Buy cryptocurrencies with PayPal: Everything you need to know
In the following, we explain in detail how you can best buy cryptocurrencies with PayPal. Furthermore, we give a step-by-step guide for the purchase.
We explain whether it is possible to trade cryptocurrencies completely anonymously and without registering and conclude with a summary of the most important advantages and disadvantages of buying via PayPal.
Why should you buy cryptocurrencies with PayPal?
One of the advantages of buying cryptocurrencies with PayPal is security. This payment platform uses encryption technology for all transactions. This prevents customers' bank details from being misused. In addition, the fees can be lower than with other payment methods. However, this depends on the frequency of transactions and the respective amount.
Tips for people in a hurry: What should you look out for?
Before you decide to buy cryptocurrencies with PayPal, you should consider the following factors:
Which broker is best to buy cryptocurrencies with PayPal? We conducted an analysis of cryptocurrency brokers that accept PayPal as a payment method. In the comparison, eToro came out best in terms of fees, security and regulations.
Do you want to hold your cryptocurrencies for the long term or use them directly? Another point to consider is how you will use your cryptocurrencies. The terms vary depending on whether it is a long-term investment strategy or a one-time, immediate use.
Do you need a separate wallet for your cryptocurrencies? There are brokers, such as eToro, that have integrated wallets on their platforms, so you don't need another digital wallet.
Is it worth investing in cryptocurrencies? Investing in cryptocurrencies has become popular. As assets, they have generated very attractive returns recently.
Is it difficult to buy cryptocurrencies with PayPal? No, buying cryptocurrencies with PayPal is actually quite easy, although there may be differences depending on the country you live in. In this guide, we'll clear up any doubts and explain step by step how to buy cryptocurrencies with PayPal.
Restrictions when buying cryptocurrencies with PayPal
There are certain restrictions when buying cryptocurrencies with PayPal. First, you need to find out if the trading broker or exchange platform you want to use supports PayPal as a payment method.
Also ask about the maximum amounts accepted. Most operators have maximum transaction caps that vary depending on the payment method. In addition, the PayPal platform itself also has maximum limits for each transfer.
Buy a variety of cryptocurrencies with PayPal
You have the option of not only buying Bitcoin with PayPal, but also other cryptocurrencies with this payment method. At eToro, you can trade Tron, XRP, Stellar, Zcash, IOTA, Ethereum or Litecoin, among others, with PayPal.
The procedure is exactly the same as described in the following instructions. Follow the registration steps and choose the cryptoasset you want to buy. These alternatives are available for customers from different countries at eToro. For example, you can carry out your transactions without any problems.
Step-by-step guide: Buy cryptocurrencies with PayPal at eToro
To buy cryptocurrencies with PayPal, eToro is a very good choice. This provider offers both the possibility to buy real cryptocurrencies and, alternatively, to invest in CFDs. The cryptocurrency portfolio is broad, which means you are able to get other cryptoassets such as Ethereum, Litecoin or IOTA in addition to Bitcoin.
Furthermore, this platform supports PayPal as a payment method, among others. eToro offers a total of numerous payment options as follows:
Buy cryptocurrencies with PayPal
Buy cryptocurrencies with bank transfer
Buy cryptocurrencies with Skrill
Buy cryptocurrencies with Neteller
Buy cryptocurrencies with a credit card
Buy cryptocurrencies with Rapid Transfer
Buy cryptocurrencies with UnionPay
Buy cryptocurrencies with SOFORT transfer
Below you will find detailed instructions on how to buy cryptocurrencies with PayPal at eToro:
Step 1: Create an account
The first thing you need to do is go to eToro's website or install the mobile app. Then look for the green button in the top left corner that says Join Now. With a click, you will be redirected to a registration form that you need to fill in with your details: Username, email address and password.
Remember to tick the appropriate boxes to indicate your agreement with the terms and conditions. You will now immediately receive an email with a link to activate your account. You will also need to verify your details by sending a copy of your ID and proof of address.
