How to Buy Crypto with PayPal UK – Beginner’s Guide

Ever wondered how to buy crypto with PayPal? Investors will typically look at buying their cryptocurrency with debit/credit cards or bank transfer, however, some prefer the use of PayPal.

In this guide, we will show you how to buy crypto with PayPal UK and take you through the investment process in an easy-to-digest walkthrough.

How to Buy Crypto with PayPal UK – Quick Steps

• Open an account with Coinbase – You can buy cryptocurrency with PayPal through this massively popular regulated online broker.
• Deposit – Deposit funds via PayPal onto the Coinbase trading platform once you have set aside capital you can afford to invest.
• Select your crypto – On Coinbase’s platform, you can invest in over 240 cryptocurrencies.
• Buy – With Coinbase, you can instantly purchase cryptocurrency from your home after depositing via PayPal.

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

Why Buy Crypto with PayPal?

Earlier, at the start of this guide, we detailed that most investors will look to buy cryptocurrency with a conventional debit/credit card or via bank transfer. With that said, PayPal’s demand is ever-increasing to accommodate deposits and withdrawals, especially when it comes to buying digital currencies.

If you’ve got your eye on cryptos that could explode in 2022, then you’ll need to choose a crypto broker that supports a range of payment methods.

If you have not used PayPal to buy cryptocurrency and or are unaware of its benefits, let’s take a look at them below.

Security

Above everything is always security when it comes to your cash. Now one of the great benefits of buying with PayPal is that unlike when using your debit/credit card to buy cryptocurrencies, you do not need to enter your card numbers as you will already have a linked payment method to your PayPal account.

So once you have specified how much you want to deposit, all you have to do is enter your PayPal login credentials. As an additional advantage, PayPal offers something known as ‘Buyer Protection’. As the name suggests, it gives you protection from purchases that are unauthorized and fraud. It operates like the chargebacks system offered by debit/credit card providers.

Ease of Use

Paypal is highly easy and convenient to use; for perspective, say you were out and about; however you left your debit/credit card at home and were keen to buy some cryptocurrency, usually you would have to get back home to obtain those details.

However, this wouldn’t be an issue if you have an active Paypal account, as your debit/credit card will already be linked.

So long as you know your PayPal login credentials, you can still purchase cryptocurrency. It is because you will not be asked to enter your debit/credit card numbers – only if the respective card is linked to your Paypal account.

Instant Deposits

When you buy cryptocurrency with a regulated broker, such as Coinbase, the transaction is instant. You will either use your Paypal balance or fund the deposit with a debit/credit card.

In contrast to that, a bank transfer can take several days to arrive and clear; this would not be instant like PaPal.

On another note, which is at PayPal’s discretion, you can also fund a Paypal transaction with a linked bank account; at times, you can benefit from an instant transfer. In terms of time delay on that, it usually depends on how long you have been a PayPal user.

No Fees Charged by PayPal

When you are set to deposit with your regulated broker or make any kind of online purchase with your Paypal account, you not be charged any fees. This is typically the case with debit cards and bank account transfers anyway, but also avoiding unnecessary fees is crucial when buying cryptocurrency.

Fast Withdrawals

Arguably one of the top benefits of using PayPal to buy cryptocurrency is that the withdrawal process to very fast. Typically speaking, brokers will process e-wallet withdrawals quicker than debit/credit cards and bank transfers. The timing around these tends to be slower, around 3-7 working days, depending on your banking institution.

When it comes to Paypal it is somewhat less bureaucratic, which means that fewer checks are needed to be made. Why? Because you would have already completed the PayPal ID verification when you first signed up. Your chosen cryptocurrency broker will be able to establish this, meaning they often process Paypal withdrawal requests on a same-day basis.

Upon the broker completing your withdrawal on their side, from there on, the speed is exceptional. It should appear in your PayPal account simultaneously.

Where to Buy Crypto with PayPal UK

As detailed earlier, there are very few platforms in the UK that allow you to buy cryptocurrency with Paypal.

Let’s take a look at some of the options that are available to you.

1. Coinbase – User-Friendly for Buying Cryptocurrency

Coinbase is one of the most established crypto exchanges and places to buy cryptocurrency that is particularly popular with inexperienced traders. As soon as you make your way over to the provider’s website, you’ll see that the platform is very much user-friendly, simple, clean, and easy to navigate.

Coinbase with the use of PayPal – Currently, only US customers are able to buy cryptocurrency or add US dollars using PayPal. The UK and all other customers are only able to use PayPal to cash out or sell, and transaction availability depends on the region.

Users of Coinbase are able to trade on two platforms: the original Coinbase platform, which allows users to use fiat to buy a cryptocurrency. The other is Coinbase Pro. This has more advanced charting functions and allows users to make crypto-to-crypto transactions, as well as place market, limit, and stop orders.

Coinbase allows for the deposit of funds with ease. In terms of methods, you are able to choose from a UK debit card or bank account transfer. However, it is important to note that Coinbase charges 3.99% when you deposit funds with a debit card.

Commissions with Bitcoin and generally with trading cryptocurrencies with Coinbase is typically higher than other competitors. As an example, if you bought £1,000 worth of Bitcoin, Coinbase would charge you £14.90, which marks 1.49%.

Despite the higher fees at Coinbase, you know to have peace of mind with the service as a whole and its security. Once you have purchased your cryptocurrency, you can keep the funds within your cryptocurrency account/wallet or withdraw them to a private wallet.

