The very well-known electronic wallet provider PayPal now allows you to purchase virtual currency. Many cryptocurrency fans have been anticipating the launch of this premium feature as they would love to make purchases, online payments, online crypto casino deposits, and many more.
The process of buying with PayPal is a fairly simple one. In this report, we’ll walk you through the steps to completing an effective buy. In addition, we’ll show you important information to note when you buy cryptocurrency.
7 Ways of Buying Crypto with Paypal
Buying cryptocurrency via Paypal can be done in numerous ways. Before purchasing, you should know what you want to buy and also understand that the cryptocurrency price market and charts always fluctuate. We’ll be looking into a few of these buying methods below:
- Buying directly via PayPal
PayPal began enabling direct purchases of cryptocurrencies like Bitcoin in October 2020. This was accomplished through a collaboration with Paxos, which allows consumers to purchase, keep, and sell Bitcoin. Also, customers could also use crypto to make payments to PayPal-supported merchants.
Customers can now transfer their digital currency balances from PayPal to other wallets for storage or general use. There is a weekly cap of $10,000 for this service (no annual limit). The fees range from 1.5% to 2.3%, depending on how much cryptocurrency you purchase.
We’ll walk you through a simple tutorial on how to buy Bitcoins straight through PayPal:
- In the event that you don’t already have one, the first action to perform is to open a PayPal account.
- Once that is accomplished, click on the “Buy and Sell” button. This button can be located under the “Your crypto” section. Remember that this feature is only obtainable in selected regions.
- Now, click on “Bitcoin” and proceed to buy. You will be prompted to provide the quantity you wish to purchase. Do so, then decide which payment option you prefer.
- Click on “Next” and confirm your purchase. The coins will be credited to your PayPal digital wallet as soon as your transaction is approved.
- Purchasing with PayPal through Bitstamp
Bitstamp is a reputable cryptocurrency exchange that has been running since 2011. The online cryptocurrency marketplace accepts PayPal for Bitcoin payments. You should note that this is only applicable to residents of the following jurisdictions: the US and the EU.
Payments for the digital currencies are done with EUR, USD, and GBP, with a daily limit of up to $2,500. The total purchase for a month is capped at around $20,000; No matter how the payment is made, a 5% fee is taken out of the total cost of the purchase.
Find the steps to buy Bitcoin with PayPal through Bitstamp below:
- Choose Bitcoin from the assets page, then carry out the PayPal purchase. On the Deposit page, you can also select “Direct Bitcoin Purchase.”
- Put in the fiat amount of the cryptocurrency you want to purchase and click “Buy with PayPal”.
- You will be taken to a PayPal sign-in screen. You can then connect Bitstamp to your PayPal account. It’s imperative that the name you entered for your Bitstamp account match the name you supplied for your PayPal account.
- Now, go ahead and confirm the purchase. If the two accounts are successfully linked, you can finish your transaction.
- Buying Bitcoin with PayPal through Coinbase
Coinbase, one of the most reliable marketplaces for buying and selling cryptocurrencies, began taking PayPal as a form of payment in 2022.
The use of Coinbase is yet another way to buy Bitcoin using PayPal. However, the process of making the purchase is straightforward. In other words, users can’t buy BTC directly from their PayPal account. Rather, they use a PayPal-linked debit card or bank account.
While this may be restrictive, customers can buy as much as $25,000 worth of Bitcoin per day. Putting money into a PayPal bank account costs 2.5%, but using a PayPal debit card to make a purchase on Coinbase costs 4%. Users of Coinbase can also withdraw cash to their PayPal accounts in fiat currencies.
- Purchasing with PayPal through eToro
Another option for paying for Bitcoin with PayPal is eToro. The program lets you purchase Bitcoin, however, it frequently takes more time to withdraw to your wallet.
Aside from buying BTC, customers can speculate on the price of the coin. Hence, this platform is the perfect option if you wish to profit from price fluctuations. If you trade on eToro, a Bitcoin address is not required.
- Buying with PayPal through CEX.io
This is a well-known exchange that launched in 2013, and the platform has a reputation for being trustworthy and appropriately regulated. CEX.io authorizes the acquisition of Bitcoin via PayPal at good prices. You can do this by using the platform’s “Buy” option within the wallet app. As an option, you can use the “Instant Purchase” function to make a purchase on the exchange.
There is a $1,000 daily purchase cap on CEX.io. Residents in the UK receive a 1.49% service cost, while in other countries the service fee ranges between 2.99% and 3.99%.
Steps to take to buy Bitcoin with PayPal through CEX.io include the following:
- Find the Instant Purchase service on the CEX.io platform.
- Choose your preferred fiat money and Bitcoin from the “Buy” option.
- Enter the amount of Bitcoin you want to buy, or choose one of the suggested amounts that have already been computed.
- Press the “Purchase” toggle after selecting PayPal as your choice for payment.
- Press “Log in with PayPal” to link your PayPal profile. Go ahead and make the purchase by selecting PayPal once more.
- The transaction will take place within the PayPal account window. Whenever the exchange finishes, the new Bitcoin balance would be reflected on your CEX.io profile.
- Buying with PayPal through LocalCoinSwap
Buyers and sellers can connect on LocalCoinSwap, an online marketplace. Due to the fact that you are dealing with a person directly on this platform, you should be cautious about the seller’s reputation.
