How to buy Bitcoin with PayPal in 2022

It's easier than ever to buy Bitcoin with PayPal. This guide explains how to do it and compares the best crypto exchanges to use.
By:
Updated: Sep 27, 2022

Firstly, the most important question to answer is: can I buy Bitcoin with PayPal?

Yes, you can. The best and cheapest way to buy Bitcoin this way is to sign up to a crypto exchange that lets you make deposits via PayPal. If you’re based in the UK or the US, then you can buy Bitcoin through the PayPal platform as well. This guide offers a step-by-step guide to each approach.

Where to buy Bitcoin with PayPal

All the brokers below let you buy BTC with PayPal. These are the best of the best, reviewed by our team of experts so that you can be confident in whichever one you choose.

How to buy crypto with PayPal

Buying crypto with PayPal is a simple process that is largely the same across all exchange platforms. Here is a quick guide on how to make a purchase on your favourite crypto exchange.

  1. Choose a crypto exchange that accepts PayPal deposits. eToro and Coinbase are two of the best platforms that let you use PayPal. Choose an exchange and then sign up.
  2. Create an account and verify your identity. Provide some basic personal information, such as your email address and contact number, to sign up. You will also have to verify your identity before you can use your new account, and you can do so with a copy of some photo ID, such as your driving licence.
  3. Make a deposit via PayPal. Go to the ‘bank’ or ‘account’ tab to make a deposit. Enter the deposit amount and choose PayPal as the payment method. You will be redirected to PayPal, where you have to sign in to confirm the transaction.
  4. Search for Bitcoin and enter the order details. From your newly funded exchange account, search for Bitcoin using its ticker symbol, BTC. Choose the result that corresponds with the currency you want to pay with – BTC/GBP if your account is funded with pounds, BTC/USD if it is funded with dollars.
  5. Purchase Bitcoin. Enter the details of your trade. Decide how much you want to buy, whether you want to buy at the current rate – a ‘market order’- or only buy when the price hits a certain level – a ‘limit order’. Check the details and press ‘buy’ to confirm your purchase.

Now here are some specific guides that explain how to buy Bitcoin with PayPal on leading crypto trading platforms.

How to buy Bitcoin with PayPal on eToro

eToro is the most popular crypto broker and the easiest platform to use for beginners. Here’s how you can use PayPal to fund your account.

  1. Log in to your eToro account and click ‘deposit funds’.
  2. Enter the deposit amount and choose PayPal from the list of options.
  3. Search for Bitcoin, click ‘trade’, and check the details before confirming the purchase.

eToro doesn’t charge fees for deposits made through PayPal but there is a blanket $5 charge for withdrawals and you have to withdraw at least $30.

Note that eToro does not let you deposit via PayPal if you’re based in the UK. This option was removed in early 2022.

*Cryptoasset investing is unregulated in some EU countries. No consumer protection. Your capital is at risk.

How to buy Bitcoin with PayPal on Coinbase

Coinbase is a hugely popular crypto exchange. It offers hundreds of cryptocurrencies, including Bitcoin. Here’s how to use PayPal to buy crypto on Coinbase.

  1. Create a Coinbase account and complete all verification steps.
  2. Go to the ‘Settings’, then ‘Payment Methods’ and click ‘Link a New Account’.
  3. Choose PayPal and log into your PayPal account.
  4. Make a deposit and you can now choose PayPal from the list of payment methods.
  5. Search for Bitcoin and make your purchase.

This is only available to US users at the moment. You can’t use PayPal to buy crypto on Coinbase from the UK, EU, or Australia.

How to buy Bitcoin with PayPal on Paxful

Paxful is a peer-to-peer (P2P) marketplace where you buy crypto from other users. Each seller can choose how to get paid and there are lots who accept payment via PayPal. Here’s how to use Paxful to buy Bitcoin with PayPal.

  1. Register with an email address or phone number.
  2. Choose PayPal as your preferred payment method in the search box.
  3. Select the seller with the best reputation that most closely matches your desired order.
  4. Enter the trade details and log into PayPal to complete the transaction.

How to buy BTC with PayPal on LocalBitcoins

LocalBitcoins is another P2P exchange where lots of sellers are willing to accept payment via PayPal. Here’s how to use LocalBitcoins. 

  1. Create a free account with your email address.
  2. Enter your preferred payment method, trade size, and where you’re based into the search box.
  3. Choose a seller from the list of results.
  4. Sign into PayPal to complete the transaction.

How to buy crypto on PayPal

You can also buy Bitcoin on PayPal. Bitcoin is one of four cryptos available to buy on PayPal and this short guide explains how to get it

1. Create a PayPal account.

You must have a Paypal account to buy crypto through the platform. Create an account by supplying your email address and mobile phone number to get started. You can download the PayPal app to do this through your phone if you prefer. PayPal accounts are free, so you don’t have to pay anything to sign up and start trading Bitcoin.

