How To Buy Bitcoin with PayPal in under 10 minutes: A Must Read Guide

Discover the fastest and most secure way to buy Bitcoin with PayPal. Follow this comprehensive, step-by-step guide to make your first Bitcoin purchase in under 10 minutes.

Apr 21, 2023 - 16:41
Apr 21, 2023 - 16:54
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How To Buy Bitcoin with PayPal in under 10 minutes: A Must Read Guide
How To Buy Bitcoin with PayPal in under 10 minutes: A Must Read Guide

PayPal is convenient and fast, but buying Bitcoin with PayPal is not that easy and can be confusing. That's why we've put together two simple methods for you to buy Bitcoin with PayPal instantly and easily.




First, you have to be clear about whether you want to own real Bitcoin or whether you want to bet on the price fluctuations of Bitcoin. This is important because you only need a Bitcoin wallet to buy real Bitcoin. If you want to bet on the course, a Bitcoin broker is the faster and better alternative.

This article explains where you can buy and sell Bitcoin with PayPal. We also describe the best providers and the advantages and disadvantages of buying Bitcoin with PayPal.





Where can you buy Bitcoin with PayPal?



Anyone looking for a way to buy Bitcoin with PayPal on a stock exchange or directly from a PayPal account will be disappointed. Crypto exchanges are mostly unregulated providers and decentralized trading places. According to some crypto enthusiasts, offering PayPal as a payment option does not correspond to the character of cryptocurrencies. It often includes high trading fees, which the exchanges do not want to bear or pass on to their users.



To buy Bitcoin with PayPal, you must go through a regulated broker like eToro, which has partnered with PayPal. The following list of providers shows the best online brokers for buying Bitcoin :

The two best providers to buy Bitcoin with PayPal in comparison:




  1. eToro: eToro has been one of the leading fintech companies for over ten years. Millions of users invest in social trading networks and use innovative tools for trading and investing. In addition to a user-friendly overview, eToro offers a free demo account and copy trading option. PayPal deposits and PayPal withdrawals are possible here.
  2. Libertex: Launched as a forex broker in 1997, investors can trade CFDs through Libertex. The provider is based in Cyprus and is subject to European regulations. For professional traders, the maximum leverage can be up to 1:600. However, investors must register as experienced traders and meet certain requirements. 

 

What exactly is PayPal, and what is behind the payment service?



PayPal is a payment service that is mainly used in online commerce. Not only is it now possible to use PayPal to pay, but sending and requesting money is also becoming increasingly popular.

Users create their own PayPal account and enter a payment method such as bank details or a credit card number.



If the customer pays for goods online via PayPal, he only transmits the PayPal address but no personal bank details to the buyer. PayPal pays the open item and debits the amount from the bank account or credit card. 




Buy Bitcoin with PayPal: important things in a Nutshell.



  1. Defining a trading strategy (buy coins or bet on volatile prices)
  2. Set up a compatible wallet
  3. Register on a secure trading platform (we recommend eToro)
  4. Fund your trading account with PayPal in minutes
  5. Wait for the right time to buy Bitcoin



What is Bitcoin?



Bitcoin is the first and oldest cryptocurrency that ever existed. Despite a lot of competition, it is still by far the most important and valuable currency on the crypto market. Market capitalization and performance are unbeaten so far.



The idea behind Bitcoin is a decentralized and independent digital unit of account that, compared to conventional currencies, relies on transparency and cryptographic proofs instead of trust in centralized central banks and their capital laws. 



A certain Satoshi Nakamoto invented Bitcoin. So far, it is only known that the name is a pseudonym. To this day, people are still determining exactly who is behind it. Nakamoto mined the first 50 Bitcoin himself, and the so-called Genesis Block was added to the network on January 3, 2009, and sealed.

Bitcoin received its first real value by paying for two pizzas in May 2010. These were sold for 10,000 

BTC.




Why buy Bitcoin with PayPal?

 

  1. PayPal offers buyer protection and, thus, security
  2. Cheaper than buying Bitcoin with a credit card
  3. Payment data, such as bank details, must not be disclosed to the trading platform.
  4. Funds are immediately available on the trading account.

 

Is PayPal the breakthrough for digital currencies?




October 21, 2020, the announcement caused prices in the crypto market and PayPal shares to skyrocket. The report states that PayPal would accept cryptocurrencies as a payment option for online shopping and that direct purchases of some cryptocurrencies via the PayPal account would be possible.



PayPal has recognized that transitioning to digital currency is inevitable, as digital currencies bring significant advantages over traditional fiat currency. Digital currencies are efficient and fast and offer the ability to withdraw capital quickly, even to people who don't have access to bank accounts.

The general acceptance of cryptocurrencies is increasing significantly, and more and more people are getting interested in digital currencies and using them in different situations. PayPal wants to help make digital currencies usable for everyone. There should be close cooperation with the global supervisory authorities and central banks.




