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Last Update March 10th, 2020. PayPal is one of the simplest ways to send money to other individuals and for purchasing goods and services online.

PayPal is also a popular method for buying bitcoin.

While you can not purchase bitcoin directly from PayPal, you can use PayPal in conjunction with a trading platform such as Etoro or a peer-to-peer marketplace such as LocalBitcoins to buy bitcoin outright.

Popular Exchanges To Buy Bitcoin With PayPal Instantly

 
Company
Fees
Countries Supported
Etoro Icon Resized
Etoro

Free, $5 withdrawal feeWorldwide
LocalBitcoins Icon Resized
LocalBitcoins


Free, 1% to advertisersWorldwide
Paxful Icon Resized
Paxful

Free, 0.1% to 5% for sellersEvery country except for a few (see banned countries)
Wirex Icon Resized
Wirex


FreeWorldwide
XCOINS Icon Resized
XCOINS


2.9% + $0.3040 countries
The Complete Guide To Buying Bitcoins With PayPal

The Complete Guide To Buying Bitcoins With PayPal

Bitcoin is the first immutable peer-to-peer money of its kind that is backed by cryptography and the blockchain. With a recent surge in the popularity of bitcoin, more people across the globe want to have access to bitcoin.

PayPal Logo

As a worldwide payment system, PayPal is one of the most popular ways for people to send money across the globe. PayPal supports both online money transfers and payment processing and is a convenient way for people to make purchases online.

Can I Use PayPal To Buy Bitcoin?

Yes, while there is no direct method of using PayPal to buy bitcoin since bitcoin transactions are not reversible, what you can do is find a reliable trading platform or marketplace that will allow you to purchase bitcoin using PayPal.

Advantages

  • If you already have a PayPal account, the purchase process is familiar and fast.
  • PayPal purchase protection for buyers.
  • Identity verification isn’t always necessary.

Disadvantages

  • Other payment methods such as debit card or bank account are more secure and lower risk than PayPal as a payment method.

Some of the third-party platforms that allow you to buy bitcoin with PayPal include:

Trading Platform

A trading platform is a place where people can buy and sell bitcoin and other cryptocurrencies. While many brokers do not accept PayPal deposits, some do.

An example of a trading platform that allows you to deposit with PayPal is Etoro.

Peer-To-Peer Marketplaces

These are platforms that connect sellers with buyers and allow them to trade directly with one another. While not all sellers accept PayPal payments when buying bitcoin, many do.

To find sellers that accept PayPal as a payment method, you can sign up for a reliable peer-to-peer marketplace that has an escrow system in place.

An example of a peer-to-peer type of marketplace is LocalBitcoins.

Peer-To-Peer Lending Platforms

These are platforms that allow you to buy cryptocurrencies like bitcoin directly from a dealer. Bitcoin is loaned to the buyer and payment is sent to the seller in a single transaction.

An example of a peer-to-peer lending platform that allows you to buy bitcoin with PayPal is XCOINS.

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

https://www.youtube.com/watch?v=WB370ewOklw

5 Ways To Buy Bitcoin With PayPal Instantly

There are 5 main platforms that will allow you to buy bitcoin with PayPal instantly and securely.

Etoro

eToro Logo

Rating:

Website:etoro.com
CEO:Yoni Assia
Headquarters:London, United Kingdom
Founders:David Ring, Ronen Assia, Yoni Assia
Founded:2007
Customer service:Knowledge Base

Established in 2007, Etoro is a real-time stock, ETF, currency, commodity and cryptocurrency social trading platform. It 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.

The Etoro app is available on both iOS and Android devices.

Pros

  • Diverse selection of markets
  • Excellent reputation
  • Easy to use
  • Great customer support
  • Low fees

Cons

  • Bitcoins can only be withdrawn in the form of fiat currency

Disclaimer: Transacting in virtual currencies is subject to various risks, such as price volatility, and is therefore not suitable for everyone. Your capital is at risk.


ReputationFeesPrivacyLimits
ExcellentLowHighHigh

Etoro Icon

The Etoro platform is regarded as one of the easiest ways to buy bitcoin with PayPal. While Etoro allows PayPal as a deposit method, buyers will neither be able to withdraw bitcoin to a wallet nor send them 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.

Etoro makes it easy to trade top stocks, currencies, cryptocurrencies and commodities commission-free.

The Etoro app is available on both iOS and Android devices.

