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How to Buy Crypto with PayPal [2024]

How to Buy Crypto with PayPal
Diana Paluteder

Summary: While PayPal does offer crypto services directly through its app, it should be noted that it has an extremely limited crypto coin selection and is among the more costly methods on the market.  

Therefore, to buy crypto with PayPal, we suggest investors in the US sign up with a multi-asset investing platform eToro and deposit USD through PayPal. After testing more than ten other trading platforms, we found eToro to be the best choice, as it offers low fees, a much wider selection of digital assets, and is trusted by over 30 million customers.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in 70+ cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

Can you buy crypto with PayPal? 

Yes, buying cryptocurrency directly via PayPal is an option. However, PayPal only provides access to four cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC). Furthermore, its fees are exorbitant, with crypto transactions incurring a trading fee of up to 1.8%, as well as an additional 0.5% spread. 

Consequently, the better approach that PayPal crypto users should take is to use their a as a funding method to deposit money to a licensed cryptocurrency exchange.

How to buy Bitcoin and crypto with PayPal?

The best way to buy Bitcoin or any other cryptocurrency with PayPal in the US is through a trusted broker like eToro, which is a widely trusted multi-asset investing platform with over 70 cryptocurrencies and unique features such as “Copy Trading,” which enables users to copy top-performing crypto traders, in addition to a staking service, custom watchlist, as well as advanced charts and technical analysis tools. 

How to buy crypto with PayPal: Step-by-Step

You can get started in minutes with four simple steps:

  • Step 1: Create an account on eToro and complete your verification (personal or company);
  • Step 2: Enter the USD amount you want to deposit on the eToro platform;
  • Step 3: Connect PayPal to deposit your selected fiat currency;
  • Step 4: The final step is to find the cryptocurrency you want to purchase and execute your trade.

Disclaimer: Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finbold is not an affiliate and may be compensated if you access certain products or services offered by the MSB.

How to Buy Crypto with PayPal: eToro banner.
Crypto on eToro.Source: eToro.com

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in 70+ cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

About PayPal

PayPal (NASDAQ: PYPL) is a digital payment platform that enables individuals and businesses to send and receive money electronically. Founded in 1998, PayPal allows users to create an account linked to their bank account or credit/debit card and then use it to make secure payments online or through a mobile app. The payment system is widely used for online transactions, particularly in e-commerce, and is available in over 200 countries and supports over 25 currencies.

How to Buy Crypto with PayPal: Homepage screenshot.
PayPal’s homepage. Source: Paypal.com/us/home

PayPal crypto policy

PayPal is a crypto-friendly platform that offers cryptocurrency services directly from its platform. It also has no policies prohibiting users from depositing funds into regulated investing platforms; therefore, PayPal crypto users can either buy crypto directly or utilize their accounts to transfer funds to a regulated trading platform.

Remember

PayPal customers can buy crypto with their account by using it as a funding method on renowned platforms that accept PayPal as a payment method, such as eToro. Not only do they offer lower fees and a more comprehensive selection of coins, but their crypto trading platform is also superior.

PayPal crypto fees

PayPal crypto fees are relatively high for the four cryptocurrencies that they sell directly on its platform: Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. The exact fees can vary based on the type of transaction and the amount of cryptocurrency traded, however, purchases can incur a trading fee of up to 1.8% on crypto transactions, an additional 0.5% spread, plus an exchange rate, if applicable. 

It is important to note that these fees can change at any time, and users should always check the latest fee schedule on PayPal’s website crypto section or fees page before engaging in any cryptocurrency transactions. However, when you buy or sell digital currencies on PayPal, they will always disclose the fees, such as the trading fee, exchange rate, or transaction fees you will be charged at the time of the payment. 

Additionally, when using PayPal as a payment method to transfer funds to third-party exchanges to buy crypto assets, i.e., using your bank account credit or debit card linked to your PayPal account, your bank might also add extra charges, like overdraft fees or insufficient funds. For that, it is best to contact your bank directly to find out what fees are involved, as PayPal isn’t accountable for the charges by your bank. 

How to buy crypto safely

As a relatively new technology, cryptocurrencies are highly speculative and subject to extreme price volatility, making them much riskier than traditional asset classes such as stocks or bonds. In addition, fraud and cybercrime in the crypto sphere are particularly rampant, putting both seasoned and inexperienced investors at risk.  

Moreover, even though cryptocurrency broker-dealers in the United States are mandated to register with FINRA, which enforces various obligations on them, including upholding anti-money laundering (AML) rules and customer identification programs (CIPs), crypto assets themselves remain unregulated.

Fortunately, there are steps you can take to ensure you’re being careful when buying crypto. Let’s look at a few tips on what you should do when getting started with digital assets and how to best protect yourself and your money.

How to buy crypto safely – tips

  • Research the cryptocurrency you want to buy: Make sure you understand how crypto works and what the risks are; 
  • Only use a safe device: Avoid public computers and Wi-Fi networks. Always use your personal computer with a VPN, which helps establish a secure connection between you and the web, keeping your sensitive information safe;
  • Choose a reputable exchange: Ensure the exchange is licensed by the appropriate regulators in your country and has a solid track record. Study the exchange’s user terms and agreements carefully to learn more about where your money is kept and what happens to your funds if the business goes bankrupt. You may also want to scour through user reviews to catch any red flags;
  • Secure your account: Use two-factor authentication and a strong password to protect your account;
  • Use a secure wallet: Store your cryptocurrency in a secure wallet to protect it from hackers. You can opt for either a hot (online) or cold (offline) wallet. To choose the right one for you, make sure to check out our in-depth guide on crypto wallets;
  • Don’t invest money you can’t afford to lose: Because the crypto market can be so volatile, you need to be conservative with your investments, particularly when starting out. For more investing tips, have a look at our guide on investing mistakes to avoid;
  • Monitor your investments: Keep an eye on the market and be aware of any changes in the price of the cryptocurrency you’re investing in. 

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk. 

FAQs: 

How to buy crypto with PayPal?

You can buy crypto with PayPal directly from its app or use PayPal to deposit funds to a licensed third-party cryptocurrency platform.

Can you buy crypto with PayPal?

You can buy crypto with PayPal, either directly from its platform or through a licensed third-party crypto broker.

Where can I buy crypto with PayPal?

Customers can buy crypto with PayPal from licensed cryptocurrency exchanges that allow deposits from PayPal or directly from the PayPal platform.

What is PayPal's crypto policy?

PayPal offers cryptocurrency services directly through its platform. In addition, PayPal allows its customers to use its services to buy, sell and trade digital assets through regulated exchanges. 

How to buy Bitcoin on eToro?

You can buy Bitcoin on eToro easily by linking your PayPal account, as eToro accepts multiple payment methods including the popular third-party payment platform.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in 70+ cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

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