How to buy Bitcoin with PayPal: A step-by-step guide

Bitcoin, also known as BTC is a universally recognized name. PayPal’s cryptocurrency services have introduced nearly 350 million users to Bitcoin, the fastest-growing asset class globally. Despite this, the crypto community’s response to PayPal’s move is mixed, ranging from optimism to criticism. This article explores the reasons behind these reactions and details the benefits and drawbacks of buying crypto on the PayPal platform. For those wondering how to buy Bitcoin with PayPal, a step-by-step.

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Why Buy Bitcoin with PayPal?

Commencing our guide on acquiring Bitcoin through PayPal, let’s delve into the factors contributing to the popularity of this payment method among cryptocurrency investors.

Enhanced Security:

PayPal provides a secure avenue for purchasing Bitcoin online, eliminating the need for investors to input credit card details on their chosen crypto exchange. The login process occurs through an encrypted pop-up box, shielding the email address and password from the crypto exchange’s view. Once logged in, payment details linked to the PayPal account streamline the Bitcoin purchase without exposing sensitive financial information.

Buyer Protection:

An additional layer of security is the Buyer Protection Scheme. In cases where issues arise with the crypto exchange, such as unexpected fees or non-receipt of Bitcoin, the PayPal Buyer Protection Scheme becomes instrumental. Investors can reclaim their funds by initiating a claim within 60 days of payment. PayPal investigates the transaction, freezes funds from the exchange’s e-wallet account, and, if deemed valid, refunds the money to the buyer.

Swift Deposits:

Speed is another advantage of using PayPal for Bitcoin transactions, with transactions processed instantly, mirroring the efficiency of debit/credit card transactions.

KYC Requirement:

While possessing a verified PayPal account, undergoing the KYC (Know Your Customer) process remains mandatory for crypto exchanges handling fiat money payments. Fortunately, many exchanges employ an automated KYC procedure, ensuring prompt verification of uploaded documents.

Efficient Withdrawals:

PayPal facilitates rapid fund withdrawals from a crypto exchange. Once approved, funds leave the PayPal account instantly, reaching the buyer’s PayPal account within seconds. This speed is unparalleled compared to debit/credit cards or bank account withdrawals, which involve multiple financial institutions and payment networks, causing delays.

Withdrawal Duration to Bank Account:

Standard PayPal withdrawals typically take one business day to reach US bank accounts, but the process may extend up to five business days. Clients in the US can expedite withdrawals through Instant Transfer, albeit incurring a 1.75% charge on the withdrawal amount.

Cost-Effective Transactions:


While fees for PayPal deposits on crypto exchanges often rival those of debit/credit cards due to charge back risks, some platforms offer low or zero fees. Notably, eToro provides free PayPal deposits and withdrawals, with the only condition being that transfers are made in US dollars. Transactions in other currencies incur a small FX fee of 0.5%.

In conclusion, utilizing PayPal for Bitcoin transactions not only ensures security and buyer protection but also offers expedited processes and cost-effective options, making it a preferred choice for many investors.

How to buy Bitcoin with PayPal directly

If you’re looking to purchase crypto using PayPal, the process is straightforward. Start by logging into your PayPal account and ensuring you have funds available, which may involve linking credit/debit cards or a bank account.

Given the stringent regulations in the crypto space, PayPal mandates Know Your Customer (KYC) verification. This entails submitting identity documents such as a driver’s license, along with proof of address. Users are also required to submit a W-9 tax form.

It’s worth noting that these requirements align with those of other exchanges, as they aim to comply with KYC and Anti-Money Laundering (AML) measures. Fulfilling these procedures can offer benefits, including lifting daily withdrawal limits.

Before diving in, it’s essential for PayPal users to research both exchange and PayPal requirements. Comparing these can be a wise move when venturing into cryptocurrency investments.

Prior to making crypto purchases with your PayPal account, it’s advisable to weigh the pros and cons of buying Bitcoin on the PayPal platform. This ensures a well-informed and strategic approach to your investment journey.

