Buy Bitcoin With PayPal

Buy Bitcoin With PayPal

The Complete Guide To Buying Bitcoins With PayPal

With the surge in the popularity of bitcoins, more people want to have access to them. This surge means that there is an ongoing trade for it. This trade involves the exchange of bitcoin for fiat and other cryptocurrencies.

PayPal Logo

With PayPal, you can now shop and send payments for bitcoins with just one account. There is no direct method of using PayPal to buy bitcoins since bitcoin transactions are not reversible, while PayPal transactions are. What is obtained is an indirect way for how bitcoin can be purchased using PayPal.

These indirect ways involve the use of third-party platforms. Some of these third-party platforms include:

Cryptocurrency Exchanges

A cryptocurrency exchange is a platform where people can buy and sell bitcoin and other cryptocurrencies. While many exchanges do not accept PayPal payments, some do.

Peer-To-Peer Lending Platforms

These are platforms that allow you to buy cryptocurrencies like bitcoins. These cryptocurrencies are loaned to the buyer and returned to the seller in a single payment.

The purpose of this short purchase period varies and could be for shorting bitcoins. An example of a peer-to-peer lending platform that allows you to buy bitcoin with PayPal is xCoins.

Peer-To-Peer Marketplaces

These are platforms that connect sellers with buyers and allow them to trade directly with one another, like obtains in a typical marketplace. While not all the sellers here accept PayPal payments when buying bitcoins, some do.

To find these sellers who accept PayPal payments, you only need to filter your search for available deals. An example of this type of marketplace is Localbitcoins.

Where To Buy Bitcoin With PayPal

 CompanyWebsiteFeesCountries SupportedCustomer ServiceRating 
paxful.com0.1% to 5% for sellersEvery country except for a few (see banned countries)Knowledge Base9.5
Localbitcoins LogoLocalBitcoins
localbitcoins.comFreeAll countriesKnowledge Base9.3
Wirex Logo
wirexapp.comFree202 countries (see full list)Knowledge Base9.1
xcoins.io2.9% + $0.3040 countriesKnowledge Base8.6

There are numerous popular platforms where you can buy bitcoin with PayPal. These include:


Paxful Logo

CEO:Ray Youssef
Headquarters:New York, New York
Founders:Ray Youssef, Artur Schaback
Customer service:Knowledge Base

A peer-to-peer marketplace that works similarly to Localbitcoins, Paxful has an escrow service on which sellers trade. To use Paxful, a proposed buyer needs to have a verified USA PayPal account.

Vendors here ask for identification, for verification purposes, before accepting a proposed buyer’s PayPal. Once this is accepted, however, the trade process is simple.

How To Use Paxful

  • To buy bitcoins on this marketplace, follow the following steps:
  • To use this site, you need first have an account, so create one.
  • Choose PayPal as the desired payment method and indicate your desired amount.
  • Choose your seller. Typically the seller is chosen manually, or you can allow Paxful to select for you.
  • Initiate the trade.
  • The buyer and seller proceed to a chat where the trade agreement processes into an escrow. Once the buyer indicates that a payment was made, the bitcoins are sent from escrow into the buyer’s Paxful wallet. With Paxful, if the trade is not finalized within a stipulated time, usually thirty minutes, the deal will be canceled.

Advantages Of Using Paxful To Buy Bitcoins With Paypal

  • It has a simple user interface (UI)
  • There is a wide variety of sellers to pick from

Disadvantages Of Using Paxful To Buy Bitcoins With Paypal

  • Like is the case with LocalBitcoins, buyers and sellers are at risk of being scammed


LocalBitcoins Logo

CEO:Nicholas Kangas
Headquarters:Helsinki, Finland
Founders:Nicholas Kangas, Jeremias Kangas
Customer service:Knowledge Base

LocalBitcoins is a peer-to-peer marketplace that allows people to buy bitcoins with PayPal. As not all sellers on this platform accept PayPal payments, a potential buyer has to find sellers who do.

