You can now buy crypto with PayPal. Its accessibility is its greatest strength. But how does it work, you ask? Follow our guide to learn how to buy cryptocurrency with PayPal.
Why Buy Bitcoin with PayPal?
- The payment process is quick and simple
- PayPal brings its accessibility to your investments
- For PayPal users, the process is already familiar
- Your payments are secured by a platform used by more than 270 million people worldwide
- You no longer need to move your funds to another account: they are debited directly from your PayPal account.
Did you know? You can also buy shares with PayPal.
To go further, also read our guides “Buying Ethereum with PayPal, Bank Transfer or Card” and “Solana Cryptocurrency“.
Benefits of Buying Crypto with PayPal
- PayPal, a Well-Known Platform
PayPal is recognized worldwide as an effective way to buy cryptocurrencies. For example, the company handles currency conversion based on your country.
It ranks among the most secure online e-wallets. The ease with which it lets you acquire bitcoin has made it even more popular among crypto traders.
- A Secure Platform for Your Cryptocurrencies
If you have doubts about buying online, rest assured that PayPal keeps your transactions secure. It applies strict security measures to remote purchases.
If an order goes wrong, a refund is available to the trader concerned, subject to conditions. And users can rely on this trusted system to protect themselves against all kinds of fraud.
- Easy to Use for Buying Your Crypto
Transactions through PayPal are quick and simple. On top of that, the fact that the service is free has won over many users. And when you make a purchase, you no longer need to provide your bank details, which improves the user experience.
- A Platform Accessible to Everyone
PayPal is available in nearly 200 countries. It works with millions of businesses and commercial partners to optimize the quality of its services. Today, more than 300 million traders trust it.
PayPal: A Quick and Simple Payment Process
Unlike other platforms, PayPal processes funds directly without relying on banks. It has a feature called One Touch that lets users deposit funds several times without having to log in each time, only the first time.
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- Vantage
- AvaTrade
- Raise FX
As PayPal has captured a large share of digital commerce, cryptocurrencies can now be bought with this payment method. But even though many platforms accept it, it is always best to choose the best one. Besides Vantage and Raise FX, you can also buy crypto with PayPal on Binance, Poloniex, CoinEx, Binance DEX, Hotbit and Crypto.com.
What Are PayPal’s Transaction Fees?
Before buying cryptocurrencies with PayPal, you need to take the fees into account. Using this platform to buy cryptocurrencies is very convenient but involves fairly high fees. Brokers charge fees of up to 10% of your transaction amount, and PayPal will charge you additional fees on its side.
If, on top of that, you trade through an online broker that does not use USD, you should expect to pay a 4.5% conversion fee above the exchange rate. But it is entirely possible to avoid these conversion fees. To do so, we recommend using a platform such as eToro: by using the dollar as the currency for its transactions, the broker saves you conversion fees.
On the other hand, if you use your PayPal account to buy cryptocurrencies, PayPal does not charge you any fees. It is when you receive funds that you pay fees ranging from 2.5% to 3.4%. PayPal will also add a fixed fee of $0.30 for money received in your PayPal account.
PayPal at a Glance
Key Facts About PayPal | |
Founded | December 1998 |
Originally known as | Confinity |
Founders | Max Levchin Peter Thiel Luke Nosek Ken Howery |
Official name change | The company took the name PayPal in 2001 |
Went public | 2002 |
Functions | – PayPal is a payment platform that does not require you to share your bank details. – It allows transfers between individuals |
Market Capitalization | $326.7 billion |
PayPal vs Credit Card: Should You Buy Crypto with PayPal or a Bank Card?
PayPal | Credit Card | |
Differences | No need to provide detailed personal or bank information. | You need to provide personal information to banks. |
Cryptocurrencies can only be bought if there is money in the account. | You can make purchases even without money in your account, but the bank then issues a monthly debt statement. | |
Affordable and transparent fees | Fairly high fees Credit cards often include hidden fees. | |
Similarities | Both make it easier to transfer money and complete transactions when buying cryptocurrencies. | |
The table above shows the differences and similarities between using a credit card and using PayPal to buy cryptocurrencies.
Buying cryptocurrencies with PayPal is a recent practice compared with paying by bank card. However, when you buy cryptocurrencies by bank card, you should expect very high fees. Sometimes these credit cards include hidden fees that were not disclosed to the user in advance.
While buying with PayPal does not require users to provide their personal bank details, using bank cards requires more personal information.
This little plastic card, which has dominated crypto transactions for years, may be overtaken by PayPal purchases. Its biggest weakness is the credit limit and the line of debt it creates.
The system works simply: you make purchases by borrowing from your bank. Once you have done so, the bank sends you a statement, and the minimum amount on that statement must be paid by the due date. If you have the full amount, you can also pay it all off with your financial institution.
If you have any other questions about buying cryptocurrency with PayPal, let us know in the comments.