Complete Guide to Buying Bitcoin with PayPal

Learn how to buy Bitcoin online with PayPal.

0 22

Buying Bitcoin with PayPal is quick and convenient.

Going from PayPal to Bitcoin for the first time takes no more than 20 minutes.

Continue reading our beginner’s guide to buying Bitcoin with PayPal to learn how and where to get Bitcoin with PayPal online.

From experience, we know that buying Bitcoin can seem complicated at first. We created this guide to make buying bitcoins with your credit or debit card quick and simple for everyone!

CHAPTER 1

Introduction to Buying Bitcoin with PayPal

As one of the most popular ways to pay and get paid, we often get asked how to buy bitcoins with PayPal.

Buying Bitcoin online with PayPal or other web wallets like Google Pay or Skrill is quick and convenient but cannot be done directly.

In theory, PayPal does not allow its users to buy and sell Bitcoin using the platform. This is why exchanges like CEX.IO and Coinbase do not allow you to deposit money via PayPal.

This led to the creation of local exchanges like Paxful and Localbitcoins. Local exchanges, also known as OTC exchanges or Peer-to-peer exchanges connect buyers and sellers directly similarly to eBay and Amazon.

Best exchanges to buy bitcoins with PayPal:

Buy Bitcoin With a Credit Card Here: 
#1 RatedGlobalVISIT
PopularGlobalVISIT

Since PayPal is a very popular online bank and payment method, it’s not surprising that this method is a popular way to buy.

Advantages of buying bitcoins with PayPal

 Easy way to buy bitcoins online

 Instant delivery of coins

 Buy directly from a peer

Disadvantages of buying Bitcoin with PayPal

 Medium to high fees

 Requires ID verification

 Low limits

 Best for experienced users

GET A WALLET!

You will need a wallet before buying with a credit/debit card or using a Bitcoin ATM.

Don’t have a wallet yet? Quickly find the perfect Bitcoin wallet for you.

Return to Chapters

CHAPTER 2

How to Buy Bitcoin with PayPal

Buying Bitcoin with PayPal is simple. We recommend buying Bitcoin with your credit/debit card to save on time and fees.

The following section explains how to buy bitcoins online using PayPal.

Local Exchange – quick purchase (10 -30 mins)

  1. Register to a peer-to-peer Bitcoin exchange like Paxful or LocalBitcoins (1-5 mins.)
  2. Browse ads in your country (3-5 mins.)
  3. Connect with a PayPal to Bitcoin trader (1-5 mins.)
  4. Pay invoice or send money to seller’s PayPal ID (1-5 mins.)
  5. Receive bitcoins from the seller (1-10 mins).

Continue reading our next chapter for a step-by-step guide to buying Bitcoin on Paxful and LocalBitcoins

Is it safe?

When you open a trade with a seller on a local exchange, the seller’s coins are held by the exchange in a secure account. This protects the buyer by ensuring that the seller will not run away with both your money and your Bitcoin.

After you have paid the seller by PayPal, you will mark your trade as “Paid”. After the seller confirms your payment, they will authorize the release of your Bitcoin directly to your wallet on the exchange.

Once you have received your coins, we strongly recommend getting an ultra-secure hardware wallet like a Trezor or a Ledger to store your Bitcoin securely.

GET A WALLET!

You will need a wallet before buying with a credit/debit card or using a Bitcoin ATM.

Don’t have a wallet yet? Quickly find the perfect Bitcoin wallet for you.


EXPERT RECOMMENDATION

Looking to buy large amounts or to trade frequently?

We recommend buying Bitcoin with a bank account to save time and fees.

Return to Chapters

CHAPTER 3

Best PayPal Bitcoin Exchanges

When looking to buy and sell Bitcoin with PayPal, it is important to use a trusted exchange. Unlike regular other payment methods, you can only buy bitcoins on local (peer-to-peer) exchanges.

These exchanges are like eBay in that you are connected directly with the seller rather than dealing with the exchange.

Best exchanges to buy Bitcoin online with PayPal

Buy Bitcoin With a Credit Card Here: 
#1 RatedGlobalVISIT
PopularGlobalVISIT

Return to Chapters

CHAPTER 4

How to Buy Bitcoin with PayPal on Paxful

Paxful (8/10) Visit

Paxful is a new peer-to-peer Bitcoin exchange. It’s equipped with a clean design and a large community of active traders around the world.

Step-by-Step Guide to Buying Bitcoin with PayPal on Paxful

To buy Bitcoin on Paxful using your PayPal account:

Step 1 –  Register to Paxful

Step 2 – Select PayPal and the amount you wish to buy

Step 3 – Browse PayPal ads and click on Buy to open a trade

Step 4 – Confirm the amount you wish to buy and click on “Buy Now” to open the trade

Step 5 – Chat with the seller to obtain payment instructions to purchase Bitcoin with PayPal

Step 6 – Click on “Paid” after you send your PayPal payment and then confirm again that you have paid.

Step 7 – Wait for the seller to confirm your payment and release the coins directly into your Paxful Bitcoin wallet.

Right after your payment is confirmed and accepted, you will see your Bitcoin (BTC) balance in your CEX.IO wallet.
We strongly recommend storing your coins on a Trezor or Ledger Bitcoin wallet for ultimate security.

