Buy Bitcoin with PayPal – Cheapest Providers 2024

While most investors will buy Bitcoin (BTC) with a debit card or bank account transfer – some prefer e-wallets like PayPal. As you might have guessed, very few online brokers accept PayPal as a means to deposit – meaning that your options are going to be limited.

In this guide, we show you exactly how to buy Bitcoin with PayPal in the cheapest and most secure way. We also walk you through the investment process with a handy step-by-step explainer.

Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.

How to Buy Bitcoin with PayPal – Step by Step Guide 2023

If you want to buy Bitcoin with PayPal – while at the same time benefit from low fees and strong regulatory standing, Coinbase is your best option. This platform allows you to buy Bitcoin online with PayPal commission-free – and it is licensed by the FCA, ASIC, and CySEC.

Here are the steps that you need to follow to buy Bitcoin with PayPal right now!

Step 1: Sign Up and Verify Your Account

From your device’s app store, download the Coinbase mobile app or visit Coinbase’s website.

To create an account, sign up with an email address, create a password, and accept the terms.

Provide information and documents for the verification process, which may include Know Your Customer (KYC) and anti-money laundering (AML) requirements.

Keep your account secure by adding two-factor authentication (2FA) to your Coinbase account will increase security.

Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.

Step 2: Deposit Funds With Paypal

Coinbase lets you make transactions immediately if you already have a PayPal account. You can continue using PayPal to manage your information securely without adding bank accounts or card numbers to Coinbase.

Choosing your crypto and selecting the payment method, then adding PayPal as your payment method, will allow you to fund your crypto purchases. Initially, you’ll be asked for your PayPal email address – make sure it matches your Coinbase email address, or two-factor authentication will be required. The PayPal account lets you add or select debit cards and bank accounts linked to it.

As soon as you’re finished, your PayPal account will allow you to buy up to $25,000 a day.

Step 3: Place an Order

Log into your Coinbase account after setting up and verifying your account.

• Click the “Buy/Sell” tab.
• Choose Bitcoin (BTC)
• Enter the payment method and amount:
• In your local currency or BTC, specify the amount of Bitcoin you wish to purchase.
• Click on the payment method you previously linked (PayPal, in this case).
• Review the amount and fees associated with your purchase.
• Click “Buy” if everything appears to be in order.

Step 4: Buy Bitcoin

You may be required to confirm your purchase if you have enabled two-factor authentication. Your Coinbase account will be credited with Bitcoin once your purchase has been confirmed.

Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.

Benefits of Buying with PayPal

As we mentioned towards the top of this guide, the vast majority of investors will look to buy Bitcoin with a conventional debit card. With that said, demand for Paypal deposits and withdrawals is on the rise – especially when it comes to buying digital currencies.

If you’re still unsure as to whether or not Paypal is the best payment method to buy Bitcoin, check out the benefits listed below. Alternatively, you could also check out our how to buy Bitcoin with Neteller guide for contextual reference when considering PayPal as an option.

Security

The first benefit that springs to mind is security. This is because when you buy Bitcoin with Paypal, you won’t need to enter your debit card numbers into the website of your chosen cryptocurrency trading platform. On the contrary, you should have already linked a payment method to your Paypal account.

This means that once you specify how much you would like to deposit, all you need to do is enter your Paypal login credentials.

Then, it’s just a case of selecting your preferred funding method or better – using the funds that you already have in your Paypal account. We should also note that the e-wallet provider utilizes data encryption technologies, so your chosen Bitcoin exchange will never have access to your Paypal logging credentials.

As an additional benefit, Paypal offers something called ‘Buyer Protection’. As the name suggests, this means that you are protected from unauthorized purchases, as well as fraud. This operates like the chargebacks system offered by debit card providers.

Instant Deposits

When using a regulated broker, you can buy Bitcoin with PayPal instantly. This is because you will either be using your Paypal balance or funding the deposit with a debit card.

As you might know, this is in stark contrast to a traditional bank wire – which can take several days to arrive.

Interestingly, when you fund a Paypal transaction with a linked bank account, you will sometimes benefit from an instant transfer. This is at the discretion of Paypal and is usually based on how long you have been a customer.

No Fees Charged by Paypal

When you make an online purchase with your Paypal account, the digital wallet provider will not charge you any fees. Although this is usually the case with debit cards and bank account transfers anyway, avoiding unnecessary fees is crucial when buying Bitcoin.

Ease of Use

Paypal is also a great option as it offers lots in the way of convenience. For example, let’s suppose that you are looking to buy Bitcoin online but you left your debit card at home.

This wouldn’t be a problem if you have an active Paypal account, as your debit card will already be linked.

As a result, as long as you know your Paypal login credentials, you can still purchase Bitcoin. This is because you will not be asked to enter your debit card numbers – as long as the respective card is linked to your Paypal account.

Fast Withdrawals

Perhaps one of the best benefits of using Paypal to buy Bitcoin is that the end-to-end withdrawal process is super-fast. Firstly, this is because online brokers typically process e-wallet withdrawals much faster than debit cards and bank accounts.

This is because Paypal is less bureaucratic, meaning fewer checks need to be made. This is because you will have already completed the PayPal ID verification when you first signed up. Your chosen Bitcoin broker will be able to see this, meaning they often process Paypal withdrawal requests on a same-day basis.

