How to Buy Crypto with PayPal – Beginner’s Guide

There are a few crypto exchanges that accept Paypal, which we’ll list in this guide. We’ve reviewed the best places to buy crypto online with Paypal in terms of low fees, security, supported coins, and user-friendliness.

We also cover a simple step-by-step breakdown of how to buy crypto with Paypal instantly.

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

Once you have invested in crypto via a Paypal deposit, you can click on ‘Portfolio’ to view your tokens. This is also the area of the eToro dashboard that allows you to sell Bitcoin back to cash.

If the above guide is not quite sufficient for you, then you will find a more comprehensive explanation of how to buy crypto with Paypal further down.

Where to Buy Crypto with PayPal

Many of the best crypto exchanges in the US now allow you to buy crypto with a credit card. However, only a handful accept Paypal.

The good news is that we have done the hard work for you by reviewing the best trading platforms that enable you to buy crypto with Paypal – some of which offer low fees.

1. eToro – Overall Best Way to Buy Crypto With Paypal

Our research team found that the overall best place to buy Crypto with Paypal in the USA is eToro. In addition to credit/debit cards, ACH, and a variety of other e-wallets, you can deposit funds with Paypal at a minimum of $10. This low deposit minimum will suit investors of all skill levels – especially beginners. 

In terms of deposit fees, you can fund your account via Paypal for free if you are based in the US. And, when it comes to trading commissions on crypto buy and sell orders, eToro charges just 1% above the market spread. Not only is eToro a low-cost broker, but it gives you access to a wide variety of altcoins. 

This includes more than 60+ projects like Shiba Inu, Dogecoin, Solano, Cardano, and even ApeCoin. All of the cryptocurrencies supported by eToro can be added to your portfolio from a minimum investment of $10. Once you have completed your investment, the crypto tokens will be added to your eToro web wallet.

This is kept safe on your behalf via eToro’s institutional-grade security practices. Alternatively, you can also download the eToro Crypto Money app for iOS and Android. Not only does the app allow you to buy and sell crypto on the move – but it doubles up as a convenient wallet. Either way, there are no fees charged by eToro when storing your digital currencies.

We should also mention that eToro offers several Smart Portfolios – which are professionally managed baskets of crypto. In a similar nature to a managed stock fund, eToro will determine which crypto assets to hold and when to rebalance your portfolio. This offers a passive way to gain exposure to the crypto industry.

There is also the eToro Copy Trading feature. This allows you to follow and copy the trading positions of an experienced and proven crypto investor. For instance, if you invest $200 into the Copy Trading feature and your chosen investor allocates 20% of their capital to Ethereum, you will copy this position but at a stake of $40 (20% of $200).

What We Like:

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

2. Coinbase – Great Place to Buy Crypto With Paypal for Beginners

Coinbase offers perhaps the best place to buy crypto if you are a beginner in this space. You can open a verified trading account simply by providing some personal information and uploading a copy of your ID. In addition to ACH and credit/debit cards, Coinbase also supports Paypal deposits.

However, when buying crypto with either Paypal or a credit/debit card, you will be charged a fee of 3.99%. In comparison to eToro – which offers fee-free deposits via Paypal, this is very expensive. In other words, you will need to make gains on your crypto investment of 3.99% just to break even.

Nonetheless, your Paypal deposit at Coinbase will be processed instantly and this includes the standard trading commission. If you decide to trade crypto on Coinbase once your account is already funded, you will pay 1.49% per slide – plus the market spread. In total, Coinbase now offers over 150+ digital currencies.

Once you have invested in crypto at Coinbase, you have several options when it comes to storage. The Coinbase wallet app for iOS and Android allows you to retain full control over your private keys. This will suit those of you that already have some experience in crypto wallets. If you are a newbie, then you might prefer to keep your crypto tokens in the main Coinbase web wallet.

