How to buy Bitcoin (BTC) with PayPal from the USA

By   |   Verified by Andrew Boyd   |   Updated 29th August 2022

Lots of crypto exchanges accept PayPal as a way to deposit funds and buy Bitcoin.

You may be here because you want to use PayPal as an intermediary, for example between a credit card that can’t be used to buy crypto and a crypto exchange. If you are, the process is simple. In our guide, we assume that you have already got a PayPal account set up and have linked it to a source of funds such as a bank account, debit card, or credit card.

Read on for our step-by-step guide to buying Bitcoin with PayPal in the US.

Unsure about what exchange to use?

Where to buy Bitcoin with PayPal

eToro Crypto

On eToro's website

eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. Archived, "Virtual currencies are highly volatile. Your capital is at risk."

eToro Crypto

Highlights

  • Buy $100 worth of crypto and get a bonus of $10.
  • Trade and stake a range of crypto assets with low fees.
  • Copy successful traders. Practice with a demo account.
  • eToro is regulated by CySec, FCA and ASIC.

Pros

  • The user-friendly website and app make it easy to trade from anywhere.
  • Trade Bitcoin, Ethereum, and 60+ other crypto assets.
  • With its CopyTrader feature, you can replicate the moves of other investors.
  • Start trading with just $10.

Cons

  • There is a 1% fee that is added to the market price.
  • Other exchanges have more selections of crypto coins and tokens.
Coinbase

On Coinbase's website

Finty may be compensated when you click on the link.

Highlights

  • Get $5 in Bitcoin after your first trade on Coinbase.
  • Buy and sell popular digital currencies, keep track of them in the one place.
  • Invest in cryptocurrency slowly over time by scheduling buys daily, weekly, or monthly.
  • Maintains crypto-insurance and all USD cash balances are covered by FDIC insurance, up to a maximum of $250,000.

Pros

  • Get access to a wide variety of altcoins.
  • Start trading with as little as $2.
  • Offers Coinbase card which allows you to spend crypto anywhere.

Cons

  • Fees are higher compared to other exchanges.
Crypto.com

On Crypto.com's website

Crypto.com

Highlights

  • Earn up to 8.5% p.a. on your crypto, and up to 14% p.a. for stablecoins.
  • Spend with the Crypto.com Visa Card and get up to 8% back.
  • Shop with Crypto.com Pay and receive up to 10% back, paid in CRO.

Pros

  • Get access to additional features including lending, borrowing, debit cards, and more.
  • Start trading with just $1.
  • Interest-earning deposits are available.
  • There is a USD 2,000 referral bonus.

Cons

  • Lack of educational resources.

First time buying?

How to buy Bitcoin with PayPal

Step 1: Choose an exchange that accepts PayPal

The first step is to pick an exchange that supports funds being deposited with PayPal. Not every exchange does, but we’ve collated a list of top exchanges that do on this page.

Apart from accepting PayPal, things to consider when comparing exchanges include available tokens, trading fees, fees to deposit and withdraw fiat currency, and the availability of other crypto financial services like having a card that can draw from your exchange balance or the ability to stake tokens you want to hold for the long-term.

Step 2: Complete the verification process

After setting up your exchange account, verify your identity by providing details of your passport, driver’s license, or another form of photo ID.

Every exchange has its own requirements for identity verification. You may be required to upload an image of yourself holding your photo ID so they can be matched up.

Step 3: Decide how much Bitcoin to buy

Bitcoin is known to be a highly volatile asset. Its price is influenced by a variety of factors. Sentiment and confidence are critically important to its price.

Take this volatility into account before making a decision about how much you want to invest. And, as ever, only invest what you can afford.

Step 4: Deposit funds in your exchange wallet

Funding your exchange wallet via PayPal is very straightforward.

The flow may be slightly different between exchanges. For example, on some, you may have to link your PayPal account to your exchange account from account settings. Others may ask you to log into your PayPal account and complete the transaction there, before redirecting you back to the exchange.

Either way, depositing funds into your exchange account with PayPal is not difficult and doesn’t take long to clear.

Step 5: Place an order

Once your exchange wallet has been successfully funded, you can place an order to buy Bitcoin. Most crypto exchanges support various different order types, namely market orders (fast and require very little configuration), trigger orders (use them to buy or sell at a certain price in the future), and recurring orders (buy more periodically).

Step 6: Buy

Complete the order form to buy Bitcoin with PayPal funds.

Still not sure?

Pros and cons

Pros

  • Easy to use. Depositing funds with PayPal is very simple and fast.
  • Flexible alternative. Many people use PayPal as an intermediary so they can use a debit or credit card that blocks crypto purchases.
  • Safe and secure. PayPal provides extra security through end-to-end encryption and helps get your funds back in case of fraudulent activity.

Cons

  • Transaction fees. Depending on how you fund your account, there may be PayPal fees to take into account.
  • Not every exchange supports PayPal. Most of the big exchanges do take PayPal, but many smaller or domestic exchanges do not.
  • Additional exchange fees. Some exchanges may charge a fee to process funds deposited with PayPal.

Extra help

FAQs

How long does it take for funds to transfer using PayPal?

Funds show up in your exchange account instantly after you make a transfer using Paypal.

Can I buy Bitcoin with PayPal anonymously?

Yes, you can use PayPal to buy Bitcoin anonymously on peer-to-peer exchanges.

Can I buy other cryptocurrencies with PayPal?

Yes, you can buy other cryptocurrencies with PayPal. Once your crypto exchange account has been funded, you can buy any of the cryptocurrencies they have listed.