Just a year ago, buying Bitcoin with PayPal seemed to be a far-fetched dream, however, ever since PayPal started accepting Bitcoin and other cryptocurrencies, things kicked off well. That being said, while PayPal enables you to purchase Bitcoin directly, the functionality is still quite limited. Here’s what you need to know about buying Bitcoin with PayPal.
Quick Summary for Fast Readers
- Make sure to review the price, transaction fees and carefully analyze what you will actually need to pay
- Going to cryptocurrency exchanges can help non-US residents get access to buying Bitcoin with PayPal
- While PayPal does a lot of the same things a cryptocurrency wallet would do, you cannot send Bitcoin from PayPal to exchange directly
How to Buy Bitcoin with PayPal? A Step by Step Guide
PayPal allowed direct purchases of Bitcoin with the PayPal digital wallet. This was made alongside a partnership with Paxos, a regulated blockchain infrastructure platform.
PayPal users in the US can buy, sell, hold, and checkout with cryptocurrencies for the time being. This might change in the future, but if you are not from the US, there are alternative methods as well.
If you want to buy Bitcoin directly with PayPal, here is what you need to do:
- Click on the Sign-Up button on the main page, assuming you do not already have a PayPal account.
- Once you have created an account, log in, and click on the “Crypto” option. Keep in mind that this is available in select locations, so if you live outside of the US, you might not have access to this menu.
- Click on the “Bitcoin” option and then simply click on “Buy”.
- Here, you need to enter the amount of Bitcoin that you would like to purchase.
- Select the payment method you want to use and click on “Next”.
- Last but not least, you will need to check the conversion rate and transaction fee.
- Click on “Buy Now” to confirm the purchase, after which the coins will become available to your PayPal Digital wallet.
Note: The fees vary between 1.5% to 2.3%, and this is dependent on the size of the purchase of Bitcoin that you are making.
How to Transfer Bitcoin to PayPal Tutorial
For non-US residents, you will have to transfer Bitcoin from an exchange to your PayPal account.
If you are outside of the US but want to use PayPal to purchase Bitcoin, you can connect your PayPal account at an exchange, deposit FIAT currencies to the exchange wallet itself, and buy cryptocurrencies through that balance on the exchange itself.
After you sell your Bitcoin at hopefully a profit, you can re-add the balance to the exchange balance itself, and withdraw that balance to your PayPal account.
This means that you are always transferring USD to and from your PayPal account, while the exchange does all of the cryptocurrency transfers instead of PayPal, and this is a workaround for non-US residents.
If you want to transfer Bitcoin from an exchange to your PayPal, here is what you need to do:
- Sign Up to DXOne if you do not already have an account.
- Initiate a buy order on the exchange itself.
You can also click on “Trading” followed by “Easy Trading” to get on the same screen.
- Set the order correctly
Here, you will need to click on “Buy Crypto”.
Here, fill in the required information, such as the quantity of FIAT currency that you want to use as well as the cryptocurrency that you want to buy, which in this case would be Bitcoin.
Note that you will also need to read and acknowledge the disclaimer at the bottom.
Enter your credit card information and verify your identity to complete the purchase.
- Send USD to PayPal Through DXOne
After you have purchased Bitcoin on your account, you can leave it at the exchange or transfer it to a cold wallet if you intend to keep it for a prolonged period of time, however, when you decide to sell it for potentially a profit, you can convert the BTC into USD on the exchange itself, and then send the USD to PayPal.
The easiest method through which you can do this is by going to the toolbar at the top of the dashboard page to the “Wallet” section, where you need to click on “Account Summary” and click on the “Withdrawal” button on the right side of the screen.
How Much Does PayPal Charge for Bitcoin Purchases?
The transaction fees are based on how many cryptocurrencies you buy or sell. From $1 to $24.99 there is a $0.50 fee, for $25 to $100 there is a 2.30% fee, from $100 to $200 there is a 2.00% fee, from $200 to $1000 there is a 1.80% fee and from $1000 above there is a 1.50% fee.
Can You Withdraw Bitcoin from PayPal?
There is currently not an option to send cryptocurrency assets from PayPal to another exchange or external cryptocurrency wallet. You can, however, convert the Bitcoin back into USD and withdraw them that way.
Is PayPal a Bitcoin Wallet?
The PayPal account does serve the role of allowing to buy, sell, trade or store cryptocurrencies, so it has similar functionality as a dedicated Bitcoin wallet.
Can You Sell Bitcoin on PayPal?
You can, and to do so, you need to click on “Your Crypto” from the home screen on the PayPal app, and from the “Crypto Landing” screen, select Bitcoin (BTC) and click on “Sell” to do so.
Buying Bitcoin with PayPal has never been easier, even if you are outside of the US. There are many exchanges out there that will allow you to make deposits and withdrawals to PayPal as well.
The fact that you can make online payments with crypto through PayPal is its main point of appeal, and it is exciting to see the level of adoption cryptocurrencies are receiving within the mainstream. Hopefully, now you have a deeper understanding of how buying Bitcoin with PayPal actually works.