How to Purchase Bitcoin with PayPal: A Step-by-Step Guide for 2023

With the growing popularity of Bitcoin, many investors seek convenient payment methods like PayPal to buy crypto. While purchasing Bitcoin with PayPal isn’t as straightforward as using a bank transfer, several methods exist to make it possible. This guide covers three reliable ways to buy Bitcoin using PayPal, along with tips to stay safe and save on fees.

Method 1: Use a Cryptocurrency Exchange That Accepts PayPal

Some platforms allow direct PayPal deposits to buy Bitcoin. Here are the top options:

eToro: A regulated platform where you can fund your account via PayPal and trade Bitcoin.
- Pros: User-friendly, supports PayPal deposits.
- Cons: Bitcoin cannot be withdrawn to external wallets (only traded on-platform).
Coinbase: Allows PayPal for selling crypto, but not buying. Use a linked PayPal debit card instead.
Paxful: A P2P marketplace with sellers offering Bitcoin for PayPal payments (verify seller ratings first).

Steps to Buy Bitcoin on eToro via PayPal

Sign up and complete verification.
Navigate to ‘Deposit Funds’ and select PayPal.
Choose amount, confirm, and trade Bitcoin.

Method 2: Peer-to-Peer (P2P) Platforms

Platforms like LocalBitcoins and Paxful connect buyers with sellers accepting PayPal:

Create an account on a P2P platform.
Filter sellers by payment method (PayPal).
Check seller ratings and transaction terms.
Initiate trade, send payment via PayPal, and release Bitcoin from escrow.

Tip: Mark PayPal payments as “for goods/services” to access buyer protection.

Method 3: Use a PayPal Debit Card

If your exchange doesn’t accept PayPal directly, link your PayPal debit card (via Mastercard) to buy Bitcoin:

Request a PayPal Debit Card (available in select countries).
Link it to exchanges like Coinbase or Binance as a credit card.
Purchase Bitcoin; funds deduct from your PayPal balance.

Alternative: Buy Bitcoin via PayPal’s Native Service

PayPal allows users to buy Bitcoin directly in-app, but with limitations:

Pros: Instant purchases, no external transfers needed.
Cons: Bitcoin cannot be transferred to private wallets (held in PayPal).

FAQ Section

Is buying Bitcoin with PayPal safe?

Yes, if using reputable platforms. Avoid unsolicited sellers and enable 2FA.

Are fees higher with PayPal?

Often yes—PayPal charges ~3.5% per transaction, plus exchange fees.

Can I withdraw Bitcoin to my wallet?

Only if the platform allows withdrawals. PayPal’s native service does not.

What are the limits?

Varies by platform. PayPal’s weekly limit is $100,000 for verified accounts.

Any alternatives if PayPal isn’t working?

Use bank transfers, credit cards, or platforms like Cash App.

Final Tip: Always transfer purchased Bitcoin to a secure private wallet for full control.