Buy Bitcoin with PayPal

Buying bitcoin with PayPal, made easy.

If you want to buy bitcoin using PayPal you'll find out how right here.

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Buying BTC with PayPal: here's how it works.

First, you'll need to sign up to an exchange that accepts payments using PayPal. Not all exchanges do this because there has been a history of fraudulent chargebacks occurring when using PayPal to buy bitcoin, resulting in cases where the seller has lost money. However, once you find the right exchange, you'll be able to deposit money onto it and use it to buy bitcoin.

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How to buy bitcoin with PayPal in 2018.


How to Buy Bitcoin with PayPal

It is possible to buy bitcoin with PayPal, although it is not as widely accepted as payments with card or bank transfer. If you already know the ropes, then the above table will show you to the best platforms that accept PayPal. If not, don’t worry: we’ll detail below where Bitcoin and PayPal intersect, and walk you through how to purchase bitcoins using a PayPal account.

Here are a list of services to buy Bitcoin with PayPal, instantly

  • LocalBitcoins

What’s the difference between brokerages, exchanges, CFD platforms, and wallets?

Choosing whether to use a brokerage, an exchange, or a CFD platform to buy bitcoin depends on what your intentions are.

Brokerage

A bitcoin brokerage is a company that acts as a middleman for you to buy or sell bitcoin at a fixed price. Just like a bureau de change at an airport allows you to change pounds into other currencies.

Exchange

An exchange is a marketplace for buyers and sellers. Exchanges connect people looking to buy and sell bitcoin, enabling peer-to-peer transactions between them. Like eBay for cryptocurrency.

CFD platform

A Contract For Difference (CFD) platform allows you to buy and sell bitcoin without actually owning the coins themselves. This is what traders do on a daily basis (on Wall Street, for example). Similarly to exchanges, CFD platforms enable you to buy and sell quickly, taking advantage of price changes to make a profit. These platforms are not designed for long-term investments, but to give a fast way to capitalise daily.

Wallet

A wallet is essentially a bank account: it is an address that stores your bitcoin and allows you to send or receive bitcoin to/from other wallets. Every wallet comes with two separate strings of numbers and letters known as ‘keys’: a public key (used to receive bitcoin) and a private key (used to send bitcoin to other wallets).

If you want to buy coins to store as a long-term investment and aren’t very interested in constantly tracking the market to buy and sell for quick profit, a brokerage is your best option.

Alternatively, if you want to buy bitcoin at a competitive rate and capitalise on fluctuations in price, then you’ll want to sign up to an exchange or CFD platform. The key difference between these two types of service is that on an exchange you buy and store the coins yourself, whereas with a CFD platform you trade bitcoins without the hassle of actually owning them.

What’s the difference between PayPal and Bitcoin?

PayPal is a payment method, whereas Bitcoin is a digital currency. Through PayPal you can send and store fiat currency (such as GBP or USD), much like a bank – but with a more specialised focus. Its core service offering is near-instant global transfers with minimal to zero transfer fees.

Although not without similar features, Bitcoin is on an entirely different playing field. Bitcoin is a self-supported decentralised currency. Like PayPal, Bitcoin enables near-instant transfers with very low fees, but transactions on the Bitcoin network use the digital currency bitcoin rather than fiat currency to make payments. Because no countries have officially recognised Bitcoin as a currency, certain features of PayPal – such as invoices for businesses – are not yet possible with Bitcoin.

Why isn’t PayPal more widely accepted?

There are many reasons that many platforms don’t accept PayPal payments. One central problem is that PayPal honours chargebacks, whereas Bitcoin cannot do so. This leads to a disconnect between the two services as it’s difficult to stop people paying for bitcoins with PayPal, getting a refund to their account, and then keeping the coins. It’s therefore hard to protect against bitcoin theft when PayPal is involved.