Additionally, once the broker in question has processed the withdrawal, this is where Paypal really shines. This is because from the moment the money is transferred, it should appear in your Paypal account in less than a minute. Debit cards, on the other hand, usually take 2-3 working days.

Bank account withdrawals are even slower. Depending on who you bank with, this can take anywhere from 3-7 working days. Once the money does hit your Paypal account, you can then withdraw the funds to your bank account at the click of a button. In all but a few rare cases, this should hit your UK bank account instantly.

Some Banks Don’t Like Bitcoin

There have been rumors that certain banks don’t quite like Bitcoin. This is largely due to the anonymous characteristics that the blockchain possesses. With that in mind, when you buy Bitcoin with Paypal UK, this can be a smart way to avoid any complications.

This is because the transaction trail will look like the following:

• You deposit funds from your bank account or debit card into Paypal
• You then use your Paypal funds to buy Bitcoin at an online broker
• When you cash out, you withdraw the funds from the broker back to your Paypal account
• Finally, you transfer the funds from Paypal back to your bank account

As you can see from the above, the underlying bank or financial institution cannot see that you used your Paypal funds to buy and sell Bitcoin. On the contrary, all they can see is that you have deposited funds into Paypal, and subsequently made a withdrawal back to your bank account.

Bitcoin PayPal Regulation

It is important to note that not any Tom, Dick, and Harry can accept Paypal. Well, not when it comes to buying cryptocurrencies like Bitcoin, Ethereum, Bitcoin Cash, Ripple, and Litecoin. This is because cryptocurrency brokerage sites must have the legal remit to accept fiat currency payments.

Not only does this include traditional debit cards and bank account transfers – e-wallets like Paypal, too. In other words, you couldn’t create a website and allow people to buy Bitcoin with Paypal. On the contrary, this luxury is reserved for heavily regulated entities.

For example, we used Coinbase in our step-by-step guide on how to buy Bitcoin with Paypal. This was for good reason – as the online broker is licensed by the FCA, ASIC, and CySEC. The platform is also registered with US watchdog FINRA.

This is why all regulated brokers selling Bitcoin and accepting Paypal ask you to upload copies of your government-issued ID. Without it, you won’t be able to buy Bitcoin with Paypal – or any traditional payment method for that matter.

Crucially, Paypal operates within the law when it comes to the countering of money laundering. As such, any unregulated platforms that attempt to use its e-wallet services without the legal remit to do so will have their Paypal account shut down and all funds frozen.

Where to Buy Bitcoin in the UK

As we noted earlier, there are very few platforms in the UK that allow you to buy Bitcoin with Paypal. It remains to be seen why this is, especially considering how popular the e-wallet is. For example, while Coinbase allows you to withdraw your funds via Paypal, it doesn’t allow you to use the e-wallet to make a deposit.

This defeats the object. Then, you have peer-to-peer cryptocurrency exchanges like LocalBitcoins – but the platform isn’t regulated by the FCA.

Coinbase – Largest American Crypto-Exchange To Buy Bitcoin With PayPal

Coinbase is one of the most relevant cryptocurrency exchanges and one of the best places to buy cryptocurrencies. A quick visit to the provider’s website reveals an easily navigable, user-friendly, simple, and clean platform.

Those in Germany and the United Kingdom may purchase cryptocurrencies directly from Coinbase, making the process hassle-free, trusted, and secure.

Traders can use Coinbase’s original platform to buy cryptocurrency with fiat money and Coinbase Pro to trade cryptocurrencies. A second version of Coinbase is Coinbase Pro, which lets users set market, limit, and stop orders and make crypto-to-crypto transactions.

With Coinbase, you can deposit funds easily, as it allows you to do so. Debit cards or bank account transfers are the two payment methods you can choose from. Debit cards are not accepted at Coinbase, so consider this when depositing funds.

It is common for Coinbase to charge higher commissions than its competitors when trading cryptocurrencies. For instance, Coinbase charges £14.90 for buying £1,000 worth of bitcoin, which is 1.49%.

The security and functionality of Coinbase make it a better choice than some other exchanges, even though the fees are higher than others. In addition, after purchasing a cryptocurrency, you can keep the funds in your cryptocurrency wallet or withdraw them to a private wallet.

Pros

• The app has over 35 million users, and it is very popular
• A user-friendly interface
• For deposits, debit cards or bank transfers are accepted
• Withdraw your tokens to a private wallet
• Easy-to-use mobile app
• An FCA license is required

Cons

• Deposits via PayPal are not permitted
• Deposits with debit cards are charged 3.99%, and Ethereum trades are charged 1.49%

Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.

Conclusion

Overall, very few options are available if you want to purchase Bitcoin using PayPal in the UK. In spite of the fact that millions of people around the world use PayPal, this is surprising. You are not out of luck since FCA-regulated broker Coinbase accepts deposits with PayPal, Skrill, and Neteller.

After that, you can buy Bitcoin from the convenience of your own home. Furthermore, Coinbase’s fees are among the most competitive. Neither traditional commissions nor monthly fees will be charged to you if you use Bitcoin.

The link below will allow you to buy Bitcoin online with PayPal at Coinbase within less than 10 minutes!

Coinbase – Buy Bitcoin With Paypal UK

Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.

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