Is buying crypto on paypal safe

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eToro

The social-trading platform eToro is another option if you’re looking to buy crypto with PayPal. Coupled with their network of traders and their popular CopyTrader feature, the ability to buy with PayPal makes eToro a great place to buy crypto for beginners who are still learning the ropes.

How do you buy crypto with Paypal on eToro?

Start out by logging into your eToro account if you have one. If not, you’ll have to set one up first. Completing your profile and verifying your identity and address shouldn’t take more than a couple of minutes.

Once you’re logged in, navigate over to the eToro cryptocurrency page and select the coin you’re interested in buying.

From there you have two purchase options, one called Trade, the other Order.

The Trade function lets you buy a specific amount of crypto at the going market rate.

Is buying crypto on paypal safe

By the time Bitcoin started making some serious waves and hitting all-time highs in 2017, many mainstream exchanges and companies had emerged to meet the needs of any interested investors.

These days, many companies have made it even easier, including fintech giant PayPal.

PayPal users in the US or UK who want to invest in key cryptocurrencies can do so with a click on the PayPal app now. With a single click, you’ll be able to buy, sell or hold Bitcoin, Bitcoin Cash, Ethereum or Litecoin.

Investors should keep something in mind though – buying Bitcoin with PayPal isn’t quite the same as using other Bitcoin and cryptocurrency exchanges.

Is buying bitcoin on paypal safe

buy Bitcoin using your PayPal account:

  • Coinbase
  • eToro
  • LocalBitcoins
  • XCoins
  • Binance P2P

More Reading on PayPal and Crypto

Interested in some more articles about cryptocurrency and PayPal? Take a look at some of our other pieces on the subjects.

    • Is PayPal Safe? 9 Tips to Secure Your PayPal Account Today
    • 10 PayPal Scams in 2021 and How to Avoid Them
    • Top 5 Best VPNs to Buy with Bitcoin and Other Crypto in 2021
    • The 5 Best Cryptocurrency Alternatives to Bitcoin

Got questions on buying Bitcoin and cryptocurrency with PayPal? Check out frequently asked questions below.

If you buy Bitcoin through PayPal, you won’t be able to transfer it anywhere.

Find the search box and choose how much you want to buy, set your location, and choose PayPal as your payment method.

This will narrow down the list to people who accept PayPal and have the amount of coins you want to buy. From this list, you can choose a seller based on reputation, number of trades, and response time, which is measured in colors from green to grey, with green at under five minutes and grey longer than 30.

Click “buy” to proceed with the trade and you’ll be taken to a page with the transaction details. If the terms are acceptable to you, send a message to the seller, and click the button to accept terms and send trade request.

Your Bitcoins will be held in escrow until your payment is confirmed.
Make your payment, and once you have, click the “I have paid” button.

Here are things you can and can’t do when you buy Bitcoin with PayPal, vs. other crypto exchanges and digital wallets like Coinbase, Etoro, or Binance.FeaturesPayPalCoinbaseEtoroBinanceBuy, sell and hold Bitcoin and other crypto✔✔✔✔Protection against fraud and scams✔✖✖✖Public address to receive Bitcoin transfers✖✔✔✔Private key to move or send Bitcoin transfers✖✔✔✔Hundreds of alternative coins to Bitcoin to invest in✖✔✔✔Transfer cryptocurrency to other users and accounts✖✔✔✔Make online purchases with Bitcoin (goods and services)✖✔✔✔Make anonymous payments with Bitcoin✖✖✖✖

Users who want to make anonymous payments with Bitcoin will need to get a third-party wallet that lets them do so.


While you can cash it out quickly to make online payments, that’s about the extent of what you can do with it.

If you have no desire to send Bitcoin to and receive crypto from other parties or invest in lesser-known coins, PayPal could be your platform. PayPal allows you to safely buy, sell and make a profit on the value of the cryptocurrency, rather than expose yourself to fraud, scams, and shady dealings.

So while PayPal doesn’t give users the freedom that some crypto investors desire, they do offer a sense of security. Since they hold private keys, your crypto is in safe hands if you trust the digital finance app.

As the price and popularity of Bitcoinand other cryptocurrency has surged, companies have been making it easier for interested investors to buy in.

Fintech giant PayPal, for one, has made buying, selling, or holding Bitcoin, Bitcoin Cash, Ethereum, and Litecoin as simple as clicking a button within the app or online dashboard. You will need to have your bank account or debit card connected in order to do so.

While PayPal does make buying crypto convenient, it’s important to note that you can’t move it or transfer it outside of the app or digitalwallet.

Set up an account with PayPal

First things first, if you don’t have PayPal, you’ll need an account, of course. At the moment only users in the United States and the United Kingdom can buy or sell cryptocurrency through the app.

You’ll need to verify your identity, set up some security measures, and take some steps such as linking your bank account, debit card, or credit card to create a PayPal balance account. To buy Bitcoin, you’ll need to have a bank account and debit card registered and linked to your account.

You’ll also need to provide up-to-date tax information, as crypto gains are subject to government tax.

2. Click “Crypto” on the dashboard

On the main dashboard (home page) you’ll see your PayPal balance and underneath it Crypto.

Fees to Look Out for

Buying Bitcoin with PayPal will incur variable fees depending on how much you purchase or sell.

It’s a flat fee of $0.50 (up to $24.99), and then a percentage for higher amounts, as detailed in the chart below.

Transaction AmountFee$1.00 – $24.99 USD$0.50 USD$25.00 – $100.00 USD2.30%$100.01 – $200.00 USD2.00%$200.01 – $1,000.00 USD1.80%$1,000.01 USD +1.50%

These fees are not the highest in the industry, but there are definitely cheaper options available through a number of popular exchanges like Binance or Gemini.

Additionally, if you’re converting a foreign currency to USD or CAD, there is a 3.5% fee above the going exchange rate, and a 4% fee for other currencies.

Bottom Line

Buying crypto with PayPal is easy, and for some users, it may be the best option.

However, there are several drawbacks.

While it is one of the most convenientways for amateur investors to get into the crypto game, there are limits compared to investing through other avenues, such as investment apps like E*Trade.

In this article, we’ll show you how to buy cryptocurrency through PayPal accounts, the pros and cons of using PayPal to buy Bitcoin, and look at if investing through the financial service is right for you.

How to Buy Bitcoin with PayPal: A Step-by-Step Guide

If you’re comfortable with PayPal and want to get right to it, we’ve cooked up a quickguide for you. We’ll also discuss if PayPal is the right choice for you, especially if you are looking to make a larger investment. Just follow the steps below and you’ll be holding Bitcoin or a few other crypto coins in no time.

1.

For more information on buying and selling Bitcoin safely, check out this article to get step-by-step instructions.

Private keys and public addresses

If you want to own a digital currency (in every sense of the word) you’ll need two things that PayPal doesn’t give you.

  1. A private key: This is a key generated for you, be it on a crypto exchange account, hot digital wallet, or cold hardware wallet. If you lose this key, there are some backup security measures that can help you recover it. That includes a 12-word passcode that you must write down by hand and store somewhere.

If you can’t generate this backup security measure, your private key, and digital currency that it opens the door to, would be lost forever.

  • A public address to accept transactions: This allows you to accept Bitcoin as a form of payment, for any reason.
  • Some investors and crypto holders prefer to have these private keys and public addresses. But we understand that many beginners or those looking to simply hold long-term might prefer to have PayPal deal with this and give them peace of mind.

    Should I Use PayPal to Buy Bitcoin?

    Now that we’ve reached the end of the road, the answer is: It’s up to you.

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