPal, you will first have to open an account (follow this easy step-by-step guide). Visit their site and click on ‘start trading now.’ The account opening process is quite easy. You will only have to fill in the account opening form and verify your phone number for identity verification.
It is important to note that before you can make your first deposit on Plus500, you will have to fill in a questionnaire, as is required by the European Securities and Markets Authority.
This will involve you answering questions on your trading experience and knowledge and providing information on your income status as well as why you want to trade.
Once you are through with this process, you can now proceed to deposit funds into your account. To use PayPal, click on “deposit” and select PayPal as your preferred payment method. It is important to note that the minimum amount you can deposit to trade is $100.
After funding your account, you can now carry out your first trade. Click on “trade” at the top left side of your dashboard. Scroll down and click on “trade cryptocurrencies.” Locate Bitcoin and execute any trade that you want with it.
It is important to note that Plus500 provides 24/7 support to its customers. If you have any issues, you can go through the All Questions section to see if you can find a solution there.
The answers given are grouped into categories, which makes it easy to find what you are looking for. If you don’t get an answer to your question, you can reach the support team using their email support.
Plus500 has an intuitive user interface, which makes it easy to trade. The dashboard is split into three parts. On the furthest left, you will find tabs showing the available trades, your open positions and orders, your closed positions, and your available funds.
The middle part has technical indicators and a chart of all the instruments available for trade.
It is important to understand that Plus500 does not set the prices of instruments and commodities on trade. The company makes its profits through the bid/ask spreads.
How to buy Bitcoins with PayPal using LocalBitcoins
Another good marketplace where buying Bitcoins with PayPal is an option is LocalBitcoins. However, you need to exercise caution when selecting a seller to buy from. Click on the trader’s profile and check out their details. What kind of feedback has been left by other buyers, about that particular trader? What’s their trading volume? This information will aid in painting a picture of the seller’s credibility.
Well-known within crypto community
High number of sellers
Own actual Bitcoin
Finding trustworthy sellers
LocalBitcoins services are available to over 248 countries and more than 200 Bitcoin sellers at the time of writing this.
Here’s a detailed step-by-step guide on how you can buy Bitcoins using PayPal on LocalBitcoins.
First, sign up for an account so that you can access the marketplace. Once you’ve signed up, you will be able to access a table of buyers that are willing to accept payments through PayPal.
From the home page, you can access this list by scrolling and clicking on “quick buy.” Input the amount of Bitcoin that you would like to purchase, the currency you are going to use, country, and choose PayPal from the drop-down menu indicated “all online offers.”
Once you are done entering your preferences, click on search, and LocalBitcoins will provide a list of all the offers that meet the criteria you’ve set. Analyze the different offers and click on that which interests you.
After clicking on the offer you’ve chosen, you will be redirected to a new page where you can view more details about the offer. This is what you will find:
The selling price in your local currency
Payment method (which is PayPal in this case)
The name of the user
Feedback score of the user
User’s trade limits
Payment window for the offer
LocalBitcoins insists that you go through the terms of trade and ensure that you can comply with them before trading. The seller sets the terms of trade, and they will vary from one seller to another, so be sure to read a seller’s terms every time you want to buy.
After opening a trade, you can then proceed to discuss more details with the trader, using LocalBitcoin’s messaging system. You can find the options to open trade and access messages in your inbox on your trading dashboard.
When it comes to making payments, you are given a window of 90 minutes after the seller confirms the trade. This window also provides a chance for you to cancel the payment if you choose not to complete the trade.
💡 Pro tip:
Even though using an exchange to buy Bitcoin is a little bit more hassle, you can find good deals. Just take a look at the screenshot of the sellers above and the prices they are offering. At the time of taking this screenshot, the price of Bitcoin is actually $9,768.67 and one of the sellers is selling his or her Bitcoins for $9,307.12. That’s a discount of 4.7%!
It is important to point out that most sellers will require you to confirm your identity by providing some ID. Naturally, you also must have a verified PayPal account.
Once the seller is satisfied by the verification documents you will have provided, they will approve the trade. Send funds to them, and they will transfer the Bitcoins to your wallet address.
Keep in mind that buying bitcoins using PayPal from LocalBitcoins has its risks. However, with the feedback system, it is easy to find a seller you can trust.
The benefit of using LocalBitcoins is that with the high number of sellers, you can almost be assured that you will find a seller from your locality.
