How to Buy Bitcoin with PayPal? The Best Methods Available
Paypal is a market leader when it comes to e-commerce and online payment services. It has been around for many years and offers its clients full security and transparency when it comes to their finances.
Quick Steps to Buy Bitcoin with Paypal
Register with a bitcoin CFD provider such as eToro
How to Buy Bitcoin with Paypal through CFD providers
Buying bitcoin through a CFD provider offers lots of advantages. Your money is considerably safer than if it were in an exchange, this is because they are regulated by governing bodies like the Financial Conduct Authority.
Buying bitcoin as a CFD also allows you to scale in and out of a position with ease. This is because the market is more liquid and allows traders and investors to enter and exit a the price they want to get. Sometimes, with exchanges you end up taking a worse price just to get into the market in the first place.
Another, but arguably the most important reason investors flock to CFD providers is because they do not have the limit exchanges do. If you were looking to invest a serious amount of cash into bitcoin via an exchange, you would be required to go through many checks before you can buy large amounts. by contrast, it is very quick and easy to deposit large sums into a brokerage and then immediately buy bitcoin.
Below are two examples of CFD providers we recommend:
Buy Bitcoin with Paypal through eToro
Paypal as a business much prefers companies that are regulated, which is understandable. It means that those companies can be held to account and must adhere to certain guidelines. eToro and Paypal have a healthy relationship and the process of buying bitcoin with paypal is made very easy.
As shown by the picture below, all you have to do is choose ‘PayPal’ as your payment method and decide how much you want to deposit. Other payment methods include credit, debit card and bank transfer.
This also allows you to withdraw your profit very easily and very quickly. it is unlikely but if you do bump into any difficulties, the customer support team at eToro is second to none. When you look at the customer care eToro offers versus most cryptocurrency exchanges, the difference is night and day.
Most exchanges in fact barely offer any support, which is why we do recommend eToro or other regulated brokers. Regulation means these companies must adhere to certain criteria and having good customer support can be a real benefit.
Buy Bitcoin with Paypal through AVA Trade
AVA Trade is another popular CFD platform that allows you to buy bitcoin with Paypal. The process if very simple.
You must open an AVA Trade account. Click ‘Open a Real Account’.
Then you must enter your details.
Once you have created an account you must verify your identity and answer various questions for AVA Trade to certify your account. All this is for security measures to make sure your account and money is safe.
You will then be able to log into your personal account and it will show you all the separate accounts you may have. As shown in the picture below, you can manage your live and demo accounts here.
To deposit funds using Paypal, simply click ‘Deposit’ and you will find yourself at a payments methods page. Choose Paypal, the amount you want to deposit and then click deposit. You will be redirected to a Paypal confirmation site where you will complete the deposit process.
Paypal and Coinbase have had a rocky relationship. When cryptocurrencies first came about, Paypal was very much involved in the purchase of bitcoin and other cryptocurrencies. However as there was more controversy surrounding bitcoin, including its legality and its ability to hide criminal activity, Paypal took a step back.
Currently you can only buy bitcoin with paypal instantly using Coinbase if you are a US citizen. It appears to be going well and Paypal plans to roll this out to other territories.
If you are not a US citizen, although you can link your Paypal account to Coinbase, you cannot actually buy bitcoin with Paypal, or litecoin or Ethereum for that matter. The only way you can can use Paypal is to exchange your bitcoin for a fiat currency and send it to your Paypal account.
This procedure is fairly simple, but once you have it converted back into fiat currency, it is just as easy to transfer back to your bank account.
If you are new to the world of crypto but are a fan of using your Paypal account, there may be various questions are want answering. Below we will use one sentence answers to clarify a few questions newbies often have.
Can you send bitcoin to paypal?
No, you must own a wallet to keep your bitcoins in and paypal does not have that functionality.
Can you buy bitcoin with paypal?
Yes, as highlighted above, Coinbase for US citizens and a few other exchanges do allow you to buy bitcoin with paypal.
Can you sell bitcoin to paypal?
No, paypal is a service that holds your fiat currency and does not hold any cryptocurrencies, including bitcoin.
Can you buy bitcoin from paypal?
No, again as above, paypal does not hold any bitcoin.
Can you convert bitcoin to USD using paypal?
No, you must use a cryptocurrency exchange to convert your bitcoin into USD.
Buy Bitcoin with Paypal in the US
Bitcoin Paypal – US Exchanges
As highlighted earlier in this page, it is possible to buy bitcoins in the US via paypal on Coinbase, however it is only available in the US. The plan is for Coinbase to role out this functionality across the world once they are happy with the pick up in the US.
Meaning that in the US, you can buy bitcoins on quite a few exchanges with paypal. Coinbase as mentioned and also Local Bitcoins, which is an ever growing exchange that matches a buyer and seller to exchange bitcoin in whatever way they please. Paypal being a popular method in these exchanges. For more information on Local Bitcoins, see the guide below.
