How To Buy Bitcoin on PayPal: A Step-by-Step Guide
PayPal is an American native financial services company that offers online payment solutions to its users to securely send and receive money, and complete online transactions. PayPal is the most widely used online payment system in the world, with approximately 430 million users worldwide, according to data from Statista. Additionally, 58% of Americans and over 2 million users from the United Kingdom have active PayPal accounts.
In October 2020, PayPal introduced a direct purchase option of supported cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and Bitcoin Cash, directly from the PayPal wallet. Now, any PayPal user can buy, transfer, sell and hold bitcoin, as well as make crypto purchases from supported PayPal merchants.
Steps on How To Buy Bitcoin Directly on PayPal
Follow the steps below to purchase bitcoin directly from your PayPal account.
Step 1: Create a PayPal Account or Sign In To An Existing Account
If you have an active existing PayPal account, then go ahead and sign in. If you do not use PayPal, sign up for a new account on the website or the mobile application.
After filling in your sign-up details, accept PayPal’s terms and conditions to create the account. Proceed to confirm your identity, and complete a W-9 and other compliance requirements.
Step 2: Fund Your Account
Ensure you have a sufficient balance or a little above the fiat equivalence of the amount of bitcoin you wish to buy.
The next thing is to link your bank account and debit card. Go to your dashboard, and look for the “Link a card” icon. Click on it and add your card details, then authenticate your card addition on your bank’s website that should pop up.
Also, click on “Link a bank” and follow the above steps to link your bank account. This is an important aspect that will be necessary for a subsequent step to purchase bitcoins.
Step 3: Select Bitcoin
Go back to your dashboard, you should see a “Crypto” icon next to the “request” icon. Click on it and select “Bitcoin,” which is the cryptocurrency that you intend to purchase.
Step 4: Buy Bitcoin
After selecting “Bitcoin,” the bitcoin wallet will be displayed, with a chart and a “buy” button just below it. Click on “buy” and choose the dollar amount of bitcoin that you want to buy. You also have the option of selecting a preset amount which is displayed below the “buy” icon.
Step 5: Select Your Preferred Payment Method
Since you have linked your bank account and debit card in step 2, you can either select your linked bank account or debit card as your preferred method for the bitcoin purchase.
After selecting, an overview will pop up, displaying the price in dollars and its current equivalent in bitcoin. You will also see the transaction fee charged by PayPal.
Note: Transaction fees vary between 1.5% and 2.3%, depending on the amount of bitcoin that you purchase.
If you are satisfied with the conversion rate and fees, click “Buy now” to confirm the purchase and complete the process.
Congratulations! You can now check your PayPal digital wallet, which should now contain your purchased bitcoin.
PayPal also offers a withdrawal option, allowing customers to withdraw their crypto assets into third-party wallets. However, this option is now only available for users in the United States, with other nations expected to be added in the future.
Other Methods of Buying Bitcoin Through PayPal
In addition to buying bitcoin directly from PayPal, you can also buy Bitcoin with PayPal by using another platform that supports PayPal as a payment method.
Buy Bitcoin From Etoro Using Paypal
Etoro is currently the most convenient and user-friendly option available for purchasing bitcoin with PayPal. The social trading platform that provides financial services offers the most convenient bitcoin purchase method via PayPal. The fees charged by the platform are also very competitive fees.
Etoro is accessible in the majority of countries, including the United States; however, users located in the United States are unable to use the PayPal payment method.
Buy Bitcoin From Coinbase Using Paypal
Coinbase is a popular trading platform and exchange that already offers a variety of cryptocurrency purchasing options. In a recent development, Coinbase added PayPal as a supported payment method for purchasing crypto assets, including bitcoin.
Coinbase is available in more than a hundred countries. However, the PayPal purchase option is only available to PayPal users in the United States. Furthermore, you cannot buy bitcoin with your PayPal balance, but rather with your bank account or a debit card linked to your PayPal account.
When using PayPal to buy bitcoin on Coinbase, bank deposits are charged 2.5%, while debit card purchases are charged 4.0%.
Buy Bitcoin From Paxful Using Paypal
Paxful is a peer-to-peer trading platform that allows users to purchase, sell, and exchange digital currencies. The platform functions as a marketplace and escrow service, connecting people interested in trading bitcoin and other cryptocurrencies.
Paxful is another option for purchasing bitcoin with PayPal. You can purchase bitcoin from other Paxful users who accept PayPal as a payment method.
When you visit the marketplace, you will see a list of traders from which to choose, or you can enable Paxful to select a trader with whom to transact. You will be directed to an online chat where you will be able to negotiate rates with the seller. Once an agreement is reached, the seller places the bitcoin in escrow, and you can send the agreed amount from your PayPal wallet.
Finally, confirm that you have sent the payment, and the bitcoin will be released into your wallet.
Frequently Asked Questions (FAQ)
Q1. Can I use PayPal to buy Bitcoins?
A1. Yes, You can buy bitcoin on PayPal through the company’s website or mobile application.
Q2. What site can I buy Bitcoin with Paypal?
A2. You can buy bitcoin with PayPal on sites like eToro, Coinbase, and Paxful. Each platform has its own process, fees and requirements.
Q3. Can I send bitcoins from PayPal to my wallet?
A3. Yes, you can. In June 2022, PayPal announced that users can now send cryptocurrencies purchased on PayPal to other digital wallets.
Q4. Can I Buy Bitcoin on Coinbase with Paypal?
A4. Yes, you can buy bitcoin with PayPal on Coinbase using either a bank deposit or a debit card. If you are located in the United States, you can also withdraw your bitcoin balance from Coinbase to your PayPal wallet.