After an in-depth look at LocalBitcoins, it is evident that it is a good choice for those that want to buy bitcoins using PayPal for several reasons.
One, it has an excellent user interface, which makes trading easy for everyone. Secondly, prices are relatively fair as sellers try to compete against each other.
LocalBitcoins also offers reliable customer support, but at the time of writing this, there was a high number of tickets, and response time is between five to seven days. This is not good enough if you have an urgent issue and can’t find a solution on the FAQ section.
How to buy Bitcoins with PayPal using Coinbase
Coinbase is one of the leading exchanges in the cryptocurrency industry, and it is no surprise that it has also integrated PayPal usage in its service provision. However, I would like to point out that Coinbase only allows customers to make withdrawals using PayPal and therefore there is buying Bitcoins with PayPal.
Own actual Bitcoin
Some restrictions on PayPal
If you already have an account and would like to have your withdrawals converted into fiat, then using PayPal is an excellent way for you to do so.
To begin with, it is important to note that Coinbase has one of the most user-friendly interfaces. Even as a beginner, you will be able to make trades without any complications. After all, no one wants to go through a hard time spending their money.
Additionally, Coinbase is one of the most sought-after exchanges which should prove how reliable it is. Even though it has been hacked in the past, Coinbase still remains to be one of the most secure platforms and one among the few exchanges that have satisfied the cryptocurrency regulations set by the United States and Exchange Commission.
As already highlighted, PayPal is only restricted for withdrawals on Coinbase, which theoretically means that you cannot use funds in your PayPal account to pay for Bitcoins that you buy.
To make use of the Coinbase to PayPal withdrawal service, locate your account preferences, and navigate to the “linked accounts” tab, click on “link new account” and select PayPal.
Once you’ve clicked on PayPal, a new window will open, asking you to sign into your PayPal account, complete the request by agreeing to any terms and conditions that may be necessary. This will successfully link your PayPal account to Coinbase and, you can now use it to withdraw.
For you to withdraw from Coinbase using PayPal, you first have to convert the currencies into fiat. Once this is done you, can then proceed to the withdraw page and process your withdrawal.
It is important to let you know that things have not always been like this on Coinbase. There were times when you could buy bitcoins using PayPal, but the feature has been on and off. Recently, Coinbase made it possible for traders to receive payment via PayPal, but that still doesn’t mean you can buy using PayPal on Coinbase.
Last but not least, Coinbase offers excellent customer service to its users. The exchange has an FAQ section that answers most of the questions and also provides a contact form for those that can’t get help from the answered questions. Additionally, Coinbase also provides phone numbers that are only supposed to be used when reporting account compromise.
The exchange has a minimalist user-interface, which makes it easy to use. Bitcoin price is displayed in your local currency alongside with a list of your recent transactions if you’ve been on the exchange for some time.
Is it safe to buy Bitcoin via PayPal?
Well, as a proactive investor, this is a question that must run through your head. The safety of using PayPal to buy bitcoins greatly lies in the medium through which you decide to get the bitcoins. If you are using a peer-to-peer platform to buy, ensure that there is an escrow service being used to safeguard you from fraudulent traders. When buying Bitcoins with PayPal from exchanges, then take a look at the platform’s track record. How many times has it been faced with security issues, and how did it respond to the issues? What measures does the exchange have in place to ensure customers are well protected?
All factors considered peer-to-peer platforms seem to be the best if you want to buy Bitcoin using PayPal. However, you have to take your time when going through the various offers on these platforms so that you can get the best deal possible.
Advantages of Using PayPal to Buy Bitcoins
I. Faster sign up to buying
One of the advantages that you will enjoy from using PayPal to buy bitcoins is the fast sign up process. Unlike wire transfers and Debit/credit card payments where you have to go through a long process, using PayPal will only require you to log in to your account, and it is automatically linked and ready for use. This is an important factor, especially if you are using a platform like eToro where you bet on prices that fluctuate rapidly.
II. No sharing of bank information required.
One of the reasons as to why most people want to learn how to buy bitcoins with PayPal is because they are not willing to share their bank information with the trading mediums. Why? Because sharing such information puts it at risk if the exchange or marketplace gets hacked. PayPal provides a way around this problem. With a verified PayPal account, there will be no need to share your banking information.
III. Access to peer-to-peer marketplaces
Peer-to-peer buying has several advantages over traditional exchanges. One, you choose who to buy from and terms that favor you. Luckily, PayPal is accepted in leading crypto marketplaces like Paxful and LocalBitcoins, where you are connected to sellers directly. All you must do is agree with the terms with the seller and provide identity verification if requested to do so, and the Bitcoins will be instantly transferred into your wallet.