 

CHAPTER 5

How to Buy Bitcoins with PayPal on Localbitcoins

Localbitcoin (9/10) VISIT

LocalBitcoins is one of the oldest and most trusted places to buy and sell Bitcoin directly between users.

Step-by-Step Guide to Buying Bitcoin with PayPal on Localbitcoins

To buy Bitcoin on LocalBitcoins using your PayPal account:

Step 1 – Register to LocalBitcoins (1-2 mins)

Step 2 – Confirm your email and verify your identity (1-2 mins)

Step 3 – Find an advertisement to buy Bitcoin with PayPal – click on “Buy” to view an ad (3-5 mins)

Step 4 – Select the amount you wish to buy and click on “Request Trade”

Step 5 – Speak with the seller to get the payment details. The seller may require ID to trade safely.

Step 6 – Send payment to or pay invoice received from the seller and “Mark payment complete” (1-3 mins)

Step 7 – Receive your coins after seller confirms the payment (0-15 minutes)

 

Visit localbitcoins

Return to Chapters

CHAPTER 6

Frequently Asked Questions/ultimate_heading]

Is it safe to buy Bitcoin with PayPal?

Purchasing bitcoins on a local exchange using a PayPal account is safe. Paxful and LocalBitcoins are the most secure and trusted Bitcoin exchanges in the world.

What is the difference between a local exchange and a normal exchange?

A local exchange or OTC exchange is a marketplace where buyers and sellers connect directly through local ads.

OTC exchanges protect the buyer and seller to ensure a secure transaction for all parties.

Regular Bitcoin exchanges buy and sell Bitcoin directly to you (like a foreign exchange office) or connect buyers and sellers indirectly through an order book like the stock market.

Is it complicated to purchase Bitcoin with PayPal?

When compared to buying Bitcoin with a credit or debit card on a standard Bitcoin exchange, buying with PayPal takes more time and may have higher fees.

What are the fees when acquiring Bitcoin with PayPal?

Sellers on OTC exchanges will often charge 5%-20% over market price.

The premium is to cover costs of dealing with PayPal (5%) and the convenience of buying easily with PayPal online.

The exchange only charges the seller a 1% fee (buyer pays no transaction fee).

How long does it take to buy Bitcoin with PayPal?

From start to end and assuming the trader is online, you can buy Bitcoin in less than 20 minutes.

Each subsequent purchase can be done in as little as 5 or 10 minutes.

Where do I store my Bitcoin?

Bitcoins are stored in a virtual wallet called a Bitcoin Client or Bitcoin Wallet.

Most exchanges supply its users with a wallet for convenience, although we do not recommend storing your coins on an exchange. See our complete guide to Bitcoin wallets for more information.

How can I buy bitcoins anonymously with PayPal?

Every exchange and trader will ask you to go through an identity verification process in order to prevent a fraudulent PayPal payment. As such, you cannot purchase Bitcoin anonymously using your PayPal account.

Alternatively, you can buy a gift card using your PayPal account and then use the gift card to buy Bitcoin on a local exchange. This method is not fully anonymous.

RECOMMENDATION

If you’re looking to buy Bitcoin anonymously, see our Complete Guide to Buying Anonymously for reviews, buying and selling guides, tips and more.

Can I buy from more than one exchange using my PayPal account?

Yes. Although individual traders impose daily, weekly and sometimes monthly purchase limits, you are not restricted to any single trader or exchange.

Can I sell Bitcoins to my PayPal account?

Yes. You can do using a local exchange like Paxful or LocalBitcoins. Alternatively, you can sell your Bitcoin on Coinbase and withdraw to your PayPal account.

Can I buy other cryptocurrencies using my PayPal account?

Yes. Local exchanges are starting to add the option to buy and trade Ethereum (ETH), BitcoinCash (BCH/BCC), Litecoin (LTC) and Ripple (XRP).

Is it legal to buy bitcoins with PayPal?

Although PayPal explicitly prohibits its users from buying and selling Bitcoin through PayPal, it is not illegal.

Return to Chapters

BONUS CHAPTER

Securing your bitcoins

If you just finished buying Bitcoin or you intend to do so shortly, it is crucial that you get a real Bitcoin Client (wallet) to secure your money and investment.

Some Bitcoin exchanges provide you with a wallet, but that’s not a real Bitcoin wallet. If the exchange gets hacked, your coins will be gone too.

Did you know?

Individuals and investors have already lost over one billion dollars from trusting exchanges with their precious Bitcoin:

  • Coincheck Hack: How to Steal $500 Million in Cryptocurrency
  • The Inside Story of Mt. Gox, Bitcoin’s $460 Million Disaster
  • Bitcoin worth $72 million stolen from Bitfinex exchange
  • Bitstamp Claims $5 Million Lost in Hot Wallet Hack

The only place to store your coins is in a Bitcoin Wallet entirely controlled and protected by you.

Best Bitcoin wallets

WalletReleasePrice ($)RatingBuy Now 
Trezor Model T2018$1759.7/10Buy
Ledger Nano S2016$1059.3/10Buy
Trezor One2013$999.2/10Buy
KeepKey2015$1298.9/10Buy

See our Complete Guide to Hardware Wallets for more information

Leave A Reply

Your email address will not be published.