After finding a seller that accepts PayPal as a payment method, be sure to check the sellers’ profile, peruse their feedback, confirmed trades, and trade volume, among other things. Doing these will help you ascertain the authenticity and credibility of these sellers.

Once you find one that suits you as a buyer, LocalBitcoins allows you to connect directly with this seller.

Sellers take the risk of buyer’s chargeback. This is a situation where a buyer claims not to have gotten the asset they paid for and PayPal refunds their money. Hence, these sellers usually charge a premium to protect themselves.

How To Use LocalBitcoins

To use this marketplace to buy bitcoins, follow the following steps:

  • Create an account with LocalBitcoins.
  • Sign up with your desired username and verify your profile.
  • Enter your search parameters.

In this case, you type into the search bar how many bitcoins you want to purchase and your country of choice. Note that because there is no option to search the “whole world” at a go, you have to do a country-by-country search.

Once done with the above step, you will be shown a list of available sellers if any. Proceed to check through this list person-by-person. Here, you will be checking for things like clients’ feedback, confirmed trade, and trade volume, among other things, to help ascertain the seller’s reliability. Since there is no one rule for the things to look out for, you can search for specific characteristics you are interested in.

After settling for a preferred seller, you will see a trade screen. On this window, you will find the terms of trade of the seller. The terms of the trade include limits, payment window; how much time you have to send funds after initiating a trade request, and reputation requirement. Some sellers require buyers to have had some reputation on the market. This is to protect the seller from scams arising from fraudulent chargebacks. In the case that you do not yet have customer reputation and your seller needs this, you might have to make a smaller transaction to do this. If your seller does not make a customer reputation requirement, you can proceed to the next step.

In this next window, you will be inputting the number of bitcoins you want to buy in the appropriate box. Once done, click on “send trade request” to send the trade request.

  • Make your payment using PayPal
  • Wait for the seller to send your bitcoins
  • Receive your bitcoins fast

Advantages Of Using LocalBitcoins To Buy Bitcoins With PayPal

  • Bitcoin can be purchased with United States Dollar (USD), which is the default currency on PayPal
  • Buyers get their bitcoins fast
  • There is freedom to search for the price you want as a buyer
  • Localbitcoin’s platform is simple to use, even for beginners
  • There is a wide variety of global sellers to choose from

Disadvantages Of Using LocalBitcoins To Buy Bitcoins With PayPal

  • It might take a while before finding a bitcoin seller that accepts payment with PayPal
  • The rate buyers get depends on the deals available
  • The premium sellers charge could result in high fees
  • Both sellers and buyers have a chance of being scammed. The seller can get scammed if the buyer claims he did not receive the bitcoin, while the buyer can get scammed if the seller denies a receipt of payment. Buyers are always advised to carefully read through the seller’s profile and make a pick based on observed credibility


Wirex App Logo

CEO:Pavel Matveev
Headquarters:London, United Kingdom
Founders:Dmitry Lazarichev, Pavel Matveev
Customer service:+1 (855) 500-0217

This platform is regarded as the best for use by people who buy bitcoins regularly. For first time buyers though, this method takes about 1 to 2 days while the process is instant for subsequent usage.

How To Use Wirex

To buy bitcoins on this platform, follow the following steps:

  • Create a Wirex account on the website
  • Verify this account. Once the account is verified, you get a free virtual visa card. If you want a physical card, you can order one to be delivered to your home.
  • You need to add a small amount to your virtual visa card. It is also vital that you add the card to your PayPal account.
  • To purchase bitcoin with PayPal, withdraw money from your PayPal account to your Wirex account. It could take between one to seven days before this withdrawal is complete.
  • After crediting your Wirex virtual card, you can use Wirex to purchase bitcoins.

