Paypal is one of the most popular online financial services, and a considerable percentage of people use it. Thus, it can be quite promising to realize that this platform now offers a bitcoin purchase. Now, as a beginner, you may ask that one single question about this matter:
How to buy bitcoins with Paypal instantly? With Paypal, you can buy Bitcoins in an instant by following specific steps. First, you'll need to set up an account and follow the steps we'll include below. Besides direct purchase on the platform, you can also buy this digital currency on other well-known exchanges.
In this article, we'll give you an in-depth take on how to buy Bitcoins with Paypal. This way, you'll understand how it works and know its benefits and downsides.
Without further ado, let's get into it!
Where can I buy Bitcoin with PayPal?
While you can buy Bitcoin with Paypal directly, it's not something user-friendly. Still, you can buy Bitcoins with Paypal through other trading platforms.
Here are four trading platforms where you can buy Bitcoin with Paypal.
The easiest way to buy Bitcoin with Paypal would be through the well-known eToro. However, it's only for a limited purpose.
eToro will allow you to purchase Bitcoins with Paypal. However, it will withdraw your fund from your wallet and take an extensive amount of time and steps.
In short, this platform is better for price speculation rather than buying an actual coin.
Pros: Relatively low fees and a variety of accepted payment methods
Cons: Not available worldwide and complicated withdrawal
LocalBitcoins is a marketplace where buyers and sellers connect. Thus, when you use this platform, you deal with an actual person.
In short, the stake here would be the credibility of the one you're connecting with as you purchase.
Another thing to note is that the seller will usually charge a premium since they're taking a significant risk of buyer chargebacks.
On the plus side, you'll get to have a faster and quicker transaction.
Pros: You'll access a wide variety of sellers from around the world
Cons: High fees and higher chances of getting scammed
xCoins describes itself as a Bitcoin lending service. Rather than selling you Bitcoins, they are loaning it to an extent. It's pretty unclear as to whether this platform offers an actual loan or sale.
It works by asking for a loan, and you get verified. Once done, you'll receive a request to deposit a USD equivalent of how much you want to borrow. It will also include your credit card info and Paypal processing fees.
Pros: The proven method that’s been around for a relatively long time
Cons: Unclear business model and high fees
Paxful is a very similar platform to LocalBitcoins. In general, it's a peer-to-peer marketplace.
Paxful allows you to buy Bitcoin with almost anything. It can be Skype credits, Amazon gift cards, etc.
The buying process is quite simple. You'll need an account, a chosen payment method, and a chosen seller.
Once the trade initiates, you will have a chance to contact the seller. It's where you can finalize the deal. Such deals should get done within 30 minutes or a limited time. Else they will get canceled.
Pros: Wide variety of sellers from around the world
Cons: High exchange rate, the chance of getting scammed
Can I buy Bitcoin directly from PayPal?
Aside from these platforms, you can buy Bitcoin directly from Paypal.
The first thing to know in this matter is that it only supports the US. It means this transaction isn't available in other countries.
Paypal started offering this service in October 2020. From then on, Bitcoin and three others became available for direct Paypal purchases. It can be within the Paypal digital wallet through a partnership with Paxos.
Such access allows users to pay Paypal-supported merchants using Bitcoins they bought.
As of the moment, users can't send those coins to other accounts or withdraw them to use anywhere else.
The benefit of such a transaction is that it comes with low risks. On the downside, the coins aren't withdrawable to an external wallet. Further, it's only available within the US.
Is PayPal a good place to buy Bitcoin?
Paypal has its pros and cons when it comes to buying Bitcoin. In short, it's a matter of preference and goals for each user.
For instance, you can only hold the crypto that you buy on Paypal in your account.
Moreover, the said crypto isn't transferable to other accounts on or off Paypal.
On the plus side, you can rest assured that you won't have theft and fraud problems, as Paypal works on such matters 24/7.
It's a great place to buy Bitcoin, but it's not ideal for investors who use Bitcoin for transactions all the time.
How to buy Bitcoins in PayPal?
Now, if you have already decided to buy Bitcoins in Paypal, you can follow these steps.
Set up an account
The first thing is to set up a PayPal account. It's an easy task, and it only takes a few taps.
The next thing is to buy some Bitcoin. It's quite a similar process with the website and app. You just need to select buy bitcoin and more banners on the top page of the home screen.
Select the cryptocurrency
Upon clicking, it will take you to a page where you can choose the cryptocurrency you want to buy. Aside from Bitcoin, Paypal also offers the following:
Select the amount
You can select an amount of Bitcoin to buy or click buy to select the amount of choice.
The minimum price would be a dollar worth of Bitcoin. Below the option, Paypal includes a brief description.
Confirm some info and agree to terms and conditions
As you go on, PayPal will ask you to confirm some information and agree to their terms and conditions.
Buy the Bitcoin
Enter the amount you'd like. Afterward, select next to move on to the next page. It will take you to a page where you can add other cards or bank accounts.
Review your Purchase
Once you select next, you will see all the information about your purchase you need to review and confirm. As soon as you're ready, you can tap buy now to confirm.
How do I withdraw Bitcoin from PayPal?
If you want to withdraw the value from your cryptocurrency hub, you'll need to:
- Sell your crypto assets
- Withdraw the cash proceeds from their sale.
The term crypto assets mean the particular digital asset that PayPal supports. Such assets are the ones you may buy, sell, and hold.
Paypal offers a quick alternative should you ever wish to buy some Bitcoins through their platform. Still, it comes with a lot of downsides.
For this reason, you need to be aware of such downsides and see if you can tolerate such. This way, you won't have any problem as you go on with your transaction.
In general, Paypal is quite a secure platform, but it can also mean the flexibility of usage without being a sacrifice.