Etoro Homepage

How To Use Etoro

To buy bitcoins on the Etoro platform follow these steps:

Step 1: Create an account with Etoro.

Step 2: Enable multi-factor authentication.

Step 3: Click “deposit” and select “deposit funds”.

Step 4: Select PayPal as the preferred payment method.

Step 5: Enter the desired deposit amount.

Step 6: Log in to your PayPal account to complete the deposit.

Step 7: Review the transaction details. If content with these, click “pay”.

Step 8: 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.


LocalBitcoins

LocalBitcoins Exchange Logo

Rating:

Website:localbitcoins.com
CEO:Sebastian Sonntag
Headquarters:Helsinki, Finland
Founders:Nicholas Kangas, Jeremias Kangas
Founded:2012
Customer service:Knowledge Base
More information:Read Review

LocalBitcoins is a person-to-person bitcoin trading platform that specializes in connecting buyers and sellers.

Pros

  • Available in every country of the world
  • Extremely diverse selection of buyers and sellers
  • Supports many payment methods
  • Buyers get their bitcoins fast
  • Private
  • Simple to use

Cons

  • Lack of cryptocurrency diversity
  • Both sellers and buyers have a chance of being scammed.

ReputationFeesPrivacyLimits
ExcellentLowHighHigh

Localbitcoins Logo

LocalBitcoins is a peer-to-peer marketplace that allows people to buy bitcoins with PayPal and many other payment methods.

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 on the risk of buyers potentially charging back. 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, so look for sellers that have good reputation and feedback scores.

LocalBitcoins Homepage

How To Use LocalBitcoins

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

Step 1: Create an account with LocalBitcoins.

Step 2: Sign up with your desired username and verify your profile.

Step 3: Enter your search parameters.

Step 4: Find a seller.

Step 5: Make your payment using PayPal.

Step 6: Wait for the seller to send your bitcoins.

Step 7: Receive your bitcoins.


Paxful

Paxful Logo

Rating

Website:paxful.com
CEO:Ray Youssef
Headquarters:New York, New York
Founders:Ray Youssef, Artur Schaback
Founded:2015
Customer service:Knowledge Base
More information:Read Review

Paxful is a person-to-person marketplace that supports over 300 payment methods.

Pros

  • Escrow system
  • Security
  • Diverse payment methods
  • Simple user interface (UI)
  • Wide variety of sellers

Cons

  • Buyers and sellers are at risk of being scammed

ReputationFeesPrivacyLimits
ExcellentLowHighHigh

Paxful Icon

Paxful is a peer-to-peer marketplace that works similarly to Localbitcoins and has an escrow system for buyers and sellers to trade securely. To buy bitcoin with PayPal on Paxful, a proposed buyer needs to have a verified USA PayPal account.

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

On Paxful, it is possible for you to buy bitcoin with PayPal with no verification required if you find a seller with the No Verification symbol on their offer.

Paxful Homepage

How To Use Paxful

To use this platform to buy bitcoin follow the following steps:

Step 1: Create an account with Paxful.

Step 2: Choose PayPal as the desired payment method and indicate your desired amount.

Step 3: Choose your seller. Typically the seller is chosen manually, or you can allow Paxful to select for you.

Step 4: Initiate the trade.

Step 5: The buyer and seller proceed to a chat where the trade agreement processes into an escrow.

Step 6: 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.


Wirex

Wirex App Logo
Rating:

Website:wirexapp.com
CEO:Pavel Matveev
Headquarters:London, United Kingdom
Founders:Dmitry Lazarichev, Pavel Matveev
Founded:2014
Customer service:Knowledge Base

Wirex is a debit card that automatically converts multiple crypto and fiat currencies at the point of sale, letting you seamlessly spend money from your Wirex account in real life, anytime, anywhere.

Once you add money to your Wirex account you can exchange between any of the currencies in-app or online, instantly.

Pros

  • Multiple funding methods
  • Ability to purchase bitcoin at market rate
  • Wallet and exchange

Cons

  • The initial lag time
  • Not supported in all countries

ReputationFeesPrivacyLimits
GreatLowHighHigh

Wirex Icon

Wirex is a debit card that automatically converts multiple crypto and fiat currencies at the point of sale, letting you seamlessly spend money from your Wirex account in real life, anytime, anywhere.

Once you add money to your Wirex account you can exchange between any of the currencies in-app or online, instantly.