Bitcoin Paypal – US CFDs
CFDs in the US are completely banned. Therefore you cannot buy bitcoin with paypal as a CFD in the US, until they change their laws around this investment vehicle, those in the US who intend to buy bitcoin as a CFD must have a proof of address outside the US.
Proof of addresses include utility bills, tenancy agreements and bank statements. If you are fortunate enough to be a US resident and also have a home outside of the US then it is possible. For the majority of us who do not have that luxury, you must buy bitcoin with paypal through exchanges like Coinbase and Local Bitcoins.
Exchanges that Allow You to Buy Bitcoin with Paypal
Before you begin, you must create a crypto wallet that will store your bitcoins once you have purchased them. You can do this by using the wallets the exchanges offer, or you can get specialized wallets that offer more features.
There are many reliable companies offering e-wallets, you just need to do a bit of research to find the one matching your needs. Or check out our wallet page!
We will now highlight a few exchanges that allow the purchase of bitcoin using paypal.
1) Buy Bitcoin with PayPal Through Local Bitcoins
It has variety of sellers from all around the world
High fees and increased counterparty risk
You can buy bitcoins from Local Bitcoins using your PayPal account. The company offers a platform to buyers and sellers to meet and trade. In order to buy bitcoins from Local Bitcoins platform, you need to locate a seller willing to sell you bitcoin by accepting payments from your PayPal account.
Sellers can charge a premium for using paypal because the chargeback issue lies with him. The good point is that bitcoins will be transferred to your account instantly.
There is also a sense of community with local bitcoins. This is because you can go back to old sellers you have purchased bitcoin from in the past and buy from them again. This is where trust is gained and ultimately what the blockchain is all about – a decentralized network that is based on trust.
Step-by-Step to Buying Bitcoin with Paypal through Local Bitcoins
Before you buy bitcoins through Local Bitcoin, you first must open a wallet. Once you have opened a wallet, you can then purchase bitcoins via Local bitcoin, you will then be required to send your wallet address to the seller, who can in turn send the bitcoins to your wallet.
Sign up for free, by clicking the ‘Sign Up Free’ button in the top right corner. You will then find a ‘Register New Account’ page where you must fill in the fields with your details.
Once you have created an account, you then must fill in the main fields on the home page. This includes how much you want to buy, what currency and via what payment method.
Local Bitcoin will then match you with a seller or a choice of sellers.
You then must choose who you want to purchase the bitcoins from. They may offer you different prices, and although we should recommend taking the lowest price, with market places like this, it is also advisable to go with sellers with the best reputations.
Once you have decided who to buy from. Click buy and you will be taken to a confirmations page.
Here you will be given instructions to buy bitcoin with paypal. As you can see in the example above, you must send the seller your Paypal email address, they will invoice you and you can pay the invoice via Paypal.
Once payment is complete, you must give the seller your bitcoin wallet address. They will send the purchased bitcoin to your wallet.
Wirex is known for offering its customers a facility of both physical and virtual bitcoin cards. The card works the same as that of any ordinary debit card and can be used with a PayPal account. To buy Bitcoins from Wirex, you need to undergo the following steps:
Order your virtual or physical debit card at Wirex.
Link your card with your PayPal account by verifying it.
You need to have at least $3 available on your card so that PayPal can charge you the verification fee.
You will then be allotted a four-digit code, it is used as a verification pin in PayPal.
Fund your PayPal account.
Transfer fund from PayPal to Wirex.
Purchase Bitcoins as you have the balance available in your Wirex card.
Please note that the whole process from requesting a Wirex card to PayPal account verification can take up to seven days. Patience is a virtue…
Paxful can be considered as a subsidiary or sister company of Wirex. Its operations are limited compared to Wirex. It offers a platform where you can buy bitcoin with PayPal as well as various other things including amazon gifts cards, and Skype credits. Buying Bitcoins at Paxful is also very easy.
All you need to do is:
Open an account with Paxful.
Select your payment method.
Enter the amount of bitcoin you buy using paypal.
Select the seller either manually or let Paxful choose it for you.
As soon as the trade is initiated, you and seller will be brought into contact to get your deal done. Bitcoins of the seller will be kept in escrow until your payment is made. After receiving the payment and approval from the sender you’ll receive your bitcoins there and then.
Please be aware, the deal has a time limit – 30 minutes. If it is not done during this time, it will be cancelled automatically.
Bitcoin VS PayPal
Bitcoin is a cryptocurrency whereas Paypal is a method used for transferring fiat currency from one account to other accounts. Bitcoin is stored on blockchain e-wallets whereas PayPal is not a currency itself rather it’s the name of an exchange.
How to Buy Bitcoin with PayPal? The Best Methods Available