How to Buy Bitcoin with PayPal7-min read

Shivali Krishali

Shivali Krishali |  Updated on 29/11/2024

 Bitcoin

Bitcoin

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An Overview for Retail Investors on How to Buy Bitcoin with PayPal

Indian woman buying Bitcoin by using a computer terminal - artworkWith the onset of Neobanks and Fintech, Bitcoin trading has become extremely convenient nowadays. Taking into perspective the entire crypto ecosystem, Bitcoin is the oldest and most established currency which has, in turn, made it one of the most accessible assets. You can practically take out your smartphone and start trading anywhere and anytime. This article will cover the ins and outs of buying Bitcoin with PayPal.

PayPal is one of the most globally recognised online payment platforms and now allows its users to sell, buy, and even store cryptocurrencies. One can start their journey with even a meagre sum of $1 in investments.

Now you can buy Bitcoin on PayPal in India as well. Bitcoin can be bought through the website and from a smartphone as well. With these portals, PayPal has increased trading accessibility for a broader demographic of new investors.

In This Guide:

  1. Introduction to PayPal
  2. Why Use PayPal to Buy Bitcoin?
  3. Step-by-Step Guide to Buying Bitcoin with PayPal
  4. Best Platforms to Buy Bitcoin with PayPal
  5. Choosing the Right Bitcoin Exchange for You
  6. What to Know Before Buying Bitcoin
  7. Benefits and Drawbacks of Using PayPal for Buying Bitcoin
  8. Limits on Buying Bitcoin with PayPal
  9. KYC and Verification Requirements
  10. Security Tips for Buying Bitcoin with PayPal
  11. Investing Responsibly
  12. Conclusion

Introduction to PayPal

PayPal, the popular online payment system, started allowing its users to buy, hold, and sell Bitcoin in 2020, making it one of the easiest and most convenient ways to invest in the cryptocurrency. PayPal’s move to embrace Bitcoin was seen as a major step towards mainstream adoption of digital currencies.

Since then, PayPal has continued to expand its crypto offerings, allowing users to buy and sell other cryptocurrencies, including Ethereum, Litecoin, and Bitcoin Cash. PayPal’s integration of cryptocurrencies has made it easier for millions of people around the world to invest in digital assets without the need for a dedicated cryptocurrency exchange. Furthermore, PayPal’s decision to enter the crypto market has further legitimized cryptocurrencies as a viable investment option, leading many other financial institutions to follow suit. Today, PayPal continues to be a popular choice for those looking to buy and hold Bitcoin and other cryptocurrencies.


Why Use PayPal to Buy Bitcoin?

PayPal is one of the most well-known online payment systems worldwide, with a reputation built on secure and reliable transactions. The integration of cryptocurrencies, including Bitcoin, into PayPal’s platform has made it an attractive option for investors. Here are some reasons why buying Bitcoin through PayPal could be beneficial:

While PayPal offers a convenient way to buy Bitcoin, it’s also important to consider the fees, limitations, and potential downsides, which we will discuss in detail.


Step-by-Step Guide to Buying Bitcoin with PayPal

1. Set Up or Log Into Your PayPal Account

The first step is to ensure that you have an active PayPal account. If you don’t have one, you can easily sign up at PayPal.com by providing your email address and setting a secure password.

2. Access the Crypto Section

Once logged in, navigate to the Crypto tab within PayPal. Here, you will see the various cryptocurrencies available for purchase, including Bitcoin.

3. Select Your Purchase Amount

Enter the amount of Bitcoin you wish to purchase. You can enter a specific amount in USD (or your local currency), and PayPal will show you how much Bitcoin you will receive based on the current exchange rate.

4. Link a Payment Method

To complete your purchase, link a funding source if you haven’t already. PayPal allows you to use your linked bank account, credit card, or PayPal balance to buy Bitcoin.

5. Confirm and Buy

Review the transaction details, including the current price of Bitcoin, applicable fees, and the total cost.


Best Platforms to Buy Bitcoin with PayPal in December 2024

While PayPal itself provides a seamless way to buy Bitcoin, you can also use your PayPal account to buy Bitcoin on various cryptocurrency exchanges that accept PayPal as a funding option. Below are some of the most reliable platforms for buying Bitcoin with PayPal:

AvaTrade Review

AvaTrade Review

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Pros

  • list bullet Swift Account Setup: Account activation in approximately 5 minutes with an efficient digital process.
  • list bullet Robust Support & Education: 24-hour multilingual support and comprehensive educational resources through AvaTrade Academy.
  • list bullet Diverse Investment Products: Over 1,260 tradeable symbols, including Forex and cryptocurrency CFDs.

Cons

  • list bullet Withdrawal Timeframe: Although competitive, withdrawals can take up to two business days.
  • list bullet Mobile App Features: While AvaTrade's mobile apps are innovative, they lack some advanced features compared to other industry leaders.

1. AvaTrade

AvaTrade is one of the best platforms for buying Bitcoin with PayPal. AvaTrade supports multiple funding options, including PayPal, for both deposits and withdrawals, allowing users to fund their trading accounts and engage in Bitcoin trading through Contracts for Difference (CFDs).

AvaTrade logo

2. Binance

Binance is a leading global cryptocurrency exchange that supports PayPal as a funding method for buying Bitcoin through its peer-to-peer (P2P) service. Binance’s low fees and wide variety of cryptocurrencies make it a popular choice for investors worldwide.