IV. Instant transactions
Convenience is a significant factor to consider when trading in cryptocurrency. Time taken to complete a transaction when using PayPal is almost instant with its One Touch checkout functionality. Once you’ve activated it, you can deposit funds into an exchange without having to go through the login process every other time you want to do so. I believe that this makes it convenient if you’re going to open orders and bid on platforms where time plays a crucial role in making profits or suffering losses.
V. Quality guarantee
It is a quality sign if an exchange accepts PayPal as a payment method. Why? Because PayPal has been in the money transfer industry for many years and one of their core policies is ensuring quality services. As we’ve taken note, it took PayPal sometime before it could allow exchanges and Bitcoin marketplaces to provide their customers with the option to buy or sell using PayPal. Therefore, if you find an exchange that allows PayPal payments, then it is a sign that it can be trusted.
VI. Security and buyer protection
Another advantage of using PayPal is that when using it to buy bitcoins, you are covered by their buyer protection policy. As a result, if you pay for bitcoins and the seller doesn’t meet their end of the deal by transferring the coins to you, you can ask for a reimbursement of your funds. Paypal will look into the case and offer you a refund at the vendor’s cost. Though this is good for buyers, it puts sellers at risk of losing their coins to fraudulent buyers in the industry, who will buy and still ask for a charge back from PayPal. The sad thing is that in most cases, PayPal always favors the buyer.
Additionally, it is essential to point out that PayPal has in place strategies and measures to uphold its reputation, and that includes ensuring the security of funds. All the transactions that are carried through PayPal are monitored using anti-fraud technology to prevent identity theft and other security issues like phishing attacks on customer data.
Frequently asked questions on how to buy Bitcoin with PayPal.
💰 Why is it difficult to get exchanges that accept PayPal as a payment method?
Well, the number one reason as to why most exchanges do not accept PayPal in buying Bitcoin, and other cryptocurrencies is that it exposes the sellers to fraudulent buyers, with its charge back policy. Since Bitcoin is untraceable, it is not possible to verify that a buyer did send the coins.
💱 Can I deposit bitcoin to PayPal?
At the moment, PayPal does not accept Bitcoin as a funding method. However, you can withdraw your Bitcoins to PayPal.
💲 Can I buy Bitcoins with PayPal without an ID
Yes, it is possible. But this is only the case if you are buying from a peer-to-peer platform where the seller does not require any verification. You can check out marketplaces like LocalBitcoins and Paxful for offers that do not require ID.
☂️Is it safe to leave my crypto on the exchange after buying with PayPal?
No. you should never leave your coins lying in the exchange you bought them from. This is because hackers usually target these sites, and if that happens, you can end up losing all your coins. Always transfer any Bitcoin or other crypto to your wallet. Some of the best wallets you can use include Ledger Nano X and Trezor One.
💵 As a merchant, should I accept Bitcoin as payment?
As an ordinary merchant, PayPal does not allow you to accept Bitcoins as payment, and this is for a good reason. Bitcoin is a highly volatile currency that makes it unreliable in processing payments. One day the price is at $10,000 and waking up the next morning, you find that it has either dropped by $1,000 or shot up.
💷 Can I buy Bitcoin using PayPal from any country?
As much as most people would want to use PayPal in buying Bitcoins, this service is not available in all countries. Depending on the platform you want to buy from, using PayPal may or may not be an option. It is therefore necessary to confirm whether your country has access to that service.
The history between PayPal and cryptocurrencies is somehow complicated. There was a time PayPal seemed like it would never partner with cryptocurrencies, but evidently, it hasn’t gone that way. However, for years many exchanges have tried to integrate PayPal as one of their payment processors but to no avail.
But it is now evident that PayPal may have taken a step back on its rigid policy against cryptocurrency. As we’ve noticed above, there are now several ways through which PayPal is being used, directly and indirectly, to aid the cryptocurrency trade. It is highly likely that we are going to see more exchanges getting PayPal onboard in the future.
If you want to make money from the price of Bitcoin the easiest way is to buy Bitcoin CFDs (can fund your account with PayPal) with a great broker like FP Markets and eToro (best for US clients). If you want to buy Bitcoin using PayPal at a pier-to-pier platform, Paxful is a great option.
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