PayPal Holdings Inc. allows users to buy Bitcoin (BTC), and it’s a good time to consider purchasing Bitcoin because of its potential for growth, historical performance, finite supply, institutional interest, fractional ownership options and its role as a hedge against inflation.
How to Buy Bitcoin With Paypal: Step-by-step Guide
Here's a step-by-step guide to buying Bitcoin with PayPal:
- Open the PayPal app or access your PayPal account on a desktop or mobile device.
- Navigate to the "Crypto" section in the app or dashboard.
- Select "Bitcoin" or the desired cryptocurrency from the available options.
- Click on the "Buy" button.
- Enter the desired amount of Bitcoin you want to purchase.
- Verify your identity as prompted by PayPal's verification process.
- Select your preferred payment method.
- Review and confirm the purchase.
- Complete the transaction using the funds available in your PayPal balance.
Keep in mind that the availability and functionality of buying Bitcoin with PayPal may vary based on your country, jurisdiction and PayPal's terms and conditions. Be sure to review the details provided by PayPal regarding buying and selling cryptocurrencies. Additionally, consider using popular trading platforms and services that support buying Bitcoin with PayPal, such as peer-to-peer platforms, cryptocurrency exchanges, payment services and Bitcoin debit card providers.
Pros and Cons of Using PayPal to Buy Bitcoin
When considering using PayPal to buy Bitcoin, it's important to weigh the pros and cons.
Here are some key points to consider:
Pros:
- Familiar platform: PayPal is a widely recognized and familiar platform for many users, making it convenient to buy Bitcoin.
- Quick transactions: Transactions with PayPal are often quick, allowing for swift purchases of Bitcoin.
- Security: PayPal is known for its high level of security, providing users with a safe environment for financial transactions.
- Availability: PayPal is widely available and accepted, making it accessible to a large number of users.
- Ease of use: PayPal offers a user-friendly interface, simplifying the process of buying Bitcoin for beginners.
Cons:
- High fees: PayPal transactions may incur higher fees compared to other payment methods, impacting the overall cost of buying Bitcoin.
- Limited acceptance: Not all cryptocurrency exchanges accept PayPal as a payment method, limiting the options for purchasing Bitcoin.
- Risk of chargebacks: There is a high risk of chargebacks when buying Bitcoin with PayPal, potentially leading to disputes and transaction reversals.
- Strict crypto policy: PayPal has strict policies regarding cryptocurrency transactions, which may restrict certain activities or transactions.
Considering these factors can help you make informed decisions and ensure a smooth and secure transaction process when using PayPal to buy Bitcoin.
How to Buy Bitcoin with PayPal through Coinbase
To buy Bitcoin with PayPal through Coinbase, follow these steps:
- Create a Coinbase account: If you don't already have one, sign up for a Coinbase account. Coinbase is a trusted cryptocurrency exchange where users can buy and sell various cryptocurrencies, including Bitcoin.
- Link your PayPal account: Access the Coinbase platform and navigate to the "Payment Methods" section. Add your PayPal account as a payment option on the platform.
- Verify your identity: Coinbase may require you to verify your identity for security purposes. Follow the prompts to complete the verification process.
- Select Bitcoin: In the "Buy/Sell" section of Coinbase, choose Bitcoin as the cryptocurrency you want to purchase.
- Enter the amount: Input the amount of Bitcoin you wish to buy. You can also select one of the precalculated suggestions provided by Coinbase.
- Choose PayPal as the payment method: Select PayPal as your preferred payment method and log in to your PayPal account to link it to your Coinbase account.
- Confirm the purchase: Review the details of your purchase, including the amount and fees, and confirm the transaction.
The maximum daily limit for buying Bitcoin with PayPal on Coinbase is $25,000. Fees for using PayPal to make a debit card purchase on Coinbase are 4% of each trade, while bank deposits via PayPal cost 2.5%.
How to Buy Bitcoin with PayPal through eToro
To buy Bitcoin with PayPal through eToro, follow these steps:
- Create an eToro account: Sign up for an eToro account if you don't already have one. eToro is a trusted cryptocurrency exchange where users can buy and sell various cryptocurrencies, including Bitcoin.
- Log in to your eToro account: Once you've created your eToro account, log in using your credentials.
- Navigate to the cryptocurrency page: Find the cryptocurrency page on the eToro platform and select Bitcoin, or use the search bar to locate it.
- Open a trade: Click on the "Trade" button to initiate a new trade for Bitcoin. Note that eToro is a multiasset trading platform and does not function as a traditional crypto exchange, so you can only trade cryptocurrencies on the platform.
- Set your trade parameters: In the trade window, specify your desired trade parameters, such as the amount of Bitcoin you wish to buy and any stop-loss or take-profit orders.
