How to Buy Bitcoin with PayPal

This guide covers how to buy BTC using PayPal…

Updated: May 18, 2024
Matt Crabtree

Written By

Matt Crabtree

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Many people are anticipating a new crypto bull run — particularly as fiat currencies continue to weaken and CBCDs over-restrict privacy. People will want alternative ways to store and spend cash. 

Through the PayPal digital wallet, users may buy Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. In the near future, Brits can use cryptocurrencies to make purchases at any of the 26 million participating retailers. At the register, your money will be exchanged into fiat currency automatically, no different to paying in cash.

In this guide, we give you instructions on how to prepare early. We show you how to purchase bitcoin with PayPal.

How to Buy Bitcoin using PayPal: Is it Allowed in The UK?

  • Yes. The UK was the first country — outside of the US — to allow PayPal customers to buy, sell, and hold Bitcoin. 
  • PayPal has expanded its Venmo social payments service to include support for purchasing cryptocurrencies. 
  • You can convert your cash balances into digital tokens and pay at selected counters using your balance.
FeaturesPayPalCoinbaseBinance
Acquire, sell, and hold cryptocurrency
Fraud prevention
Bitcoin receiving address
Bitcoin transfer private key
Bitcoin alternatives: hundreds
Move cryptocurrency to other users/accounts
Buy Bitcoin-based products and services online
Bitcoin anonymous payments

Crypto purchasing has already proven to be a popular choice among PayPal customers, helping to boost the payments service to record levels in the first quarter of 2021 up to 2023.

How can you get started? In this comprehensive guide, we cover things you should know about how to buy bitcoin with PayPal before withdrawing investment cash from your digital bank account

2023 Update…

Priorities vary from trader to trader, and those differences often dictate the approach used.

In 2020 November, PayPal stated that all US account holders may use the service to buy and sell Bitcoin and other cryptocurrencies. Its statement in October 2020 that it will provide cryptocurrency trading options through a collaboration with Paxos Crypto Brokerage set the stage for the current development.

In 2023, UK PayPal customers can now also use the service to purchase Bitcoin and other cryptocurrencies without ever leaving the site. Rollout to “certain foreign markets” started years ago, in the first part of 2021.

Bitcoins purchased with PayPal can only be used inside the PayPal platform. They announced that all of their clients who qualify may use their PayPal accounts to purchase, store, and trade #Cryptocurrency. There are spending caps of around £20,000.

Through the PayPal digital wallet, users may buy Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. In the near future, Americans may use cryptocurrencies to make purchases at any of the 26 million participating retailers. At the register, your money will be exchanged into fiat currency. 

Your Buy Bitcoin PayPal Buying Guide… 

Let’s continue our how to purchase bitcoin with PayPal guide with the key steps needed, from start to finish. I’ve included a few images too.  

PayPal - Account

1. Account

You'll need a PayPal account first and foremost. You may create one at PayPal.com using a bank or credit card account and an email address if you don't already have one.

Pull your credit card out of your wallet and invest in some Bitcoin right this second. In general, utilising either the PayPal website or the PayPal app will provide quite comparable results, but we'll be using the website throughout this tutorial.

Cryptocurrency - PayPal

To buy Bitcoin and other cryptocurrencies, tap the “Buy Bitcoin and more” banner on the app's main screen (the “Payments” screen).

2. Currency

Secondly, choose which digital currency you want to get. PayPal now supports Bitcoin, Ethereum, Bitcoin Cash, and Litecoin as purchase and sale alternatives.

In addition, PayPal has given informational tools for getting started with cryptocurrencies, including a rundown of the dangers you should be aware of.

Buy Crypto - PayPal

You may buy Bitcoin in increments of a predetermined amount, or you can touch “Buy” to enter an amount manually. Users may purchase Bitcoin in increments as little as one dollar and as high as one hundred thousand dollars every week.

If you scroll down below the “Buy” button, you'll get a short explanation of the item being bought.

3. Verification

First, you'll need to verify certain details and agree to PayPal's Terms and Conditions for Cryptocurrencies before proceeding… The next step is making a Bitcoin purchase.

Buy Bitcoin - PayPal

To purchase £10 worth, type in that amount. With this useful notice, we learn that the Bitcoin price fluctuates based on the time of purchase: This spread-inclusive exchange rate is updated often until a purchase or sale is made. In order to go to the next screen, click Next.

It displays the bank account or credit/debit card linked to your PayPal account. More payment methods and bank accounts may be added now. After clicking “Next”, take a moment to go over your order.

For business-to-consumer transactions, PayPal's transaction fees are competitive: 1.5% of transactions above £1,000, or a maximum of 50 cents, apply. When you're ready to make a purchase, click the “Buy Now” button.

Review and Buy

After the transaction has been completed, your account will be credited with the acquired cryptocurrency at the then-current market price.

4. Selling

When you go back to the main website, you may see the Bitcoin you just bought listed under “crypto”, along with the option to buy or sell it. When a user sells cryptocurrency using the PayPal app or website, the funds are converted to fiat cash and deposited into their Cash Account.

To help consumers estimate any possible costs, PayPal has included a fee chart and a conversion spread.

5. Wallets 

Initially, PayPal only allowed traders to purchase, sell, and keep cryptocurrency. As Bitcoin is predicated on the premise that its holders are their own banks, several Bitcoin proponents have argued that PayPal's crypto features run counter to Bitcoin's core principles. 

With the announcement in May 2021 that it will begin supporting alternative wallets, PayPal has now changed its position.

