Many individuals are looking for ways to purchase Bitcoin, the most well-known digital currency, as cryptocurrencies grow in popularity. A simple way to buy Bitcoin is using PayPal, a well-known online payment system.
To help you complete the transaction, this article will guide you step-by-step through the purchasing of Bitcoin using PayPal. We also examine some of the crucial parameters for affordable fees, security, and turnaround times.
Why Purchase Bitcoin Through PayPal?
Let’s examine some of the factors that make this payment option popular with cryptocurrency investors before we get started with this tutorial on how to purchase Bitcoin with PayPal.
1. Maximum Security:
One of the safest methods for purchasing Bitcoin online is using PayPal. This is so that investors are not compelled to enter credit card information into their preferred cryptocurrency exchange.
Investors should log into their PayPal account instead. Account logins are handled using a pop-up box that is secured. This implies that the email address and password used to log in are hidden from crypto exchanges.
The investor’s payment information will already be connected to their PayPal account once they check-in. Therefore, the investor can buy Bitcoin and complete the transaction without having to reveal sensitive data.
2. Buyer Security:
The Buyer Protection Scheme is an additional measure of security when looking into PayPal’s Bitcoin purchasing options.
This will be useful if the investor runs into problems with the cryptocurrency exchange. Suppose, for instance, that the exchange levies larger fees than were initially quoted. Or, if the buyer doesn’t get Bitcoin in their wallet.
The PayPal Buyer Protection Scheme can assist investors in getting their money back in any case.
This is How it Goes:
Say an investor uses PayPal to purchase $1,000 worth of Bitcoin from a cryptocurrency exchange.
The exchange doesn’t offer more support, and the investor doesn’t receive the appropriate quantity of Bitcoin.
The buyer files a claim with PayPal within 60 days of completing the purchase.
The buyer files a claim with PayPal within 60 days of completing the purchase.
After that, PayPal will look into the transaction and request proof of purchase from the buyer.
PayPal will temporarily stop accepting payments from the exchange’s e-wallet account.
PayPal will deduct the monies from the transaction and give the money back to the buyer if they decide the dispute is legitimate.
Investors who might be hesitant to purchase Bitcoin online can now do so with confidence.
3. Quick Deposits:
The speed of the transaction is another advantage of utilizing PayPal to purchase Bitcoin. PayPal transactions are processed instantly, just like those made using debit or credit cards.
If I Already Have a Verified PayPal Account, Do I Still Need KYC?
Even if the user has a verified PayPal account, this is the situation.
Thankfully, a lot of cryptocurrency exchanges have automatic KYC processes in place.
As a result, uploaded papers can be validated very immediately.
This implies that the money will be credited to the buyer’s exchange account as soon as the deposit is accepted. Bank account payments, however, may take a few days to arrive.
4. Quick Withdrawals:
Similar to deposits, PayPal is one of the quickest ways to get money out of a cryptocurrency exchange.
For instance, the money will immediately leave their PayPal account if the crypto exchange accepts the withdrawal. The money will show up in the buyer’s PayPal account shortly. This is so that PayPal can handle the transaction without involving any outside parties.
With debit/credit cards or bank account withdrawals, this is not the case.
For instance, when money is taken out of an exchange and put into a bank account, at least two financial organizations are likely involved. Additionally, a domestic or international payment network, such as ACH or SWIFT, will be required for the transaction. This may cause a several-day delay in the process.
What is the time Required to Transfer Money from PayPal to a Bank Account?
Standard withdrawals typically take one business day to reach US bank accounts, according to PayPal.
However, it can take up to 5 business days to complete.
US customers can speed things up by choosing an Instant Transfer.
However, 1.75% of the withdrawal amount is charged for Instant Transfers.
There Are Affordable Prices
PayPal frequently falls into the same category as debit/credit cards when depositing into a cryptocurrency exchange. This refers to the fact that fees are high to offset the increased risks of a chargeback.
For instance, Coinbase levies a fee of around 4% on PayPal deposits. PayPal deposit fees total 2.1% on Crypto.com.
The good news is that eToro, a licensed exchange, provides FREE PayPal withdrawals and deposits. Only that the PayPal transfer be made in US dollars is a requirement. If a different currency is chosen, eToro will charge a negligible 0.5% FX fee for the transaction.
Buying Bitcoin Using PayPal-Quick Points:
Before starting our in-depth guide, we’ll briefly go over how to instantaneously purchase Bitcoin using PayPal.
Step 1: Create an eToro Account – Visit the eToro website and create an account. When prompted, choose a username and password and provide some personal data.
Step 2: Finish the KYC procedure – PayPal cannot be used until a fast KYC procedure has been completed. Just submit a recent proof of address paper and a government-issued ID. eToro’s automatic KYC process should just take a few minutes.
Step 3: PayPal Funds Deposit – Enter the desired amount to deposit ($10 minimum) by clicking the “Deposit Funds” button. Then, from the list of deposit alternatives, pick PayPal. To confirm, click ‘Deposit’.
