Now is an excellent time to start getting involved with the cryptocurrency sector. The prices are once again on the rise, sitting halfway towards their all-time highs for a lot of coins. Exchanges — centralized and decentralized — are everywhere, and you can access a few from pretty much any spot on the planet.
Crypto businesses are emerging left and right, more and more merchants are accepting crypto payments in exchange for goods and services, and even institutions and large companies are becoming interested. The fact that even firms like Facebook and Telegram are launching their own coins is proof enough of that.
All seems to be going well for the crypto industry, and there are multiple ways for you to get involved. There is always the option to purchase coins via credit or debit cards, and a lot of exchanges offer that option. However, if you are a PayPal user, you might be wondering if it is possible to buy cryptos via PayPal directly?
Luckily, that is now possible, even though PayPal still struggles to accept cryptocurrencies, and remains unsure whether or not it should make such a move. Undoubtedly, the lack of regulations is troubling for the company, but if you are really keen on using it to buy Bitcoin — yes, there are a few ways to do so.
Can I buy Bitcoin with PayPal on Coinbase?
You may have heard that Coinbase and PayPal are collaborating to allow people an easy way to withdraw their funds. You do not need crypto ATMs or multiple transactions in order to withdraw money if the exchange you are trading on is connected to PayPal.
The fact that the two started collaborating was greeted with a lot of positivity from the community. It is even possible to sell your crypto to your PayPal account. However, no, you still cannot use your PayPal to buy Bitcoin or any of the altcoins on Coinbase.
The other two services — crypto sale and withdrawals — also depend on the users’ countries of residence. Doing any of the two is pretty easy, especially if you have verified your account on both platforms. Simply go to Settings, find Linked Accounts, and hit the ‘Link a New Account’ button. After that, choose PayPal, log into PayPal, and you will be set.
As mentioned, buying cryptos via PayPal is still not supported on Coinbase, so no, this is not an option that you can take. However, if using a different platform is not an issue for you — we can offer four other solutions that do work.
1. Buy BTC via PayPal on eToro
Generally speaking, it has been difficult to obtain BTC via PayPal since Virwox shut down PayPal deposits in early 2019. However, one method that still works to this day is using eToro. It is not only working, but it can also be considered the easiest of the four methods we are about to show you.
However, there are limitations here as well. For example, you won’t be able to withdraw Bitcoin or send it to other people, only change it back into fiat currencies. Simply put, the best (and only) reason why you might want to get Bitcoin via PayPal on eToro would be to speculate on Bitcoin’s price, since buying the actual coins won’t let you do anything with them.
But, you can still profit rather heavily from BTC price swings. The coin is still one of the most volatile ones in the industry, and it can go up or down by a few hundreds or even thousands of dollars at any time. Best of all — you don’t need actual BTC to do so or even a Bitcoin wallet, which makes it the easiest and cheapest way to profit from the coin.
However, if you actually need Bitcoin, for making purchases, sending it to someone, or simply for HODLing and waiting for better opportunities — there are other ways to get it via PayPal.
2. Getting Bitcoin via LocalBitcoins
The best way to get actual BTC coins via PayPal is on LocalBitcoins. This is also an online marketplace, not unlike eToro itself. However, on LocalBitcoins, you deal with actual people, actual traders and sellers, from around the globe.
You get connected to all of them directly, and you have to deal with people, instead of algorithms. That comes with its own set of dangers and difficulties. Many on LocalBitcoins are scammers, so you need to watch out for them. They are relatively easy to spot once you know what you are looking for. Always remember that offers that seem too good to be true usually represent a good way to lose your money and never see a dime in return.
The next thing that you should be aware of is that LocalBitcoins also comes with its own fees, although they can differ from the ones you may have gotten used to on exchanges. Typically, sellers will charge larger fees, as they are taking a bigger risk. But, the positive thing is that you can get your BTC faster, which saves time.
Using LocalBitcoins is not too complicated, and the first thing you must do is enter the number of coins that you wish to buy. You must also specify from which country you want the coins to arrive. You won’t find a ‘worldwide’ search since the platform originally expected that people would be meeting face to face to complete transactions. That leaves you with only one option, which is to comb through each country individually, one by one.
