If you frequently operate on the internet, you must have used or heard about PayPal, one of the world’s payment processing giants. In October 2020, PayPal joined the increasing global trend of cryptocurrency adoption.
Since early 2021, PayPal customers have been enabled to use their crypto holdings to make payments to millions of PayPal merchants all over the world. They can also convert their selected crypto balance to fiat currency instantly.
This guide, among others, examines the steps needed to buy Bitcoin with PayPal directly from PayPal as well as indirectly from some crypto exchanges.
Why PayPal Has Adopted Cryptocurrencies
PayPal existed long before the rise of cryptocurrency, yet it wasn’t until more than ten years after Bitcoin was created that it integrated cryptos into its setup. In 2018, Bill Harris, former PayPal CEO, even called Bitcoin the “greatest scam in history.”
So, what has caused the policy shift?
Dan Schulman was PayPal CEO in 2020 when PayPal decided to embrace cryptos.
According to him,
The shift to digital forms of currencies is inevitable, bringing with it clear advantages in terms of financial inclusion and access; efficiency, speed, and resilience of the payments system; and the ability for governments to disburse funds to citizens quickly.
He then declared that
Our global reach, digital payments expertise, two-sided network, and rigorous security and compliance controls provide us with the opportunity, and the responsibility, to help facilitate the understanding, redemption, and interoperability of these new instruments of exchange.
How To Buy Bitcoin Directly On PayPal
If you are a US resident (excluding Hawaii) or living in other US territories, you can easily buy Bitcoin directly on PayPal’s website.
Customers can use their PayPal balance, bank, and debit card to buy crypto. Here’s how:
- Step 1: if you are new, create a free PayPal account and link the account to your email address and mobile phone.
- Step 2: Click on Finances.
- Step 3: Click on Buy.
- Step 4: Select the crypto you intend to buy (Bitcoin in this case).
- Step 5: Select the amount of Bitcoin you are buying as well as your desired frequency (e.g. daily, weekly, biweekly, or monthly.) PayPal sets the default frequency to One-time.
- Step 6: Select your desired payment method and click on Next.
- Step 7: Click on Buy Now to complete the transaction.
Note
- A verified PayPal account is a compulsory requirement to buy crypto with PayPal.
- If your PayPal account is not yet verified, you must verify it before any of your Bitcoin PayPal transactions will work.
- It is not yet possible to buy Bitcoin with credit cards or PayPal Credit directly on PayPal.
How To Buy Bitcoin With PayPal On Exodus
In May 2024, Exodus, a popular crypto exchange, announced that Exodus Mobile users in the US can now buy Bitcoin with PayPal directly on its platform. Here’s how to purchase Bitcoin with PayPal on Exodus Mobile:
- Step 1: In your Exodus Mobile, tap “Buy & Sell”, which will appear as an icon.
- Step 2: Click on Buy, and then choose the currency to pay with, the amount, and the specific crypto you wish to purchase (in this case, Bitcoin).
- Step 3: Choose “PayPal” as your preferred payment method from the list of third-party fiat API providers (if available) and click on Buy.
- Step 4: Use the steps provided by the API provider (in this case, PayPal) to complete your purchase.
- Step 6: Congrats! You’ve successfully purchased Bitcoin with PayPal. You’ll get an email confirming your order from PayPal. Your crypto should arrive within 5 to 20 minutes, depending on the network traffic.
Note:
- You can also buy Bitcoin with PayPal on Exodus Desktop and Exodus Web3 Wallet.
How To Buy Bitcoin (BTC) With PayPal On Zengo
Below are the steps to buy Bitcoin with PayPal on the Zengo app.
- Step 1: Download the Zengo app and create your wallet.
- Step 2 Enter the amount and tap the “Buy” icon. Select Bitcoin as the crypto you wish to buy. $50 is the minimum that can be purchased.
- Step 3 Provide the verification code Zengo sent you via email and agree to Zengo’s terms by checking the appropriate box.
- Step 4: Provide a billing address. The address must be from a country supported by Zengo. Additionally, Zengo may ask you to provide more information.
- Step 5: Select PayPal as your preferred payment method and click on Buy.
That’s it! Your Bitcoin will arrive within a short while.
Note:
- You can only purchase Bitcoin with PayPal via Zengo’s mobile app
How To Buy Bitcoin With PayPal On CEX.IO
Use the following procedures to buy Bitcoin with PayPal on the CEX.IO website (assuming you already have an account):
- Step 1: Go to your account on CEX.IO and select Instant Buy.