From PayPal’s perspective, there’s also concern about Bitcoin’s link to criminal activities. A contract wherein a user could purchase bitcoin directly with PayPal, and vice versa, could make it easier for criminals to conduct illegal activities – and harder for authorities to track. This anonymity is central to Bitcoin, but it makes some companies uncomfortable.

And, is buying bitcoin with PayPal the best method?

It depends. If you have a particular exchange you’re looking to use, then it’s possible it won’t even be an option at all because PayPal is not as commonly accepted as bank transfers or card payments. However, if you find a platform that allows you to buy bitcoin with your PayPal account, you’ll get the same safe, fast, and secure transactions that you get when buying anything else with PayPal.

A quick and easy guide to buying your first bitcoin

Now you know what your options are, you need to know how to use them to buy bitcoin. That’s why we’ve outlined all the steps right here. If you’re already familiar with how it’s done and have specific questions you need answering, then skip to our frequently asked questions section at the bottom of the page.

What do I need to do before I get started?

You’ll need to provide some information to sign up to a service. Spending bitcoin is completely anonymous, but in order to verify your account and to combat fraud there are a few things you need to have with you. To get started you need to prepare your:

Method of payment

Whether buying bitcoin with a credit/debit card, bank transfer, or PayPal you’ll need to have your account details to hand and make sure there are no restrictions on payments of that type through your chosen service.

Proof of identity

You’ll almost always be asked to supply valid photo ID to prove your identity when signing up to a platform. A passport or driving license is most commonly required and you’ll often be asked to supply a selfie of you next to it to verify it’s yours.

Proof of address

Along with photo ID you’ll be asked to supply proof of your address, generally in the form of a utility bill or a bank statement. If you don’t have access to these documents, others are sometimes accepted. This will, however, depend on the platform so be sure to check you have the right forms of ID before signing up to a particular service.

Exchange, brokerage, or CFD platform

Now decide which type of platform you want to use for buying bitcoin. Consider what you want to get out of your investment, and then find the service that best matches your aims from the summaries above.

Buy bitcoin: the steps

Alright, you’re ready to sign up and buy your first bitcoin. Let’s get started.

  1. Visit site and open a free account
  2. Select a service from our list and click the link. Once you’ve arrived on your chosen platform, select the option to register an account.

  3. Fill out personal details
  4. Fill out the required details to register a new account. This will usually be your name, email address, and country of residence. On most platforms this form will also be where you set your account password. If not, then:

  5. Create password
  6. It’s very important to have a solid password, especially on an exchange as your account will be used to store your bitcoins. Make sure to include a mixture of letters and numbers and make your password memorable. In a few cases there won’t be an option to create a password at this stage. This will mean one has been randomly generated and in your confirmation email (see next step) there will be a link to change your password. Make sure you do this as nothing is more important than the safety of your account.

  7. Activate account
  8. In the majority of cases the next step is to check your inbox for an account verification email which will include a link to activate your account. As mentioned above, for some services this will also be the point at which you set or change your password.

  9. Fund account or make payment
  10. In most cases, to buy bitcoin you’ll have to transfer money into your account balance, and in other cases you’ll be able to make a direct payment. Either way, there are a variety of methods to pay for your bitcoin. We’ve summarised them for you here:

    • Bank transfer – you’ll need to acquire the destination bank details from the site, key in your own account details and the amount of money you wish to transfer. Bank transfers commonly take between 1 and 5 days to go through.
    • Card payments – Depending on the platform you’ll either have to add your card details to your account, or simply enter your card details and make a one-off payment. The process is the same as using your card on any online shopping site.
    • PayPal/other – If your platform accepts PayPal (many of them don’t), then you’ll simply have to select the option to pay with PayPal. This will direct you to a page that will enable you to pay from your PayPal into the account you’ve created on the platform. You’ll want to ensure that your PayPal account is active, funded and has no restrictions.
  11. Buy bitcoin
  12. If you’ve made a payment, congratulations! You’ve bought your first bitcoin. If you’ve transferred funds into your account then you’re just one small step away: simply follow the link on the platform to buy bitcoin using the money deposited in your account. Choose how much bitcoin you want to buy and confirm the transaction. Done!

