PayPal is an online payments service that allows people to send and receive money, as well as pay for things online, safely and securely. PayPal has been around since 1998 and has now grown to dominate the digital payments scene. PayPal boasts over 390 million active users in over 200 countries around the world, and as of 2021, it is the 5th most used payment method for online purchases, behind only Visa, MasterCard, American Express, and Discover. It is even more interesting because PayPal allows its users to link their debit/credit cards and may have facilitated the use of the aforementioned competitors. PayPal is, without doubt, a safe and convenient payment method for many people around the world, and it can be used to buy Bitcoin in very many places.
Pros and Cons of Buying Bitcoin with PayPal
- Simplicity – You can get started with PayPal in just a few moments. The signup process is free, and you can quickly start sending and receiving payments within minutes. You can complete other verification processes with time so as to get higher limits as well as smooth transactions in the future.
- Multiple Supported Countries – PayPal is the fifth largest online payments enabler and has over 390 active users in over 200 countries and territories around the world. PayPal is a preferred payment method for many people, and this also makes it very convenient for many Bitcoin buyers.
- High Security – PayPal is a leading payment method because of the high security it guarantees its users. All PayPal transactions feature end-to-end encryption, with user financial information protected at all times. You can further enhance security by activating two-factor authentication on your account. Furthermore, PayPal offers a fraud prevention feature that can help you recover your money if you send it to unethical merchants.
- Flexibility and Convenience – PayPal allows for flexible and convenient sending and receiving of money across the world. In addition to accessing the PayPal website, users can send and receive payments using the PayPal mobile app that is compatible with both Android and iOS. For further convenience, PayPal also offers physical and virtual debit cards to its users.
- Multiple Payment Methods – PayPal users can fund their accounts using a variety of payment methods such as bank transfer, debit/credit cards, and several other local options. PayPal also allows its customers to hold a balance in over 25 currencies, and they also offer the best exchange rates if you wish to convert your balance.
- Account Freezes – The high-security features of PayPal can sometimes lead to account freezes or limited access. Many PayPal users have faced inconveniences due to their accounts being flagged by PayPal security algorithms.
- PayPal Disputes – It is very easy to open a dispute on any PayPal transaction. While this protects users, it can also work against them sometimes. In the unfortunate event that you deal with an unethical person, you may end up losing your money if you do not perform due diligence.
Where to Use PayPal to Buy Bitcoin
Here are some of the places where you can use PayPal to buy Bitcoin:
2020 was a great year for cryptocurrencies in general and Bitcoin in particular. Major corporate institutions embraced this digital currency, and one of the most notable names was PayPal. The company started a crypto service that allowed its US customers to buy, hold or sell select cryptocurrencies (Bitcoin included) directly in their PayPal accounts. The service has since been launched in the UK, and PayPal has assured its customers that it will continue to expand the services in select global markets going forward. The feature is simply a trading service, and the cryptocurrencies can only be held within PayPal, with users unable to send to external wallets. PayPal has since started allowing users to checkout with crypto, and it is expected that several more capabilities will be added.
If you have a PayPal account in the supported locations, navigate to the ‘Your Crypto’ section and click on ‘Buy and Sell’. Select ‘Bitcoin’ and click on ‘Buy’. You will be prompted to choose the amount of Bitcoin you wish to buy as well as the payment method you will use. On the next page, the live prices of Bitcoin will be displayed. The transaction will be completed when you click the ‘Buy Now’ button. Your coins should then reflect on your PayPal wallet. It is as simple as that!
On the PayPal wallet, you can buy Bitcoin for as low as $1 or £1. PayPal charges no fees for holding your cryptocurrencies, but there are fees applied when you buy or sell your coins.
Cryptocurrency exchanges were the first marketplaces for Bitcoin and other digital currencies, and they continue to offer the best gateway for many investors looking to explore this space. They operate like traditional stockbrokers, offering a marketplace for various digital coins.
Here are some of the best cryptocurrency exchanges in the world that allow PayPal as a payment option for buying bitcoin:
Founded in 2012, Coinbase has grown to become the largest cryptocurrency exchange in the US, even earning itself a listing on the Nasdaq in April 2021. The company allows customers to buy, hold and sell Bitcoin as well as over 100 other digital coins and tokens. Its website and mobile application have beginner-friendly interfaces, but the company also offers an additional platform dubbed Coinbase Pro that has added trading tools, advanced orders, and even lower fees.
Coinbase also insures its crypto holdings, guaranteeing that investors can get compensated in the unlikely event that their coins are lost due to cyber-attacks. However, the exchange is also known to charge slightly higher trading fees, and many crypto enthusiasts have lamented the lack of a comprehensive list of altcoins.
Founded in 2017, Binance is the largest cryptocurrency exchange in the world in terms of trading volumes. The company boasts a wide selection of tradable crypto coins and tokens. In addition to Bitcoin, Binance customers can buy and sell over 500 other altcoins, and they will be charged relatively lower fees. The exchange has a very advanced trading platform that is suitable for professional traders. Its desktop and mobile platforms feature a wide array of trading features, including a dedicated section for trading NFTs. Although a big and influential player in the industry, Binance has had to deal with anti-money laundering (AML) regulators in the US and the UK. As a result, its services are not available in some parts of these countries.