- Confirm the trade: Review the details of your trade and confirm it. You'll receive a notification once the trade is open.
- Fund your account with PayPal: If you haven't funded your account already, you can fund your eToro account using PayPal as the payment method.
- Complete the transaction: Click on the "Deposit" button, select the desired amount, and choose PayPal as the payment method.
It's important to note that while eToro doesn't charge a transaction fee for opening a trade, it may impose other fees for holding or transferring your Bitcoin.
How to Buy Bitcoin with PayPal through Kraken
To fund your Kraken account with PayPal via the Kraken app, follow these steps:
- Open the Kraken app and tap the “Action” icon in the bottom navigation bar.
- Select "Deposit."
- Search for the currency you wish to deposit (EUR or GBP) and select it.
- If your PayPal account is not yet connected to Kraken, you will be redirected to sign into your PayPal account.
- On your PayPal account, click "Save and Continue" to connect your account to Kraken.
- Once your PayPal account is connected to Kraken, select it as a deposit method on the “Deposit Method” screen and enter the amount you wish to deposit.
- Review the deposit information and swipe to deposit.
- To buy Bitcoin, you can then launch the app and log in to your account (if not already logged in). Once logged in, you should navigate to the Bitcoin option and tap "Buy." From there, you can enter the desired amount you wish to spend in Tether (USDT) to purchase Bitcoin.
Kraken also offers the option to trade Bitcoin for fiat currencies and other cryptocurrencies. With deep liquidity and instant trades available on over 200 Bitcoin trading pairs, Kraken provides users with a comprehensive platform for cryptocurrency trading and investment.
When you deposit money from PayPal to your Kraken account, it usually happens right away. Once the money is in your account, you can use it immediately for trading.
The fees you'll pay might be different depending on where you live, and you'll see them before you confirm the transaction. Also, there's a limit of 1,000 euros per day for PayPal deposits, and you can't deposit less than 1 euro (or the equivalent in GBP).
Sum of median estimated savings and rewards earned, per user in 2021 across multiple Coinbase programs (excluding sweepstakes). This amount includes fee waivers from Coinbase One (excluding the subscription cost), rewards from Coinbase Card, and staking rewards. ³Crypto rewards is an optional Coinbase offer. Upon purchase of USDC, you will be automatically opted in to rewards. If you’d like to opt out or learn more about rewards, you can click here. The rewards rate is subject to change and can vary by region. Customers will be able to see the latest applicable rates directly within their accounts.
Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more
Is Now A Good Time To Buy Bitcoin?
Since the Bitcoin exchange-traded fund (ETF) has already been approved and is gradually gaining global recognition, it could be considered a good time to buy Bitcoin. The Bitcoin price prediction conducted by top experts suggests that “it is bullish,” and the current price of Bitcoin is approaching its all-time high, indicating strong market sentiment. However, investors should conduct their own risk analysis before making investment decisions.
With the Bitcoin halving approaching, historical trends suggest the potential for new all-time highs. Despite warning signals, such as high levels of investor greed and Bitcoin's volatility, many experts remain optimistic about its long-term prospects as a new asset class and store of value. It's essential to approach Bitcoin investment with caution and maintain a diversified investment portfolio.
Frequently Asked Questions
What crypto wallet accepts PayPal?
PayPal offers a crypto wallet service on its platform, allowing users to buy, sell, hold and transfer cryptocurrencies like Bitcoin, Ethereum, Litecoin and Bitcoin Cash directly from their PayPal accounts. PayPal also has partnered with several external crypto wallets, including MetaMask, Magic, Phantom and Ledger, to allow users to buy, sell, or transfer crypto using PayPal as a payment method.
Why won't PayPal let me buy Bitcoin?
PayPal may not allow you to buy Bitcoin for several reasons, including incomplete verification steps, such as providing necessary personal information like your name, address, date of birth and taxpayer identification number. Additionally, PayPal’s crypto services may not be available in certain locations, such as Hawaii, and business accounts may have restrictions on participating in crypto transactions.
Can I send Bitcoin from PayPal to my wallet?
Yes, you can send Bitcoin from your PayPal wallet to an external wallet. Simply select the cryptocurrency you wish to transfer within the Crypto tab of your PayPal account and use the transfers feature to send your crypto to an external wallet. However, keep in mind that you may incur blockchain network fees for this transaction.
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About Ishan Jain
Ishan Jain is a technical enthusiast with a knack for financial analytics and trading. Ishan primarily works on AI algorithms, business development, and software engineering for his ventures and side projects, and he produces Web3 content for Benzinga. Ishan has been involved in DeFi in a variety of ways, including heading a project at a crypto asset investment firm along with leading a blockchain security research project.