Due to the significant risk of customer chargebacks that sellers assume, fees on LocalCoinSwap are frequently on the higher side. But there is a benefit, you get your Bitcoin faster.
How to use LocalCoinSwap
Enter your search parameters: Visit LocalCoinSwap and select whether you want to buy or sell crypto. Pick your preferred digital currency, select your payment method, and select the location where the deal should take place.
Choose your seller: After selecting the necessary options, the next step is to find the seller. Scan the list and look over each entry one by one to find a seller. By selecting each seller’s icon, you may see more information about them.
Here are a few points you should take note of before contacting the seller:
- Feedback rating
- The number of confirmed trades the seller has
- How long has the account been existent
- The number of clients that trust the seller
Complete the trade: Proceed with the purchase by clicking the “buy” button when you’ve found your seller. You’ll be carried to a screen with the user’s information.
Make sure you read the terms of trade before making any transaction. The right side of the page contains each seller’s own terms of sale.
Some dealers insist on a certain level of reputation before letting you make a purchase. They do this to safeguard themselves against fraud. You may therefore need to engage in certain transactions in order to enhance your reputation.
After going through the list of sellers and making your pick, input the amount of Bitcoin you want to buy. Ensure that all communications are conducted within the confines of the LocalCoinSwap platform.
- Buying with PayPal through Paxful
Paxful is an online peer-to-peer cryptocurrency marketplace similar to LocalCoinSwap.com. You can acquire Bitcoin with a variety of payment alternatives, including Skype credits and Amazon gift cards.
It is straightforward to purchase bitcoins at Paxful and the stages are as follows:
- Sign up for an account if you don’t have one. It’s important that you verify your identity.
- Input the amount of BTC you want to purchase and select your chosen payment option.
- Next, locate a seller. You can do this yourself or Paxful can find the best available sellers for you.
- You’ll be redirected to an online chat room with the seller immediately after the trade begins. In this chat room, you can conclude the contract.
- The Bitcoin will be saved in escrow, and immediately after your payment is verified, it will be released to your account.
- It’s crucial to note that if you are unable to finalize the deal within the timeframe, it will be rescinded.
Benefits and Drawbacks of Purchasing Crypto with PayPal
Numerous online exchanges accept PayPal as a payment option on a widespread basis. Making Bitcoin purchases with PayPal is a lot easier and faster due to the fact that many people use this service. Using PayPal to buy cryptocurrency has both pros and cons.
- Buying Bitcoin with PayPal requires no technical knowledge. The procedure is straightforward, with only just a few stages. As a result, it’s possibly one of the most suitable methods for the user who is new to the world of crypto currency.
- PayPal is secured and can be trusted.
Like every payment method, PayPal has its shortcomings. Here are the disadvantages:
- Not all jurisdictions support PayPal to Bitcoin transfers.
- The amount of individuals who can procure cryptocurrency is strictly limited.
- PayPal charges a bigger fee when in comparison to other payment options.
Where Can I Keep the Cryptocurrency I Bought?
Knowing how a crypto wallet works is crucial. Wallets are divided into two categories namely; web and hardware wallets.
A lot of crypto holders like to keep their crypto tokens on multiple devices so as to protect them from theft. Nevertheless, this method prevents them from selling their coins during favorable conditions.
If you want to store your crypto in an online crypto wallet, choose one from a reliable crypto exchange. An example is CEX.io. This one crypto platform uses multiple security protocols to protect user accounts.
Cold storage is also accessible to customers who favor this mode of storage. With the CEX.io crypto wallet, you can access your cryptocurrencies whenever you want to.
Can I use Paypal to purchase Bitcoin on Coinbase?
Users can purchase Bitcoin on Coinbase using PayPal. All that is needed is a bank transfer or a debit card. You can purchase bitcoin via Coinbase, sell it, and withdraw the proceeds to your PayPal account.
Can I use PayPal to purchase other cryptocurrencies?
With LocalMonero or LocalCryptos, you can buy Monero or Ethereum with PayPal. Nevertheless, similar rules and drawbacks apply. You might have to pay a really high price or have trouble finding a seller you can trust.
Which crypto wallet accepts PayPal?
In terms of safety and reliability, Coinbase ranks among the very best options for buying and selling digital currency. It facilitates the acquisition of cryptocurrencies by allowing payment via PayPal. If the hassle of ACH and wire transfers has put you off, PayPal is a great alternative. Performing any kind of financial transaction now takes no more than a few steps.
Can I transfer my crypto from PayPal to my wallet?
PayPal provides the option for its users to transfer cryptocurrencies from their PayPal account to other wallets or exchanges.
A large number of individuals view bitcoin as an asset with significant value. It is a very valuable currency, and there is the possibility that its price may continue to rise. Many people are of the impression that digital currencies like Bitcoin will take over the current money system in the not-too-distant future.
It’s easy to buy cryptocurrencies like BTC with PayPal quickly and safely. Among all methods provided in this article, buying directly from PayPal is the easiest. Nonetheless, it comes with some drawbacks, such as high service fees.
PayPal service fees vary based on jurisdiction and size of purchase. Therefore, take this into account as you complete your operation. Even though the payment platform is easy to use and safe, you might want to use PayPal to buy Bitcoin in the future if you’re thinking about getting into this risky but potentially lucrative market.