How To Buy Bitcoin And Crypto With Paypal In 2021
Recently, PayPal has become very favorable to crypto. In November 2020, the company announced that all US users would be able to buy Bitcoin and 3 other cryptocurrencies directly through their PayPal digital wallet.
However, for the time being, if you arent a US citizen you wont be able to use this feature in the near future. Furthermore, cryptocurrencies bought with PayPal are locked within your wallet and cannot be transferred anywhere else. This means that you wont be able to use your coins outside the PayPal platform.
So is there a solution to buy crypto with PayPal? The short answer is yes! – although this isnt as easy as it may seem. Popular cryptocurrency exchanges such as Binance or Coinbase do not accept PayPal as a method of payment yet.
In this article, we will explore the different options on how to buy cryptocurrency with PayPal, together with their pros and cons. Lets dig in.
Buying crypto with PayPal on eToro
The easiest way to buy cryptocurrencies with PayPal is through the eToro social trading platform.
eToro is a social trading and multi-asset brokerage company that has registered offices in Cyprus, Israel, and the United Kingdom. They have an online trading platform that has both manual and social trading features. Social trading enables users to follow the financial trading activity of other users and copy their trades.
Pros: Low fees, easy registration, beginner-friendly interface.
Cons: Not available worldwide, withdrawing crypto is tedious.
Understanding The Benefits & Risks Of Buying Crypto
Throughout this guide on how to buy cryptocurrency we have discussed both the benefits and risks of investing in digital assets, even if you trade crypto signals. To recap, the main benefit is that you are investing in a financial asset that is still new at least in comparison to the stock markets.
In turn, the upside potential when choosing the right cryptocurrency, has been significant over the past few years. On the other hand, Bitcoin trading and cryptocurrencies, in general, are super-volatile and thus driven by widespread speculation. As a result, there is every chance that you will lose money by purchasing cryptocurrency.
One of the best ways that you can mitigate your risk is to ensure you are not over-exposed. For example, rather than buying just one or two digital currencies, it might be worth considering the previously discussed eToro CryptoPortoflio.
Not only will this give you access to a diversified basket of cryptocurrencies but the portfolio is weighted based on market capitalization. For example, at the time of writing, Bitcoin carries a weighting of 21.95% while Dash and Bitcoin Cash are both at 4.97%.
How To Buy Cryptocurrency Quick Steps For 2022
- Open an account with eToro: First, youll need to open an account with eToro a regulated broker that allows you to buy cryptocurrency on a spread-only basis.
- Upload ID: Like all regulated crypto brokers, youll need to provide a copy of your government-issued ID
- Deposit: You can deposit funds instantly with Visa, MasterCard, Paypal, and a number of other e-wallets
- Buy cryptocurrency: Finally, search for the cryptocurrency you want to buy, enter your stake and confirm the purchase.
And thats it youve just bought cryptocurrency at eToro! The digital coins will now appear in your portfolio. At any given time, you can cash your cryptocurrency investment out.
Crypto assets are highly volatile, unregulated investment products. No EU investor protection
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Choose A Crypto Trading Platform
If this is your first time learning how to buy cryptocurrency then you might require a more comprehensive walkthrough. If so, we are going to guide you through the investment process step-by-step.
The first step is to think about where to buy cryptocurrency. After all, there are hundreds of cryptocurrency platforms in the market. To point you in the right direction, below you will find a selection of the best brokers that allow you to buy cryptocurrency safely.
How To Buy Bitcoin With Paypal Using Etoro Xcoins Paxful
Here are steps to buying Bitcoin with Paypal:
Step 1) Sign up:
Create a free user account using Coinbase, eToro, XCoins, LocalBitcoins, and LocalCryptos platforms. Make sure you have a PayPal account. If not, create that also.
Step 2) Load the PayPal account.
Loading your PayPal account with money using your Visa or MasterCard credit and debit card. You can also deposit from the bank via the card to PayPal.
Step 3) Buying from Coinbase:
Then you l need to log in to Coinbase or eToro and select PayPal as the payment method. You can connect the PayPal account to Coinbase using an API in the process and then deposit the desired amount from PayPal to Coinbase, Paxful, eToro, etc.
The seller requires to release crypto to the escrow service before you can transact. This is very important for you to not lose money from any fraud or scammers.
Step 4) Receiving crypto in your wallet:
This is the last step towards buying Bitcoin with PayPal. On a peer-to-peer platform like LocalBitcoins, you will already have a wallet address when you sign up with the platforms. Therefore, after the seller releases the cryptocurrency, it reflects as a balance on your account.
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Where To Buy Cryptocurrency Online
If you’re wondering where to buy cryptocurrency, there are hundreds of exchanges and brokers to choose from. In choosing the right platform for you, be sure to explore factors surrounding regulation, fees, payment types, and user-friendliness. You also need to ensure the platform supports your preferred cryptocurrencies.
