How to Buy Bitcoin Using PayPal?

Buy BTC With PayPal
Buy BTC With PayPal

PayPal is the world’s most popular online payment system. It benefits the users from faster, secure, and convenient online transactions by allowing an authentic third party to handle their financial information.

How to buy Bitcoins with PayPal

  • With the increasing Bitcoin mania, it is considered as a profitable and safe investment. Investing in Bitcoin has become convenient over the past few years. You will need to first buy your Bitcoin using any of the multiple payment method you will then send your Bitcoin to cryptocurrency trading exchange.

  • To expand your portfolio, you will need to join a trusted trading platform. A lot of users want to buy Bitcoins without going through the lengthy verification processes. People are keen to buy Bitcoins using fast and simple payment methods such as PayPal. This post will surely help you buy Bitcoin with this online payment system!

  • There are online marketplaces that allow PayPal to buy Bitcoin. It may be a little complicated but still is possible. One reason why it’s hard to buy Bitcoin with PayPal directly is that fake charges may arise due to Bitcoin accounts being hacked or scammed. Another reason is that with this online payment system methods are reversible and Bitcoin is not.

The top options for purchasing Bitcoins through your PayPal account:

  eToro LocalBitcoins Paxful xCoins
Countries Worldwide Worldwide Worldwide Worldwide
Fees Low Low Low Low
Reputation Good Depends on Seller Good Good
Ease of Use Easy Easy Easy Easy
Limits Medium Depends on Seller Depends on Seller Medium

About PayPal

  • PayPal is an established name in the global payment game. It’s now worth a 100 billion-dollar company. Cryptos are emerging as a much better platform than PayPal. As this online system has cemented its position in the global payment game with innovation, it is easy to understand why they may be worried about a truly innovative payment system like cryptocurrency.

  • People can simply acquire Bitcoins with this online system. They need to do little extra effort to successfully buy Bitcoin with PayPal. Some solutions will be cheaper than others, and there is no set transaction time. You need to understand each platform in depth. There are exchanges in the market that allow you to make such purchases. However, it should be noted that this online system doesn’t actually appreciate users buying Bitcoin directly through the platform.

  • It actually holds your money, much like how a bank does. Once you deposit your funds with this online system, they become possessed by it. You can shift to the Bitcoin market as it is good for a partial recovery.

Advantages and Disadvantages of buy Bitcoin via PayPal

It is best to find a reliable trading platform or a marketplace that will allow the traders to buy Bitcoin with PayPal. Let us see a few advantages and disadvantages of utilising this online payment system for Bitcoin transactions –


  • The buying process is faster when the trader has an account
  • It offers asset protection for the Buyers
  • It does not ask for identity verification


  • Some of the other methods like using a debit card, credit card, or a bank account are highly secure and it also offers lower risk than utilising PayPal as a form of payment methods.

Current PayPal’s Stance On Bitcoin

  • PayPal does not consider Bitcoin as a service or goods, it considers Bitcoin as a type of ecurrency. To safeguard buyers, it offers numerous consumer protection policies and it does not permit the direct sale of buying Bitcoins.

  • Because of the buyer protection policies, PayPal transactions are very easily reversible, while the nature of Bitcoin transactions cannot be reversed, even if it is accompanied by court order. Consequently, the Bitcoin sellers should be very cautious when they are accepting PayPal as a form of payment method as they are susceptible to refunds.

  • PayPal does not offer sales of cryptocurrency directly when compared to its competitors who offer popular Bitcoin wallet and they also offer the same services which include Skrill, cash app, and Revolut.

Why PayPal is a reputable and safe payment method for Bitcoin Transactions?

Below given are the few reasons why PayPal is considered reputable and safe payment method for all types of Bitcoin transactions –

  • Offers peer-to-peer access to a wide variety of Bitcoin sellers: As we are already aware that, PayPal is an accepted form of payment method with several leading peer-to-peer marketplaces that connect Bitcoins sellers and buyers directly. Moreover, PayPal is an accepted form of payment method in this peer-to-peer Bitcoin exchange.

  • Offers to buy Bitcoin through CFDs: Even though few marketplaces and Bitcoin exchanges are accepting PayPal as a method of payment, and the easiest way to buy Bitcoins with PayPal is via CFD platforms. When the user invests their funds in Bitcoin CFDs, they do not physically own the Bitcoin, they are just taking an investment position or trade whether the market price of Bitcoin will either go up or go down.