Step 2: Deposit money into your account via PayPal
In order to buy cryptocurrencies through eToro, you first need to fund your account. Click on Deposit Money and select PayPal as your payment method. Enter the desired deposit amount and click Submit to complete the instruction.
The money will be immediately credited to your account at eToro so you can start buying cryptocurrencies.
Step 3: Buy cryptocurrencies with PayPal
In the search box on eToro's website, enter the name of the asset you want to buy, e.g. Bitcoin. You can also simply go to the Markets section and select Crypto to see the full list of cryptocurrencies available.
Decide on the one you want, click on the Trade button. Specify the amount of cryptocurrency you want to buy and set your preferences. When you have completed all your settings, click on Open Trade to complete the purchase of cryptocurrencies with PayPal.
Buy real cryptos or trade crypto CFDs with PayPal
Buy cryptocurrencies with PaypalCFD trading is regulated and usually offers better rates than buying cryptocurrencies directly. Also, you don't need a digital wallet as you're not trading real cryptoassets.
You need to consider which option you choose before completing the transaction. Weigh the pros and cons and analyse what is more suitable for you based on your personal investment strategy. A broker like eToro allows you to trade both ways. You can buy real cryptocurrencies as well as trade CFDs with PayPal.
While crypto exchanges allow you to buy real coins or trade them with other traders,
crypto brokers allow you to buy CFDs, i.e. speculate on the price development of cryptos.
Crypto broker advantages and disadvantages
Crypto exchange advantages and disadvantages
Fees when buying cryptocurrencies with PayPal
Bitcoin, Bitcoin Cash, Binance Coin, Cardano, Dash, EOS, Ethereum, Ethereum Classic, IOTA, Litecoin, Neo, Stellar, Tezos, Tron, XRP and Zcash
Bitcoin, Ethereum, Litecoin, Stellar, Bitcoin Cash ABC, Cardano
Bitcoin, Ethereum, XRP Litecoin, Bitcoin Cash, Binance Coin, Stellar and Tron
Quotes or spread
0.75% - 5%
0.52% - 6.11%
2.9% + USD 0.30 / 5% of the loan amount /% of the lender
4 y 10%
Credit cards, bank transfers, PayPal, Skrill, Neteller, SOFORT
Credit cards, bank transfers, PayPal, Skrill, SOFORT
Credit and debit cards, bank transfers, PayPal
Global regulations for crypto purchases with Paypal
Know your Customer, or KYC for short, is an identity verification mechanism. It translates to Know your Customer and refers to applicable regulations to prevent money laundering in financial transactions. This identification procedure is used by most cryptocurrency brokers and also by PayPal.
As a financial services provider, PayPal is required to comply with the Anti-Money Laundering (AML) regulations. The protocol requires the presentation of documents proving the identity of each customer. An official photo ID, such as a passport or driver's licence, is usually always required. Proof of address is additionally often mandatory as well.
Buy cryptos anonymously, without registration or verification.
Many people are afraid that their personal data could be compromised. They would prefer to buy cryptocurrencies anonymously with PayPal, without having to register or verify their data. But is that a good idea?
Buy cryptocurrencies anonymously with PayPal
When participating in a cryptocurrency exchange or peer-to-peer cryptocurrency markets, the counterparty knows your identity. As these are unregulated transactions, the security of the transaction is compromised.
If you do your transactions through a broker, you will need to create an account and verify your details. These extra steps are worth it because they minimise the risks. At eToro, for example, your registration is protected in accordance with EU data processing regulations. PayPal is also responsible for the confidentiality of your data.
Buy cryptocurrencies without registration with PayPal
In the United States, it is possible to buy cryptocurrencies directly from PayPal. However, even though this means there is no middleman in the transaction, you still need to register for a PayPal account.
In Europe, any invitation to buy cryptocurrencies with PayPal without registering should be viewed with significant suspicion. The legislation governing financial transactions is very strict and it is likely to be a fraudulent operation. For your own safety, it is in your interest to comply with the regulations in this area.
Buy cryptocurrencies without verification with PayPal
As explained above, KYC procedures and controls to prevent money laundering are mandatory. Directive 2015/849 of the European Parliament clearly defines this issue. All financial service providers must comply with these requirements, including those operating on the internet. Both PayPal and your broker are required to verify your details when you buy cryptocurrencies.