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Buy Bitcoins with PayPal: Buy & Hold or Trading?





Buy Bitcoin and other cryptos to hold them for the long term. The aim is the prospect of a price increase. If you want quick, short-term profits, trading Bitcoin is the way.




Instructions: Buy real Bitcoin with PayPal in minutes




Step 1: Account opening




Before buying bitcoins with PayPal, you must create an account with a crypto exchange that supports the currency.  eToro, which helps both real Bitcoins via the eToroX wallet and trading with Bitcoin CFDs, is particularly well suited. Here, opening an account is particularly easy and does not require verification for a trade of up to €2,000. In addition, the provider is state-regulated and is, therefore, subject to deposit protection.




To open the account, enter your data in the login mask on the start page.




Step 2: Deposit with PayPal




Now you get an email from eToro with a link that you have to confirm. Then you can start. To top up the trading account with real money, click on the button "Deposit money" on the bottom left. This opens a window where you can select the desired payment method - in our case PayPal.




Then click the "Deposit" button to be redirected to the PayPal website. Here you have to confirm your payment. You will then be redirected back to eToro, where the money is now in your account.




Step 3: Buy bitcoins with PayPal




The desired currency, in this case, real bitcoins, can now be bought. The easiest way is to enter "Bitcoin" or "BTC" in the search field and thus find it.




The desired adjustments can be made in the purchase field, including the amount you want to buy bitcoins with PayPal. In addition, stop losses and take profits can be set, i.e., the rates at which the coins should be automatically sold again. These fields are optional; you should leave them empty if you want to buy and hold Bitcoin longer.




Important: The setting "X1" must be in the "Leverage" field. This is the only way to buy real Bitcoins. With all other settings, you buy Bitcoin CFDs. The purchase of bitcoins with PayPal is now complete. The coins are now in your portfolio.




After buying Bitcoins with PayPal and making money, you will have to sell them again one day. 




If you have physical bitcoins, you must first send them to the free eToro wallet. You can download this on the usual platforms. After sending these bitcoins to the software wallet, they will appear in your trading account. Once here, you can easily sell your Bitcoin. To do this, open your portfolio.



Then the menu opens, and you set the amount you want to sell. If you don't want to sell an amount of money, but a physical bitcoin, select the "Units" field on the right and set how many bitcoins you want to sell. After setting everything up correctly, click on Open Trade.




Now the sales value has arrived in your account. You can now conveniently withdraw this money. To do this, click "Withdraw money" at the bottom left of the page. Then select the amount you want to withdraw. Here's how you can sell Bitcoin via PayPal.




Fees when buying and selling Bitcoin with Paypal




Many providers need to offer the option of depositing money with Paypal. This is certainly because PayPal charges a very high fee for transferring money. Since these costs should not be passed on to the end customer, most do not offer this service.





PayPal demands a standard 2.49% on the transfer amount. However, there are a handful of brokers who still offer PayPal for the purchase of bitcoins and other stocks and cryptocurrencies. 

eToro is one of the cheapest and, at the same time, most popular exchanges




  • type of fee: Amount of fee at eToro
  • deposit fees: of 0 euros
  • purchase fees: 0.75%
  • Selling Fees: 0.75%
  • Withdrawal Fees: for free
  • holding fees: for free



Should you buy Bitcoin from a broker or exchange?




If you want to invest in Bitcoin, you will find many different investment opportunities for Bitcoin. The following applies to trading on various trading venues:




If you want to speculate with CFDs, certificates, or other securities, buy from an online broker.

If you purchase physical coins, buy from a crypto exchange.

 

Some brokers offer the purchase of real coins as well as the purchase of alternative investments. We have compared the characteristics of both trading locations at a glance:




online brokers

  1. constant regulated
  2. deposit insurance
  3. Free demo accounts
  4. The wallet is usually integrated into the account
  5. High-profit potential when trading CFDs, certificates, and leveraged products
  6. Possibility of copy trading (eToro)

crypto exchange

  1. icon
  2. Availability of countless cryptocurrencies
  3. Trading currency pairs is possible



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Conclusion




The Bitcoin purchase with PayPal is therefore possible without any problems. Not all online brokers and crypto exchanges offer this payment method, but some already exist. It should be noted that an anonymous purchase of Bitcoin with PayPal is not possible since the payment service provider alone stores the user's personal information. Furthermore, you should take care of safe custody in a wallet if you buy real Bitcoin.



Joseph Richard Joseph Richard, a leading contributor to sledge.co.ke, uses his decade-long expertise in finance, business, and technology to offer clear, reliable guides and analyses. His work aids Kenyans in making informed financial and business decisions, earning him a reputation as a trusted industry authority.