How To Invest With Paypal
In order to purchase cryptocurrencies, you’ll have to complete a one-time Crypto registration process.
To invest in crypto using the PayPal app:
- Hit the “buy” button
- If you’re still uncertain about crypto and PayPal’s offerings, you can review its educational articles to learn more.
Another thing to note is that you can only hold cryptocurrencies you’ve purchased through PayPal. You can’t currently transfer cryptocurrencies in and out of your account.
PayPal also has maximum dollar limits for crypto transactions. There’s a $20,000 maximum dollar limit for weekly crypto purchases and a $50,000 limit for purchases over a 12-month period, according to PayPal.
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Open An Account With Etoro
So now that I have explained why eToro is a good choice when it comes to buying cryptocurrency with PayPal allow me to begin the step-by-step walkthrough.
To get the ball rolling you will first need to open an account. You can do this by visiting the eToro website and clicking on the Join Now button.
Unlike the process at unregulated exchanges whereby the only information you need to provide is an email address, eToro is a lot more thorough. By this, I mean that you will need to provide your name, address, date of birth, etc. and verify your mobile number.
As eToro also offers leveraged CFD products, the platform will also ask you some basic questions about your prior trading experience. All in all, the registration process should not take you more than a few minutes.
Why Dont More Exchanges Support Paypal
As well as the chargeback issue outlined above, there are other disadvantages to using PayPal to buy Bitcoin.
PayPal fees can considerably increase transaction costs, with many platforms levying as much as 10% of the transaction amount as a fee.
Another thing to consider is that if youre buying through a platform that doesnt accept your local currency, conversion fees could also apply. If converting to U.S./Canadian dollars, for example, PayPal charges a fee of 3.5% above the exchange rate. For other currencies, the fee is 4% over the exchange rate.
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What Are The Most Popular Venues To Buy Bitcoin
The most popular venues to buy bitcoins are cryptocurrency exchanges, brokerages , and payment services like PayPal. You can also buy Bitcoin from peer-to-peer exchanges. For indirect ownership of bitcoin, you can invest in companies that hold the cryptocurrency on their balance sheet, such as Tesla, Inc. or MicroStrategy Incorporated .
How Much Should I Expect To Pay To Purchase Bitcoin
Typically, the price to purchase bitcoin consists of a fee per trade plus the cost to convert a fiat currency, generally dollars, to bitcoin. The fee per trade is a function of the dollar amount of the trade. A higher trade amount will carry higher fees. The overall purchase cost also depends on features offered at the venue. For example, Robinhood does not currently offer an online wallet to store bitcoin. Therefore, you will need to budget for online wallet costs for your purchase.
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How To Buy Nft Art Finance By Paypal
Today it is not possible to purchase NFT Art Finance directly through Paypal. Paypal does not officially authorize this kind of purchase. However, you can use a platform like LocalBitcoin that connects individuals wishing to buy and sell NFTART. Some sellers on this site offer to pay by Paypal. However, since this is a peer-to-peer purchase, there are some precautions you should take. Also, ensure not to buy from a seller with little reputation.
An alternative solution would be to go through the Etoro platform. Etoro offers to buy Bitcoin through Paypal, which you can then exchange for NFT Art Finance on an exchange like the crypto exchange. The downside is that Etoro charges some fees on purchases.
Risks With Paypal To Bitcoin
In order to be safe while buying Bitcoins with PayPal, one should be aware of the risks involved. Platforms that we provided here in this guide are all secure places to buy bitcoin.
However, in the case of P2P platforms, it does not hurt to work with verified sellers, since some might come out as quite dishonest.
Outside of our list, there are many other sites that allow you to buy bitcoin with PayPal. However, many turned out to be either straight or exit scams. It is important to do good research when choosing a new platform to buy BTCs with PayPal account.
E-payment system does not take any responsibility regarding your funds once they leave your balance.
Here are few steps that you can take to ensure there are no red flags when choosing a new platform:
- Check if the company is a registered business
- See if the site in question has any customer reviews, especially negative ones
- Investigate their business model to determine whether it is profitable
- Use IP address sites to check how old is the website as new ones probably have no reviews
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Option : Leave Coins On The Etoro Platform
The most convenient option on the table is to leave your coins on the eToro platform. This means that eToro will safeguard your coins on your behalf within its own wallet. In doing so, you can cash your cryptocurrencies back to cold-hard fiat money at any time of the day. You wont, however, have access to your private keys.
Getting Started On Paypal
I started by logging into my personal PayPal account . I don’t buy much using PayPal, but I did have $64 in the account to play with. The first step was hitting the Crypto button.
That brought me to the main PayPal crypto page:
I found the FAQ to be interesting but pretty light on tangible details. We’ll discuss those as we go through the process.
Okay, properly informed, it was time to begin my purchase. I hit the Bitcoin button, and… entered the future.
