Benefits of using PayPal to buy cryptocurrencies
Suppose you’re fortunate enough to live and trade in the US. You may know, in October 2020, PayPal allowed US customers to use cryptocurrencies to pay for transactions with the new ‘Checkout with Crypto’ option. Similarly, Coinbase also has a crypto PayPal option accessible on their platform. These aren’t available in the UK yet, but there are still some benefits of using PayPal when it comes to crypto trading.
Because you are directly purchasing with your PayPal account, there is a low risk of inconsistencies and hacks involved. This method will soon be adopted by other countries, proving it is pretty reliable so far.
Peer-to-Peer (P2P) exchanges
Using these exchanges will let you find the best offer to buy and sell Bitcoin. Exchanges like LocalBitcoins and Paxful encourage individuals to trade directly with one another, giving the seller the freedom to set their own acceptable payment methods. They can choose what exchange rates best suit them. You may even find the best deal on a P2P exchange because you can sift through offers and rates that don’t apply to you until you’re happy with what you’ve chosen.
How do I buy crypto using PayPal?
We at CryptoParrot looked at a few online exchanges that allow you to purchase Bitcoin with PayPal. We have also included a couple of step by step guides for these platforms to give you an idea of how cryptos and PayPal work.
Online exchanges like eToro let you buy Bitcoin with PayPal as well as other cryptocurrencies. They offer relatively low fees and offer other payment methods if PayPal is not your first choice. Unfortunately, they don’t operate worldwide but are available in several regions, including Europe and the US.
eToro might be considered one of the most accessible platforms to buy cryptocurrencies with PayPal. But, it can seem complex with the user interface and the number of steps it takes to withdraw the cryptos into your wallet. It’s seen to be better suited to speculate and monitor the price of Bitcoin as opposed to buying a share of the actual coin. We recommend other platforms if you want to actually buy and sell things.
We researched a couple of peer-to-peer marketplace exchanges that allow you to buy Bitcoin with several payment options.
75% of private CFD accounts lose money
Paxful offers a wide variety of sellers around the world for users to choose from. It also accepts almost any payment method to buy Bitcoin, including several gift cards. If you want to buy Bitcoin on Paxful, the process is relatively straightforward.
Create an account by registering your email address and password to begin. You can then choose PayPal as the payment method for buying and selling your desired cryptocurrency.
You then decide how much of that cryptocurrency you want to purchase when choosing the right seller to match that amount. Paxful gives you the option to choose the seller manually, or they can find the best match for you too.
Once the trade is confirmed and initiated, Paxful will direct you to an online chat with the seller, where you can finalise the transaction. The seller’s crypto will be put into escrow until you send the payment, and then the cryptos can be released. However, there is a time limit on how long you have to finalise the deal, usually around 30 minutes before it automatically cancels.
Similar to Paxful, LocalBitcoins is a peer-to-peer marketplace exchange. LocalBitcoins is a more developed exchange in comparison, and it did come before Paxful. It is also available in more countries around the world than Paxful, so there is a wider variety of Bitcoin sellers and buyers.
To use LocalBitcoins, you need to first sign up to the site. You need to create a username that will be visible on the platform and enter your email and password. Once that has been set up, you can use the search bar to enter how much Bitcoin you want to buy and choose where in the world you want to buy it from.
A list of sellers will come up on the next screen, showing you names with ratings, the form of payment method and how much they are charging for the amount of crypto you want. You can then choose which seller you want to buy from and be directed to a trade screen. Before choosing the seller, it’s always good to look at their feedback score and rating out of 100%. Check if people trust the seller and how many confirmed trades this seller also has.
Completing the trade comes next when you are on the trade screen. Each seller has their own terms and conditions that you should read to make sure you meet the needs of the transaction. Once you’ve gone through that and confirmed that this is where you want to purchase Bitcoin, you can put the amount at the bottom of the page and click ‘send trade request’.
Compare the best crypto providers
PayPal is known to be a more efficient way to buy cryptos directly. But, as with any payment method, it does come with its own risks. It’s a good idea to identify some of those risks before you consider making your first PayPal to crypto transactions.
Choosing an exchange
You need to make sure you trust the online platform you’re using before depositing money into it. We recommend that if you want to buy crypto with PayPal, you look at reviews on the best crypto exchanges and wallets available to you. Peer-to-peer or P2P marketplaces like LocalBitcoins might be convenient because they have a wide range of crypto sellers from around the world. However, they do come with high fees and a higher risk of being scammed if you choose a seller that is not credible.