  • Offers payback protection: When the trader uses PayPal as a Bitcoin deposit method, they are offered PayPal buyer protection policy and therefore if they buy Bitcoin with PayPal and if the cryptocurrency does not come from the seller, or enter the amount of Bitcoin that does not match the description of the seller on the exchange, reimbursement is done by PayPal.

  • One Touch functionality: PayPal offers online payment services that are very efficient and it also offers its latest one Touch checkout functionality. If the user activates one Touch payments in their PayPal account, they can make faster deposits in their Bitcoin exchange accounts and they do not have to enter their login details every time.

  • Provides anti-fraud and encryption technology: PayPal has a good reputation for offering buyer’s protection. Moreover, all the transactions are supervised 24×7 with their innovative anti-fraud technology, which is implemented to identify theft and phishing attacks on the user’s sensitive data. Besides, every transaction to a cryptocurrency exchange is encrypted from the user’s PayPal account.

Benefits to buy BTC with PayPal

Let us discuss a few benefits of using PayPal to purchase Bitcoins –

  • Faster sign up process: This is the major advantage that the user enjoys using PayPal for purchasing Bitcoins is the faster sign up process. In contrast to wire transfers, credit cards, or debit card payments where the traders have to go through a long process, by using PayPal it requires the users to log in to their account which is automatically linked and it can be used immediately.

  • Can access peer-to-peer buying: There are several advantages if you choose peer-to-peer buying over traditional exchanges. Some of the advantages are that the user can buy if the terms are acceptable. PayPal is connected to the sellers directly and if the terms are agreed by the buyer and after providing identity verification, the Bitcoins are instantly transferred to the user’s wallet.

  • Guarantee of high Quality: PayPal offers a guarantee of high quality and it is a reputable concern, which is accepted as a payment method globally. Moreover, PayPal is in the money transfer industry for several years; and their policy is to ensure quality services to its customers.

  • No need to share bank information: The main reason why several people wanted to buy Bitcoin with PayPal is there is no need to share their Bank information when they are trading. As we are already aware that sharing bank information is risky if the marketplace or the exchange is hacked. By having a verified PayPal account, there is no necessity to share the user’s banking information.

  • Convenience: Convenience can be considered as the most important factor when you are trading in the cryptocurrency sector. Besides, the time taken for completing a transaction by using an account is immediate with its one touch checkout functionality. When the user has activated this functionality, they can deposit the funds into an exchange and they need not have to go through the login process every time.

  • Buyer protection: The major advantage of utilising PayPal to purchase Bitcoins is, they are covered by the PayPal buyer protection policy. In case if the buyer is not satisfied with the Bitcoin transaction, they can ask the seller for reimbursement of their funds. Even though this policy is good for buyers, it puts heavy responsibility for sellers of losing their Bitcoins to fraudulent buyers, who will buy the Bitcoins and ask for a refund from PayPal.

  • Anti-fraud technology: PayPal offers the latest technology to protect its users by ensuring their security of funds of every transaction that is carried out through PayPal. It monitors by utilising anti-fraud technology by preventing identity theft and security issues like stealing customer’s data.

Top 4 Options for if you want to buy Bitcoin with PayPal

Top 4 Options to buy Bitcoin with PayPal
Top 4 Options to buy Bitcoin with PayPal

All of these 4 options can allow you to turn your PayPal balance into Bitcoins!

  • Peer-to-Peer Marketplace (P2P) – A Peer-to-peer marketplace is just like an exchange, but there is nothing in-between the buyer and seller. To get started, it allows you to buy the Bitcoins from other users instead of buying Bitcoins from the exchange. Sellers can choose what kind of payment method they accept, and they can use PayPal to buy Bitcoin as an option. The advantage of utilising a P2P marketplace is that it is not difficult to prove your identity here. Most exchanges have incorporated KYC regulations, but P2P marketplaces are relaxed in this regard. But as there is less liquidity in a P2P marketplace, the prices are not very competitive.
  • Cryptocurrency Exchanges – Though cryptocurrency exchanges are universally banned from doing business through PayPal, you can trade money utilising cryptos in its account using several platforms. Here, people can use PayPal if they want to buy BTC with PayPal.
  • P2P Lending Platforms – P2P lending platforms allow you to borrow Bitcoins and pay the loan using a PayPal account. XCoins is the most famous option that helps you to convert your PayPal balance into a Bitcoin. Lending Bitcoins may not sound like a great way if you want to buy Bitcoins but xCoins offers an advanced platform. The company offers a way to ‘sell’ Bitcoins to people who use PayPal. XCoins bids the best pricing to both sides.
  • c –With the crypto exchanges embracing international KYC standards, many banks are now willing to let their clients interact with them directly.