However, this functionality has not yet been enabled, therefore for now, you cannot withdraw cryptocurrency from your PayPal digital wallet for any purpose other than making purchases (at which point your cryptocurrency will be converted into a fiat currency).

There are currently few places you may use PayPal to purchase Bitcoin from in order to keep complete ownership of your Bitcoins. This includes places like exchanges. Like with other credit firms, customers may dispute fraudulent purchases by requesting a chargeback.

It thus becomes possible for a buyer to make up a dispute, get their money back, and yet obtain the Bitcoin they purchased. As Bitcoin transactions are anonymous, credit agencies like PayPal have no means to confirm whether or not a claim is legitimate.

Since Bitcoin transactions cannot be reversed, a false chargeback would result in the buyer keeping the Bitcoin and the seller getting nothing. There are ways around PayPal's restrictions for people who want to purchase Bitcoin through the service yet keep their currency liquid.

Alternative Ways to Buy Bitcoin with PayPal

At the beginning, you need a PayPal account (obviously). A Bitcoin wallet, which may be either software or hardware, is a place where one can keep one's Bitcoin public and private keys in order to transmit and receive Bitcoin and other cryptocurrencies. (Some online banks also let you trade stocks.) 

When it comes to using PayPal to purchase bitcoin, you have a few alternatives. In April 2021, Coinbase announced that PayPal-linked cards will be accepted for cryptocurrency purchases by U.S. clients.

Just log into Coinbase, choose the cryptocurrency you want to buy, touch “add payment option” inside the Coinbase app, and then choose PayPal as your payment method. After signing in to your PayPal account, you will have the option to add a debit card or bank account.

Bitcoin Purchases Made Easier With Coinbase & PayPal

According to a release statement, Coinbase now accepts debit cards and bank accounts connected to PayPal from consumers in the UK. The acquisition of cryptocurrency ought to be quick and straightforward. 

Top Exchanges to Buy Bitcoin

For the full list, have a read of our best crypto and bitcoin trading platforms. But we’ve also made a fast rundown below: 

1. Coinbase 

Coinbase is a cryptocurrency exchange that doesn't receive nearly enough attention. They provide wallet services that are commensurate with their high quality crypto assets.

Add in the fact that there is no required initial investment and the fees are competitive, and you have a winning formula.

Coinbase may be used with over 500 different cryptocurrencies.

Every single trader who signs up will have access to the industry's greatest names and much more. Currency and withdrawal costs are applicable, however they are reasonable and in line with those of similar sites.

Coinbase's ability to schedule automated purchases and sales of cryptocurrency and other assets is a major selling point. This is one-of-a-kind because you may tailor the frequency of automatic purchases to suit your needs, such as weekly, monthly, or never.

2. Uphold

Uphold is an excellent option to consider if you need a crypto exchange with a wide variety of coins to trade. There is a wide variety of cryptocurrencies to choose from, and the trading commissions are a very cheap 0%.

You may use the platform's crypto features with confidence thanks to the built-in cryptocurrency wallet.

You won't need a plethora of gadgets or applications to get things done. That they provide other investing options is a plus. Uphold is a cryptocurrency exchange that also provides access to more than 150 other digital currencies and forex.

Despite their diversity, they are an excellent starting point for newcomers. Both resources and data are easily accessible. Since they have over 2 million clients, they must be doing something right.

As well as exchanges, you can use P2P exchanges like Local Bitcoins and Paxful. These match up sellers and buyers directly. Those exchanges also let sellers make their own exchange rates and payment routes. Not every seller lets you use PayPal, but you’re able to filter according to payment method to find one who does.

The Use of Public and Private Keys

Owning digital money (in the full meaning of the phrase) necessitates two things that are unavailable via PayPal. 

Private key 

A private key is a key that is produced exclusively for your use, and may be stored in a crypto exchange account, a hot digital wallet, or a cold hardware wallet. You can get this key back using certain backup security measures if you lose it.

You'll also be required to create and keep in secret a 12-word passcode. If you are unable to provide this secondary form of protection, you will lose access to your private key and any digital money associated with it.

Public address

Location open to the public for doing business: It's now possible to take Bitcoin as payment for any service you're offering. Holding private keys and public addresses is preferred by certain investors and cryptocurrency holders. Nonetheless, we recognise that many newcomers and long-term holders would rather have PayPal handle this for them.

How to Buy Bitcoin with PayPal — Summary

Should I buy Bitcoin using PayPal? We've come to the end of our journey, therefore the decision is yours to make. It can be cashed out rapidly for use in making online payments, but that's about all it can be used for.

PayPal is an option if you don't want to deal with sending and receiving Bitcoin or investing in lesser-known cryptocurrencies. Rather than risking falling victim to fraud, scams, or shady activities, PayPal makes it possible to purchase, trade, and profit off of the value of cryptocurrencies without leaving your financial information exposed.

Although PayPal doesn't provide the anonymity that some cryptocurrency traders need, it does provide peace of mind. If you have faith in the digital banking software, your cryptocurrency is secure since they have access to your private keys. If your private keys have been compromised due to fraud or theft, you will never see your cryptocurrency again.

Today, investors need to think outside of the box. Find bonds and other assets to trade, adding even more diversity like high-value website traffic to your growing portfolio.

Related Guides:

FAQs

Why don’t more marketplaces accept PayPal?

What are derivatives?

Can you use PayPal to buy Bitcoin?

Can you send Bitcoin to a PayPal account?

Where can you purchase Bitcoin?

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