How to Buy Bitcoin with PayPal Instantly: 2 Easy Ways
To provide more payment flexibility, PayPal now allows anyone with an account to buy cryptocurrencies. These include Bitcoin, Ethereum, Bitcoin Cash, and Litecoin.
Thanks to this development, you can purchase Bitcoin and hold it in a dedicated PayPal crypto wallet. But you can also use PayPal to spend Bitcoin at places that accept this payment. These include convenience stores, retailers, gas stations, and more. You can even sell Bitcoin for cash on PayPal’s crypto market platform.
Let’s break down how you can buy Bitcoin with PayPal instantly through two different payment methods.
Here’s What We’ll Cover:
Buying Bitcoin on PayPal
You can, of course, buy Bitcoin straight through PayPal. To do this, make an account and log into your dashboard. Then:
- Select “Crypto” from your dashboard screen. It should be located at the bottom of your PayPal balance value, next to buttons like “Send” and “Request”
- Next, click “Buy” when prompted. PayPal will ask you to verify your identity. You’ll need to provide a few pieces of personal information before you can proceed. This security measure prevents people from buying a volatile currency like Bitcoin without your permission
- After verifying your identity, you can tell PayPal how much virtual currency you want to purchase. For example, you can purchase $10 worth of Bitcoin. PayPal breaks down how much a dollar amount translates to in Bitcoin. It also warns users that the price of Bitcoin fluctuates from second to second
- The exchange rate for Bitcoin varies due to the cryptocurrency industry. So the full price of your Bitcoin transaction won’t be set until you finalize the purchase
- Click “Next” after inputting how much Bitcoin you want to buy. PayPal will automatically prompt you to make the purchase with your linked bank account or credit card/debit card
- Click “Next” again to review your purchase. PayPal has transaction fees ranging from $.50 to 1.5% of the transaction total
- Click “Buy Now” when you are ready to finalize the purchase
- The PayPal Bitcoin will appear in your digital wallet
How to Use Bitcoin to Make Purchases on PayPal
PayPal allows you to use your Bitcoin to make purchases at online stores and retail locations. When this happens, PayPal quickly sells your Bitcoin to convert it into fiat currency (i.e. US dollars). Then you pay the retail or online store with that cash. Lots of businesses are accepting online payments these days to offer more convenience to their customers.
You never technically make a transaction with Bitcoin or any other cryptocurrency through PayPal. Rather, your cryptocurrency is translated into cash instantly to facilitate the transaction.
Crypto Limitations on PayPal
While buying Bitcoin on PayPal can be useful, it also comes with one big limitation. You can’t transfer any Bitcoin you purchase through PayPal to another cryptocurrency wallet. So you don’t have full control over your cryptocurrency at any time.
For many people, this goes against the very point of cryptocurrencies like Bitcoin. For now, any Bitcoin you purchase through the PayPal crypto marketplace is locked to your PayPal wallet. PayPal does this to ensure adequate security for its users. But it's certainly frustrating for many.
Buying Bitcoin Through PayPal
The other payment method is to buy crypto assets through PayPal from other cryptocurrency exchanges or markets. But keep in mind that only a few other sites allow you to use your PayPal balance to pay for crypto. These crypto exchanges include Coinbase and eToro.
To do this:
- Set up a PayPal account and ensure it has a balance
- Set up a crypto wallet for your digital assets
- Then visit the crypto trading platform you want to purchase the Bitcoin from
- Make your cryptocurrency purchase using PayPal
With this method, you can transfer your new digital currency to your separate crypto wallet. In this way, you made the purchase using your PayPal balance. But the Bitcoin isn’t locked to your PayPal crypto wallet.
For many, Bitcoin is a worthy investment. Bitcoin is a very valuable currency and its value is likely only going to go up. Many speculate that cryptocurrencies like Bitcoin will become the main currency of the future..
PayPal makes it easy to buy Bitcoin quickly and safely, especially if you don’t want to sign up for a crypto trading platform. However, its wallet limitation is a notable downside.
Still, PayPal has led the charge toward normalizing crypto purchasing. Its payment platform is secure, easy to use, and fast to finalize. Consider using PayPal to buy Bitcoin in the future if you want to enter this volatile but potentially profitable market.
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