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How to buy cryptocurrency with PayPal

Step-by-step instructions on how to buy bitcoin and other cryptos using PayPal.

There are many different ways to buy cryptocurrency, but using PayPal has long been seen as one of the most difficult and inconvenient methods available. PayPal is only accepted as a form of payment on a limited number of platforms, and often incurs additional fees.

That said, it’s still possible to buy bitcoin with PayPal if you want to. Keep reading to find out where and how to do it.

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade.

Quick guide: How to buy cryptocurrency with PayPal

  1. Register for an account with a platform like VirWox
  2. Enable multi-factor authentication
  3. Click “Deposit” and select “PayPal Express Checkout”
  4. Select your deposit amount and currency
  5. Log in to PayPal to complete your deposit
  6. Go to “Exchange” and select “USD/SLL”
  7. Choose a market/limit order and enter amount of SLL you want to buy
  8. Review transaction details and buy SLL
  9. Go to “Exchange” and select “BTC/SLL”
  10. Choose a market/limit order and enter amount of BTC you want to buy
  11. Review transaction details and buy BTC
  12. Withdraw your BTC to a secure wallet

This is our quick guide to just one way to buy cryptocurrency with PayPal. Compare some other options in the table below.

Compare ways to buy bitcoin with PayPal in Australia

Name Product Deposit methods Fiat Currencies Supported Cryptocurrencies
Credit card
Debit card
Neteller
PayPal
Yandex Money
USD
BTC, BCH, DASH, ETC, ETH, LTC, XRP, MIOTA, XLM, ADA, NEO, EOS
Copy the trades of leading cryptocurrency investors on this unique social investment platform.

Disclaimer: Highly volatile investment product. Your capital is at risk.
65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Credit card
Debit card
OKPAY
PayPal
Skrill
SOFORT
EUR, USD, CHF, GBP
BTC
Buy bitcoin through PayPal on one of the oldest virtual currency exchanges in the business.
Cryptocurrency
MoneyGram
OKPAY
PayPal
Perfect Money
Western Union
USD, EUR, RUB
BTC, ETH, LTC
Buy and sell crypto and other digital currencies on this global fixed-rate exchange.
xCoins P2P Bitcoin Lending
Bank transfer
Credit card
Debit card
eCheck
PayPal
USD
BTC
Buy bitcoin instantly with credit card, PayPal or bank account on this peer-to-peer lending platform.
Paxful P2P Cryptocurrency Marketplace
Cash
Credit card
Cryptocurrency
Debit card
Flexepin
iDEAL
Neosurf
Neteller
PayPal
Perfect Money
SWIFT
Western Union
AUD, USD, EUR, GBP, CAD, CNY & 50+ more
BTC
Connect with bitcoin buyers and sellers through this peer-to-peer marketplace that accepts cash, credit and more than 300 other payment methods.
Nauticus Cryptocurrency Exchange
Credit card
Debit card
PayPal
TBA
AUD, USD
BTC, BCH, ETH & more TBA
To be launched in August 2018, Nauticus is an Australia-based exchange registered with AUSTRAC which aims to cater to a global market.

Compare up to 4 providers

Why don’t more exchanges offer PayPal?

This is mainly due to one simple fact: while PayPal supports chargebacks, bitcoin (and other crypto) transactions are irreversible. As a result, it’s relatively easy for someone to buy bitcoin with PayPal, complain that they never received the BTC they purchased and ask for a chargeback – that way scammers can keep their money and essentially get bitcoin for free.

Because of this heightened risk of fraud, there are only a handful of crypto trading platforms and exchanges that accept PayPal deposits.

Types of platforms you can use

There are a few different options to choose from if you want to use your PayPal account to buy cryptocurrency:

  • Peer-to-peer marketplaces. The first option is to buy crypto through a peer-to-peer marketplace, such as LocalBitcoins or Paxful. These exchanges allow buyers and sellers to trade directly with one another, giving the seller the freedom to set their own exchange rate and accepted payment methods. Some sellers accept PayPal, and you can filter your search of available deals on the marketplace by payment method to help find a suitable seller.
  • Cryptocurrency exchanges. Most exchanges don’t accept PayPal payments; however, you can use the VirWox platform to exchange fiat currency for SLL (Second Life Linden Dollars), which you can then use to acquire bitcoin.
  • Peer-to-peer lending platforms. xCoins is a peer-to-peer lending platform for bitcoin lenders and borrowers. It accepts PayPal as a payment method for people wanting to access a “secured loan” of bitcoin.

Pros and cons of buying crypto with PayPal

Pros

  • If you already have a PayPal account, payment is quick and convenient
  • Safe and secure payment method
  • Allows you to buy crypto with Australian dollars (AUD)

Cons

  • Very high fees substantially increase the cost of the transaction
  • If the platform doesn’t accept AUD, currency conversion fees apply
  • Limited number of platforms support PayPal

PayPal fees

If you’re considering buying crypto with PayPal, make sure you’re aware of all fees involved:

  • Many trading platforms impose high fees on PayPal transactions. These could be as much as 10% of your transaction amount.
  • If you’re buying through a platform that doesn’t accept AUD, currency conversion fees may also apply. If you’re converting to US or Canadian dollars, PayPal’s fee is 3.5% above the exchange rate. For all other currencies, the fee is 4% above the exchange rate.

4 sites you can use to buy bitcoin with PayPal

Let’s take a closer look at how to buy bitcoin with PayPal on four popular platforms.

Bottom line

It’s possible to buy cryptocurrency with PayPal, but should you? The high fees involved and shortage of platforms that accept PayPal payments means that there are other more cost-effective and convenient options available.

For example, rather than funding your PayPal account from your credit card and then using that balance to buy crypto, you could use a platform that allows you to buy crypto directly with your credit card.

Having said that, there are several trading platforms that support PayPal if you insist on buying using this method. Compare the features and fees of those platforms to find one that’s right for you.

FAQs

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Disclaimer: Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

Image: Shutterstock

Disclosure: At the time of writing the author holds ADA, ICX, IOTA, POWR and XLM.

Tim Falk

A freelance writer with a passion for the written word, Tim loves helping Australians find the right home loans and savings accounts. When he's not chained to a computer, Tim can usually be found exploring the great outdoors.

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