3. eToro

eToro is a social trading platform that allows users to buy Bitcoin and other cryptocurrencies using PayPal. eToro is known for its user-friendly experience and copy-trading feature, which allows beginners to replicate the strategies of successful traders.

4. Coinbase

Coinbase offers support for PayPal purchases. Users can buy Bitcoin quickly and securely using their PayPal account.

Choosing the Right Bitcoin Exchange for You

Here are some of the key points that an investor must keep in mind while choosing an exchange:

The exchanges mentioned are tried and tested beforehand. All the recommendations and information provided are genuine. All the recommendations have been accurately checked individually by third party experts claiming to have created an account in each one of the platforms, explored all the features, and most importantly whether or not the exchange is safe to open an account. We have thoroughly gotten feedback from the community and where the exchange stands in the market. Before putting your money in, investors must check all the reviews before investing in any of the exchanges.

This is a link to our list of the best cryptocurrency trading platforms for users who wish to learn more.

What to Know Before Buying Bitcoin

Benefits and Drawbacks of Using PayPal for Buying Bitcoin

CoinBharat artwork of women buying Bitcoin using terminals in a futuristic cityBenefits

Drawbacks


Pros

  • list bullet

    Speedy Deposits: The deposits are processed instantly and the user does not have to wait like in the case of a bank.

  • list bullet

    Fast Withdrawals: When you withdraw money using Paypal your money is withdrawn instantly.

  • list bullet

    Secured: PayPal offers Purchase Protection for Buyers, which covers you if something goes wrong with your deposit.

Cons

  • list bullet

    Fees: There is a fee or charge associated with every transaction that is being done through Paypal.

  • list bullet

    Restrictions and limitations: Users are restricted to a limited number of crypto that they can buy using this method. Also, Paypal is not available on many trading platforms.

Limits on Buying Bitcoin with PayPal

When buying Bitcoin with PayPal, there are specific limitations to be aware of:

These limits can change based on PayPal’s policies and user verification level, so it’s important to check the current limits directly in your PayPal account.


KYC and Verification Requirements

PayPal requires users to complete KYC (Know Your Customer) verification before purchasing Bitcoin. This verification process helps ensure security and compliance with regulatory requirements.

The KYC process typically takes a few minutes to a few hours to complete, depending on the volume of applications being processed. Completing KYC verification is essential to unlock higher limits for purchasing Bitcoin.


Security Tips for Buying Bitcoin with PayPal


Investing Responsibly

Cryptocurrencies like Bitcoin are known for their price volatility, which means that investments carry risk. To invest responsibly:

Conclusion

Now you have a 360-degree view of how you can buy Bitcoin with PayPal directly or use it as an intermediary in the crypto exchanges. You also have learnt that it is a cost-effective and fast way of trading cryptocurrencies. You should also be aware of the fact that various brokers and exchanges enable seamless PayPal deposits, simplifying the process to buy Bitcoin and other cryptocurrencies instantly using your PayPal balance.

Main Takeaways

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.

FAQs

How to buy Bitcoin in India?

It can be bought through various crypto exchanges operating in India.

Where to buy Bitcoin in India?

AvaTrade and Binance are viable options for Indians looking to buy Bitcoin, offering a wide array of acceptable payment methods, including PayPal.

What can I buy with Bitcoin in India?

Bitcoin can be used to buy stuff on Amazon, appliances, furniture, movies, games, and much more.

Can I use PayPal to buy Bitcoin in India?

Yes, you can buy Bitcoin in India using PayPal through platforms like Binance, eToro, and AvaTrade that support PayPal as a payment method.

Which platforms support buying Bitcoin with PayPal?

Platforms such as AvaTrade, Binance, eToro, and Coinbase allow users to buy Bitcoin using PayPal.

Do crypto exchanges accept PayPal?

Yes, it is widely accepted by many exchanges.

Are there any fees for buying Bitcoin with PayPal?

Yes, PayPal charges a fee for cryptocurrency transactions. The exact fee may vary depending on the platform and the transaction amount.

Is Bitcoin safe; should I buy Bitcoin now?

Crypto is a volatile market so invest in it at your own risk.

Why invest in Bitcoin; what are the pros of buying Bitcoin?

It is the most accessible and the one that has the potential for high returns.

Is Bitcoin a good investment?

Bitcoin is the first and the most trusted cryptocurrency among traders. It is a safe currency that can be great for the portfolio in the long run.

How to buy Bitcoin online?

Bitcoin can be bought through different exchanges. The trader needs to have a crypto wallet that should be connected to their bank to carry on the transactions.

When is the right time to buy Bitcoin?

It is usually suggested to buy it when the prices are low, and hold it till its price rises.

What are the limits on buying Bitcoin with PayPal?

The daily purchase limit typically starts at around $1,000, with higher weekly and monthly limits available for verified accounts.

Is buying Bitcoin with PayPal secure?

Yes, PayPal offers multiple layers of security, including encryption and two-factor authentication, making it a secure option for buying Bitcoin.

Can I sell my Bitcoin through PayPal?

Yes, you can also sell your Bitcoin through PayPal if the platform you are using supports this feature.

Do I need to verify my PayPal account to buy Bitcoin?

Yes, verifying your PayPal account is recommended to access higher purchase limits and ensure the security of your transactions.