There are many different ways to buy Bitcoin, and PayPal is quickly becoming a popular way in which to make purchases. PayPal can be used to buy Bitcoin via leading exchanges, brokers and even apps.
In this cryptocurrency guide, we’ve explained not only different ways in which you can use PayPal to buy Bitcoin but also the best platforms available to make purchases. Of course, you can even buy Bitcoin directly from the PayPal app, and we’ll tell you all about that too.
The most direct way to buy Bitcoin using PayPal is to do so directly via the PayPal app. However, here’s a list of all the other ways in which you can buy Bitcoin, each of which comes with its own set of pros and cons.
We’re going to go through all of the different methods of purchasing Bitcoin listed above, explaining the pros and cons of each and the process you’ll need to follow in order to get it right.
If you’re a beginner in the world of cryptocurrency, then going with a broker is probably the best possible choice for you. It’s an ideal method for newcomers as the process includes the facilitation of your buying and selling as it does this on your behalf.
Using a broker is a good idea even if you’re not a novice. It means that you’ll be far more protected from scams, allowing you to protect both yourself and your Bitcoin.
A few of the best brokers to use if you’d like to buy Bitcoin with PayPal are Binance, eToro and Webull. We’ve chosen these specific brokers based on user experience, fees and customer reviews.
EToro specifically offers users a really useful feature, especially for beginners. It’s called “Copy Trader” and essentially, it allows you to mimic the trading patterns of other more experienced users that are also using EToro. This is a great way to get started if you don’t really know what you’re doing, and it’s also a nice way to learn while doing.
If you’d like to go with EToro, you can get started in just a few simple steps:
It’s that easy! Just like that, you have your very own Bitcoin.
Firstly, what is a CFD? Well, the term CFD stands for Contract For Difference – this is a type of trading and a popular gateway used by investors to enter the financial markets. CFDs are a form of derivative trading and they are offered by brokers for options such as spot metals, forex and commodities.
Essentially, when it comes to CFDs and Bitcoin, you can enter a contract with a CFD broker in order to settle on the difference between the value of Bitcoin when you buy it and at the time that the contract ends. The point of this is that you are then able to profit from price movements by betting on Bitcoin’s trading habits, whether they go up or down over time and during a specific period.
Two of the best CFD brokers in the business are BDSwiss and Eightcap, both of which charge no deposit fees and in addition to being easy to use, offer a plethora of features on their apps.
A Bitcoin exchange is a digital marketplace on which traders can buy and sell Bitcoins and they can do so using either fiat currencies or altcoins. The exchange act as intermediaries in order to manage the processes of buying and selling Bitcoin. A few of the best, safest and easy to use exchanges are KuCoin, krypto.com and Coinbase.
A great advantage of buying Bitcoin via an exchange is that trading fees are pretty low and you have a customer support service to use if you require assistance or have any questions.
Different crypto exchanges will have different types of cryptocurrencies available to purchase, but since Bitcoin is arguably the most popular, pretty much all exchanges have Bitcoin on offer. However, not all crypto exchanges offer PayPal as a method for depositing money, so make sure you do your research before you select a platform.
To start the process, you’ll need to create a profile and register for the exchange you’ve chosen and then go through the KYC verification process – Know Your Customer verification, that is.
Once you’ve been through this, the process is pretty simple. Navigate their website to find their deposit page, select PayPal as your payment method and then select the amount of money you’d like to deposit. Note, however, that there also may be some limitations on the amounts of money you can deposit based on your location on other factors, so do your research on these things beforehand too.
Once you’ve deposited fiat money to the platform and purchased Bitcoin, you can then use Bitcoin to buy several different altcoins directly. Likewise, there are also many altcoins you can use to buy Bitcoin. Thus, once you’ve made your initial PayPal transaction, the world is your oyster.
The simple answer is no, not directly, but we’re going to explain exactly why.
Decentralised exchanges became popular in 2014. These exchanges allow users to trade cryptocurrencies in a non-custodial and peer-to-peer model without having to involve a third party. Therefore, it’s not even necessary to go through a registration process. All you need to do is have a decentralised wallet, and the world is your oyster.
Now, as much as this seems convenient, it ought to be clear why decentralised payments like this can’t be used directly with PayPal. You need to store some tokens in a decentralised wallet before you can even start to make use of a decentralised exchange. But that means that it’s possible for you to use PayPal indirectly to purchase the crypto and then go on to use the same to fund your wallet before you use the decentralised exchange.
P2P platforms, peer-to-peer platforms, allow users to buy and sell Bitcoin directly between each other.
A few of the best platforms available are LocalBitcoins, Paxful and Hodl Hodl. They all have good reputations and with several different payment methods and coins available on this platform, you’ll be able to buy Bitcoin as well as a range of other cryptocurrencies.
One of the oldest P2P platforms with the best longevity, LocalBitcoins offers a variety of payment methods, of which PayPal is one. Best of all, LocalBitcoins doesn’t charge transaction fees for buying or selling Bitcoins, so you’ll be able to save a significant amount of money in comparison to certain other platforms.
If you’re only looking to trade Bitcoin, LocalBitcoins will be perfect for you, however, if you’re hoping to use a variety, you’ll have to look elsewhere because they only trade in Bitcoin.
Here’s how to buy Bitcoin using PayPal via LocalBitcoins.
Apps are all about providing users with convenience, allowing you to buy and sell cryptocurrency directly from your smart phone. Three of the most popular apps that allow you to make payments via PayPal are Webull, eToro and Webull.
EToro is a great option that is easy to use and doesn’t require a lot of figuring out. It offers the same user experience on the app as it does on the desktop. It’s also safe, with its very own two-step authentication process when logging in and putting through transactions.
If you’d like to buy Bitcoin using the eToro app, here’s how you do it:
The quickest and most convenient way to buy Bitcoin via PayPal is to do it directly from the PayPal app. This allows you to purchase Bitcoin without having to use brokers or exchanges, and it also only has a $1 minimum deposit, so you can get started this way with a small investment if you please. The fee you pay to purchase Bitcoin via PayPal, however, changes based on how much you’re buying, so make sure to check that out before you go ahead with your transaction.
From the app, you can buy Bitcoin using either your PayPal funds or by topping up your account via a bank account that’s already connected to your PayPal account. Once you’ve acquired your Bitcoin, you can then either use it to be transferred into funds on your PayPal account or you can send your Bitcoin to friends directly from your account.
Here’s how to buy Bitcoin via your PayPal account:
Using PayPal to buy Bitcoin is incredibly convenient, especially if you already have a PayPal account and don’t need to sign up for one. With such a low minimum deposit, it’s a great way to get started.
In terms of safety, security and reputability, PayPal is a company that’s been around for a good while, and it’s a trusted company that’ll safely store your Bitcoin. The other nice thing is that you can safely and quickly withdraw your money or transfer Bitcoin – or receive Bitcoin – which can be super convenient if that’s a service you’re likely to use.
The biggest downside is that the transaction fees are pretty hefty, especially when you start trading in larger amounts. Thus, over the long term and if you start trading with large amounts of Bitcoin, you’ll probably be losing money by trading via PayPal.
That being said, PayPal has its place for buying Bitcoin. It’s a great place to start and a great way to buy small amounts.