Low risk, very high maximum limitsOnly the US is currently supported for crypto withdrawals
In October 2020, PayPal rolled out direct purchases of Bitcoin (and three other cryptocurrencies) within the PayPal digital wallet through a partnership with Paxos.
This allows users to hold and sell Bitcoin purchased through the service, as well as use them to pay PayPal-supported merchants. As of June 2022, PayPal also allows users to withdraw their coins into third-party wallets for personal storage or wider use throughout the ecosystem. It’s worth mentioning that this option is currently only available for US users, with more countries due to be added over time.
Maximum purchase limits are $100,000 per week with no annual limit, while weekly withdrawal limits max out at $10,000. Fees vary from between 0.49 USD to 1.80%, depending on the size of your transaction.

How to buy Bitcoin on crypto exchanges using PayPal

Are you still on the lookout for the optimal platform to purchase Bitcoin using PayPal? It’s crucial to assess key metrics such as fees, minimum deposits, processing times, and trading commissions. In this review, we’ll explore the top cryptocurrency exchanges for buying Bitcoin with PayPal in 2024.

1. eToro – The Ultimate Platform for Bitcoin Purchase with PayPal:


When considering fees, safety, and user-friendliness, eToro emerges as the leading choice for buying Bitcoin with PayPal. Opening an eToro account and completing the KYC process takes just five minutes. Subsequently, investors can swiftly deposit funds via PayPal, with a minimal deposit requirement of $10 for US and UK investors, while other countries have a slightly elevated minimum of $50.

In terms of fees, eToro offers free PayPal deposits in US dollars. However, if another currency is utilized, such as British pounds or euros, a modest FX fee of 0.5% is applied to the deposit amount. The process is seamless, with instant processing of PayPal deposits. Users authenticate their payments by entering login details through an encrypted PayPal box.

To finalize the transaction, investors can utilize their eToro balance to purchase Bitcoin, with a minimum trade size of just $10. For Bitcoin and other supported cryptocurrencies, eToro imposes a 1% fee per transaction. The platform extends its support to various altcoins like Litecoin, BNB, and XRP, along with notable ERC20 tokens such as Uniswap, SushiSwap, Shiba Inu, and Decentraland.

This diversity allows eToro users to build a well-rounded portfolio even on a budget. Beginners may opt for eToro’s smart portfolios, managed professionally and requiring a minimum investment of $500 with no additional fees. The copy trading feature, where investors can mirror successful cryptocurrency traders’ positions automatically, requires a minimum investment of $200. eToro also provides an excellent crypto wallet for beginners, available as a web wallet or mobile app, offering custodial storage to ensure the safety of client cryptocurrencies.

eToro’s wallets incorporate two-factor authentication for added security, and the platform itself is regulated by multiple authorities, including ASIC, CySEC, FINRA, FCA, and GFSC. Operating since 2007, eToro boasts over 30 million users and offers 24/5 customer support through live chat.

Pros of eToro:

  • Best platform for purchasing Bitcoin with PayPal
  • Fee-free PayPal payments for US clients (0.5% for other nationalities)
  • Instant processing of PayPal deposits
  • Low minimum PayPal deposit of $10
  • Diverse range of cryptocurrencies, including Bitcoin and 90+ others
  • Established provider with regulatory licenses in five countries
  • Smart portfolio and copy trading tools for passive investing.

Cons :

  • Trading commission of 1% is higher than other crypto exchanges

2. Coinbase – User-Friendly Cryptocurrency Exchange with PayPal Support:


Coinbase stands out as a well-known cryptocurrency exchange that facilitates PayPal payments, making it an attractive option for beginners. Despite its user-friendly interface, regulatory compliance, and robust security measures, it’s worth noting that Coinbase tends to be on the pricier side in the market. The cost of buying Bitcoin with PayPal on Coinbase is 3.99%, mirroring the fees associated with debit/credit card transactions.