Once you have made your choice and fill out the form on the first page, you will then see a list of sellers and their offers. This is the part where you must be the most vigilant, as this is where you can end up working with a legitimate seller, or with a scammer. Always remember to check their account details, such as feedback score, account’s age, trading history, the trustworthiness of the seller, and whether or not they were blocked by someone, and alike.
These are all great signs that can reveal whether the seller is trully who they say they are or a scammer. After finding a legit seller, the rest is easy. You will go to the trade screen, where you can see the information necessary to complete the trade, as well as the payment window. Pay good attention to the trade terms, as well. Be prepared that some sellers will not trade with you if you are new, as someone without a reputation could be a scammer. But, once you go through a sale or two, you will find that more and more people are willing to work with you.
3. Use PayPal to buy BTC on xCoins
Your third option is xCoins.io, which acts more of a Bitcoin lending service than an actual trading platform. Simply put, they will loan you BTC instead of selling it. Of course, whether this is actually just a loan, or if it can be viewed as a sale is debatable, at best.
The way the platform works is relatively easy to understand. After approaching the platform, you can submit a request to loan BTC. You will have to go through a short verification procedure, and you also have to deposit the same amount that you will loan, only in United States dollars, instead of cryptocurrency.
You should also keep in mind that this will include PayPal processing fees, as well as a certain interest rate that comes on top of the loan. As you can see, there are certain issues with the process, but it is quite simple to do all this, and it is one of a handful of ways for you to get actual BTC in exchange for the money from your PayPal.
So, to recap the instructions, you must register on the website, select the amount you wish to ‘loan,’ agree to the service’s offer, verify your identity, and pay in USD the same amount you are receiving in BTC, + the processing fees + interest. Again — it is not ideal, but it is one of only a few options if you plan to use PayPal for buying BTC. Which leads us to the last method:
4. Purchasing Bitcoin on Paxful
Paxful is the last method that we will cover here today, and if you have never heard about it — it is not surprising. Paxful acts as a smaller version of LocalBitcoins and that fact allowed it to remain lesser-known, too. It acts as a P2P marketplace which, once again, connects you to other digital currency merchants from all around the world.
The platform is quite flexible, and you can buy Bitcoin in exchange for pretty much anything you can think of. Some merchants are even willing to accept things like Skype credits, or gift cards from Amazon. With that in mind, you will have no trouble with buying BTC in exchange for fiat currencies from your PayPal account.
Even the process of purchasing coins is quite simple and straightforward. All you need to do is go to Paxful’s website and create your personal account. Next, you should pick a payment method which you will be used for purchasing BTC. As mentioned before, this can include pretty much anything, and you will see your options on the website.
All that remains after that is to pick a seller. Similarly to the LocalBitcoins situation — this is a very important step that should not be rushed. Whenever there is a large number of people working with money, you can be sure that scammers and thieves are not far behind. Paxful will allow you to find the appropriate trader yourself, or the platform itself can do it for you.
When the trade starts, you will be able to communicate with the other party via a live chat. That is where you can decide on the details of your deal. The coin owner will send their Bitcoin into escrow, and then you can send your payment. Once the payment is sent, the coins will be released, and you will receive them into your account.
Only remember that you cannot wait too long to send your payment and complete the process. You only have around half an hour to finalize the deal. If you fail to do so, the deal will be canceled by default. This is the site’s way of securing that neither party will get tricked. It is not the ultimate solution, but it works relatively good as an additional security feature. And, that is it. You can then transfer your BTC to your wallet, and you will be done.
By now, the crypto world has had a decade of development, although it saw more changes in the last two years than in that initial decade. It is still advancing rapidly and moving towards being accepted, although there are numerous challenges along the way.
For now, the most important thing is for crypto enthusiasts to know their options. There are many exchanges that allow you to purchase coins with other digital currencies, or to deposit your money via credit card, debit card, bank transfers, or in some other way.
This is not the case when it comes to PayPal, and as we have seen — the options are rather limited. On Coinbase, there is no way to buy BTC via PayPal, but at least you can withdraw the funds or sell your crypto. On eToro, you can buy Bitcoin, but you can’t do anything with it, so it doesn’t really make sense to do so. You can still profit from betting on its price, though.
That leaves three options for buying actual coins via PayPal — LocalBitcoins, Paxful, and xCoins. The first two will connect you to other traders from which you can buy coins directly, and the last one is the loaning service that pretty much lets you buy the coins anyway. For now, those are your only options, and hopefully — one of them will satisfy your needs.