How to buy Bitcoin with PayPal in 2024

Follow this guide to learn how to turn your PayPal balance into Bitcoin. Use our expert guidance to find the best and cheapest way to buy Bitcoin with PayPal.
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Updated: May 7, 2024
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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, though PayPal charges higher fees for crypto transactions than other exchange platforms. You can expect to pay twice as much in fees through PayPal than an established crypto exchange.

We recommend that you sign up to a crypto platform and buy Bitcoin with PayPal that way. There’s a guide on how to do that below. However, if your preference is buying crypto on PayPal directly, then there’s a guide on how to do that, too.

Where to buy Bitcoin with PayPal

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How to buy crypto with PayPal

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Buying crypto with PayPal is a simple process that is largely the same across all exchange platforms. This guide explains how to create an account, make your first deposit, and buy Bitcoin with PayPal.

1. Choose a crypto exchange that accepts PayPal deposits.

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We recommend Start Trading as the best place to buy crypto with PayPal. Alternatively, choose one of the top PayPal crypto exchanges and start there.

2. Create an account and verify your identity.

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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 drivers license.

3. Make a deposit via PayPal.

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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.

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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/USD if your account is funded with dollars, BTC/GBP or BTC/EUR if it is funded with euros or pounds.

5. Purchase Bitcoin.

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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.

Top platforms to buy Bitcoins on PayPal, reviewed

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How to buy crypto on PayPal directly

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Signing up for a crypto exchange and making a deposit via PayPal is one option. However, if you live in the US or the UK you can buy Bitcoin on PayPal directly.

It’s free to create a PayPal account, but you have to link it to your mobile phone and email address. After that, buying Bitcoin is relatively simple and should only take a few minutes.

1. Create or access your PayPal account

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If you don’t already have one, you’ll need to create a free PayPal account on its website. If you do have an account, simply log in with your credentials.

2. Find the Cryptocurrency section

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Locate the Crypto or Cryptocurrency section within your PayPal account. It might be displayed on your main dashboard or tucked away under the “Finance” tab.

3. Choose Bitcoin

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PayPal usually offers a few different cryptocurrencies. Select Bitcoin (BTC) from the list of options.

4. Purchase Your Bitcoin

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Decide how much Bitcoin you want to buy and enter the amount. You can use your local currency (like USD) or directly input the equivalent Bitcoin value. Carefully review the transaction details, including any fees, and confirm your purchase.

5. Manage your Bitcoin

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Your purchased Bitcoin will now be accessible in your PayPal cryptocurrency wallet. You have the option to hold your Bitcoin as an investment, sell it, or use it as a payment method where PayPal crypto transactions are accepted.

How much does PayPal charge to buy and sell Bitcoin?

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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 compared to eToro, another leading exchange platform.

Transaction amount ($)PayPal feeeToro fee
1 – 24.99$0.501%
25 – 1002.3%1%
100.01 – 2002%1%
200.01 – 1,0001.8%1%
1000.01 +1.5%1%

Quick answers to key questions

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Can I store Bitcoin in a PayPal crypto wallet?

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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 buy cryptocurrency and store it in small amounts, and it does offer some protection against unauthorized transfers, but anyone investing more should think about something more secure.

PayPal now integrates with a number of third-party crypto wallets. We recommend you use the likes of MetaMask, Ledger, Phantom, or Magic to store your coins if you plan on holding onto them for a while.

Can I send Bitcoin from PayPal to my wallet?

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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?

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

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

PayPal also has its own stablecoin, ‘PayPal USD’ (PYUSD), where 1 PYUSD is equal to 1 US Dollar. It’s mainly used to swap between the other crypto tokens available on PayPal, but you can buy it simply to own it yourself if you want.

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

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A cryptocurrency exchange is almost always the better option when it comes to purchasing crypto. It’s cheaper and there are more ways to pay.

Buying crypto through PayPal itself is an option for beginners, as it’s a user-friendly way to buy your first coins. For all its many strengths when it comes to fiat currency, 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?

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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.

Find your broker

FAQs

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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
James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.