If you are new to cryptocurrency but already have a PayPal account and money in it, you might want to know how to buy Bitcoin with PayPal. It turns out that if you want to do that, it's a little more complicated and sometimes more expensive. One of the main reasons why it is difficult to buy BTC using PayPal as a payment method is the possibility of chargebacks. You can't reverse a Bitcoin transaction, but PayPal does allow you to get your money back in some cases, so there's a lot of potential for fraud.
Fortunately for you, since the end of 2020 you can buy cryptocurrencies using your PayPal wallet. All you need to do is have a PayPal account with funds, choose the cryptocurrency you want to buy and confirm your purchase.
However, buying bitcoin on PayPal does not allow you to withdraw your cryptographic assets to a private wallet, also known as a self-hosted wallet, which means that you will not be able to use it for anything other than selling it back to PayPal when the price rise or fall. The essence of Bitcoin is the ability to own private digital money without having to rely on middlemen and send or receive it in a censor-resistant way. At least for now, getting cryptocurrency via PayPal is a safe way to gain exposure to the asset class, but it doesn't allow you to use it the way it's meant to be used – like a free, open peer-to-peer (P2P) financial system without reliable intermediaries.
There are still ways to buy Bitcoin with PayPal as a quick and convenient payment method. Of course, you will need a Bitcoin wallet.
In this article, we will discuss:
Buy Bitcoin with PayPal using eToro
By far the easiest way to buy Bitcoin with PayPal is using the eToro trading platform. Until 2019, eToro was primarily known as a CFD marketplace, but now it allows users to buy and hold cryptocurrencies whenever they buy the position. Furthermore, the platform launched its native eToro wallet where you can withdraw your Bitcoin, Ethereum, XRP, Litecoin and other cryptocurrencies.
In addition, eToro is one of the most innovative social trading platforms, has an intuitive and user-friendly interface and allows you to discover other markets, in addition to interacting and copying other traders. Therefore, it is usually the best place for beginning investors.
direct trade
Sites that facilitate direct Bitcoin commerce help put you in touch with someone who wants to sell Bitcoin and who accepts PayPal as a payment method. Sites that can help are LocalBitcoins and Paxful , for example.
First, you need to create an account. Then, using the search tools on this site, select the amount of Bitcoin you want to buy (or USD you want to spend), with PayPal as your preferred payment option. Be sure to read the specific terms of the deal with your chosen seller. The rest of the transaction will be up to you to discuss with them. Beware of suspicious terms and users as scams are common in these places. Whenever you have an opportunity, look for older, more trusted accounts.
Bitcoin "Loans"
XCoins is a website that operates what it describes as a Bitcoin-backed loan system, through which it allows Bitcoin owners to “lend” their cryptocurrency to potential PayPal buyers, who can then do whatever they want with it. . However, you have to pay the lender's rate, which is at least 15%. You also pay a “loan origination fee” of 7,5% of your investment and a PayPal processing fee of various percentages plus a flat fee of a few cents on top of that.
After you buy – or “borrow” – Bitcoins through XCoins (don't forget to validate the transaction through your PayPal account) your coins will be stored in your XCoins wallet. It is advisable to move them to a safer location of your choice.