Introduction: Looking to invest in cryptocurrency but don’t know where to start? Buying cryptocurrency with PayPal is an easy and convenient way to get started. In this beginner’s guide, we will walk you through the process of buying crypto with PayPal.
Step 1: Choose a cryptocurrency exchange that accepts PayPal The first step is to find a cryptocurrency exchange that accepts PayPal as a payment method. Some popular options include eToro, Coinbase, and LocalBitcoins.
Step 2: Create an account and verify your identity Once you have selected an exchange, you will need to create an account and verify your identity. This is typically done by providing your name, address, and government-issued ID.
Step 3: Link your PayPal account Next, you will need to link your PayPal account to the exchange. This is usually done by navigating to the “Payment Methods” section of the exchange’s website and selecting “PayPal.”
Step 4: Deposit funds Once your PayPal account is linked, you can deposit funds into the exchange. The process for doing this will vary depending on the exchange, but it typically involves selecting “Deposit” and then selecting “PayPal” as your payment method.
Step 5: Buy cryptocurrency With your funds deposited, you can now buy cryptocurrency. Navigate to the “Buy” or “Trade” section of the exchange and select the cryptocurrency you want to buy. You can then select “PayPal” as your payment method and enter the amount you want to spend.
Conclusion: Buying cryptocurrency with PayPal is a simple and convenient way to invest in this exciting new asset class. By following the steps outlined in this guide, you can get started buying crypto with PayPal today. Remember to always do your own research and invest wisely.
There are a few crypto exchanges that accept Paypal, which we’ll list in this guide. We’ve reviewed the best places to buy crypto online with Paypal in terms of low fees, security, supported coins, and user-friendliness.
We also cover a simple step-by-step breakdown of how to buy crypto with Paypal instantly.
Buying Crypto directly through PayPal is one of the easiest ways to get your hands on some Crypto today. Whereas previously users could not withdraw coins purchased on the platform, PayPal has begun to enable crypto withdrawals
For those who wish to use PayPal as a payment method but not via PayPal’s crypto service, plenty of alternatives exist. The best alternative for buying Crypto with PayPal is via Coinbase.
Buy Crypto directly through PayPal
In October 2020, PayPal rolled out direct purchases of Crypto (and three other cryptocurrencies) within the PayPal digital wallet, through a partnership with Paxos.
This allows users to hold and sell Crypto purchased through the service, as well as use them to pay PayPal-supported merchants. As of June 2022, PayPal also allows users to withdraw their coins into third-party wallets for personal storage or wider use throughout the ecosystem. It’s worth mentioning that this option is currently only available for US users, with more countries due to be added over time.
Maximum limits are $10,000 per week with no annual limit, while fees vary between 1.5% and 2.3%, depending on the size of the purchase.
How to Buy Crypto Directly on PayPal
That’s it! Click ‘Buy now’ to confirm the purchase and the coins should be available in your PayPal digital wallet.
You’ll need to use a verified PayPal account to interact with crypto on the platform. There are two major exceptions: PayPal doesn’t support crypto transactions in Hawaii, and business accounts can’t participate.
Here are the steps for purchasing:
1. Go to the “Finances” tab, which can be found at the top of your screen on desktop and at the bottom of the home screen on the mobile app with this icon:
From there, you can select the “Crypto” tab.
(Image courtesy of PayPal Newsroom)
2. On the Crypto page, you can view the market prices of Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH). You can select your desired currency to view a price graph and the “Buy” button.
3. Make sure your identity is verified. If you need help, this support page outlines the steps. You may need to accept PayPal’s cryptocurrency terms and conditions before you continue, and you’ll likely have to submit a few identification documents to confirm your home address, name and date of birth as well as a photo of your face.
4. Enter your desired dollar amount and select “Next.” You’ll get the chance to double-check how much crypto you’re purchasing, plus any fees that will be added.
The maximum limit for crypto purchases is $100,000 per week. You can buy as little as 0.01 BCH, ETH and LTC and as little as 0.001 of BTC.
5. Choose your payment method. You can use a debit card, linked bank account or any funds in your PayPal balance.
6. Select “Buy” to confirm. PayPal updates the market value of all four currencies every few seconds, so the value you see right when you choose “Buy” is the amount you’ll receive.
PayPal cryptocurrency purchases include a “spread,” meaning you’ll pay slightly more than the market price when buying and get slightly less than the market price when selling. This margin is around 0.5% and depends on market conditions.
On top of the spread, PayPal charges the following transaction fees based on the purchase amount:
| Purchase amount | Fee |
|---|---|
| $1.00 – $4.99 | $0.49. |
| $5.00 – $24.99 | $0.99. |
| $25.00 – $74.99 | $1.99. |
| $75.00 – $200.00 | $2.49. |
| $200.01 – $1,000.00 | 1.80%. |
| >$1,000.00 | 1.50%. |
There are no fees for holding crypto on PayPal. You can view the amount of crypto you hold, and its market value, in the same tab you used to purchase.