Pros

• Over 35 million users and highly popular
• User-friendly
• Funds can be deposited with a debit card or via bank transfer
• Withdraw your tokens out to a private wallet
• Ease to use mobile app
• License with the FCA

Cons

• Cannot deposit with PayPal
• A fee of 3.99% on debit card deposits & 1.49% Bitcoin trading fee

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

2. PayPal – Great Solution for Cryptocurrency Beginners

PayPal launched its own service within the digital currency space, allowing users to buy, sell, and hold cryptocurrencies with as little as £1 invested.

They are making crypto more accessible, which is a major draw for many beginner investors. If you have a PayPal balance, and you want to buy cryptocurrency, you can open PayPal, click crypto, and within seconds own some cryptocurrency.

There are four coins that are available to you for purchase on the PayPal app: buy Bitcoin, buy Ethereum, buy Litecoin, and buy Bitcoin Cash.

For the completion of your purchase, you’ll need to have the funds available, a linked debit card, or a bank account. You can spend as little as £1 or as much as £100,000 a week. Like many crypto exchanges, there’s a fee for buying and selling crypto on PayPal, which varies depending on how much you buy.

Investing in crypto using PayPal is easy— especially if you already use the app for online payments. However, it does have limitations. When you buy cryptocurrency through PayPal it is not the same as buying crypto on an exchange. When you buy cryptocurrency with a traditional exchange, you choose to transfer it to a wallet for secure storage or even to another person — a key distinction when it comes to full cryptocurrency ownership.

This is not the case with PayPal. You are not able to transfer crypto from your account to other accounts on or off PayPal, and you need to sell your crypto on PayPal to make a withdrawal.

If you want full control over your coins, a cryptocurrency exchange could be a better choice. Still, PayPal can make sense for new investors who want to experiment with a small crypto balance on a familiar platform.

Pros

• PayPal is a user-friendly option for most people to make online payments
• PayPal is trusted as a secure platform for online payments
• Many people already have a PayPal account

Cons

• Buying cryptocurrency with PayPal has higher fees
• There are strict limits on how much cryptocurrency users can buy via PayPal

Coinbase vs PayPal – Which is Best

Comparing Coinbase and PayPal, two sites that make it easy to purchase cryptocurrency, to see which may be best for you.

Coinbase vs. PayPal: Features

When it comes to buying cryptocurrency, Coinbase offers more flexibility and features, so let’s have a look at how it works:

Coinbase versus PayPal Comparison

Bottom line

Compared to PayPal, Coinbase offers a broader range of capabilities, supports more cryptocurrencies, and has more competitive fees. Considering both platforms’ easy and user-friendly, Coinbase is a better choice for beginners, given its extensive cryptocurrency offering over PayPal.

How to Buy Crypto with PayPalUK  on Coinbase – Tutorial

Cryptocurrency can be purchased with PayPal through Coinbase, which has low fees and strong regulatory standing. The FCA, ASIC, and CySEC license this platform, which allows commission-free crypto purchases with PayPal.

Now, you can buy Bitcoin with PayPal by following these steps!

Step 1: Sign Up and Verify Your Account

To access Coinbase, go to their website (coinbase.com) or download their mobile app.

To open an account, create a password, enter your email address, and agree the terms of service.

To comply with regulations regarding Know Your Customer (KYC) and anti-money laundering (AML), complete the verification process.

Make your Coinbase account more secure by enabling two-factor authentication (2FA)

Step 2: Deposit Funds With Paypal

Coinbase lets you make transactions immediately if you already have a PayPal account. You can continue to manage your information safely with PayPal rather than adding bank accounts or card numbers directly to Coinbase.

Once you have selected the crypto you wish to purchase, click on the payment method, then “Add a payment method” to select PayPal. The next step is to log in using your PayPal account – you must ensure the email address you use for PayPal matches the email address used for Coinbase. Otherwise, you will need to go through two-factor authentication.

With PayPal, you can make purchases up to $25,000 per day.

Step 3: Place an Order

Now it’s time to deposit some capital. Coinbase offers a wide range of payment methods. If you’re looking to deposit with PayPal, select this from the dropdown list.

Enter the amount that you want to deposit – meet with the deposit minimum, $200 (about £150).

Once you confirm the trading amount, you will be redirected over PayPal via a pop-up box. You will then need to input your Paypal login details, which will show you how much you are set to deposit.

This will need to be completed to an already linked debit/credit card if you want to buy crypto with PayPal UK instantly. Or, if you already have the funds available in your Paypal account, this can also be used.

Step 4: Confirm Purchase

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.

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!

Can You Buy Crypto with PayPal Credit?

PayPal does not allow users to purchase cryptocurrency via the PayPal Credit option. Nor do they allow the use of a credit card or other credit products (including, without limitation, those offered by PayPal) to purchase Crypto Assets. When you buy Crypto Assets, you agree that you have enough available funds in your selected funding source to complete your purchase, according to PayPal.

Coinbase – Buy Cryptocurrency With Paypal UK

To summarize, very few options are available to buy cryptocurrency in the UK using PayPal. Millions of people worldwide use PayPal, making this a surprising finding. You can deposit funds with PayPal through FCA-regulated broker Coinbase.

The minimum investment to buy crypto is $25, and commission-free trades are available. In around 10 minutes, you can purchase cryptocurrencies through Coinbase with PayPal.

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

Frequently Asked Questions on Buying Crypto with PayPal