  13. Additional: Withdraw to wallet
  14. If you’re using a brokerage to buy bitcoin, you’ll need to set up a wallet to which they can send your coins. If you’re using an exchange there will be an integrated wallet you use to store and trade coins, but you can create an external wallet into which you can transfer coins for extra security. If you’re using a CFD platform, you don’t need a wallet as the coins are handled within the platform. For more information about wallets and the different options available, check out our handy guide here.

Need more information?

If you need some more guidance or are just interested in finding out more information, then head along to our reviews. We have guides to every major cryptocurrency platform and coin to help you can make informed investments and see better returns.

Should I buy bitcoin with PayPal?


Advantages

  • PayPal is a simple and fast way to buy bitcoin
  • Once you've bought bitcoin with PayPal, you can shop anonymously with your bitcoin
  • Transactions with PayPal are secure
  • Bitcoin is immune from fiat currency inflation
  • Bitcoin can be used to buy other cryptocurrencies

Drawbacks

  • Not all exchanges accept payments by PayPal
  • The price of bitcoin often fluctuates
  • Bitcoin's value against fiat currency isn't guaranteed

Ready to get started? Here are the best platforms to buy bitcoin with PayPal.


1
£100
BTC
ETH
LTC
XRP
DASH
BCH
CRYPTO
  • Award winning CFD platform
  • 5 million registered accounts
  • Zero commission
2
£200
BTC
ETH
LTC
XRP
EOS
NEO
ADA
CRYPTO
  • World's leading platform
  • Trade and invest
  • Millions of users
3
-
BTC
ETH
LTC
XRP
  • Multiple payment methods
  • Quick sell and quick buy
  • Trade cryptocurrency in 248 countries
4
£100
BTC
ETH
LTC
XRP
EOS
DASH
  • Competitive swap rates
  • 20:1 leverage on crypto trading
  • World-class 24/5 customer service
5
£250
BTC
ETH
LTC
XRP
  • Tax free trading
  • 0% commissions
  • Improved liquidity

Frequent questions.


Can Bitcoin replace PayPal?

Although Bitcoin could theoretically replace PayPal as a transfer of value, its value fluctuates too greatly for it to be used as a fiat currency replacement for the time being. Bitcoin and PayPal are fundamentally different platforms, servicing different needs and offering different functions. As a result, they are not in direct competition, and it is unlikely that Bitcoin will ever wholly replace PayPal.

Why is Bitcoin better than PayPal?

In many ways, yes. Although difficult to compare, by some standards, one could say that Bitcoin is better than PayPal. Bitcoin’s transaction times are generally shorter than PayPal’s, its fees can be less, and Bitcoin offers anonymous spending. In addition, Bitcoin is more secure, as private keys to bitcoin wallets are impossible to guess, unlike a PayPal password.

Can I convert Bitcoin back to PayPal?

Unfortunately not directly. Additionally if you find anywhere that lets you do so, it’s best to be cautious. While this service was available in 2016, it is no longer possible to perform this transaction on Coinbase as it is against PayPal’s Acceptable Use Policy. Some platforms claim to offer this service, but it is far safer (and greatly recommended) to sell bitcoin for fiat currency as normal, and to purchase PayPal credit using that money afterwards.

Can you buy other cryptocurrencies using PayPal?

Yes, but it’s not very common. Most platforms that allow PayPal payments only accept them for bitcoin at the time being. You can, however, purchase bitcoin with PayPal, and subsequently convert your bitcoin to another cryptocurrency using an exchange.

Can I buy with PayPal on Coinbase?

Historically this option has been available, yet it is temporarily suspended at this time. According to Coinbase, support for this service will resume later this year.

Can you convert Bitcoin to GBP or USD using PayPal?

No, PayPal does not offer support for transactions of this nature. It is, however, possible to convert Bitcoin to fiat currency, send the funds to PayPal, and convert them between GBP, USD, or EUR in your PayPal account.