Additionally, selling Bitcoin and converting it back to US dollars incurs a fee of 1.49%. Despite these costs, Coinbase provides a secure and reputable avenue for purchasing Bitcoin through PayPal. The platform is regulated in the United States and is publicly listed on the NASDAQ exchange. Security measures are top-notch, featuring institutional-grade tools such as IP and device whitelisting, along with the added layer of two-factor authentication.

Coinbase streamlines the Bitcoin investment process, typically taking less than 10 minutes from start to finish, including the KYC (Know Your Customer) verification process, which is instantly completed. Coinbase is also conducive to building a diversified cryptocurrency portfolio, supporting over 100 different cryptocurrencies. This extensive list includes popular altcoins like Ethereum, Litecoin, Uniswap, and Dogecoin.

Pros of Coinbase:

  • Purchase Bitcoin with PayPal in under 10 minutes
  • Established and regulated exchange launched in 2012
  • Strong commitment to security and safety
  • Particularly suitable for beginners entering the Bitcoin market for the first time.

3. Kraken – Swift PayPal Transactions with a 2.4% Transaction Fee:


Kraken stands out as a prominent platform that enables users to swiftly purchase Bitcoin using a PayPal account. Originating in 2011, this popular trading platform introduced its proprietary crypto exchange in 2013 and has since evolved to support over 220 cryptocurrencies, offering diverse payment options and opportunities for leverage trading.

While Kraken has recently integrated PayPal as a payment method, this feature is currently exclusive to the mobile application. Members from the United Kingdom and most European countries can leverage PayPal for transactions, albeit with a 2.4% fee per transaction.

Kraken facilitates daily transfers of up to $1,000 through PayPal. In addition to Bitcoin, the platform supports major cryptocurrencies such as Ethereum, USDT, Solana, and Cardano. For users opting for the Kraken Pro platform, crypto trading commences with a fee of just 0.26% per transaction, with this fee decreasing as the 30-day trading volume increases.

Instant crypto purchases, however, come with a higher fee. The standard Kraken account imposes a 1.5% instant fee on cryptocurrencies and a 0.9% fee when trading stablecoins.

The platform extends support for up to 5x leverage trading for retail clients, with even higher leverage available to select users. Kraken prides itself on being a secure exchange, notable for never experiencing a security breach or hacking incident. With 95% of assets stored in cold storage, and the implementation of Anti-Money Laundering (AML) and two-factor authentication (2FA) features, Kraken ensures the protection of user assets.

Pros of Kraken:

  • Supports near-instant PayPal deposits
  • Utilizes 2FA and AML security features
  • No history of security breaches or hacks
  • Extensive support for over 220 cryptocurrencies
  • Low fees with the Kraken Pro account.

Cons of Kraken:

  • Higher fees associated with instant buying/selling.

4. – Swift PayPal Deposits with a 2.1% Fee:

how-to-buy-bitcoin-with-paypal-cryptocom emerges as a top-tier platform for those seeking to purchase Bitcoin through PayPal. To commence, users must initiate the process by opening a account and downloading the app on iOS or Android. It’s important to note that PayPal payments are exclusively supported through the app, not the primary desktop exchange. Following a brief Know Your Customer (KYC) process, PayPal deposits become instantly accessible.

While the procedure is efficient and secure, it’s essential to be aware that fees are slightly higher compared to eToro, standing at 2.1%. This translates to a fee of $21 for every $1,000 deposited. Once the deposit reflects in the account, users can seamlessly proceed to buy Bitcoin. Notably, imposes trading commissions of just 0.075%, which we found to be one of the lowest in the market.

Upon completing the Bitcoin purchase, users have various options to manage their holdings. Some investors opt to retain their BTC tokens in their primary wallet. For those inclined towards non-custodial wallets, the DeFi app offers a solution, providing users with full control over their private keys. Additionally, some investors choose to deposit BTC tokens into a savings account, although the current annual yields are capped at 1.5%.

