Buy cryptocurrencies with PayPal: Everything you need to know

Cryptocurrencies with PayPal
Buying cryptocurrencies with PayPal is a fairly secure and easy option. Payments are made immediately and the fees are often cheaper than with other payment methods.

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.

PayPal cryptocurrency wallet

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

ok

Buy cryptocurrencies with bank transfer 

ok

Buy cryptocurrencies with Skrill

ok

Buy cryptocurrencies with Neteller

ok

Buy cryptocurrencies with a credit card

ok

Buy cryptocurrencies with Rapid Transfer

ok

Buy cryptocurrencies with UnionPay

ok

Buy cryptocurrencies with SOFORT transfer

ok

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.

Cryptocurrencies with PayPald

Buy real cryptos or trade crypto CFDs with PayPal

To invest in cryptoassets, you can do so by buying real cryptocurrencies or by trading Contracts for Difference, or CFDs for short. These are two very different products that have their respective advantages and disadvantages. When you buy cryptocurrencies with PayPal, you receive real tokens, whereas with CFDs you invest in their fluctuations in value.

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

Pros

  • Trade real cryptoassets or CFDs
  • Receive cryptocurrencies in your wallet
  • Make payments with fiat money
  • Higher leverage profits possible

Cons

  • Possible brokerage commission or fees
  • Restriction of accepted payment methods
  • Increased risk due to leverage

Crypto exchange advantages and disadvantages

Pros

  • Prices are negotiable
  • Better conditions for long-term investments
  • You receive real cryptocurrencies

Cons

  • Cyber attacks or hacking possible
  • Lack of insurance or government regulation
  • Wallet required for cryptoassets
  • Wallet must be set up securely
  • No trading with leverage possible
  • Requires technical knowledge of cryptocurrencies

Fees when buying cryptocurrencies with PayPal

When buying cryptocurrencies with PayPal, you need to consider both the PayPal fees themselves and the provider's fees. Make sure that PayPal is generally an accepted payment method there and that the cryptocurrency portfolio contains the assets you want:


eToro

Plus500

Xcoins

Paybis

Cryptocurrencies

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

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%

Minimum deposit

€ 200

100 €

$ 10

60 €

Payment methods

Credit cards, bank transfers, PayPal, Skrill, Neteller, SOFORT

Credit cards, bank transfers, PayPal, Skrill, SOFORT

Credit and debit cards, bank transfers, PayPal

Credit and
Debit Cards, Bank Transfer, Skrill and Neteller

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.

New crypto study sees Bitcoin at $318,417 by 2025

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?

Anonymous

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.

However, anyone could register an account under a false name and use a virtual credit card. This is against PayPal's policies and terms of use, and we discourage this practice. It could lead to account freezes and the loss of your money.

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.

Without registration

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.

Without verification

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?

When you buy cryptocurrencies with PayPal through eToro, you do not need your own wallet as the platform already provides you with an integrated digital wallet. This means that you can do without further hardware devices that are supposed to ensure the security of your cryptoassets.

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

Sell cryptocurrencies with PayPalWith eToro's digital wallet, customers can manage their cryptoassets conveniently and easily. For example, if you buy cryptocurrencies with PayPal and later decide to sell them again, all you have to do is transfer them to your trading account. You can also deposit physical cryptocurrencies into your wallet at eToro.

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.

ciobulletin-paypal

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:

Pros:

  • Convenience: All your transaction details are stored in your PayPal account. So if you frequently make transactions with the same broker, you don't have to re-enter all the information.
  • Transaction costs: Although it depends on the conditions of your bank operator, transfers are usually often the cheapest payment method. However, PayPal's transaction costs and fees are again significantly lower than those of credit cards.
  • Security: PayPal works with state-of-the-art data encryption and software. The platform is very secure and is constantly updated to prevent theft and fraud.
  • Buyer protection: PayPal allows you to cancel unsatisfactory transactions. If you do not receive the product, in this case the cryptocurrency, you can request the cancellation of the transaction. However, you should be aware of the conditions and limits of this guarantee.
  • Rewards: PayPal offers rewards to users who link a credit card to their account. Check your account terms and claim purchase rewards according to the terms of your agreement.
  • Ease of use: PayPal's platform has a user-friendly and intuitive interface. The site is easy to navigate and offers good customer service.
    Possibility of anonymity: Although we do not recommend it, it is theoretically possible to hide your identity with PayPal. The use of specially set up email accounts and virtual credit cards is feasible. Depending on the amount of the transaction, identity verification may not be required.

Cons:

  • Some degree of vulnerability: Despite all efforts to ensure security, PayPal is a target for hackers. Its popularity as a payment platform makes it very attractive to cybercriminals. Hence the potential risk.
  • Device security: In addition to the protective measures implemented by the platform, you should ensure the security of your own devices. If you store your PayPal passwords on your computer or smartphone, your account can be accessed if lost or stolen.

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.

  • Integrated wallet for cryptocurrencies
  • Buy and sell from your wallet
  • Choice between CFDs and real cryptocurrencies
  • Regulated and authorised dealer in Europe
  • accepts PayPal and other payment methods

FAQ

Can you buy cryptocurrencies with PayPal?

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.

Should you use PayPal to buy cryptos?

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.

Where can you buy cryptocurrencies with PayPal?

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.

Which cryptocurrencies can you buy with PayPal?

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.

Is PayPal a cryptocurrency?

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.

Can you deposit your Bitcoins with PayPal?

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.

Does the payment method affect the investment?

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.

About the author

Hi there, my name is Zalman Weinberg. I'm enthusiast with over 7 years of experience in cryptocurrencies and blockchain. Professional Trader providing Blockchain solutions to Startups and Enterprises. Expert in all cryptocurrency exchange APIs (BitMEX, Bittrex, Binance, Bitfinex, Kraken, Poloniex, Gdax etc.). I have also worked with multiple Forex broker APIs.