Learn Where & How to Buy Ethereum With PayPal - A Beginner's Guide
Ethereum is a smart contracts platform and cryptocurrency network whose native asset Ether (ETH) is the second-largest digital currency after Bitcoin by market capitalisation. Like Bitcoin, Ethereum is significantly transforming the cryptocurrency market, with the value of ETH expected to reach a new all-time high above the $1,400 reached in January 2018.
PayPal, on the other hand, is an online payment firm whose services allow people to transact fast and securely online. In addition to credit card, debit card and bank transfer, PayPal is one of the many ways by which people can buy Ethereum and other crypto assets.
Steps to Buy Ethereum With PayPal
As we have seen, PayPal has made it incredibly easy to buy ETH. Even though we have other options, we cannot ignore PayPal’s immense contribution, especially the possibility of linking your debit card to your PayPal account to purchase cryptocurrencies. If you want, you could also transfer funds to PayPal by bank transfer and use the funds to purchase Ethereum among other supported crypto assets.
Currently, US residents can buy Ethereum directly using PayPal once they have verified their accounts. If you are outside the US, you might need to follow the steps below to make a successful ETH purchase with PayPal.
Remember, some platforms do not accept PayPal as a payment method.
- Create a PayPal account: Take a few minutes to create a PayPal account online for free. Conduct ID verification to increase your transaction limits and secure the account.
- Create an Ethereum wallet: An Ethereum wallet is an application like an internet banking app that allows you to interact with your Ethereum account. Visit ethereum.org for a list of some of the most secure wallets. You can open one in minutes and can start storing, sending and receiving the coins with ease.
- Register with Ethereum trading platform: The trading platform is where you can buy and sell ETH with PayPal. It would be best if you did the due diligence to choose a trustworthy cryptocurrency exchange. Choosing the right cryptocurrency platform can be tricky, but we are here to help.
Do you think that this Ethereum exchange route is unsuitable for your needs? If you want another alternative, you can try out the peer to peer marketplace. Many time-conscious traders are accepting PayPal and can tailor their products to meet your unique needs.
Best Places to Buy Ethereum With PayPal
You can buy Ethereum directly from PayPal using your fiat funds, or through a third-party exchange. The former is not available globally yet, which means one has to find the selling platform or individual before buying ETH with PayPal.
But finding the best place to buy the digital currency can be a little challenging — especially if you are new to the cryptocurrency space. This is not to discourage or say it is a ‘no-go zone’. There are plenty of places you can buy the Ethereum token with funds from your PayPal account.
However, the crypto sector still has lots of pitfalls, and you can easily get scammed by an obscure cryptocurrency exchange. Apart from losing your funds, you could pay a fortune in transaction fees or run into some security risks that compromise the safety of your assets.
But using PayPal to buy ETH is becoming increasingly easier, and your funds will be safe if you use a reputable and regulated platform.
To help you choose among the top, we have put together a list of the most reliable places from where you can buy Ethereum with PayPal.
Pros and Cons of Buying Ethereum With PayPal
What Are the Transaction Fees on PayPal?
When it comes to the fees that users pay to buy Ethereum with PayPal, you should note that many parties are involved in each transaction. We said that before you purchase the coins, you have to register with the right cryptocurrency trading platform, open a wallet and create a PayPal account. Each of these entities will charge you a small fee for their service.
Many trading platforms can charge as high as 10% of the amount you buy. PayPal will also charge you depending on your various factors. For example, if the platform does not use the US dollar, it will require you to pay 4.5% above the normal exchange rate. Depending on whether you have a personal or business account, PayPal will charge you 2.5% or 3.4%. Other than that, the company charges a flat rate of $0.30. Please note that PayPal will not charge the seller anything. So, you will receive your PayPal payments minus the charges.
ETH to PayPal: Can I Transfer Ethereum to PayPal?
As we have noted above, PayPal supports more than 100 currencies. But these are the digital forms of legal tender. Also, PayPal upholds the highest transparency standards, but like many other decentralised digital assets, ETH values anonymity. If you want to sell Ethereum, you cannot do it directly.
Find one of the most authentic and reliable ETH exchanges that accept PayPal as a payment method. Initiate the process by asking the company for their ETH address. Use it to transfer the coins. Let them transfer the fiat currency to your PayPal account. The best exchanges use escrow services. Both of you must send the money to the third party, and once everything is done, you receive your money. However, since PayPal allows users to reverse their money, an unethical company can dispute the transaction whenever it wants. As such, your choice of a trading platform is critical for your ability to transfer your Ethereum to PayPal successfully.
PayPal to Ethereum: Is It Possible to Convert My PayPal Funds to ETH?
Like directly converting ETH to PayPal funds is impossible; you also cannot directly convert PayPal funds to Ethereum. However, this may change in 2021. In October 2020, the payment company announced plans to allow the direct buying and selling of many cryptos in the US and a few other locations.
It would be best if you worked with a crypto exchange that supports PayPal. While the risk of reversal is limited in this case, you still need to work with a credible service provider. Compare a few platforms to see the quality of services they offer. You can read a few reviews and user feedback before making your decision. Also, consider the nature of your needs. If you want instant service, be sure you get one that offers that.
You will need to send PayPal funds to an escrow service if both of you agree. After that, the platform will send ETH to the service too. Once that is done, you will receive your coins in your wallet. You can then use them online as you please.
Frequently asked questions
Technically, that is a no. Although PayPal recently announced that its users would be able to buy, hold or sell cryptocurrency using their PayPal accounts, what you have in the account is the fiat value of the asset held by a third party. If you need to buy, send or trade ETH, you need a separate wallet which you can set up as explained above and use that to store the cryptocurrency you buy using PayPal.
PayPal is among the most reputable payment methods across the globe. They are also innovative and customer-focused. If you abide by their rules, you are highly likely to buy the coins successfully. But the cost of the service is comparatively high, and your chances of losing the money are also high, especially if you breach the company’s policies.
If you want to buy ETH instantly with PayPal, your best option is to work with individuals and groups on peer-to-peer marketplaces that accept it as a payment mode. Before you enter into a contract, ensure that you understand their terms of service.
Ethereum wallet is the platform where you can store, send or receive your digital currencies. Even though many cryptocurrency trading platforms have built-in wallets, your money is safer if you withdraw and store it in a different wallet. Remember, hackers often target exchanges.
Many factors determine when one should buy Ethereum. So, it is difficult to determine the right time. But the dollar-cost-averaging strategy can help you know the right time with a high degree of accuracy. With this method, you split your buys over an extended period to increase your chances of evening out when the process significantly falls. You can also use charts to foretell when the price is high or low.
PayPal for now only allows users in the US to buy Ethereum with their PayPal accounts. However, plans are underway to make the offering available in other regions and jurisdictions in 2021.
Like other digital assets, the price of Ethereum keeps fluctuating all the time. The value is also different from one trading platform to another and one country to another. It would help if you did simple online research to find the most up to date price in your location.