Is a wallet needed when buying cryptocurrencies with PayPal?
Of course, you generally don't need a wallet when you invest in cryptocurrency CFDs either, as you don't acquire any real tokens then. In both cases, your winnings can be paid out to your PayPal account. With eToro, you can withdraw your purchased cryptocurrencies or the earnings from your account whenever you want.
Sell cryptocurrencies with PayPal
From there you can manage your cryptoassets and sell or buy whenever you want. As soon as you want a withdrawal, you can direct it to your PayPal account.
Advantages and disadvantages: Buying cryptocurrencies with PayPal
Buying cryptocurrencies with PayPal can be convenient, but like any form of payment, it has both advantages and disadvantages. So while some customers prefer credit cards, others find their fees too high. Cash transfers are often the cheapest way to trade cryptocurrencies, but they can be slow and complicated. Here are the pros and cons of using PayPal to buy cryptocurrencies:
Conclusion: Buying cryptocurrencies with PayPal - experiences
In the United States, it is already possible to buy cryptocurrencies directly with PayPal. The service is currently not available in Europe. In any case, it only allows you to buy bitcoins within the same ecosystem. This means you won't be able to store other cryptocurrencies bought outside of PayPal.
Cryptocurrency exchanges, on the other hand, may not be covered by PayPal's buyer protection. For these reasons, we recommend that if you want to buy cryptocurrencies with PayPal, you do so through a reputable provider like eToro. This way, you can use PayPal as a payment method and benefit from the advantages of a fully regulated transaction. Furthermore, you can also transfer your real cryptocurrencies to an external wallet at any time.
According to the comparisons we carried out, the test winner is eToro and therefore it is our recommendation to buy cryptocurrencies with PayPal via this provider. Users can easily buy a wide range of cryptocurrencies here, such as Bitcoin, using various payment methods.
PayPal is one of the payment methods supported by trading operators like eToro. At the moment, it is not possible to buy cryptocurrencies directly with PayPal in Europe, as it is in the United States. However, it is likely that this option will be available to clients in the near future.
Some people prefer to buy cryptocurrencies with PayPal to avoid having their bank details revealed. It is also a faster payment method than bank transfers. The costs are slightly higher, but still lower than with credit cards.
Not many brokers or exchange platforms accept PayPal as a payment method. Furthermore, it is important that you choose a regulated and trustworthy broker. In this respect, eToro is the winner in our comparison. Moreover, eToro offers both the possibility to buy cryptocurrencies with PayPal and to invest in corresponding CFDs. And you can also have your profits paid out to your PayPal account.
The portfolio of cryptocurrencies you can buy with PayPal depends on your provider's wallet. At eToro, Bitcoin, Bitcoin Cash, Binance Coin, Cardano, Dash, Eos, Ethereum, IOTA, Ethereum Classic, Litecoin, Neo, Stellar, Tezos, Tron, XRP and Zcash are currently available. Furthermore, this broker is continuously expanding its offer with new cryptoassets.
How long does it take to make a PayPal payment with a broker?
Once your PayPal account has been verified, transactions on the broker's platform are straightforward. So when you credit your eToro account from PayPal, it should show up immediately.
PayPal is not a cryptocurrency, it is a platform through which you can make and receive payments. However, there have been many rumours about the possibility of PayPal creating its own digital currency. It's impossible to predict the future, but for now PayPal remains a payment service provider.
PayPal does not have a digital wallet, it only allows you to make payments for your cryptocurrency purchases. You can use a physical or hardware wallet or use the eWallet offered by eToro.
The payment method you choose may affect the transaction fee as well as the minimum and maximum limits. In addition, it can affect the security of the operation.
Is it possible to lose the PayPal payment and not receive the purchased cryptocurrencies?
PayPal offers a transaction refund service, but it might be complicated to apply it to cryptocurrency purchases in some cases. For your own safety, only use recognised trading platforms and check their credentials before making a deal.