Buying Bitcoin with PayPal

There are a few ways to convert your PayPal cash into Bitcoins. There are various platforms to do so, you need to research the cost savings between platforms and finalize which way will make the best use of your cash. P2P crypto trading is a good idea but it is not very popular and this may mean higher prices, longer wait times and less security in the transaction. But still, the following options are worth researching:


  • Paxful is a service that permits the users to create accounts, discover sellers, and exchange funds in a PayPal account for Bitcoins. Paxful is considered a very safe exchange that uses an escrow service to provide additional security for the buyers.

Paxful - Buy Bitcoins with PayPal
Paxful – Buy Bitcoins Instantly with PayPal
  • One disadvantage of Paxful is that you have to pay a higher price than the market as the sellers do not offer any discount as they have to account for the risk of chargebacks. To get started, when you agree to trade, the seller sends Bitcoins and the purchaser sends dollars to escrow. After the trade is completed, the funds are released to each party.
  • Once you’ve agreed to a trade with another user, the seller sends their Bitcoin, and the buyer sends their dollars (or other currency) to escrow. After the trade has been confirmed, the funds are released to each party. For businesses, Paxful offers a fast and easy way for online shoppers to pay utilising Bitcoin.


  • Minimum transfers: US$10 minimum, but may depend on the seller
  • Maximum transfers: Varies by seller
  • Transfer methods: using PayPal, Credit card or debit card, bank transfers, and 300+ other methods
  • Transfer options: Delivery to Paxful e-wallet
  • Delivery speed: Minutes or longer, depending on payment method and seller’s response
  • Available currencies: 100+ currencies
  • Fees: No fee for buyers, 1% of the transaction for sellers
  • Exchange rates: Paxful updates its rates online.
  • Customer service: 24*7 by Phone, email etc.


etoro - Buy Bitcoin via PayPal

etoro – Buy Bitcoin via PayPal

  • eToro is one of the most popular and well known social trading platforms, and it allows its users to trade Bitcoins and deposit through PayPal. It is also described as a multi-asset trading platform that offers its traders to invest in cryptocurrencies, stocks, and trading in CFDs.

  • eToro is the best choice for users who would like to profit from Bitcoin’s price volatility, and for users who do not require the Bitcoin themselves, but equivalent to cash. Moreover, eToro is the best way to buy Bitcoin with PayPal if you are a trader.
  • eToro allows its traders to deposit through wire transfer, online bank transfer, e-wallet such as PayPal, Skrill, or Neteller or through a bank card. The minimum deposit on this platform is $50. Moreover, the traders may withdraw their funds from their account anytime and without any fees charged from the platform; yet bank charges might be applied.
  • Several users have stated that eToro is the best choice and one of the easiest ways to buy Bitcoin with PayPal. Even though eToro permits PayPal as one of the deposit methods, the buyers will not be able to withdraw the Bitcoin to their wallet or send them to other users.


  • LocalBitcoins is a famous Bitcoin exchange platform used across the world. It connects the buyers and sellers using a virtual setting and conducts their exchanges through a variety of payment platforms, including this provider. Previously LocalBitcoins was used as a way for people to meet-up and trade anything for Bitcoins.

LocalBitcoins - Buy Bitcoins with PayPal

LocalBitcoins – Buy Bitcoins with PayPal

  • To get started, you need to connect with a person who is ready to accept PayPal as a form of payment method for Bitcoins. LocalBitcoins is considered as a safe and reputable platform. To use LocalBitcoins, you need to do a complete review and find a local seller and fix a price for their Bitcoins. It is potentially one of the safest, competitive, quick and easy ways if you want to buy BTC with PayPal with no set transfer limits.
  • LocalBitcoins is a peer-to-peer exchange service that lets you find Bitcoin buyers and sellers in your local area and make the transfer in a way that is suitable for you both. You need to find an experienced seller who can fill your order. Once a buyer and seller are connected, they both transfer the funds and Bitcoin to a LocalBitcoins account.
  • Many sellers will accept this online system as a payment methods on LocalBitcoins, but they may apply some charges due to the risk of chargebacks. You can transfer your PayPal balance to your bank account and pay cash for Bitcoins through LocalBitcoins. You should do all communication on the LocalBitcoins platform only to ensure safety in case of any problems.