Advantage Of Using Wirex To Buy Bitcoins With PayPal

  • You get to purchase bitcoin at market rate

Disadvantages Of Using Wirex To Buy Bitcoins With PayPal

  • The initial lag time
  • Not supported in all countries



CEO:Sergey Nikitin
Headquarters:Santa Monica, California
Founders:Sergey Nikitin
Customer service:Contact Support

xCoins is a peer to peer lending platform on which buyers can buy bitcoins from sellers. This purchase is, however, only for a fixed amount of time, as these bitcoins return to the seller. Essentially, this means that these bitcoins are only loaned out not sold off.

Since this platform matches lenders and buyers, the fees are relatively high. The fees incurred are an addition of the security deposit amount, the lender’s fee (which is 10% of the security deposit amount), the loan origination (which is 3.5% of the security deposit amount), and PayPal processing fee (which is 2.9% of the security deposit amount + $0.30)

How To Use xCoins

To buy, or in this case loan, bitcoins on this platform, follow the following steps:

  • Sign up on the site to create an account
  • Verify your identity
  • Indicate the number of bitcoins you want to buy
  • Review the total cost of the transaction
  • Agree to the terms of the loan
  • You will be redirected to the lender’s PayPal page. Here, you enter your PayPal account details and make payment
  • Receive the bitcoins

Advantages Of Using xCoins To Buy Bitcoins With PayPal

  • It entails a simple process
  • It is a fast way to acquire bitcoins, for any purpose

Disadvantages Of Using xCoins To Buy Bitcoins With PayPal

  • High fees are incurred
  • There is a low transaction limit allowed for new users


eToro Logo

CEO:Yoni Assia
Headquarters:London, United Kingdom
Founders:Yoni Assia, Ronen Assia, David Ring
Customer service:Knowledge Base

This platform is regarded as one of the easiest to buy bitcoin with PayPal. While eToro allows this purchase, buyers will neither be able to withdraw the bitcoins to a wallet nor send this to other people.

What happens instead is that these bitcoins can only be changed back to its fiat currency equivalent, which can then be withdrawn. eToro is the best option for those who only want to profit from bitcoin’s price volatility and those who don’t need the bitcoin themselves, but the cash equivalent.

How To Use Etoro

To buy bitcoins on this platform, follow the following steps:

  • Register on the site to create an account
  • Enable multi-factor authentication
  • Click “deposit” and select “deposit funds”
  • Select PayPal as the preferred payment method
  • Enter desired deposit amount
  • Log in to your PayPal account to complete the deposit
  • Review the transaction details. If content with these, click “pay”.
  • Once your eToro account has been credited, go to the trading page. Here, choose your preferred market limit order and enter the amount of bitcoin you want to buy.

Advantages Of Using Etoro To Buy Bitcoins With PayPal

  • It is easy to use
  • Using it incurs relatively low fees

Disadvantages Of Using Etoro To Buy Bitcoins With PayPal

  • The bitcoins can only be withdrawn in the form of fiat currency
  • It is not available to every country in the world (The Netherlands is supported. Please check with customer support to see if your country is supported.)

Benefits Of Buying Bitcoins With PayPal

So, now you know the different platforms where you can buy bitcoin using PayPal. Why should you consider it in the first place?

Some of the benefits you get for buying bitcoin with PayPal include:

  • If you already have a PayPal account, the purchase process is easy and quick
  • It is a safe and secure payment method

Disadvantages Of Buying Bitcoins With PayPal

  • Only a limited number of platforms support buying bitcoins with PayPal
  • If the trading platform does not accept payment in USD, the prices are significantly higher as currency conversion fees apply.

To Wrap It Up

Buying bitcoin with PayPal is not the most cost-effective means of purchasing bitcoins. If you would like to do this still, ensure you compare the features of the different trading platforms available and use the gathered information to make the choice that is best for you. Our favorite platform to buy bitcoin with PayPal is Paxful thanks to its escrow system, but feel free to use whichever one you desire.

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