Learn Where & How to Buy Bitcoin With PayPal - A Beginner's Guide
Bitcoin is the world’s very first and leading cryptocurrency by value on the market today. Bitcoin was founded in 2009 by an unknown entity using the alias Satoshi Nakamoto. Bitcoin functions as a decentralised blockchain system that continues to surpass expectations.
PayPal is a secure payment platform because it offers state of the art encryption technology similar to the technology found in centralized banking institutions. PayPal does not require you to provide your financial information. Some cryptocurrency exchanges will accept PayPal as a payment method and allow you to buy Bitcoin. As an alternative, you can find a CFD broker who will offer you PayPal as an option to trade on the price movements of BTC.
Steps to Buy Bitcoin With PayPal
In 2021 it is now easier than ever to buy Bitcoins. You can use your credit card, debit card, or you can conduct bank transfers. Something that you may not have known, though, is that you can now buy Bitcoin using PayPal. To do this you will have to remember that most cryptocurrency exchanges do not accept PayPal, and even those exchanges that allow deposits using fiat currency may not support it. Below, through a few steps, we will look at ways to buy Bitcoins using PayPal.
- Before you can make your first Bitcoin cryptocurrency purchase using PayPal, you will need to create a PayPal account. The account set up process is simple, and you should finish creating an account within a few minutes.
- At this initial stage, you will also need to create a Bitcoin wallet. The bitcoin.org website will present you with several options tailored to your level of experience. This will allow you to store, send, and receive bitcoins with ease.
- After creating your PayPal account, you will need to register with a Bitcoin trading platform, such as an exchange or brokerage service that accepts PayPal as a payment method. Most of these exchange platforms will also want you to submit a photo ID, so try to have one handy.
- Follow this step if you do not want to use a traditional exchange route: A little research will help you to find a peer-to-peer marketplace that accepts PayPal as a payment method. You can then search for individuals or companies that will accept PayPal for buying Bitcoin.
Best Places to Buy Bitcoin With Paypal
There are many different Bitcoin trading platforms to choose from. Unlike acquiring a Bitcoin wallet, which is relatively easy, finding the right Bitcoin platform to exchange cash, using PayPal can be difficult; and due to the fees incurred, PayPal can be quite costly, but is still a preferred method of payment for many people when buying bitcoins.
We have compiled a very short list of platforms that we would recommend to buy and trade Bitcoin.
Pros & Cons of Buying Bitcoin With PayPal
What Are the Transaction Fees on Paypal?
When buying Bitcoin with PayPal, you must be aware of the fees involved. Although using PayPal to purchase Bitcoin is convenient, it comes at the cost of high fees.
Many trading platforms impose fees as high as 10% of your transaction amount, and PayPal will still charge you a fee on top of this amount. If you want to trade on a platform that doesn't use the US dollar, you need to be aware that PayPal will charge you a conversion fee of 4.5% above the exchange rate. When you buy Bitcoin using your PayPal account, PayPal will not charge you a fee; however, when you are receiving funds, you will be charged a fee based on a sliding scale, between 2.5% and 3.4%.
PayPal will also charge you a flat fee of $0.30 for money paid into your PayPal account. Also, note that you can lose money when trading using the PayPal payment method. There are always risks involved when it comes to Bitcoin exchanges. PayPal is one of the riskier payment methods as payments can be reversed. Many investor accounts lose money when PayPal reverses a payment, and there isn't any way for you to recoup this money back from the fraudulent party. Irrespective of these facts and fees, PayPal is still a plausible payment method to employ when buying Bitcoin.
Bitcoin to PayPal: Can I Transfer Bitcoin to PayPal?
It is indeed possible to convert your Bitcoin to fiscal currency. However, to do this, you would need to register on a cryptocurrency exchange that trades in Bitcoins as you cannot directly transfer your digital Bitcoin currency to your PayPal account. This cryptocurrency exchange has to allow you to withdraw funds via PayPal. You will have to ensure that you find a reputable and reliable person or company to exchange Bitcoin for fiscal currency on this exchange.
You don't want to go with someone who will unethically reverse the payment to your account. Start your exchange on the platform that you choose by entering the number of Bitcoin that you want to exchange to your PayPal account and proceed by entering your PayPal email address.
Initiate the exchange by entering the unique Bitcoin wallet address that the platform will provide to you. Once they have received the Bitcoin, they will send you the fiscal currency into your PayPal account. Note that this process may differ depending on the different exchange platforms.
Paypal to Bitcoin: Is It Possible to Convert My Paypal Funds to Bitcoin?
You cannot use PayPal to buy Bitcoin directly. This is because Bitcoin transactions are irreversible. Remember that PayPal transactions are reversible, so the fundamental design of each payment system is incompatible at this time. Therefore, you will have to use various indirect methods to purchase Bitcoin using PayPal money.
Be sure to select a cryptocurrency exchange platform that supports PayPal. There are several now available. It is advisable to take a little time examining all the pros and cons of these platforms before deciding which to use.
You will find that most exchange platforms offer an easy signup process, and many are protected by contractual agreements held by a third party member such as escrow. Depending on the exchange platform you choose to go with, some will offer instant PayPal to Bitcoin deposits.
It is common for these platforms to require a photo ID or proof of residence, a step that you will not be able to forgo if you want to proceed to trade or buy. Anonymity is not really possible when buying Bitcoin with PayPal, because your personal information is most often stored on both ends.
Frequently asked questions
Yes, it will work. However, you will have to use a cryptocurrency exchange platform to convert your Bitcoins to fiscal currency and have it paid into your PayPal account.
Not directly, no. You will have to make use of a cryptocurrency exchange platform.
Yes, it is worth it as it is a convenient method to employ when buying the cryptocurrency Bitcoin. However, the fees associated with using PayPal as a payment method are very high, especially if you buy Bitcoin on platforms that do not use the US dollar.
This answer is slightly trickier. It is safe, and it isn't safe to purchase Bitcoin using PayPal. This is because PayPal can be used to reverse payments, and many investors could potentially lose untold scores of money. However, in the same line of thinking, PayPal is a respected and reliable payment method. Theoretically, if you are trading with reputable people or businesses, you will not lose money by using PayPal as a payment method.
You cannot use Bitcoin to fund your PayPal account from within PayPal. You would need to use an exchange platform. There are various reputable exchange platforms from which you can choose.
No, although as recently as July 2020, rumours have been circulating that claim PayPal will be implementing Bitcoin integration. PayPal could, in the near future, introduce a Bitcoin wallet.
Yes, although it is hugely dependent on which Bitcoin exchange that you use. Some Peer-to-Peer markets also allow you to buy Bitcoin without a PayPal ID.
Yes, however, this can only be done indirectly through the use of a Bitcoin exchange platform such as Coinbase or LocalBitcoins. Remember that there are additional fees associated with this.