We suggest you look at our CryptoParrot online simulator platform that allows you to practice buying and selling Bitcoin without spending any money first. It will reduce the risks of losing money and you’ll be able to harness some industry knowledge, uncovering trends and signs to look out for when buying cryptos.
As previously mentioned, there is a risk of being scammed in the crypto world. In addition to online sellers who aren’t reliable, online exchanges may look good on the surface but aren’t all they seem on closer viewing. Here at CryptoParrot, we take your online safety seriously. So we recommend you familiarise yourself with what an established exchange platform should look like if you consider PayPal to Bitcoin or Bitcoin to PayPal transactions.
As important as an exchange is to allow you to buy Bitcoins with PayPal, they also need to have a high-quality security system to ensure your funds and identity are protected. Hackers find more ways to try and implement viruses or catch out individuals with fake emails or links. So it’s always good to know the security measures of the platform you’re using. We encourage you to be vigilant when trading online because sometimes it could be human error that causes hackers to find their way into your account.
Cryptocurrencies are incredibly volatile digital currencies, specifically Bitcoin being the most volatile in the market. It is essential to keep up with the constant trends using indicators and staying on top of crypto news also. News developments and speculation are the main reasons why cryptocurrencies prices are constantly swinging. The effects of outside sources are exaggerated when it comes to cryptos. They also have less liquidity, meaning the ability for cryptos to be converted in cash is not as accessible as other mainstream currencies.
But, as cryptocurrencies are becoming more popular and payment methods are making cryptos easier to access online like with the PayPal Bitcoin developments. The future risks could be less the more crypto is accepted in the mainstream as a legitimate form of payment.
Other payment methods to purchase crypto
As mentioned, Coinbase only allows you to withdraw with Bitcoin. But it is one of the most straightforward crypto exchanges to use and has several other payment methods to choose from. Once you have an account set up, you will need to link your bank details and a credit or debit card. If you still want to transfer your crypto to PayPal, you can first convert the crypto into your native currency. It usually comes with a small conversion fee.
Then, once the funds are in a fiat currency, you can take out the money and put it into your linked bank account. The transactions happen relatively quickly, so the money is in your bank within minutes. Once it’s in your bank account, you can choose whether to deposit it into a PayPal account or not. This deposit will usually take up to 5 days, but it can be sooner depending on the amount of money it can be.
If you’re considering investing in cryptocurrencies, we hope that this guide on how to buy crypto with PayPal was practical. For now, the US is the only country where you can directly use your PayPal account to perform transactions with Bitcoin, including buying, selling and purchasing items. But with the constant developments in the crypto world, other countries are soon to follow.
At CryptoParrot, we hope that our trading simulator exchange will help you develop much-needed skills and tools to progress on your crypto journey, whether new to crypto or an experienced trader. We also have useful guides and reviews on crypto on our platform. We want to help you choose which exchange platform is right for you, which ones offer PayPal payments for crypto purchases and what to avoid.
Compare the best crypto providers
Buy crypto with PayPal FAQ
🔒Is it safe to buy crypto with PayPal?
When you are trading online, your capital is at risk. But, with a credible exchange platform and crypto wallet, you should be able to trust where your funds are going and monitor the movement of your assets. Currently, you can only buy crypto with PayPal directly in the US. But with the direction cryptocurrencies are headed, there is a good chance this option will be available in more countries and crypto exchanges to come. However, there are online Peer-to-Peer marketplaces available that connect with sellers of cryptocurrency worldwide.
🌐Do I need a PayPal account to purchase Bitcoin?
PayPal is one of the several payment methods used to carry out crypto transactions online. It has more recently been used as the method of choice. Still, many online exchange platforms also allow you to link your bank account and or credit and debit card to their site as a form of payment. If you want to buy Bitcoin with PayPal, you would have to use online crypto broker platforms that are reliable and focus on that.
💸What’s the easiest way to buy cryptocurrencies online?
Suppose you want to know how to buy crypto with PayPal or with another payment method. In that case, we have several guides and reviews to assist in your decision when trading crypto. Buying and selling cryptocurrencies is relatively straightforward once you understand the process. We offer a free trading simulator exchange that acts as a demo if you want to practice your crypto transactions before going through with them and spending real money.