Will buying bitcoin using PayPal actually work?

As long as you’re using a reliable platform then yes, it will work. We work hard to find the best services out there, and our guides will take you through each payment method in detail to help you buy bitcoin securely. If for any reason you do encounter a problem along the way, contact us and we will help in any way we can.

Can I buy anonymously with no ID?

It’s possible, but very uncommon, to purchase bitcoins without providing ID or proof of address. Most platforms require their users to provide ID to reduce the risk of fraud. However, there are a few services, such as person-to-person (P2P) exchanges such as LocalBitcoins, which allow you to interact with sellers and purchase bitcoins without necessarily having to have your ID verified.

Why are there no easier methods of buying bitcoin?

Buying bitcoin is easier than it used to be, but it still isn’t as straightforward as other online purchases. This is primarily because cryptocurrencies and the blockchain technology that supports them is still under a decade old. Advancements are being made all the time as cryptocurrency becomes increasingly popular, but we’re still probably a few years away from bitcoin being as ubiquitous as fiat currency in society.

What’s the fastest way to buy bitcoins?

The fastest way to buy bitcoins is through a credit/debit card. When paying with a card you’ll have your bitcoin credited to your account pretty much instantly, which contrasts with other methods such as bank transfer which can take up to 5 days. Pretty much every platform accepts debit cards, while only some accept credit cards.

What are the fees for transactions?

It depends on the method of payment and the platform you’re using. Fees for credit/debit cards usually range from 1-5%, but bank transfers are typically lower. The level of fees can vary significantly across platforms so it’s always good to check you’re getting a good rate before you buy.

What are the fees for depositing funds?

Again this is dependent on the platform and the way you’re paying for your bitcoins. Some exchanges don’t charge for depositing funds into your account, some will charge for all types of deposit, and some will charge for one method (e.g. credit card) but not for another (e.g. bank transfer). Each platform will have information available on the fees they charge, so have a read before depositing your funds.

What are the fees for withdrawing funds?

Withdrawal fees will usually be either the same as or slightly more than the deposit fees on a particular platform. The exact level of fees is always dependent on the platform and method of payment being used, but it is generally true that you’ll find the lowest withdrawal fees with bank transfers and the highest with credit cards. Withdrawal fees only apply if you’re selling your bitcoins and withdrawing fiat currency – you can move your bitcoins from wallet to wallet free of charge.

Where do I buy coins?

You’ll find the answer to that question here on CryptoSuper.market. You’ll find links to all of the best places to buy bitcoin, and our meticulously researched guides will tell you everything you need to know about the process involved. To get you started, some of the best platforms we’ve found are Coinbase, CoinMama, LocalBitcoins, Kraken and Changelly.

Should I leave my coins on an exchange after I buy them?

It’s up to you. If you intend to trade your coins regularly or exchange them for other cryptocurrencies then it makes sense to leave them in an exchange. However, if you are buying bitcoin as an investment and are looking to hold the coins for a long time, it’s best to move them into a wallet for safety purposes. This is because of the risk that, if your exchange happened to be hacked or account suspended, your bitcoins wouldn’t be accessible.

If the limits aren't high enough, can I buy coins on multiple exchanges?

Absolutely. You can sign up for various services and purchase bitcoins from each. You can then either leave these coins on each exchange or consolidate them all by sending them to one wallet.

Why do I have to buy bitcoin in order to buy other cryptocurrencies?

Most services allow you to use fiat currency to purchase the largest cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. However, if you want to buy other coins, you will usually need to use your bitcoin/other cryptocurrency to do so. You’ll also want to bear in mind that to be able to buy another cryptocurrency with bitcoin, they will have to be ‘paired’. This simply means that you are able to exchange them directly for each other, exactly like how exchanges will only let you buy bitcoin with specific fiat currencies (e.g. GBP and USD). Bitcoin is paired with most coins, but it’s a good idea to check if you need a specific cryptocurrency to buy the coin you’re after.

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