In this scenario, Coinbase will keep your private keys safe. The Coinbase web wallet will keep 98% of your crypto tokens in cold storage at all times. It also comes with two-factor authentication and IP/device whitelisting. Coinbase also offers a mobile trading app that connects to your main account. This allows you to buy and sell crypto on the move.

Although Coinbase has historically offered a bare basics service, it has since expanded into new areas. This includes a fully-fledged NFT marketplace. You might also consider the Coinbase staking service, which allows you to generate interest on your idle tokens. The best rate available is offered on Cosmos at 5% per year.

What We Like:

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

3. Crypto.com – Combine Crypto Investments With a Prepaid Credit Card

Another option to consider when looking for a place to buy crypto with Paypal is Crypto.com. First and foremost, Crypto.com does not directly accept Paypal as a payment method on its primary exchange. Instead, you will have the option of buying crypto instantly with ACH, Visa, or MasterCard.

However, what you can do is apply for the Crypto.com prepaid credit card – which allows you to spend your digital currency tokens in the real world anywhere that accepts Visa. Moreover, you can top up the Crypto.com card with Paypal. In doing so, you will pay a fee of 2.1% on the transaction size.

For instance, a deposit of $1,000 would leave you with a balance of $979. With that said, if you are looking to buy crypto instantly without the hassle of ordering a card, both ACH and credit/debit cards allow you to fund your purchase in real-time. While ACH is free, credit/debit card payments cost 2.99%.

We also like Crypto.com as the platform offers more than 250 cryptocurrencies. This includes everything from Bitcoin and Dogecoin to Decentraland and Tether. You can buy and sell crypto assets here at just 0.40% per slide – and even less if you are an active trader. Another popular tool at Crypto.com is its interest-earning accounts.

This allows you to generate a yield on your idle crypto tokens and you can choose from a 1-month, 3-month, or flexible lock-up period. Naturally, longer terms come with higher yields. You can also obtain a more attractive APY if you stake CRO tokens. This is the digital asset backed by the Crypto.com ecosystem and it now carries a multi-billion dollar market capitalization.

If that wasn’t enough, Crypto.com also offers crypto loans. This comes with a maximum LTV of 50% – which can come in handy if you need access to capital but do not want to cash your crypto out. Finally, when it comes to storage, you have two options at Crypto.com. You can either leave your tokens in the Crypto.com web wallet or download the non-custodial DeFi app.

What We Like:

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

Why Buy Crypto with Paypal?

Paypal is one of the best methods to use when adding funds to your crypto exchange account. Not only in terms of speed and convenience but safety.

In the sections below, we discuss why you might want to buy cryptocurrency with Paypal today.

Buy Crypto Instantly  

The first benefit to consider is that Paypal offers an instant payment gateway for crypto exchanges.

This means that once you have confirmed the transaction, the funds will be credited to your account instantly. Then it’s just a case of placing a buy order on your chosen crypto.

Moreover, even if your Paypal account does not have enough funds to cover the size of your deposit, you can still benefit from an instant transaction. This is because Paypal will simply debit the funds from the credit card that you have linked to your account.

In comparison, we found that many crypto exchanges take 1-3 working days to credit domestic bank wires and ACH. We found that the exception to this rule is Crypto.com – which offers fee-free and instant ACH deposits.

Low Fees Available  

Fees will vary greatly when you buy cryptocurrency with Paypal. This will ultimately depend on your chosen crypto exchange.

• For instance, we found that the likes of Coinbase are expensive in this department, as you will pay a fee of 3.99% when depositing funds with Paypal.
• As noted earlier, this means that in order to make a profit on your crypto investment, you need to make gains of at least 3.99%.

In contrast, the overall best place to buy crypto with Paypal – eToro, does not charge any deposit fees at all if you are based in the US.

Buyer’s Protection  

One of the greatest benefits of buying crypto with Paypal is that the e-wallet provider offers Buyer’s Protection. This is similar to the protections you get when your credit card is used at a fraudulent merchant.