If you’re looking to hold a significant amount of crypto, a wallet is a more secure option.
Once you have crypto assets in your PayPal account, you’ll be able to view the current price and sell through the same tab. The fees for selling are the same as the fees for purchases: a per-transaction fee, plus the 0.5% market spread.
Proceeds from the sale will go to your PayPal account, where you can use the funds to make purchases or transfer them to your bank account.
Select your chosen coin in the Crypto tab and use the transfers button to move coins into PayPal from an outside source. The platform doesn’t charge fees for transferring, but your wallet or exchange may charge a sender fee. The transfers button looks like this:
You may need to confirm your tax information, including your Social Security number, before continuing. Once verified, you can select “Receive.”
PayPal will generate a unique address for your transfer, which you can copy and paste manually or share with a QR code. As with any crypto transfer, make sure you input this address correctly. Coins sent to the wrong address can’t be recovered.
The address generated will work for only this specific transfer; this is not a private key.
» Learn more about hardware wallet : How to get crypto wallet
Select your chosen coin in the Crypto tab and use the transfers button to send your crypto out of PayPal into an external wallet. Again, PayPal doesn’t charge a specific fee for transfers, but you’ll likely be charged a blockchain network fee, which applies to most crypto transactions between platforms.
If your identity is verified, you can select “Send” and enter the wallet address where you want to send your crypto. Similar to the receiving feature, you can copy and paste the address or scan a QR code to ensure you enter it correctly.
Sending crypto to another PayPal user is easier than transferring it in or out of the platform, and there are no fees, including the blockchain network fee.
Choose the coin in your Crypto tab and use the transfers button to send coins to another user.
Select “Send” and choose the user you’re sending to in your PayPal contacts. You’ll be able to double-check the amount and the destination before you confirm.
The PayPal app can send push notifications that alert users to crypto price changes. You can customize these alerts with a specific currency and the desired percentage price increase or drop: 5%, 8% or 10%. Crypto alerts can be found in the app’s settings under the bell icon.
Yes, PayPal will provide users with any necessary 1099 forms and report the same information to the IRS. All crypto sales on PayPal are taxable.
Like with other exchanges, your crypto funds on PayPal aren’t eligible for Federal Deposit Insurance Corp. coverage, which would normally protect up to the first $250,000 in deposits.
PayPal Buyer Protection also doesn’t apply to cryptocurrency purchases, though PayPal says crypto purchases will be protected from unauthorized activity. In the event of an unauthorized transfer, you may be eligible for reimbursement up to the equivalent of $50,000.
Pros: Well-trusted platform, high limits
Cons: Cannot purchase from PayPal balance directly, US customers only
Coinbase, one of the world’s most trusted cryptocurrency exchanges, began accepting PayPal as a means of payment in 2022. Unfortunately, as of writing, Coinbase doesn’t 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.
Coinbase offers perhaps the best place to buy crypto if you are a beginner in this space. You can open a verified trading account simply by providing some personal information and uploading a copy of your ID. In addition to ACH and credit/debit cards, Coinbase also supports Paypal deposits.
However, when buying crypto with either Paypal or a credit/debit card, you will be charged a fee of 3.99%.
Nonetheless, your Paypal deposit at Coinbase will be processed instantly and this includes the standard trading commission. If you decide to trade crypto on Coinbase once your account is already funded, you will pay 1.49% per slide – plus the market spread. In total, Coinbase now offers over 150+ digital currencies.
Once you have invested in crypto at Coinbase, you have several options when it comes to storage. The Coinbase wallet app for iOS and Android allows you to retain full control over your private keys. This will suit those of you that already have some experience in crypto wallets. If you are a newbie, then you might prefer to keep your crypto tokens in the main Coinbase web wallet.
In this scenario, Coinbase will keep your private keys safe. The Coinbase web wallet will keep 98% of your crypto tokens in cold storage at all times. It also comes with two-factor authentication and IP/device whitelisting. Coinbase also offers a mobile trading app that connects to your main account. This allows you to buy and sell crypto on the move.
Although Coinbase has historically offered a bare basics service, it has since expanded into new areas. This includes a fully-fledged NFT marketplace. You might also consider the Coinbase staking service, which allows you to generate interest on your idle tokens. The best rate available is offered on Cosmos at 5% per year.
| Number of Cryptos | 150+ |
| Paypal Fee | 3.99% |
| Fee to Buy Crypto | Included in Paypal fee |
| Minimum Credit Card Deposit | Not stated |