You can fund your Wirex account using a credit or debit card, bank transfer or crypto. Wirex can also be linked to a third-party service such as Curve, Revolut, or Paypal.

Wirex Homepage

How To Use Wirex

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

Step 1: Create an account with Wirex.

Step 2: Verify the account. Once the account is verified, you will get a free virtual visa card. If you want a physical card, you can order one to be delivered to your home.

Step 3: 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.

Step 4: To purchase bitcoin with PayPal, deposit money from your PayPal account to your Wirex account. It could take between one to seven days before the deposit is complete.

Step 5: After crediting your Wirex virtual card, you can use Wirex to purchase bitcoin.


XCOINS

XCOINS Logo

Rating:

Website:xcoins.io
CEO:Sergey Nikitin
Headquarters:Santa Monica, California
Founders:Sergey Nikitin
Founded:2016
Customer service:Knowledge Base

XCOINS is a peer-to-peer lending platform on which buyers can buy bitcoins from sellers.

Pros

  • It entails a simple process
  • A fast way to acquire bitcoins

Cons

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

ReputationFeesPrivacyLimits
GoodHighHighHIgh

XCOINS Icon

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).

XCOINS Homepage

How To Use XCOINS

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

Step 1: Create an account with XCOINS.

Step 2: Verify your identity.

Step 3: Indicate the number of bitcoins you want to buy.

Step 4: Review the total cost of the transaction.

Step 5: Agree to the terms of the loan.

Step 6: You will be redirected to the lender’s PayPal page. Here, you enter your PayPal account details and make payment.

Step 7: Receive the bitcoins.


ExchangeFounding DateSupported Countries
Etoro2007Worldwide
LocalBitcoins2012Worldwide
Paxful2015Worldwide
Wirex2014Worldwide
XCOINS201640 countries

What Is PayPal’s Stance On Bitcoin?

PayPal does not classify bitcoin as a good or service and instead views it as a type of ecurrency.

In an effort to safeguard buyers and as a result of the numerous consumer protection policies in effect, PayPal does not allow for the direct sale or purchase of bitcoin.

The reason being is that due to buyer protection PayPal transactions are easily reversible, while the nature of bitcoin is that transactions can not be reversed even with a court order.

As a result, it is advised that sellers of bitcoin be very cautious when accepting PayPal as a payment method as you may be susceptible to chargebacks.

Where Can I Buy Bitcoin Using PayPal?

You can buy bitcoin using PayPal through any of the aforementioned trading platforms, peer-to-peer marketplaces, or peer-to-peer lending platforms.

Apps To Buy Bitcoin With PayPal Instantly

Etoro, Paxful, and Wirex have iOS and Android apps that you can download to buy bitcoin using PayPal as a funding method.

ExchangeDownload App
EtoroiOSAndroid
PaxfuliOS, Android
WirexiOS, Android

What Is The Fastest Way To Buy Bitcoin Using PayPal?

If you have a Wirex account, depositing money through PayPal into Wirex is a simple process and you can exchange fiat currency into any other cryptocurrency including bitcoin almost instantly.

Can I Buy Bitcoin With PayPal On Coinbase?

No, you can not. Coinbase will only allow you to deposit funds using a bank account, debit card or wire transfer.

Where Can I Convert Bitcoin To PayPal Instantly?

On Coinbase you can exchange your bitcoin into USD and withdraw to your linked PayPal account instantly.

Can I Buy Cryptos With PayPal?

A few of the exchanges above will allow you to buy cryptos with PayPal instantly. LocalBitcoins, Paxful, and XCOINS will only allow you to buy BTC using PayPal.

ExchangeSupported Cryptocurrencies
EtoroBTC, ETH, BCH, XRP, DASH, LTC, ETC, ADA, MIOTA, XLM, EOS, NEO, TRX, ZEC, XTZ
LocalBitcoinsBTC
PaxfulBTC
WirexBTC, LTC, XRP, ETH, WAVES, WLO, DAI, NANO, XLM, WXT
XCOINSBTC

If you want to purchase bitcoin and/or ethereum with PayPal you can also try out LocalCryptos (formerly known as LocalEthereum).

To Wrap It Up

Buying bitcoin with PayPal is not the most cost-effective means of purchasing bitcoin, but it is simple. If you would like to do this, compare the features of the different trading platforms available and use the gathered information to make the choice that is best for you.

Our Top Recommendation

9.6

Etoro

9.6/10