- Step 2: Choose the number or amount of Bitcoins to be purchased.
- Step 3: If PayPal is not the default payment method, click to choose it as your payment method from the field of available options.
- Step 4: After selecting PayPal as your payment method, click on Buy Now to complete the transaction.
Note
- CEX.IO’s instant buy feature for PayPal is also available via its mobile app.
Buying Bitcoin Directly On PayPal Vs. Buying On A Crypto Exchange
As noted earlier, you can purchase Bitcoin with PayPal directly on the PayPal website or app as well as on a crypto exchange like Exodus. Here are some things to note about buying directly on PayPal:
Higher Fees
PayPal’s trading commissions tend to be higher. You’ll be charged according to the sum of Bitcoin you purchase, as shown in the diagram below.
The lowest possible transaction fee of 1.5% requires a purchase of bitcoins valued at $1,000 and above. The fee rises to 1.8% for purchases ranging from $200 to $1,000. Purchases under $200 attract a fixed fee ($2.49) that can imply a larger percentage commission.
Limited Number Of Cryptocurrencies
Unlike crypto exchanges where a large number of cryptos are supported, PayPal supports just five cryptos: PayPal USD, Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. Thus, PayPal will not be ideal for investors who transact with lots of crypto assets.
Higher Minimum Withdrawals
The minimum amounts you can send or transfer to any wallet address outside of PayPal are:
- PYUSD (Ethereum): 10 PYUSD
- PYUSD (Solana): 1 PYUSD
- BTC: 0.001 BTC
- BCH: 0.01 BCH
- ETH: 0.01 ETH
- LTC: 0.01 LTC
So it won’t be possible to buy below 0.001 BTC (around $58) from PayPal and then move it to an external wallet. In such a situation, you can use a crypto exchange.
For example, in Exodus, the minimum transfer amount is a much lower 0.00006001 BTC (around $3.4).
No Trading Tools To Help Decision-Making
Unlike PayPal, crypto exchanges usually parade a larger number of trading tools that can help investors make better decisions when it comes to buying and selling cryptos.
Lack Of Leveraged Products
Access to leveraged products is a feature of several reputable crypto exchanges, which is not the case with PayPal.
Tips To Safely And Securely Buy Bitcoin With PayPal On A Crypto Exchange
PayPal is popular because it is easy to use and secure. As noted above, however, crypto exchanges can be a better alternative in a variety of ways.
But, to ensure a safe and satisfactory experience when looking to buy Bitcoin with PayPal, it’s important to choose the right exchange and adopt some measures.
Here are some helpful tips for selecting an ideal cryptocurrency exchange to buy Bitcoin with PayPal safely and securely:
- Select a trusted service that holds a license from a reputable regulatory body. A good example is the US FINRA, which licenses crypto exchanges intending to conduct cryptocurrency trading. Such regulations offer protection for users through measures like Know Your Customer (KYC) checks, Two-Factor Authentication (2FA), and Anti-Money Laundering (AML) policies.
- Look for an exchange that charges low fees. When you buy Bitcoin with PayPal, you will incur transaction fees, and there may also be extra charges for using PayPal. So be sure to research and find an exchange that charges the least possible transaction fees, especially if you have a tight budget.
- Be cautious of scammers and take advantage of all security features available. Enable 2FA, and keep your account details private. Ensure your hardware devices are well protected and your software programs are always updated.
Conclusion
PayPal integrated cryptocurrency payments into its system in 2020, making it possible for users to buy, sell and hold cryptocurrencies.
Whether you choose to buy Bitcoin directly through PayPal or through a crypto exchange in 2024, the process is simple and shouldn’t take much of your time.
But buying from a crypto exchange could cost you less transaction fees, among other perks.
FAQs
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Can one transfer Bitcoin to PayPal?
Yes. Bitcoin can be sent to your PayPal wallet address from other sources.
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Is it possible to purchase Bitcoin in PayPal without KYC?
No, buying Bitcoin with PayPal requires compliance with KYC regulations.
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Do all crypto exchanges support PayPal?
No. PayPal charges relatively higher fees for using its platform. These higher charges tend to discourage some crypto exchanges from supporting PayPal.
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Can you buy Bitcoin with PayPal credit?
No. It is not yet possible to purchase Bitcoin with PayPal credit or your credit card directly on PayPal. Such purchases can only be made through your PayPal balance, debit card, and bank.
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In which countries can crypto be purchased via PayPal?
At the moment, buying, selling, holding, and checking out crypto on PayPal is available only for those in the US (excluding Hawaii) and US territories.