Pros of

  • Instant Bitcoin purchase with PayPal post KYC completion
  • Low 0.075% commission for Bitcoin purchases after deposit
  • Supports 250+ other cryptocurrencies
  • Offers a choice between custodial or non-custodial wallet apps

Cons of

  • PayPal deposit fees of 2.1% are slightly higher compared to other exchanges
  • Exclusive availability of PayPal payments through the app.

5. Bitstamp – Well-Established Bitcoin Exchange Offering 0% Commission on Initial $1,000 Traded:


Entering the spotlight is Bitstamp, recognized as one of the long standing Bitcoin exchanges since its launch in 2011. Bitstamp boasts support for a multitude of cryptocurrencies, including Bitcoin, Ethereum, Dogecoin, Solana, and Litecoin. The fee structure at Bitstamp varies depending on the chosen payment method, with ACH transfers incurring no fees while PayPal deposits and debit/credit card transactions come with a 4% charge.

However, Bitstamp compensates for this by providing highly competitive trading commissions. Notably, there are no commissions on trades totaling under $1,000 per month, significantly reducing overall costs for those engaging in smaller transactions. It’s essential to note that a 0.4% commission is applied once monthly trading volumes surpass $1,000.

Bitstamp is accessible through standard desktop browsers and a native mobile app, catering to both iOS and Android users. Security is a priority, with Bitstamp storing 95% of client-owned digital assets in cold storage wallets. Users can also enhance security by whitelisting their devices. For seasoned traders seeking advanced tools, Bitstamp offers a ‘Pro’ platform.

Pros of Bitstamp:

  • Supports PayPal deposits, along with debit/credit cards
  • Established presence since 2011
  • Zero trading fees on monthly volumes under $1,000
  • 95% of client-owned digital assets securely stored in cold storage

Cons of Bitstamp:

  • PayPal fees amount to 4%
  • Experienced a security breach in 2015.

6. How to Buy Crypto with PayPal in Bybit

How to Buy Bitcoin with PayPal in bybit

Embarking on the journey of investing in cryptocurrencies like Bitcoin and Ethereum through your PayPal account can be a savvy and secure strategy, particularly when utilizing a reputable global exchange such as Bybit. The integration of PayPal into the platform simplifies the investment process, making it more accessible than ever to explore a diverse range of over 350 crypto assets while keeping transaction fees at a minimum.

Here’s a straightforward guide to kickstart your cryptocurrency investment journey on Bybit:

  1. Sign up for Bybit and Complete Account Verification:
    • Begin by signing up for an account on the Bybit platform.
    • Follow the verification process to ensure the security and legitimacy of your account.
  2. Choose the ‘Buy Crypto’ Option and Explore P2P Trades for Deposits:
    • Navigate to the ‘Buy Crypto’ section within the Bybit platform.
    • Explore the P2P (Peer-to-Peer) Trades option, providing a seamless method for depositing funds.
  3. Select Currency and Opt for ‘PayPal’ as Your Payment Method:
    • Choose the specific currency you wish to deposit into your Bybit account.
    • Opt for ‘PayPal’ as your preferred payment method, leveraging its convenience and ease of use.
  4. Identify and Execute Your Crypto Trade on Bybit:
    • Explore the diverse array of crypto assets available on Bybit.
    • Identify the specific cryptocurrency you want to invest in and proceed to execute your trade seamlessly on the platform.

Bybit’s user-friendly interface and the integration of PayPal create a streamlined and efficient experience for investors, whether they are beginners or seasoned traders. This approach empowers individuals to explore the dynamic world of cryptocurrencies with confidence.

How To Buy Bitcoin Via PayPal At Paxful?

