Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our opinions or reviews. Learn
how we make money.
How to buy bitcoin with PayPal in the US
Step-by-step instructions on how to buy bitcoin and other cryptos using PayPal.
There are many different ways to buy cryptocurrency, but using PayPal has long been seen as one of the most difficult and inconvenient methods available. PayPal is only accepted as a form of payment on a limited number of platforms, and often incurs additional fees.
That said, it’s still possible to buy bitcoin with PayPal if you want to. Keep reading to find out where and how to do it.
Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific
provider, service or offering. It is not a recommendation to trade.
Compare ways to buy bitcoin with PayPal in the US
Why don’t more exchanges offer PayPal?
This is mainly due to one simple fact: while PayPal supports chargebacks, bitcoin (and other crypto) transactions are irreversible. As a result, it’s relatively easy for someone to buy bitcoin with PayPal, complain that they never received the BTC they purchased and ask for a chargeback — that way scammers can keep their money and essentially get bitcoin for free.
Because of this heightened risk of fraud, there are only a handful of crypto trading platforms and exchanges that accept PayPal deposits.
There are a few different options to choose from if you want to use your PayPal account to buy cryptocurrency:
Peer-to-peer marketplaces. The first option is to buy crypto through a peer-to-peer marketplace, such as LocalBitcoins or Paxful. These exchanges allow buyers and sellers to trade directly with one another, giving the seller the freedom to set their own exchange rate and accepted payment methods. Some sellers accept PayPal, and you can filter your search of available deals on the marketplace by payment method to help find a suitable seller.
Cryptocurrency exchanges. Most exchanges don’t accept PayPal payments.
Peer-to-peer lending platforms.xCoins is a peer-to-peer lending platform for bitcoin lenders and borrowers. It accepts PayPal as a payment method for people wanting to access a “secured loan” of bitcoin.
Pros and cons of buying crypto with PayPal
Pros
If you already have a PayPal account, payment is quick and convenient.
Safe and secure payment method.
Allows you to buy crypto with US dollars (USD).
Cons
Very high fees substantially increase the cost of the transaction.
If the platform doesn’t accept USD, currency conversion fees apply.
Limited number of platforms support PayPal.
PayPal fees
If you’re considering buying crypto with PayPal, make sure you’re aware of all fees involved:
Many trading platforms impose high fees on PayPal transactions. These could be as much as 10% of your transaction amount.
If you’re buying through a platform that doesn’t accept USD, currency conversion fees may also apply. If you’re converting to Canadian dollars, PayPal’s fee is 3.5% above the exchange rate. For all other currencies, the fee is 4% above the exchange rate.
3 sites you can use to buy bitcoin with PayPal
Let’s take a closer look at how to buy bitcoin with PayPal on four popular platforms.
LocalBitcoins is a peer-to-peer marketplace where you can connect with bitcoin buyers and sellers in your local area, and make the transfer in a way that suits you both.
To buy bitcoin with PayPal you’ll need to:
Register for a LocalBitcoins account.
You then have two options:
Browse existing ads from BTC sellers on the “Quick Buy” screen. Use the drop-down menu provided to select PayPal as your desired payment method, and click “Buy” if you find a suitable ad. You’ll then be able to view the trade details, enter the amount of USD you want to spend or the amount of BTC you want to buy, and click “Send trade request.”
Place your own ad. This allows you to specify your desired payment method, currency and transaction amount. Please note that you’ll need to complete ID verification before you can post an ad for a trade.
Buying BTC with PayPal on LocalBitcoinsLocalBitcoins
Pros and cons of using LocalBitcoins
Pros
You can buy bitcoin with USD
Platform is simple to use
Freedom to search for the price you want
Cons
It might take a while to find a seller that accepts PayPal
The rate you get depends on the deals available on the platform
Paxful is another peer-to-peer bitcoin marketplace that accepts a long list of payment methods, including PayPal. Here’s an example of how to buy BTC using PayPal on Paxful:
Create a Paxful account.
Link your phone number and set your security questions and settings.
Click the “Buy Bitcoin” link at the top of the screen, then select USD as your currency and enter the amount you want to spend. Choose “PayPal” as your desired payment method and click “Search.”
You’ll be shown a list of open offers that meet your search criteria. Click “Buy” next to one that satisfies all your requirements.
You’ll then be able to view the trade details and enter the amount of USD you want to spend or the amount of BTC you want to buy. Click “Buy Now” when you’re ready to proceed with your purchase.
Buying BTC with PayPal on PaxfulPaxful
Pros and cons of using Paxful
Pros
Simple, quick and easy.
Potentially one of the most cost-effective ways to buy bitcoin with PayPal.
Freedom to search for the deal you want.
Cons
Might take some time to find a suitable seller.
The rate you get depends on the deals available on the platform.
xCoins is a bitcoin lending platform where you can use PayPal to acquire a secured bitcoin loan. Instead of buying or selling bitcoin, users offer loans to each other and set an “interest rate.” Sellers “lend” bitcoin, and buyers take this loan and then repay it in a single payment later on.
This may sound complicated but in practice it’s quite similar to using a more traditional crypto exchange. Here’s what you’ll need to do:
Sign up for an xCoins account.
Enable 2-factor authentication and verify your ID.
Enter the amount of BTC you want to buy and click “Get Bitcoin.”
Take a moment to review the total cost of the transaction and the amount of bitcoin you will receive.
If you’re happy with the terms, accept the loan agreement and click “Continue to Payment.”
You will be redirected to the lender’s PayPal page where you can enter your PayPal account details and finalize payment.
It’s possible to buy cryptocurrency with PayPal, but should you? The high fees involved and shortage of platforms that accept PayPal payments means that there are other more cost-effective and convenient options available.
For example, rather than funding your PayPal account from your credit card and then using that balance to buy crypto, you could use a platform that allows you to buy crypto directly with your credit card.
Having said that, there are several trading platforms that support PayPal if you insist on buying using this method. Compare the features and fees of those platforms to find one that’s right for you.
FAQs
No, Coinbase does not currently accept PayPal transfers. At the time of writing, the only supported payment methods for US buyers are debit cards, bank transfers and wire transfers.
Not really. While there are some platforms that allow you to buy cryptocurrency without providing any proof of ID, PayPal isn’t an anonymous payment method. This is due to the fact that you’ll need to fund your PayPal account from a linked bank account or credit card, which will in turn be linked to your identity.
Yes. One option is to sell bitcoin through a peer-to-peer marketplace that accepts PayPal, such as LocalBitcoins or Paxful, or place a trade on an exchange like VirWox. Another alternative is to use an exchange where you can sell bitcoin for USD, then withdraw your dollars to the credit card or bank account linked to your PayPal balance.
No, you can’t fund your PayPal wallet with bitcoin and BTC cannot be stored in your PayPal wallet. Your BTC will instead need to be held in a dedicated cryptocurrency wallet.
Yes, there are several crypto exchanges that offer fiat-to-crypto trading and accept deposits via bank account transfer, credit card, debit card and even cash.
Disclaimer: Cryptocurrencies are speculative, complex and involve significant risks – they are highly
volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of
future performance. Consider your own circumstances, and obtain your own advice, before relying on this information.
You should also verify the nature of any product or service (including its legal status and relevant regulatory
requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may
have holdings in the cryptocurrencies discussed.
Tim Falk is a freelance writer for Finder, writing across a diverse range of topics. Over the course of his 15-year writing career, Tim has reported on everything from travel and personal finance to pets and TV soap operas. When he’s not staring at his computer, you can usually find him exploring the great outdoors.
How likely would you be to recommend finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Advertiser Disclosure
finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
