Why Learn How To Buy Bitcoin with Paypal?
If you are a fan of using a paypal account for your online purchases, and also happen to be a keen Bitcoin Ethereum cryptocurrency investor, you would probably also prefer to buy Bitcoin with Paypal. This is a given as Paypal has started to become an emerging new force in the cryptocurrency market and this is due to how secure transactions can be made through Paypal.
One of the most important reasons investors would want to buy Bitcoin with Paypal would be that using a paypal account provides a level of anonymity with no other payment methods could probably provide.
Although when you buy btc with Paypal, it will not be as anonymous as cryptocurrency to cryptocurrency payment methods, you are able to use fewer of your information when you want to buy and sell bitcoins with paypal. For example, if you have a paypal account and are looking to buy Bitcoin with it, you would not have to provide information such as your credit card or debit card.
Utilising Paypal is the easier option when buying Bitcoin
Efficiency would probably be one of the best advantages when you buy Bitcoin with Paypal. This is because Paypal is a payment method online and when you access a site through Paypal, its user interface within paypal is similar to most cryptocurrency exchanges when you use another payment method.
Another way to describe buying Bitcoins with Paypal is that it is an innovative payment method which is the same way when investors buy and sell directly on cryptocurrency exchanges.
Best cryptocurrency exchanges to buy Bitcoin with Paypal.
Although there are many cryptocurrency exchanges available on the Bitcoin market, there are only a couple of exchanges which actually accept through Paypal to buy and sell Bitcoin. As such, when it comes to buying Bitcoin with Paypal, liquidity is very important.
If the exchange you have selected does not actually have enough active investors who wish to buy and sell Bitcoin, you would find it hard to actually get a certain amount of Bitcoin you want even if you use a Paypal account.
We have suggested some of the best cryptocurrency exchanges to buy Bitcoin with Paypal, and will provide more reasons why these are the best places to buy Bitcoin with Paypal further below in this guide.
eToro would be one of the best places to buy Bitcoin through Paypal as it is active in over 200 countries and has about 3 million users of which about 250,000 are active on the exchange.
Paxful was launched in 2015 as a decentralized exchange and is one of the best crypto exchanges to purchase Bitcoin using a paypal account. It acts as a mediator for traders who wish to purchase Bitcoin through Paypal similar to how eBay works.
Another popular crypto site to buy cryptos such as Bitcoin Using a Paypal account would be LocalBitcoins.Com. It is the oldest crypto exchange in the world with many people using this peer-to-peer exchange to buy cryptos such as Bitcoin using Paypal. LocalBitcoins is available globally with the exceptions of Germany and New York due to Bitcoin regulations.
Buy Bitcoin using Paypal vs other payment options (Credit card/ Debit card)
If you are still on the ledge of whether you should be using Paypal to buy cryptos such asBitcoin, here are a couple of reasons why if you use Paypal, it would be a better way for buying Bitcoin compared to other options such as using a credit card or debit card.
Security: If you use Paypal, or the Paypal app, it is as secure as using a bank transfer. The advantage of using Paypal to buy Bitcoin is that Paypal offers a certain degree of protection on some transactions which includes buying Bitcoins.
Other than that, when a person is looking to buy Bitcoin using Paypal, they are not prompted to provide a series of personal information which many people are prompted to.
A good example is when you are making a deposit to Buy Bitcoin, you are only required to enter the email address that is linked to your Paypal account. Crypt sites which only prompt minimum information required when investors buy Bitcoin using Paypal means that this method is a safe way when buying Bitcoin to prevent information leaking out to malicious hackers.
Fees: Among the crypto sites that we are recommending when you want to buy Bitcoin using Paypal, most of them have almost no deposit fees when you buy Bitcoin through Paypal or the Paypal app. The only type of fees you should take notice of when buying bitcoin using Paypal or the paypal app would be the minimum deposit fees.
This would vary between the different Bitcoin platforms. As some crypto sites would require a minimum deposit of $USD200 for example if you wish to make deposits to buy Bitcoin through Paypal.
One main disadvantage that we can conclude would be that if you wish to buy Bitcoin with Paypal, it would be a good choice if anonymity is a factor and you require speedy transactions, however Paypal is not as readily available as other payment options such as using a bank transfer. As such you would have to weigh your options when you decide to buy hold and sell Bitcoin using Paypal.