CEX.io is a UK-based crypto exchange that was founded in 2013. The company offers a trading platform as well as brokerage services for Bitcoin and several other cryptocurrencies. CEX.io is a regulatory-friendly exchange that offers crypto investors an added sense of security. CEX.io traces its roots to a cloud mining pool and is often dubbed as the exchange for Bitcoin enthusiasts, by Bitcoin enthusiasts. As a result, CEX.io features a neat and easily navigable website as well as handy features such as margin trading, innovative crypto, and fiat pairs, as well as excellent customer support. However, US clients are not accepted on the exchange and there are deposit limits on basic account holders. To learn more about what the CEX.io exchange has to offer
Cryptocurrency brokers have made it easy for investors to gain exposure to the lucrative crypto space in a safe and secure manner. Brokers allow investors to buy and sell Bitcoin and other altcoins as CFDs (contracts for difference). When you buy Bitcoin as a CFD, you do not actually own the asset, but instead, you are only speculating on its price changes. This has several advantages, but also some disadvantages. Bitcoin CFD trading is easy and straightforward – you buy when you expect prices to go higher and sell when you expect prices to trend lower.
Cryptocurrency brokers also support leveraged trading, and their trading platforms feature advanced charting and analysis support. Trade transactions are very quick and in general, cryptocurrency brokers are well regulated. However, despite the many benefits, CFDs tend to feature higher trading fees in the form of spreads, and their pricing can sometimes be distorted.
Buying Bitcoin with PayPal via cryptocurrency brokers is quick and easy. You need to select a cryptocurrency broker, such as eToro, and simply proceed to fund your trading account with PayPal. You can then select Bitcoin as your preferred asset to trade to view the price chart and buy or sell the coin as you wish.
Peer-to-Peer Crypto Trading Sites
P2P cryptocurrency trading sites, such as Paxful, LocalBitcoins, and Remitano, have made buying Bitcoin easily accessible and convenient for many investors. These sites allow buyers and sellers to exchange Bitcoin using a variety of convenient local payment methods supported in any jurisdiction. Buyers and sellers can post free advertisements on their Bitcoin buying offers. This includes their pricing, limits, acceptable payment methods, as well as other terms and conditions. You do not need to post an ad when you want to buy Bitcoin on these sites.
If you wish to buy Bitcoin on P2P sites, simply open an account and browse through the available seller ads that are convenient for you. Filter out sellers by selecting PayPal as your preferred payment method. Other important considerations for selecting a seller to transact with include trading history, availability, limits, reputation stats, pricing, and the terms of engagement. Buying Bitcoin on P2P sites is relatively straightforward. Simply open a trade with your preferred seller and send payment via PayPal. As soon as a trade is open, the equivalent amount of Bitcoin will be held in escrow by the P2P company. The seller will then release the coins to you as soon as your payment is confirmed.
Paying with PayPal is very controversial in P2P sites because of the buyer protection feature. Sellers are always wary of unethical buyers who can dispute transactions after a successful trade. As such, most sellers will always include in their terms of engagement to only be paid as ‘friends and family,’ so that transactions are not disputed. Nonetheless, P2P sites always have adequate dispute resolution mechanisms so as to protect both buyers and sellers on their platforms.
PayPal is a popular, safe, and convenient payment method for millions of people around the world. The service allows easy and convenient sending and receiving of money online. It is highly secure and features enhanced protection against malicious merchants or unethical individuals. Cryptocurrency investors now have a myriad of ways to buy Bitcoin with PayPal, and this can only be more convenient and safer for them to get exposed to the best-performing financial asset in recent years.
How can I open a PayPal account?
It is quick and easy to open a PayPal account. Simply go to paypal.com or download the PayPal app from Google Play or App Store and click on the ‘Sign Up’ button. Follow the prompts to open either a Personal or Business Account.
How fast is it buying Bitcoin with PayPal?
PayPal transactions are completed instantaneously. When you buy Bitcoin with PayPal, you should receive your coins within a few moments.
Do I need a PayPal Bitcoin wallet?
No. In supported countries, PayPal allows you to hold your coins in your account. When you use PayPal to Buy bitcoins on cryptocurrency exchanges, brokers, or P2P sites, you only use it as a payment method and not a crypto wallet.
How soon will I receive my Bitcoins when I pay with PayPal?
PayPal transactions are completed instantaneously. The balance of your coins will depend on your cryptocurrency exchange, broker, or P2P crypto trading site.
Is PayPal the best way to buy Bitcoin?
There are numerous payment methods that can be used to buy Bitcoin. However, many individuals prefer PayPal because of its safety, security, flexibility, convenience, and relatively lower fees. To learn more about buying Bitcoin with a credit card, and with Skrill, click here.