If you are new to the world of cryptocurrency and already have a PayPal account, you may be wondering how to buy Bitcoin with PayPal. It turns out it’s possible to do it, but it’s a bit more difficult and a lot more expensive than with the other methods. One of the main reasons this is difficult has to do with the issue of chargebacks. You cannot reverse a Bitcoin transaction, but PayPal allows you to get your money back in some cases; there is, therefore, a lot of risk of fraud.
There are several ways to buy Bitcoin with PayPal. But above all, you’ll need a Bitcoin wallet – if you need help creating one, read our guide.
Buy bitcoin with PayPal using eToro
The easiest way to buy Bitcoin with PayPal is to use the eToro platform. Until 2021, eToro was primarily known as the CFD market, but now it allows users to buy and own cryptocurrency at any time. In addition, the platform has launched its native eToro wallet where you can withdraw your bitcoin, Ethereum, XRP Ripple, Litecoin, and other cryptocurrencies.
In addition, eToro is one of the most innovative social trading platforms, has an intuitive and user-friendly interface, and allows you to learn about other markets, as well as interact with and copy other traders. Therefore, it is generally the best place for newbie investors.
You can read our full eToro review.
Sites that allow these types of transactions will put you in touch with someone who is looking to sell Bitcoin and who accepts PayPal as a form of payment. Among these sites we can name, among others, LocalBitcoins and Paxful.
First, you will need to create an account. Then, using the site’s search tools, you will select the amount in Bitcoin you want to buy (or the amount in fiat currency (dollar, euro …) that you want to spend), with PayPal as the payment option. Make sure you read the terms of the agreement with your seller. For the rest of the transaction, you will need to speak directly with the seller. Beware of suspicious terms and users as scams are common in such places. Whenever you have the chance, go for older, more reputable accounts.
XCoins is a site that offers to do what it describes as a secure Bitcoin lending system. This allows Bitcoin owners to “lend” their cryptocurrency to potential buyers through PayPal, who can then do with it as they wish. However, you have to pay a fee to the lender which is at least 15%.
However, you have to pay their lender’s fees, which are at least 15%. You also pay a “loan origination fee”, corresponding to 7.5% of your investment and PayPal processing fees.
After you buy – or “loan” – Bitcoins through XCoins (don’t forget to complete the transaction through your PayPal account), they will be stored in your XCoins wallet. However, we recommend that you move them to a safer location.