Top Cryptocurrency Exchanges when buying Bitcoins that offer Paypal.
eToro is a leading crypto site which allows investors to buy, hold and sell Bitcoin and they offer paypal as one of the payment options. The crypto site is regulated and provides plenty of financial instruments other than crypto which includes stocks, forex, ETFs (Exchange traded funds and commodities.
On top of being a web-based platform, eToro is also available through their app on both iOS and Android. Beginners would also find eToro to be one of the top crypto brokers catering to Bitcoin Ethereum investing novices.
eToro is also supported in over 140 countries worldwide which includes Russia, China, India and the United States.
We would dive in deep into eToro’s functionality, fees and features before considering it as your crypto platform when buying Bitcoins.
Before we go into detail on eToro’s features and functionalities, it is important to not use any trading tools when investing in Bitcoin if you have no idea how it works. You should not trade an asset such as bitcoin ethereum through Paypal if you have not understood or researched it.
When buying crypto, you should remember to diversify your assets in order to reduce your risk of losing all your funds in your account. eToro is regulated and authorised by the Financial Conduct Authority in the UK and users in the UK will be protected by the law that oversees all financial markets which includes the Financial Services Compensation Scheme (FSCS)
In Europe, it is approved by the Cyprus Securities and Exchange Commission (CySEC) and in the United States, eToro operates as a Money Services Business with an authorised license from FinCEN and additionally regulated by the Commodity Futures Trading Commission (CFTC).
In Australia, eToro is registered and holds a financial services license and regulated by the local Australia governing body, the Australian Securities and Investments Commission (ASIC)
Once you create an account with eToro you should take note of any limits placed on your account. eToro generally provides 4 types of accounts, Bronze, Silver, Gold and VIP and the deposit as well as trade limits would depend on the account type.
eToro places a minimum deposit of USD$200 for all accounts outside of the US with a few exceptions as below:
Israel with a minimum deposit of $10,000
US and Australia with a minimum deposit of $50
Russia and China with a minimum deposit of $500
eToro also places a deposit limit when users buy Bitcoin through a bank transfer. eToro has set a $500 limit for its deposits and the maximum deposit allowed is $10,000.
Although when investing in Bitcoin, fees are an important feature as explained above, another factor that you should take note of when you buy Bitcoin would be liquidity and how it affects trade transactions when buying Bitcoin.
If you were to buy your Bitcoin through Paypal on a crypto platform with high liquidity, you as the user would be able to enjoy more competitive prices and also lower spreads with quicker transaction times.
eToro as a platform, utilises the market maker model. What this means is that the eToro crypto sites tries to ensure constant high liquidity by mixing straight-through processing (STP) and Non-Dealing Desk (NDD) technologies.
To the average joe, what this means is that the site (eToro) connects with tier 1 liquidity providers who the broker deems dependable enough to ensure real-time execution of all trades when buying Bitcoins.
eToro takes into account the safety, privacy and security of its users investing in Bitcoins very seriously. As such they have utilised security features and protocols into ensuring that all personal information that their customers who buy Bitcoin through Paypal on their site are private and to ensure safety of user’s money.
eToro places all of the invested funds that are used to buy Bitcoin through Paypal on separate accounts at top tier banks. These banks are regulated to ensure safeguarding of user funds and eToro also complies with legal provisions such as the KYC compliance and AML checks.
Other features that eToro employ would be SSL encryption on their website, two-factor authentication on user accounts and also MetaTrader (MT4) technologies in order to keep their trading transactions and invested funds secure.
LocalBitcoins..com is one of the oldest Bitcoin platforms which offer Paypal as a payment option. It is a peer-to-peer exchange site which facilitates the buying of Bitcoins using Paypal and is unique in which it allows personal face-to-face Bitcoins trading.
A buyer on LocalBitcoins.Com will have the option to select a Bitcoin seller of their choice among the list advertised on their site and is an escrow system which upholds the security and privacy of its investors who are buying Bitcoin using Paypal.
This Bitcoins platform offers a simple and intuitive UI to purchase Bitcoin through Paypal and getting an account ready just takes up to 20 seconds to register. Besides Paypal, LocalBitcoins.com also offers the option to buy cryptos such as Bitcoin using cash and bank transfer.
You would have to at first provide your email address for registration and then as the buyer, you are able to select any seller you want that is provided on the list of the LocalBitcoins site to buy cryptos like Bitrcoin through Paypal. After selecting the seller, you can add the amount of Bitcoins you are purchasing and then subsequently select Paypal as the preferred payment option.