XCoins - Buy Bitcoin via PayPal

XCoins – Buy Bitcoin via PayPal

  • XCoins is a simple and effective peer-to-peer lending platform and Bitcoin exchange platform that connects lenders and borrowers through a series of secure loans at a set interest rate. The loans are repaid in a single payment, making it similar to buy and sell Bitcoin. Xcoin is moreover like a Bitcoin exchange and can easily accept this online system’s payments.
  • This means it functions a lot like a Bitcoin exchange but can do things a typical exchange can’t, such as to accept PayPal payments. You need to register with xCoins and open an account; here, xCoins will work as an intermediary and will automatically match you to the appropriate seller.
  • After agreeing to the offer, you will pay the seller a given amount of money for the Bitcoins along with the agreed fees. After this, the Bitcoins will be transferred to you (buyer). The Bitcoins are delivered in more than half an hour. XCoins is an innovative trading platform available in over 40 countries. It offers good customer service and a quick turnaround time that allows individuals to trade their PayPal balance for Bitcoins. It is fast, secured, stable and just fantastic!

Buying Bitcoin through PayPal by using an intermediate currency

  • One of the best options to purchase Bitcoin by using PayPal is to first purchase an intermediate currency and then sell the intermediate currency for Bitcoin. One of the most popular intermediate currencies is Linden dollars or Second Life Lindens (SLL) which can be bought by using several services.
  • Unlike Bitcoin transactions, Linden dollar transactions can be tracked easily. Consequently, the sellers need not have to worry about fraudulent transactions that are filed through this provider; they can present the transaction log which shows the buyer had received the product.
  • Even though the transactions with PayPal are not that difficult, it occasionally takes time and it is quite risky. If you are using a credit card or debit card, it is very easy to purchase Bitcoin directly than to buy it through PayPal.

Another way to deal with PayPal’s Crypto Obstruction

People can use your debit or credit card to turn your PayPal balance into cryptos depending upon their country. If your country permits you to buy Bitcoin for PayPal with this online system using your bank account, just send your balance to your bank account and buy Bitcoins you want on a crypto exchange. This will ensure safety though it can be a much slower process.


Though PayPal appears safe and there are exchanges that accept payment method through this provider, it is important to ensure your Bitcoin wallet safety. Prevention from any stealing is important to safeguard your time, efforts and money! You can buy BTC with an account by using any of the above methods. The exchange method should suit your needs and preferences. In order to use PayPal for buying Bitcoins, you should verify your account for the complete safety and security of your transaction. It’s important to study and understand the above guidelines to safely purchase Bitcoins with your PayPal account.


1. Is it safe to buy Bitcoin with PayPal?

Ans. Several people insist not to buy Bitcoin with PayPal because it is not a direct way to purchase Bitcoins. However, the user can purchase a Bitcoin by using a third-party service, but the fees are added to the transaction.

2. Can I use PayPal buy Bitcoin?

Ans. This online system is considered as one of the most popular methods for purchasing and selling Bitcoin. However, the user cannot buy Bitcoin with PayPal, yet they can use it in conjunction with a trading platform such as a peer-to-peer marketplace or any of the trading platforms.

3. How to buy Bitcoin with PayPal instantly?

Ans. The user needs to login to the PayPal account to complete the transaction. When the user account is funded, they need to search for Bitcoin, and then they can proceed with the trading process. They need to enter the amount of Bitcoin they want to buy in their local currency and then proceed with buying.

4. Is it possible to sell BTC to PayPal?

Ans. It is possible to sell Bitcoin through PayPal. The user can choose a trading platform to sell their Bitcoins which accept PayPal, add a transaction fee of 3.75%, even though several platforms offer the same option they charge a fee of 10%.

5. Which is the best way to buy Bitcoin with PayPal?

Ans. If the user is using a peer-to-peer platform for purchasing Bitcoins, they need to make sure that they offer escrow service to safeguard them from fraudulent traders. It is better to take a look at the platform’s track record if you are buying Bitcoin with PayPal. Considering all the factors, we can see that peer-to-peer platforms are the best way to buy Bitcoin with PayPal. However, the user should take time to go through some of the best deals offered by those platforms.


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