If you’re eager to delve into the realm of Bitcoin and prefer using PayPal as your gateway, Paxful emerges as a viable platform offering a peer-to-peer marketplace experience. Let’s explore the pros and cons of venturing into the world of Bitcoin through Paxful:


  • Diverse Seller Pool: Paxful boasts a broad array of sellers hailing from different corners of the globe, providing users with an extensive range of options.


  • Suboptimal Exchange Rates: Users may encounter less favorable exchange rates on Paxful compared to other platforms.
  • Increased Risk: Dealing with individual sellers introduces an additional layer of risk to the transaction process.

Now, let’s walk through the steps on how to effectively utilize Paxful for your Bitcoin endeavors:

How to Use Paxful:

  1. Account Creation:
    • Commence your Paxful journey by creating an account on the platform. This is the initial step towards unlocking the potential of Bitcoin transactions.
  2. Identity Verification:
    • Elevate the security of your account by completing the identity verification process, ensuring a trustworthy and legitimate user experience.
  3. Select Payment Method and Amount:
    • Tailor your experience by choosing a preferred payment method for your Bitcoin purchase and specifying the desired amount.
  4. Choose Your Seller:
    • Opt for a seller based on your preferences. You have the flexibility to manually select a seller or allow Paxful’s algorithm to determine the best match for your transaction.

Once you’ve initiated the trade, the actual transaction process unfolds:

  • Online Chat and Deal Finalization: Engage in an online chat with the selected seller to finalize the deal. The seller’s bitcoins are secured in escrow, and upon confirming your payment, they are released into your account.

It’s imperative to note that timely completion is crucial. Failure to finalize the deal within the stipulated time frame, typically 30 minutes, may result in automatic cancellation.

Purchasing Bitcoin Through PayPal vs. Acquiring Bitcoin Using PayPal on Cryptocurrency Exchanges

Now that we’ve delved into the limitations of purchasing Bitcoin directly on PayPal, let’s explore the advantages of opting for a cryptocurrency exchange instead.

Comprehensive Trading Tools:

Cryptocurrency exchanges provide a myriad of trading tools, surpassing what PayPal offers. Beyond live pricing charts, these platforms typically include robust analysis tools, such as technical indicators. This empowers investors with valuable insights to make well-informed decisions when buying or selling Bitcoin.

Passive Investment Features:

Unlike PayPal, which primarily facilitates buying, storing, and selling of Bitcoin, crypto exchanges like eToro offer passive trading tools. For instance, eToro’s smart portfolios enable investors to diversify across a wide range of cryptocurrencies with just one trade. Additionally, the copy trading feature allows users to mimic the trades of experienced investors, automating their portfolio management.

Extensive Cryptocurrency Variety:

While PayPal provides access to a limited selection of four cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and Bitcoin Cash, crypto exchanges offer a much broader range. For instance, eToro supports over 90 cryptocurrencies, including popular options like Shiba Inu, Dogecoin, Cardano, and Solana. Platforms like and Binance go even further, supporting over 250 and 350 cryptocurrencies, respectively.

Leveraged Products:

Experienced traders seeking advanced strategies will find that many crypto exchanges provide access to leveraged products. Binance, for example, supports leveraged futures and options markets. eToro offers crypto CFDs with leverage up to 1:2 for eligible clients. In contrast, PayPal solely offers basic spot trading services without margin or leverage.

In essence, choosing a cryptocurrency exchange over PayPal opens the door to a richer array of tools, investment features, a wider variety of cryptocurrencies, and the option for leveraged products for those with the expertise to navigate them.

Final Thoughts – How to Buy Bitcoin with PayPal

The seamless integration of PayPal with leading exchanges such as Coinbase has revolutionized the process of purchasing Bitcoin, making it more accessible and user-friendly. Leveraging the trusted reputation and wide spread acceptance of PayPal adds a layer of convenience and security to the realm of cryptocurrency transactions. This notable advancement not only signifies a pivotal stride toward mainstream adoption but also lays the foundation for a crypto landscape that is more inclusive and accommodating to users, regardless of their level of expertise in the digital asset space.

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