Step 4: The investor will then be led to the PayPal website in step four to log in. Enter the PayPal account’s email address and password. After that, confirm the deposit’s specifics by checking. When the user returns to eToro, the monies should appear in their account balance.
Step 5: Purchase Bitcoin, At last, look for “Bitcoin” and select “Trade.” Enter the investment amount starting at $10. To complete the Bitcoin purchase, click on ‘Open Trade’.
Places to Purchase Bitcoin Using PayPal
Are you still looking for the best place to purchase Bitcoin using PayPal? Fees, minimum deposits, processing delays, and trading commissions are a few of the important criteria to consider
1. eToro – Copy Trading & Low Trading Fees, Overall Best Place to Buy Bitcoin With PayPal in 2023:
In terms of costs, security, and user-friendliness, eToro is the top option for purchasing Bitcoin using PayPal. It only takes five minutes to create an eToro account and finish the KYC procedure, according to our research. Investors can then use PayPal to deposit money right away. For US and UK investors, eToro only asks a $10 minimum deposit. For investors from other nations, the minimal investment has been raised to $50.
Investors can finalize the transaction by purchasing Bitcoin with their eToro balance. $10 is the bare minimum trade size. When purchasing and selling Bitcoin on eToro, a 1% fee is assessed per slide. For all other supported cryptocurrencies, this is likewise true. For instance, eToro covers several of the top alternative currencies, including Litecoin, BNB, and XRP.
Additionally, it supports some of the top ERC20 tokens, like Decentraland, Uniswap, SushiSwap, and Shiba Inu. Investors can finalize the transaction by purchasing Bitcoin with their eToro balance. $10 is the bare minimum trade size. When purchasing and selling Bitcoin on eToro, a 1% fee is assessed per slide. For all other supported cryptocurrencies, this is likewise true. For instance, eToro covers several of the top alternative currencies, including Litecoin, BNB, and XRP.
2. Crypto.com – Deposit Money Instantly With PayPal For a 2.1% Fee:
One of the greatest ways to purchase Bitcoin using PayPal is Crypto.com. Users must first download the iOS or Android app and create an account on Crypto.com to proceed. This is because the primary desktop exchange does not enable PayPal payments; only the app does. PayPal deposits can be done instantaneously following a brief KYC procedure.
Even though the costs are higher than eToro at 2.1%, the process is quick and secure. As a result, each $1,000 deposited is worth $21. Users can buy Bitcoin after the deposit appears in their Crypto.com account. Trading commissions at Crypto.com are only 0.075%. For instance, some investors keep their main Crypto.com wallet’s BTC tokens. The Crypto.com DeFi app is available for download by those who favor non-custodial wallets. Users now have complete control over their private keys. The BTC tokens can also be deposited into a Crypto.com savings account by some investors. Although this generates passive income, yields are now only 1.5% yearly.
3. Coinbase, a user-Friendly Cryptocurrency Exchange that Accepts PayPal Payments:
Another well-known cryptocurrency exchange that accepts PayPal payments is Coinbase. While we favor Coinbase for its regulated status, user-friendly dashboard, and strong security measures, it is one of the most expensive alternatives available. This is due to the 3.99% fee for using PayPal to purchase Bitcoin. This price is equivalent to that of a debit or credit card.
Additionally, the cost of converting Bitcoin back to US dollars is 1.49%. Having said that, Coinbase provides a secure and reliable option to purchase Bitcoin using PayPal. For instance, Coinbase is now listed on the NASDAQ exchange and is subject to US regulatory oversight. Along with two-factor authentication, Coinbase also provides institutional-grade security solutions including IP and device whitelisting.
Furthermore, Coinbase streamlines the buying of Bitcoin. Rarely does purchasing Bitcoin with PayPal take more than ten minutes. This applies to the KYC procedure as well because documents are promptly validated. Coinbase is a good choice for diversifying your portfolio as well. It supports more than 100 cryptocurrencies, including well-known alternative coins like Dogecoin, Uniswap, Litecoin, and Ethereum.
4. Established Bitcoin Exchange Bitstamp Offers 0% Commission on the First $1,000 Traded:
The next exchange on the list is Bitstamp, one of the oldest on the market. Bitstamp, a 2011 startup, supports a large number of cryptocurrencies. This covers Litecoin, Dogecoin, Solana, Ethereum, and Dogecoin. Depending on the chosen payment method, Bitstamp’s price structure varies considerably. For instance, PayPal deposits cost 4% but ACH transactions are free.
Debit/credit cards also operate similarly.
Nevertheless, Bitstamp makes up for this with incredibly low trading commissions. For instance, when trading for less than $1,000 per month, there are no commissions due. This significantly lowers the overall cost, especially for individuals who trade little quantities. However, keep in mind that a 0.4% commission will begin to apply once monthly volumes exceed $1,000.