For instance, let’s suppose that you decide to buy cryptocurrency with Paypal at an exchange that we have not pre-vetted on this page.

If this exchange turns out to be a scam and you never receive the crypto that you purchased, you can then raise a claim via your Paypal account. In doing so, Paypal will investigate your claim and ultimately – refund your purchase amount.

This process is typically very fast – unlike a credit card chargeback. Instead, chargebacks often require you to first speak with your credit card company over the phone and then fill out a form.

Then, it might take several months for the chargeback investigation to conclude. In comparison, the Buyer’s Protection process at Paypal is often resolved within a week.

No Need for Payment Details  

We also like Paypal for the convenience that it offers. In order to buy crypto with Paypal at an exchange, you do not need to provide your credit card or bank account information.

Instead, you will simply be asked to log into your Paypal account via a pop-up box. This is encrypted, so the exchange won’t be able to see the details that you enter.

Nonetheless, you will be given the option of paying for your deposit via your Paypal balance at the click of a button. As noted earlier, if you don’t have enough funds in your account, Paypal will cover the deposit by debiting the credit card that you have linked.

Ideal for Fast Withdrawals   

When it comes to speedy withdrawals, it doesn’t get much better than Paypal. This is because we often find that Paypal withdrawals are processed much faster than bank wires or credit/debit cards.

More importantly, once the withdrawal is processed by your chosen exchange, the funds should arrive in your Paypal account in a few seconds. As such, you won’t need to wait around for 1-3 working days like other payment methods.

Is PayPal a Good Place to Buy Crypto?

Paypal has allowed US clients to buy crypto directly on its website since 2021. Although this might suit active Paypal users, it is important to note that there are several drawbacks when investing in digital currency in this manner.

As we explain in more detail in the section below, Paypal charges high fees when buying and selling crypto via its platform. Moreover, you won’t have the option of withdrawing your crypto tokens to a privately owned wallet.

There is also a very limited number of crypto markets offered by Paypal. And, in comparison to specialist crypto exchanges, Paypal offers virtually nothing in terms of trading tools or passive investment funds.

Buying Crypto On PayPal vs Buying Crypto Using PayPal on Crypto Exchanges?

To expand on the above section, we will now explain why you might want to reconsider buying crypto directly on the Paypal website. Instead, if Paypal is your preferred payment method, it’s better to use a crypto exchange.

Here’s why:

Fees

First and foremost, let’s explore where Paypal stands on its crypto fees. In a similar nature to Coinbase, Paypal charges fees based on the size of your trade. As the value of your trade increases, fees are reduced.

• For example, the lowest fee that you will pay when buying crypto on Paypal is 1.5% – which requires a minimum investment of $1,000.
• If you buy or sell between $200 and $1,000 – then you will pay 1,80%.
• Anything below $200 will be charged at a flat fee. For example, a trade size of between $75 and $200 will cost you $2.49.

While at first glance this might not sound like a lot in monetary terms, this can amount to a hefty percentage.

• For example, let’s say that you buy $75 worth of crypto on Paypal and you pay a fee of $2.49.
• In doing so, this means that you are effectively paying a commission of 3.3%.

Furthermore, the e-wallet provider will also charge you the spread when you buy crypto via Paypal. However, Paypal does not publish what spreads it charges. As such, you won’t know until you set your crypto order up.

In comparison, platforms like eToro and Crypto.com are very transparent in the fees that they charge. As we highlighted earlier, eToro allows US clients to deposit funds with Paypal fee-free, and trading commissions amount to just 1%.

Inability to Withdraw Crypto

Perhaps an even bigger drawback to consider before you buy crypto on the Paypal website is that you will not have the option of withdrawing your tokens to a private wallet.

This means that Paypal will always have 100% control over your funds. This might not be an issue if you are looking for a simple and burden-free way of investing in crypto.

