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. With bitcoin making a name for itself recently, it is not surprising that we are beginning to see Paypal and bitcoin partner up.
Whether its buying bitcoin using Paypal or sending your fiat currency back into your Paypal account, it now is a viable option.
- 1 Digital Currency exchanges accepting PayPal
- 2 How to Buy Bitcoin with Paypal through CFD providers
- 3 Buy Bitcoin with Paypal in the US
- 4 U.S. Exchanges to Buy Bitcoin with Paypal
Digital Currency exchanges accepting PayPal
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.
How to Buy Bitcoin with Paypal through Coinbase Exchange
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. Buy Cryptocurrency with PayPal on Coinbase.
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 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.
U.S. Exchanges 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.
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.
Newbies and their ‘paypal bitcoin’ Questions
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.