However, we appreciate that Bitstamp is accessible via both native mobile apps and regular desktop browsers. The latter may be downloaded on both iOS and Android. Additionally, 95% of Bitstamp’s client-owned digital assets are kept in cold storage wallets. We appreciate that users can add their gadgets to a whitelist. For more experienced traders looking for sophisticated trading capabilities, Bitstamp also has a “Pro” platform, for the sake of advanced trading tools.
Is PayPal a Reliable Site to Purchase Bitcoin?
We have already covered how to purchase Bitcoin on well-known cryptocurrency exchanges using your PayPal balance. Having said that, PayPal also enables authorized customers to purchase Bitcoin from its website.
This section explains why it isn’t the best choice to choose to purchase Bitcoin via PayPal.
Increased Trading Commissions:
The primary drawback of purchasing Bitcoin directly through PayPal is the exorbitant fees. Fees are assessed by the e-wallet provider according to the amount spent.
The cheapest price is 1.50% for each slide. A $1,000 minimum purchase is necessary for this. The cost rises to 1.8% for deals between $200 and $1,000.
Any Bitcoin transactions under $200 are subject to a fixed charge. This results in a greater commission %.
For instance, it will cost $1.99 to purchase $25 worth of Bitcoin. Even while it might not seem like much, this equates to a commission of over 8%. Similarly, it costs $0.99 to purchase $5 worth of Bitcoin. That amounts to over 20% in commission.
Let’s now contrast this with some of the crypto exchanges that we previously examined.
No matter how much is being bought, eToro levies a 1% commission. Investors thus pay $1 in fees for every $100 worth of Bitcoin purchased. On PayPal, the same Bitcoin transaction would incur a fixed fee of $2.49.
Covered Spreads:
The spread is just another problem with PayPal’s pricing scheme.
Now, PayPal advises users to its terms and conditions to learn more about the spreads that are billed.
It notes that it “may include an estimated spread of one-half of one percent (0.5%)” in the PayPal terms and conditions.
The spread may be bigger or lower than this amount, it continues.
It will not, however, “disclose the spread we earn on each transaction”.
Since PayPal is not clear enough for our tastes, we found that. It is important to note that investors won’t be aware of the spreads they are paying when buying and selling Bitcoin.
Only US Customers:
Another problem is that PayPal’s website only permits purchases of Bitcoin by US citizens. All other nationalities must thus search. However, US customers can get greater deals elsewhere. For instance, eToro doesn’t charge any fees for US customers to deposit money via PayPal. Furthermore, there are no fees for withdrawals from PayPal.
Conclusion:
Purchasing Bitcoin with PayPal is quick and affordable if you choose the correct cryptocurrency exchange. Users can utilize their PayPal balance to make deposits of $10 or more at the regulated and user-friendly exchange eToro. Users should always check the most recent fee schedule on PayPal’s website’s crypto section or fees page before engaging in any cryptocurrency transactions because these fees are subject to change at any time. The fees, such as the trading fee, exchange rate, or transaction fees you will be charged at the time of the payment, are always disclosed by PayPal when you purchase or sell digital currencies through their platform.
Additionally, if you use your bank account credit or debit card linked to your PayPal account to transfer money to third-party exchanges to purchase cryptocurrency assets using PayPal, your bank may tack on additional fees like overdraft fees or insufficient funds. To do that, it is best to call your
Furthermore, there are no costs associated with USD payments. The process of creating an eToro account and purchasing Bitcoin using PayPal only takes five minutes.
FAQs:
In the US, which coins Does PayPal Support?
The cryptocurrencies that PayPal supports in the US are:
- Bitcoin
- Ethereum
- Litecoin
- Bitcoin Cash
Does Bitcoin Work as a Deposit Method for PayPal?
One of the most widely used methods of Internet payment is PayPal. It makes it simple for you to send and receive money. Additionally, it accepts Bitcoin as a form of payment for its services. It can be used to cover PayPal purchases. With PayPal’s “Pay with Bitcoin” feature, you can use Bitcoin to pay for any of their services, including online purchases of goods and services.
Do there Exist a Bitcoin Wallet for PayPal?
PayPal does not have a wallet and does not incorporate Bitcoin.
What Benefits and Drawbacks Come with Purchasing Bitcoin through PayPal?
The following are some key benefits of purchasing Bitcoin through PayPal:
Pros:
- Purchasing Bitcoin via PayPal is simple.
- One of the most well-known and reliable secure online payment methods is PayPal.
- It can also be used to make online purchases.
- Additionally, it enables rapid and simple conversion of your Bitcoin into cash.
- The fact that so many people already have PayPal accounts makes transactions simpler.
Here are some significant drawbacks of purchasing Bitcoin with PayPal:
Cons:
- Comparatively speaking to other payment methods, it is an expensive and complicated process.
Few exchanges even provide PayPal as a payment method.
