Buy Ethereum with PayPal

Learn how to buy Ethereum with PayPal.

Ether can be bought using PayPal, but not everywhere. We'll guide you to the right platforms and show you where to buy Ethereum with PayPal.

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Investing in Ethereum with PayPal: here's how it works.

To buy ether with your PayPal account, you'll need to sign up to a platform that accepts PayPal as a payment method, and then link your account. There will usually be verification steps, and sometimes you may have to fund your account balance to buy the coins, rather than make direct purchases from your PayPal balance.

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Ready to get started? Here are the UK platforms you can use.


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
These are highly volatile investment products. Your capital is at risk.

How to buy Ethereum with PayPal in 2018.


How to buy Ethereum with PayPal

It is possible to use your PayPal account to buy ether, but it can be difficult to find a platform that accepts payments using PayPal. We’ll explain why below, and also guide you through the process of buying Ethereum in this way. If you want to buy ether using PayPal and are aware of the process involved, check out our table or list below for reputable sites where you can make your purchase. If you are a beginner, keep reading.

Here are a list of services to buy Ethereum instantly

  • LocalBitcoins

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

These are terms that are important to understand when it comes to buying and storing ether. They all have their advantages, which is why we’ve summarised them all for you right here.

  • Brokerage – an Ethereum brokerage is a company that acts as a middleman for you to buy or sell ether 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 ether, 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 ether 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 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 ether and allows you to send or receive Ethereum to/from other wallets. Every wallet comes with two separate strings of numbers and letters known as ‘keys’: a public key (used to receive ether) and a private key (used to send ether to other wallets).

If you want to buy ether 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 ether 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 on the value of Ethereum without the hassle of actually owning the ether itself.

What’s the difference between PayPal and Ethereum?

PayPal is a payment method that allows you to make your purchases using fiat currency such as USD and GBP, whereas Ethereum is a blockchain network that supports its own cryptocurrency called ether. Ether transactions, unlike those on PayPal, are anonymous, and the primary difference between the two platforms lies on the technical level of how spending works.

PayPal transfers rely on the conventional banking system to keep track of spending and verify transactions. Ethereum transactions, on the other hand, are completely decentralised. Ether payments are peer-to-peer transactions that happen without the need for the involvement of a third party.

Is PayPal a commonly accepted payment method for ether?

No, PayPal is not commonly accepted when it comes to cryptocurrency in general. This is because it has been associated with chargeback scams in the past, which led to several sellers transferring ether away and then having the money they received for it claimed back, leaving them out of pocket. However, you can find platforms such as LocalBitcoins that allow you to pay with PayPal.

Is buying Ethereum with PayPal the best method?

Probably not, largely because of the restrictions, but also because it can incur high fees. You will also not commonly be allowed to purchase large amounts of coins using PayPal, as you can with bank wire transfer. And even for small amounts, the fees can be high, sometimes reaching more than 5%. Generally it’s better to use a card for smaller payments and bank transfers for larger ones. However, on platforms that accept PayPal it’s a perfectly secure way to buy ether if it’s the payment method you wish to use.

A quick and easy guide to buying your first ether

Now you know what your options are, you need to know how to use them to buy ether. 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 ether 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 Ethereum 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.
  • Passport/photo ID – 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 for a particular service.
  • Exchange, brokerage, or CFD platform – Now decide which type of platform you want to use for buying Ethereum. Consider what you want to get out of your investment, and then find the service that best matches your aims from the summaries above.

Buying Ethereum: the steps

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

  1. Visit the platform 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 ether. 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 ether 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 ether. 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 ether
  12. If you’ve made a payment, congratulations! You’ve bought your first ether. 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 ether using the money deposited in your account. Choose how much Ethereum you want to buy and confirm the transaction. Done!

  13. Additional: withdraw to wallet
  14. If you’re using a brokerage to buy Ethereum, 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 your ether 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 when investing in Ethereum.

Should I buy Ethereum with PayPal?


Advantages

  • PayPal is a quick and easy way to buy ether
  • It usually has low transaction fees for purchases
  • Your transactions are guaranteed to be secure
  • Once you've bought ether with PayPal, you can shop anonymously with your ether

Drawbacks

  • Paypal is not commonly accepted as a payment method
  • Because PayPal honours chargebacks, its hard to protect your bitcoin from theft during transaction
  • The value of ether fluctuates a lot in a short space of time

Frequent questions.


Can Ethereum replace PayPal?

Technically yes. While both PayPal and Ethereum guarantee instant payments, Ethereum has some features that can make it more appealing. Firstly, it allows anonymous transactions, which aren’t possible with PayPal. Secondly, the fees for transfer (both deposit and withdraw) are often lower when paying with ether than with PayPal because of the peer-to-peer nature of the Ethereum network.

Why is Ethereum better than PayPal?