However, for those of you that want to personally retain ownership of both your tokens and private keys, Paypal won’t be suitable.

On the other hand, when you buy cryptocurrency with Paypal at an exchange, you will always have the option of making a withdrawal to a private wallet.

Trading Tools and Features

When using a crypto exchange to buy and sell digital assets, you will often have access to a wealth of additional tools and features.

This might include high-level pricing charts and drawing tools, alongside technical indicators. This will allow you to assess the market in real-time to determine whether a particular crypto asset might rise or fall in value.

When using eToro, you will also have access to passive trading tools. This covers professionally-managed crypto portfolios and also the ability to copy the positions of other investors.

If, on the other hand, you decide to buy crypto on the Paypal website, you won’t have access to any analysis, research, and passive trading tools. Instead, the platform simply allows you to buy and sell crypto.

Supported Markets

Another drawback and using the Paypal website to buy and sell crypto is that you will only have access to four markets. This includes Bitcoin, Bitcoin Cash, Litecoin, and Ethereum – see our guide to buying ETH with Paypal.

That is a limited number of markets to have access to and ultimately – will make it difficult to diversify your portfolio effectively.

When using an exchange like eToro or Crypto.com – you will have access to over 60 and 250 digital currencies respectively. At both exchanges, this includes everything from Dogecoin, Shiba Inu, and Polkadot to Solana, Algorand, and Uniswap.

How to Buy Crypto with PayPal on eToro – Tutorial

If you’re wondering how to buy cryptocurrency with Paypal right now – but need some guidance on the required investment process – we will now show you the steps with leading exchange eToro.

To recap, we found that eToro is the overall best place to buy crypto with Paypal for its fee-free deposits, low trading commissions, and strong regulatory framework.

Step 1: Open an Account

You will first need to open a free account before you can buy crypto with Paypal via the eToro platform. After clicking on the ‘Join Now’ button, enter the following information:

• First and last name
• Nationality
• Home address
• Social security number
• Date of birth
• Preferred username and password

You will also be sent an email and SMS to confirm the details you have given.

eToro will also ask you a few questions about your prior trading experience.

Step 2: Upload ID 

To complete the registration process at eToro, you need to upload a copy of your government-issued ID. This will allow you to deposit and withdraw fiat money.

Choose from a state ID card, passport, or driver’s license for this purpose.

Step 3: Deposit Money

Next, you will need to deposit some funds into your eToro account. Choose Paypal from the list of options and enter your deposit amount.

You will need to meet a minimum deposit of $10 and no fees will be charged on USD payments.

Step 4: Choose Crypto to Buy  

Now that you have funds in your trading account, you can search for the crypto asset that you want to buy. There are two ways that you can do this on eToro.

First, if you know the name of the crypto you are interested in – type it into the search box. In our example below, we are searching for Uniswap.

The second option is to click on the ‘Discover’ button from the left-hand dashboard. Then, after clicking on ‘Crypto’, you will be presented with the list of supported markets.

Step 5: Buy Crypto via Paypal

When you have found the crypto that you want to buy, click on the ‘Trade’ button. You will then see an order box like in the image below.

Let eToro know how much money you want to invest in the crypto asset and click on ‘Open Trade’. Within a couple of seconds, you should find that your eToro balance has been debited. And in turn, the crypto tokens will be shown in your portfolio.

Conclusion

Paypal is one of the best payment methods to use when buying crypto online – as long as you are using a suitable crypto platform.

If you’re wondering where and how to buy crypto with Paypal right now – eToro allows United States clients to deposit and withdraw funds for free.

Your Paypal deposit will be credited instantly and the minimum crypto trade requirement is just $10.

eToro - Top Crypto Platform

Our Rating

• Free Copy Trading of Professional Traders
• Free Demo Account, Crypto Wallet
• Open to US & Worldwide - Accepts Paypal
• Staking Rewards, Educational Courses

Buy Crypto

Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

FAQs on Buying Crypto with Paypal