While most investors will buy Bitcoin (BTC) with a debit/credit 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.
With that said, we have done the hard work for you by finding the best Paypal supported Bitcoin platforms in the market right now.
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.
How to Buy Bitcoin with PayPal – Step by Step Guide 2020
If you want to buy Bitcoin with Paypal – while at the same time benefit from low fees and strong regulatory standing, eToro 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: Open a Brokerage Account at eToro
eToro is a heavily regulated brokerage site, so it makes sense that you need to open an account and provide some identification.
To get the ball rolling, simply head over to the eToro website and click on the ‘Join Now’ button.
You will be asked to enter some personal information, such as your full name, home address, date of birth, and national tax number. Additionally, you need to enter and confirm your email address and mobile phone number.
Step 2: Upload ID
Once you have opened your account, eToro will ask you to upload some ID. Once again, this is to ensure that it remains compliant with anti-money laundering laws.
The two documents that you need to upload are:
- Government-issued ID, such as your passport or driver’s license
- Proof of address, such as a utility bill or bank account statement
Take note, eToro does give you the option of uploading the above documents at a later date. This does, however, need to be done before you make a withdrawal or you deposit more than $2,250 (about £1,800).
As such, if you have the documents to hand, it’s probably best to get the KYC process out of the way. In doing so, you won’t encounter any delays when it comes to cashing your Bitcoin investment out.
Step 3: Deposit Funds With Paypal
Now it’s time to deposit some funds. eToro offers a plethora of payment methods, albeit, if you’re looking to deposit with Paypal, select this from the list of options that you see on-screen. You will also need to enter the amount that you wish to deposit – ensuring that you meet a $200 minimum (about £160).
Once you confirm the amount, you will then be redirected to the Paypal website via a pop-up box. Here, you need to enter your Paypal login credentials. You will then be shown details of the deposit.
If everything looks correct, choose the funding method that you wish to use to cover the Paypal deposit. This needs to be a previously linked debit/credit card if you want to buy Bitcoin with PayPal instantly. Or, if you already have sufficient funds in your Paypal account, this can also be used.
Note: eToro charges a 0.5% exchange rate fee on all non-UK deposits.
Step 4: Buy Bitcoin
All being well, you should now have a fully funded eToro account. Now it’s just a case of buying Bitcoin. So, enter ‘Bitcoin’ or ‘BTC’ into the search box at the top of the page, and click on the top result (like below).
On the next page, click on the ‘Trade’ button.
You will now see a Bitcoin buy order form pop-up. All you need to do here is enter the amount of Bitcoin that you want to buy. The minimum is just $25, which is about £18.
To complete your Bitcoin purchase, click on the ‘Open Trade’ button. And that’s it – you’ve just bought Bitcoin with Paypal without paying a single penny in commission!
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 or credit 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.
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 or credit 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/credit card providers.
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/credit 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/credit 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/credit card numbers – as long as the respective card is linked to your Paypal account.
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/credit 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/credit 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/credit 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/credit 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 eToro 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 websites like LocalBitcoins – but the platform isn’t regulated by the FCA. All in all, this leaves us with just one option – eToro. If you’re still not sure whether you like the sound of eToro, you will find a review of what the platform offers below.
1. eToro – Overall Best FCA Broker to Buy Bitcoin in the UK
eToro is a jack of all trades in the UK investment scene. While it allows you to buy 16 digital cryptocurrencies – it is also involved in heaps of other asset classes. For example, the platform is home to almost 1,800 shares – which are listed across 17 different markets. This covers hundreds of UK stocks, as well as companies listed in the US, Germany, Hong Kong, Canada, and more.
eToro also offers ETFs, which is great for passive investing. In terms of its cryptocurrency offering – this hugely popular broker allows you to buy Bitcoin with Paypal. Other supported payment methods include Skrill, Neteller, debit/credit cards, and bank transfers. Best of all, the minimum Bitcoin purchase required is just $25. This is great for starting off with small amounts.
Best of all, eToro does not charge any trading commissions when you buy Bitcoin – or any virtual currency for that matter. In fact, the commission-free offering remains in play across all of its tradable markets. As such, the only ‘fee’ that you pay is the spread. This is usually around 0.75% on Bitcoin, which is very competitive. We should also note that eToro is the go-to broker for newbie investors in the UK.
Opening an account takes just minutes, and there are no overly complex tools and features to be mindful of. On the contrary, everything on the platform is laid out clearly and concisely. With that said, one feature in particular that you might like to check out is the eToro Copy Trading tool. As the name suggests, this allows you to ‘copy’ the portfolio of an experienced investor that uses the site.
If you want to go even more passive with your investments, eToro CopyPortfolios are well worth a mention. These are professionally managed portfolios that are rebalanced on your behalf. There is even a cryptocurrency CopyPortfoolio that allows you to diversity across several coins. Finally, eToro is regulated by the FCA, ASIC, and CySEC. As such, you can buy Bitcoin online with PayPal in a safe and secure manner.
Need more information about eToro? If so, you can read our in-depth eToro review here!
Cryptoassets are highly volatile unregulated investment products. No EU investor protection.
In summary, if you want to buy Bitcoin with Paypal in the UK, very few options are on the table. This is surprising, as Paypal is used by millions of people around the world. With that said, you’re not completely out of luck – as FCA-regulated broker eToro allows you to deposit funds with Paypal, Skrill, and Neteller.
Once you do, you can buy Bitcoin by meeting a minimum investment of just $25. If that wasn’t enough, eToro is a 100% commission-free broker. This means that you won’t be charged a penny in traditional commissions – nor will you need to pay a monthly fee to keep hold of your Bitcoin.
You can buy Bitcoin online with PayPal at eToro in less than 10 minutes by clicking the link below!
eToro – Buy Bitcoin With Paypal UK Commission-Free
Cryptoassets are highly volatile unregulated investment products. No EU investor protection.
How do I buy Bitcoin with PayPal with no ID?<br />
Looking to buy Bitcoin with Paypal without supplying ID? Forget about it. Online brokers accepting any form of fiat currency - whether that's debit/credit cards, Paypal, or bank transfers, must verify your identity. Even if you are able to find a Bitcoin broker that offers Paypal without ID - they likely don't have the legal remit to do so. More and more unsavory, unlicensed platforms have popped up since the covid pandemic came to fruition, so be extra cautious.
How to buy Bitcoin with Paypal online in the UK?
The only regulated broker that we know of that accepts Paypal in exchange for Bitcoin is eToro. It takes just minutes to sign up with the FCA-regulated platform, and then you can easily buy Bitcoin via a Paypal payment.
Is it legal to buy Bitcoin with Paypal?
Yes, but the Bitcoin broker or cryptocurrency exchange in question must be regulated by the appropriate bodies. If the platform is licensed by the FCA, then you should be fine.
What is the minimum Paypal Bitcoin purchase amount?
This will depend on which platform you decide to buy Bitcoin. If opting for FCA broker eToro, the minimum deposit $200. However, the minimum Bitcoin purchase required is just $25.
How do you sell Bitcoin with Paypal?
If you used eToro to buy Bitcoin and deposited funds with Paypal, you can send your proceeds back to the same e-wallet. Then, it's just a case of withdrawing your Paypal balance back to your bank account.
Does Paypal accept Bitcoin?
As of October 2020, Paypal announced that it is now allowing PayPal users to buy, sell, and hold Bitcoin. Additionally, the e-wallet provider has created a Bitcoin Wallet. However, this is thus far only available to United States citizens.