Ethereum allows anonymous transactions and secure spending without needing third party verification (such as banks). Apart from that, Ethereum as a platform allows developers to set up apps (dApps – decentralized applications) and ‘smart contracts’ (digital contracts that allow binding agreements without the need for middlemen). PayPal is a method of payment, whereas Ethereum aims to change the way we carry out transactions.

Can I convert ether back to PayPal?

No, not directly. PayPal is designed to hold fiat currency such as GBP or USD, and not cryptocurrency. So what you can do is sell your ether on an exchange for fiat currency (e.g. GBP) and transfer that to your PayPal account.

Can you buy other cryptocurrencies using PayPal?

Yes, as long as the platform supports PayPal, you can purchase other the top cryptocurrencies such as Bitcoin, Litecoin and Bitcoin Cash using your PayPal account. However, if you’re buying a less well-known cryptocurrency, then you’ll often need to buy one of the larger coins (Ethereum, Bitcoin, Ripple etc.) and use that to buy other cryptocurrencies on an exchange.

Can I buy with PayPal on Coinbase?

No, not currently. The option used to be there for US customers, but it was discontinued. To buy Ethereum with PayPal, you’ll usually have to consider direct exchange platforms such as LocalBitcoins.

Can you convert ETH to GBP or USD using PayPal?

No. PayPal only supports fiat currency. If you need to convert your Ethereum to GBP or USD, you’ll need to use an exchange and then transfer the money to your PayPal account.

Will buying Ethereum with PayPal actually work?

Yes, as long as you are buying your ether from a reliable platform. That’s why we review and compare all the different options available, taking you through the pros and cons of each method and providing the platforms we believe to offer the best service to their customers. If you encounter any problems, then please contact us and we’ll do everything we can to help.

Can I buy anonymously with no ID?

This is technically possible, but not on most platforms. The reason for this is that, in order to keep their services secure, most exchanges and brokerages (along with all CFD trading platforms) require you at least to provide an email address, and usually photo ID and address details if you wish to buy more than a small number of coins. If you want to buy ether anonymously, then peer-to-peer platforms such as LocalBitcoins are the best places to look.

Why are there no easier methods of buying Ethereum?

It’s easier than it used to be to buy ether and other cryptocurrencies, but it’s true that it still isn’t as simple and frictionless as other online purchases. Cryptocurrency, and the blockchain technology that supports it, is still less than a decade old, which means that progress to this point has been quick and it will get easier and more commonplace to buy Ethereum in the future.

What’s the fastest way to buy Ethereum?

If you’re looking for an instant way to buy ether, then it’s best to use a credit/debit card. With most platforms this will mean you’ll have your ether credited to your account immediately after making a payment. Debit cards are accepted pretty much universally, but it can be harder to find platforms that will process debit card payments. If you’re looking to buy ether with a credit or debit card, then we have a page to tell you exactly how to go about it.

Are there fees for buying ether?

Yes, there will usually be fees applied when buying ether. The level of these will depend on the platform you’re using and the method by which you’re paying for your coins. For card payments, fees are generally between 1% and 5%, with bank transfers typically having the lowest fees (and sometimes none at all).

What are the fees for depositing funds?

This is again dependent on the platform and payment method you are using. Some exchanges will charge you for depositing into your account via any method, some only for specific payments (e.g. credit card), and some will have no fees at all. You’ll be able to find accurate information regarding each platform’s fees in our reviews.

What are the fees for withdrawing funds?

These will usually be the same as, or very similar to the fees charged for deposits. Withdrawal fees as such will only apply if you are selling your Ethereum for fiat currency and withdrawing that to your bank account. If you’re moving ether from one platform to another, or to a wallet, then there will usually be no fees from the platform but you will have to pay ‘gas’, the small transaction fees charged by the Ethereum network itself.

Should I leave my ether on an exchange after buying the coins?

It depends on what you want to do with your ether and how much you’re buying. If you’re looking to trade your coins often or exchange them for other cryptocurrencies, then leaving them in your exchange account makes sense. However, if you want to keep hold of ether as an investment, then it’s a good idea to transfer your Ethereum to a safer storage option such as a hardware wallet. Exchanges are prone to attacks from hackers, so are not recommended for holding large amounts of coins.

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

Absolutely. There’s no limit to the number of services you’re allowed to use, so if you want to buy lots of ether quickly, you could sign up to a number of exchanges and buy coins on each. You would then be able to transfer from all of these accounts to one wallet to hold all your ether in one place.

Do I have to buy Ethereum in order to buy other cryptocurrencies?

Sometimes. It’s difficult to pay with fiat currency for any but the largest cryptocurrencies (such as Bitcoin, Ethereum, and Litecoin). This means if you want to buy a lesser known altcoin then you’ll usually have to buy Ethereum or another major coin and then use it to buy different cryptocurrencies on an exchange such as Binance.

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