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Option : Transfer To Private Wallet
If you want 100% control over your crypto funds and private keys the best option for you will be to transfer your digital assets to a private wallet. This is simple enough, albeit, you will first need to transfer the coins to the eToro mobile wallet. Then, you can proceed to transfer the funds to a private wallet of your choice.
Buying Bitcoin On Other Sites Using Paypal
When PayPal first announced its crypto offering, it restricted users to buying, selling and holding crypto. That left many Bitcoin advocates arguing that PayPal’s crypto features were antithetical to the very ideals that underpin Bitcoin namely, the idea that Bitcoin holders are their own bank.
PayPal has since softened its stance, announcing in May 2021 that it would add support for third-party wallets. That feature has yet to be implemented, however for the time being, you can’t transfer crypto out of PayPal’s digital wallet, other than to make purchases .
At the moment, if you want to use PayPal to buy Bitcoin from other sources such as exchanges, in order to retain full ownership of your Bitcoin, your options are limited relatively few sites support it as a payment method.
The main reason is that PayPal, like other credit companies, lets buyers request a chargeback in the event of a fraudulent transaction. That opens up the possibility of a buyer falsely disputing a transaction, getting their money back, and still receiving the Bitcoin theyd bought. Credit companies like PayPal typically side with the buyer in resolving a dispute, and because Bitcoin is pseudonymous, PayPal has no way to verify that the dispute is fraudulent.
Bitcoin transactions are also irreversible, meaning that in the event of a fraudulent dispute, the seller will likely be left out of pocket while the buyer pockets both the Bitcoin and the chargeback.
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Buying Crypto With Paypal
To date, there are still a lot of traditional banks that do not like cryptocurrencies. They might even consider clients purchasing cryptocurrencies as a high-risk client.
We are pretty sure that this will change soon as the world is only heading towards more adoption of digital currency and there is no way its going to change.
Regulation of digital currencies is around the corner and this will make it easier for anyone to buy and sell his cryptocurrencies whenever or wherever they want.
In the meantime, if you dont want cryptocurrency transactions showing on your bank statement, it is understandable. Especially if you have a mortgage or any other obligations towards your bank, youd better play it safe.
Buy Bitcoin With Paypal Through Coinbase
Pros: Well-trusted platform, high limits
Cons: Cannot purchase from PayPal balance directly
Coinbase, one of the worlds most trusted cryptocurrency exchanges, began accepting PayPal as a means of payment in 2022. Unfortunately, as of writing, Coinbase doesnt allow users to buy directly using their PayPal balance, but rather through a debit card or bank account that is linked to their PayPal account. This is somewhat restrictive. On the bright side, the maximum daily limits are nice and high at $25,000 per day.
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%.
Coinbase users may also withdraw fiat from Coinbase to their PayPal account. You can read my full Coinbase review here.
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What Are The Alternative Payment Methods To Buy Cryptocurrency With
Apart from Paypal, users can take advantage of other alternatives ranging from e-wallets to bank transfers.
Bank transfers They are widely adopted across a majority of brokers, exchanges, and P2P platforms. Investors prefer bank transfers because they are mostly free or attract a minimal charge. On the downside, bank transfers may not be instantaneous and can take several days to reflect, depending on the exchange and jurisdiction. Some of the popular bank transfer modes globally include:
ACH transfers USA
Faster payment United Kingdom
Wire transfers FedWire and SWIFT are some of the standard wire transfer methods. They are widely adopted on many tier 1 exchanges. They are preferred for larger investments. Transfers may take 1-3 days.
Financial institutions provide credit cards for the account holders to purchase crypto on credit. Transactions are quick and may help investors take advantage of a volatile crypto market. The main disadvantage with credit cards is the high, multiple fees which negatively impact the investment.
E-wallets Investors can expect to find Skrill, Payoneer, or Apple Pay as a payment option in some brokers and exchanges, depending on the jurisdiction. The methods are easy to use, although some fees may be levied on deposits and withdrawals.
How To Buy Bitcoin With Paypal
PayPal is one of the major online money transfer systems in the world that serves as an alternative to checks and money orders. It offers an easy and quick means to send and receive funds globally, as well as process payments anytime, anywhere.
Buying Bitcoin with PayPal instantly is now possible on Paxfuls peer-to-peer marketplace. You can find several offers that accept PayPal as the preferred payment method in our platform. If you dont find a suitable offer, you can always create your own offer to attract users who want to trade BTC using PayPal.
For a more secure trading experience, some sellers may require additional steps to confirm the identities of their trading partners. These steps might ask you to present certain documents such as ID cards, selfies, and/or screenshots. This reduces the risk of fraudulent payments and unauthorized usage of PayPal accounts, thereby making Paxful a safer marketplace.
The offer terms and conditions may slightly vary from one offer to another, so make sure that you read and agree to the sellers requirements before beginning the trade. You can use our online Bitcoin calculator to get an estimate of how much BTC you can purchase with the amount you have in your preferred currency. For more information, you can also watch our detailed video walkthrough on how to buy Bitcoin with Paypal on Paxful.
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