How to buy Ethereum with PayPal in 2022
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Ethereum is one of four cryptocurrencies that you can buy on PayPal. Below is a step-by-step guide that takes you through the process, along with a comparison of the best crypto brokers and exchanges that accept PayPal as a payment method.
Can you buy ETH with PayPal?
You can buy Ethereum through the PayPal platform and store your coins in your PayPal account. ETH is one of four cryptocurrencies available on PayPal to UK, US, and European users. Users outside of those countries might not be able to buy crypto through PayPal just yet.
Where can you buy Ethereum using PayPal?
You can use PayPal as a payment method to deposit money into a crypto broker account and then buy crypto from there. The brokers below all accept PayPal deposits and let you buy and sell coins like Ethereum.
How to buy Ethereum with PayPal – a step-by-step guide
Follow the steps below to make your first Ethereum purchase through PayPal. It’s an extremely simple process that only takes a few clicks, but be prepared to provide some personal details to make it go smoothly.
1. Create a PayPal account
If you don’t already have an account, now is the time to create one. You need a mobile number to create an account and you will also be asked to supply an email address and your street address information. There is no way around this, so if you don’t want to provide so much detail you should explore other payment options.
2. Add a bank account or payment card
You need to set up a means of paying for your crypto through PayPal. You can either attach a current bank account or a valid payment card. Choose one (or both) and enter your card or account details to link the accounts together.
3. Log in and go to the ‘Discover Crypto’ section
This is the PayPal crypto home page where you can see the available coins. There are four at the moment; Ethereum, along with Bitcoin, Bitcoin Cash, and Litecoin. There is also some learning material here if you want to find out more about crypto and the risks of investing before you start.
4. Choose Ethereum from the list of options
This takes you to the Ethereum landing page, where you can find its current price and price history, as well as a brief description of the coin. Hit the ‘buy’ button or one of the default amounts below it to place your trade.
5. Execute the trade
The first time you buy ETH you will be prompted to answer some questions about your US tax status and confirm your identity. You must provide your full name and a form of ID to verify the account. Then you can go ahead and make your purchase; enter the amount you want to spend and hit ‘buy’ to execute the trade.
Top platforms that accept PayPal
An alternative way to buy ETH with PayPal is to use a crypto broker and deposit money via PayPal. The brokers below are the best options if you want to go down this route.
eToro is the easiest crypto broker to get started with if you’ve never used one before. There are more than 50 cryptocurrencies available, including Ethereum, and eToro accepts deposits from a PayPal account.
One of the best features on eToro is ‘CopyTrader’, which is a social trading platform where you can follow other people, see their trades, and the reasoning behind them. It’s a great feature for newbies because it means you can see how the experts make their decisions.
To use PayPal as a deposit method, simply head to the ‘deposit funds’ section and choose PayPal as the means of payment. You will be redirected to a PayPal login screen where you must enter your details before the transaction can go ahead.
Coinbase is a crypto exchange that supports thousands of coins. As one of the most popular coins on the market, it’s easy to buy Ethereum through Coinbase. It’s also easy to link your PayPal account to the Coinbase one, particularly if you used the same email address to set them up.
To make a deposit through PayPal you need to first link it to your Coinbase account. Sign into Coinbase and go to settings, then ‘Payment Methods’ and link a new account. Fill in the relevant details and you’re good to go.
The only drawback to Coinbase is that it charges relatively high fees compared to other crypto platforms. You can pay up to 4% in fees on every transaction, which mounts up very quickly. Coinbase Pro offers cheaper rates but comes with its own subscription fee.
Binance is the largest crypto exchange in the world and offers some of the best trading fees in the business. You can buy Ethereum with fiat currency or with other cryptocurrencies and it’s relatively easy to connect your PayPal account to Binance.
To add PayPal you need to navigate to the P2P trading section of your account. Then add a payment method and choose PayPal. Once you’ve done so, you can go to make a deposit and PayPal will be an option as a payment method.
Binance offers some of the lowest trading fees of any exchange and you can access even better rates if you own Binance coin (BNB), its native cryptocurrency. If you’re going to be an active trader it’s a very good idea to buy BNB and use that to pay your fees.
Should I use PayPal to buy Ethereum?
It’s a great option if you already have a PayPal account and want to buy crypto with the minimum of fuss. You don’t have to sign up for a broker or crypto exchange if you don’t want to, and you can store crypto alongside your regular fiat currency on PayPal.
For now PayPal is a fairly limited crypto wallet, however. You can only buy four coins and you need to supply quite a lot of personal information to do so. It’s also relatively expensive compared to a standard broker.
PayPal is also an option as a payment method to fund your crypto purchases on one of those standard broker platforms. Again, though, it’s more expensive to use PayPal than most other payment methods and you should only use it if you have no other options.
What are the risks of buying Ethereum with PayPal?
Cryptocurrency is a volatile asset class and Ethereum is no different. PayPal doesn’t offer you any protection if the price of Ethereum were to drop dramatically, and it’s not uncommon to see large falls of 5% or more in a single day.
Any inexperienced investor runs a particularly high risk of losing money on any purchase. Take time to research Ethereum before you invest and make sure that you understand the factors that can affect the price. Use our guide on how to buy Ethereum to help.
- A PayPal account is easy to set up with a mobile number and your bank details
- Any payments you make through PayPal are guaranteed to be secure
- Can buy and store crypto on PayPal without signing up to any other services
What are the fees for buying Ethereum with PayPal?
It costs between $0.49 and $2.49, depending on the value of your trade. The lowest fee is for transactions below $5 and there is a sliding scale up to $200, at which point the fee flips to a 1.8% charge.
Why don’t more brokers or exchanges support PayPal?
PayPal charges clients that use it as a payment provider and those fees can be fairly expensive. Many platforms choose not to pay it and to provide alternative, and cheaper, payment methods like Venmo or Payoneer instead.
Alternative payment methods
The easiest way to buy Ethereum is with a debit card or bank transfer through a regulated broker. Those methods come with the lowest fees and give you access to far more trading options than PayPal does.
Yes, if you use a broker like eToro. eToro charges no trading fees for buying Ethereum, although you may have to pay a fee to withdraw money. It is not possible to buy Ethereum with no fees on PayPal at the moment.
US, UK, and European users can buy Bitcoin, Bitcoin Cash, and Litecoin, as well as Ethereum, on PayPal. Its crypto offerings are relatively new and it only started offering crypto purchases in 2020. More cryptocurrencies might be added in the coming months and years.
Yes, you can use PayPal to deposit money on Coinbase. Go to your account settings and add a new payment method, then choose PayPal to link it to your Coinbase account. It’s best to use the same email address for both accounts, otherwise you might be asked to supply more verification.
Yes, you can use PayPal to deposit money on Binance. Go to the P2P trading section and then add a new payment method. Go to deposit money as you normally would and PayPal will now be an option as a payment method.
Yes, you can use PayPal as a crypto wallet to store Ethereum. The wallet supports ETH, as well as BTC, BCH, and LTC.
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