You can either deposit funds into your new account via a card payment, or link it to a current bank account. Either way, you need to set up some method of accessing money or make sure your PayPal balance is high enough, so that when you make a purchase through PayPal it can pay for your new crypto.

You won’t have to pay a transaction fee to deposit money and the funds should be available on PayPal instantly.

3. Go to PayPal’s ‘Discover Crypto’ section.

Sign in to reach PayPal’s crypto home page, or use the search bar to navigate to the right page. This basic page lets you learn more about crypto and how to trade BTC safely through the links on the right hand side. It also provides a list of the available four cryptocurrencies and you need to choose one of them in order to start the buying process.

4. Click the Bitcoin button.

Select Bitcoin from the list of available options. The Bitcoin page shows you some basic details about the coin, such as its price, historical data, and a short summary of how it works. Click ‘buy’ or choose from one of the fixed amounts underneath to make your purchase. The first time you do this you will be prompted to answer some questions about your financial situation, tax status, and to confirm your identity.

5. Execute the trade to buy Bitcoin with PayPal.

Confirm the details of your trade; how much you want to spend, how much Bitcoin you want to receive, and when you want the trade to go through. Then execute the trade. Click on the ‘wallet’ tab in the main menu to see your Bitcoin in your portfolio.

Buying Bitcoin with PayPal

Quick answers to key questions

Can I store Bitcoin in a PayPal crypto wallet?

Yes, you can. However, PayPal is limited as a crypto wallet. It does not offer the same security as a dedicated wallet, which is self-custodial (where only you can access the money via your private key). The PayPal wallet is a good option for beginners who own small amounts of crypto, but anyone investing more should think about something more secure.

The eToro wallet is one option, while there are also good, cheap storage options with the Coinbase wallet and through a service like MetaMask.

Can I send Bitcoin from PayPal to my wallet?

Yes, if you’re based in the US you can transfer crypto from PayPal to another wallet. This feature was added in 2022 after being one of the ‘most requested enhancements’, according to PayPal itself. You will have to pay a network or blockchain fee to make a crypto transfer from PayPal to an external wallet, but there are no other fees.

Here’s how to send money from PayPal to a crypto wallet:

  1. Log into PayPal and choose the cryptocurrency you want to transfer
  2. Click the transfer symbol and click ‘send’
  3. Enter the wallet address you want to send the money to (you can scan a QR code or enter the long wallet address yourself)
  4. Confirm the transfer.

Can I buy other cryptocurrencies on PayPal?

There are four cryptocurrencies available on PayPal. Bitcoin is the most popular but there are three more you can buy too:

  • Ethereum (ETH)
  • Litecoin (LTC)
  • Bitcoin Cash (BCH)

How much does PayPal charge to buy and sell Bitcoin?

PayPal is one of the more expensive ways to buy crypto. You can expect fees of around 2% on each transaction, although there are cheaper rates on offer for larger trades. Here are PayPal’s fees.

Amount (£ or $)Fee
1 – 24.99£0.50 or $0.50
25 – 1002.3%
100.01 – 2002%
200.01 – 1,0001.8%
1000.01 +1.5%

This is best compared to other crypto brokers. eToro and Coinbase charge a fee of just 1% on crypto transactions, for example. 

Which is better: buying Bitcoin with PayPal or buying on cryptocurrency exchanges?

A cryptocurrency exchange is almost always the better option. It is cheaper and there are more ways to pay. The wallets on offer from the likes of eToro and Coinbase are also more secure than a PayPal wallet for when you want to store your coins.

Buying crypto through PayPal itself is an option for beginners, as it’s a user-friendly way to buy your first coins. However, PayPal is severely limited as a crypto exchange and you have to perform a full ID check and answer questions about your tax status to be allowed to make a purchase.

There are no analysis tools available on PayPal and no means of swapping between cryptocurrencies. You can’t use another crypto, like ETH, to buy BTC, or vice-versa. Similarly, its Bitcoin wallet is much less secure than any standard crypto wallet where you keep control of your own private keys.

Is there an alternative to buying cryptocurrency with PayPal?

There are lots of other ways to buy Bitcoin that don’t require PayPal. The easiest and most popular option is to buy BTC with a debit card or a bank transfer. However, many brokers also accept other payment methods, especially in Europe. Here are some other ways to pay.

FAQs

Why is PayPal getting involved in cryptocurrency trading?
Can I buy BTC with PayPal without verification?
Can I store BTC in my PayPal account?
Can I buy Bitcoin with PayPal in the EU?
Can I pay with crypto using PayPal?
Can you buy Bitcoin with the PayPal app?
Why don’t all exchanges accept PayPal?
Does Coinbase accept PayPal?
Does Binance accept PayPal?
Risk disclaimer

Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >

James Knight
Editor of Education
James is a lead content editor for Invezz. He's an avid trader and golfer, who spends an inordinate amount of time watching Leicester City and the… read more.