The site will then filter out sellers who are willing to sell their Bitcoins and accept payments through Paypal. You will then have the option to screen through the information of the seller before accepting the Bitcoin trade. Subsequently, you will be landed on a page where you will be requested to select the among of Bitcoins you are purchasing.
Additional information such as the limits and trading terms that are set by the seller will be shown and it is up to you to decide whether these conditions are acceptable. The option for investors to buy cryptos like Bitcoins and Ethereum using local fiat currencies is also an added advantage of this site.
The fees on LocalBitcoins.com are slightly higher compared to other sites as premium is about 20% higher compared to other Bitcoins exchanges and on top of this, the site charges a 1% fee as well.
LocalBitcoins.com protects its user’s privacy by not asking for personal information or details for verification purposes. Investors who want to purchase cryptos such as Bitcoin would only require an email address to create their accounts.
You are also not required to enter any bank information or details since this is a Peer to Peer exchange. Some traders would however ask for your ID and other details when you buy their cryptos.
The site has also encrypted their website with HTTPS protocol with a Login Guard protecting the site from malicious users. Other security features include two-factor authentication via SMS and email.
Launched back in 2015 as a decentralized exchange with aims to support investors looking to buy and invest in cryptos such as Bitcoin, Paxful is another Peer-to-Peer exchange which offers a wide variety of payment options which include Paypal for its users.
Paxful provides support globally and any user is able to buy cryptos using their site no matter where they are located in.
Paxfuls offers an intuitive and sleek design interface with information such as payment options, the exchange rate, as well as other features displayed clearly on their site. Other than Paypal, Paxful allows payment options such as Cash deposits, Western Union, Money Gram, national bank transfer and Gift cards as well.
In order to purchase Bitcoin using Paypal on Paxful, users will have to enter the site first with a registered account. The process takes a couple of minutes with little personal information required by the site.
Once you have entered the site, on the screen of the website will show your available options involving the amount of Bitcoin you wish to purchase, type of payment option including Paypal, as well as the local currency you will be selecting to purchase Bitcoin.
Similar to LocalBitcoins.com, after selecting your criterias, the site will filter the appropriate sellers for you and then you are able to select the Bitcoin seller. Once the trade is initiated Paxful would direct you to an online chat feature when negotiations can be made with the Bitcoin seller.
Once you have almost completed the transaction, Paxful will hold payment being made to the seller until the buyer has marked the transaction as “paid”. Only then will Bitcoin be released to the buyer. Paxful provides a 30 minute window frame for confirming the deal, else it will automatically be canceled.
Paxful does not charge any fees for buyers but Bitcoin sellers may impose certain fees on the buyers. This is because Paxful imposes a 1% fee on sellers plu Bitcoin network fees (miner fees). Sellers also have 100% control in setting the fees that they are charging.
Unlike LocalBitcoins.com, Paxful offers an online Bitcoin wallet for its sellers who are trading Bitcoin. Their wallet is completely secured with Comodo which encrypts the site using 256-bit SSL.
Other than that, Paxful protects the user environment by complying with PCI vulnerability standards and also provides the option for buyers to place feedback to Bitcoin sellers which assists other buyers in purchasing Bitcoin using Paypal.
Should I purchase Bitcoin through Paypal?
Right now would be one of the best times to purchase Bitcoin or other cryptos using Paypal as the price of Bitcoin fluctuates and enough monitoring and deciding when to purchase is a key point when investing in Bitcoin. As such cryptocurrency trading always carries some form of risk but a good trader will know when to seek for opportunities.
Can you utilise PayPal to buy Cryptocurrency?
Yes you are able to purchase cryptos through Paypal but this would all depend if the exchange you are utilising actually offers Paypal as an option
Where can I purchase Bitcoin through Paypal?
You can purchase your cryptos through the Paypal option on any exchange as long as they offer Paypal as a payment option. Sites which offer Paypal as one of the payment options to purchase cryptos would include eToro, Paxful and LocalBitcoins.com
Can I exchange my cryptos for cash through Paypal?
This would depend on the type of exchange you are using. Some exchanges offer Paypal as a deposit option but would severely limit the withdrawal options. A good exchange that provides Paypal as a withdrawal option would be Evonax.com
With over 10 years of experience working as a financial analyst, Eric is highly aware of the potential of cryptocurrency, particularly Bitcoin, and the impact it will bring towards the global economy. He is committed to share everything he knows about crypto here at Crypto Digest News.