All news is rigorously fact-checked and reviewed by leading blockchain experts and seasoned industry insiders.
PayPal, one of the world’s first e-wallets, has become one of the more favorable ways to buy crypto recently. I’ve researched the ins and outs, used articles like this one on the best places to buy crypto with PayPal in 2023, to bring you a quick guide.
For years users have used PayPal to fund exchange accounts to purchase crypto. Then, PayPal reacted to this need and made Bitcoin, Ethereum and Litecoin readily available as an investment within the service. And now, PayPal has released its own stablecoin, PayPal USD (PYUSD).
You can buy crypto directly through PayPal, but if you only want to use it as a payment method, there are better alternatives. It’s vital to select the right service, after the FTX crash, many users were left without access to funds.
In this article, we will also look at buying crypto through three exchanges that are known all over the world: Bitstamp, eToro, and CEX.io.
1. Buy crypto using PayPal
PayPal began offering direct crypto purchases in October 2020 within the digital wallet. This happened through a partnership with Paxos, enabling users to sell and hold crypto purchased through the service. You can also use Bitcoin to pay merchants supported by PayPal.
Since June 2022, PayPal account holders have been able to withdraw their crypto to third-party wallets for wider ecosystem use or personal storage. It’s worth noting that only US users have this option right now, but the payment processor will be adding more countries over time.
There is no annual withdrawal limit; the weekly maximum is $10,000. Fees vary depending on the amount you buy. Below are three alternatives to buying directly via PayPal.
2. Buy crypto using an exchange
You can buy crypto using an exchange that supports it, like Bitstamp or Etoro. Bitstamp supports PayPal for crypto purchases if you pay in USD, EUR, or GBP and live in the US or the EU. The minimum and maximum purchases are $2,500 daily and $20,000 monthly. Fees on PayPal purchases are 5% of the total, which is relatively high. Holders may not withdraw funds back to PayPal, and withdrawals are possible only in fiat.
To purchase crypto via PayPal using Bitstamp, you need to choose a currency and go to Buy with PayPal. You can also buy crypto directly on the Deposit page. Enter an amount in fiat you’re willing to spend, then go to Buy with PayPal.
The platform will direct you to PayPal’s website, where you need to log in and connect your account with the exchange. Make sure you’re using the same name for both accounts, spelled identically. Finally, confirm the transaction. Your purchase is complete after your accounts are successfully connected.
eToro provides an easy way to buy crypto with PayPal. Verification takes less than five minutes, and the transfer is instantaneous. You can buy crypto immediately on eToro, as well as many other assets.
There is a downside as well; you can’t withdraw to PayPal. Withdrawals are only possible via bank transfer.
3. Buy crypto using a p2p service
You can buy cryptocurrency on a p2p service like Paxful using PayPal as a payment method. To do so, simply create an account on Paxful, find a seller who accepts PayPal, and initiate a trade with the desired amount of cryptocurrency.
You will then be able to complete the transaction using your PayPal account. Keep in mind that buying cryptocurrency through peer-to-peer platforms like Paxful may carry some risk, so make sure to do your research and use caution when making trades.
