How to Buy Bitcoin With Paypal UK – Beginner’s Guide

UK residents now have a plethora of options when it comes to buying Bitcoin online. In addition to debit/credit cards and conventional bank transfers – you might also consider Paypal.

In this beginner’s guide, we show you how to buy Bitcoin with Paypal in the UK with an FCA-regulated broker that offers super-low fees.

It really is as easy as that to buy Bitcoin online with Paypal in the UK when using eToro.

We offer a more detailed step-by-step walkthrough of how to invest in cryptocurrency with e-wallets like Paypal further down in this guide.

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

Where to Buy Bitcoin with Paypal UK

When figuring out how to buy Bitcoin with Paypal in the UK – the most important part of the learning journey is to find a suitable online broker that supports this popular e-wallet.

Be sure to check the regulatory status of your chosen platform alongside what fees will apply when depositing funds with Paypal.

If you’re still searching for the best site to buy Bitcoin with Paypal in the UK – consider the pre-vetted platforms that we have reviewed in the sections below.

1. eToro – Overall Best Way to Buy Bitcoin With Paypal UK

eToro is the UK’s leading brokerage site. In addition to stocks, ETFs, forex, commodities, and indices, this user-friendly broker offers the best place to buy Bitcoin with Paypal instantly in the UK. First and foremost, eToro is authorized and regulated by the FCA. It is also licensed by regulators in the US, Cyprus, and Australia.

Therefore, in choosing eToro, you can be sure that your investment funds are secure. Moreover, the eToro website is very simple to navigate, and opening an account takes just minutes. And, if you are depositing less than €2,000 (about £1,700), with Paypal, you can complete the verification process at a later date.

We also like that eToro allows UK residents to gain exposure to Bitcoin without needing to deposit or risk huge sums of money. This is because the minimum deposit when using Paypal is a mere $10 (about £8). Moreover, when you buy Bitcoin in the UK at eToro, the minimum investment stake required is also just $10.

In terms of fees, this is where eToro really gets the green light from us. First, to deposit funds with Paypal, a debit/credit card, bank transfer, or any other supported payment type – UK investors pay a fee of just 0.50%. In comparison, exchanges like Coinbase charge nearly 4%. Second, eToro charges just 1% when you buy cryptocurrency in the UK.

You might also appreciate that eToro gives you access to 60 of the best altcoins in the market. Some examples include Decentraland, Shiba Inu, Uniswap, Ethereum, Dogecoin, and AAVE. This will give you a great opportunity to diversify your exposure to Bitcoin. You can also diversify by investing in a crypto-centric Smart Portfolio.

In a nutshell, Smart Portfolios are built and managed by eToro. They give you access to specific strategies and markets – such as conventional cryptocurrencies, DeFi coins, and even Metaverse tokens. You will need to meet a minimum investment of $500 (about £400) to invest in a Smart Portfolio and no extra fees apply.

You might also be familiar with the Copy Trading tool offered by eToro – which gives you access to thousands of verified investors. All you need to do here is choose the best investor for your financial goals, decide how much to invest, and then all future positions will be copied over to your own portfolio. This requires a minimum investment of $200 (about £160) per trader.

If you’re also keen on traditional assets, you can buy stocks from the UK, the US, Asia, and lots of other markets without paying any commission. We are also keen on the iOS and Android mobile apps that eToro offers for free. This will connect to your main account, so you can switch between the two depending on where you are.

Finally, it is important to make reference to the eToro wallet – of which there are two to choose from. First, beginners will appreciate the eToro web wallet. This means that after you buy Bitcoin with Paypal in the UK, you don’t need to worry about storage. Alternatively, you can also download the eToro Crypto Money wallet app – which gives you more control over your BTC. Some investors may find out eToro review UK useful as we explore the ins and outs of this popular social trading platform.

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

2. Coinbase – Top Crypto Exchange for Beginners to Buy Bitcoin With Paypal

Coinbase – which is home to nearly 100 million clients globally, is now active in the UK marketplace. This secure and reputable crypto exchange is potentially worth considering if you are a complete beginner. However, do bear in mind that Coinbase is significantly more expensive than eToro.

For instance, while at eToro you will pay just 0.5% to deposit funds with Paypal in the UK, at Coinbase, the same payment method will cost you 3.99%. Furthermore, when you begin to read the fine print, you will notice that Paypal deposits of under $200 (about £160) come with even higher fees.

This 3.99% fee is also charged when you deposit funds with a debit or credit card. In comparison, Faster Payment transfers via your UK bank account come with no fees whatsoever. However, the catch here is that you will still be charged 1.49% on each and every buy and sell order that you place on the Coinbase website.

With that being said, Coinbase is still one of the most popular Bitcoin brokers in the UK. This is for a number of core reasons. First, Coinbase is a regulated exchange that has been trading since 2012. It is also a public company listed on the world’s second-largest stock exchange – the NASDAQ.

You will also find that Coinbase offers superb security features. This includes everything from two-factor authentication and device whitelisting to keeping 98% of client digital funds in cold wallets. Coinbase is also popular with UK investors because it offers more than 150 digital currencies that you can buy, sell, and trade at the click of a button.

Cryptoassets are a highly volatile unregulated investment product.

3. Binance – Low-Cost Exchange Platform to Buy Bitcoin in the UK

You might also consider Binance in your search to invest in Bitcoin in the UK. Although the platform does not currently support Paypal deposits, this top-rated exchange accepts a range of other convenient payment methods. At the forefront of this are debit and credit cards. 

Put simply, you can open an account at Binance, upload your passport or driver’s license, and then buy Bitcoin with a debit/credit card in under 10 minutes from start to finish. In doing so, you will pay a relatively competitive fee of 1.8%. Although this is cheaper than the 3.99% charged by Coinbase, don’t forget that at eToro you will pay just 0.50%.

If you are happy to cover a higher fee, then other benefits can be taken advantage of on the Binance website. First, you will have access to no less than 600 alternative digital currencies. Not only does this include major large-cap projects like Ethereum, BNB, and, Cardano, but hundreds of up-and-coming tokens that are yet to fully grow.

Second, you might also like Binance for its interest accounts. These allow you to generate a yield on cryptocurrencies that you own. Bitcoin, for instance, comes with an APY of 5%, albeit, limits do apply. You can also use Binance to buy and sell NFTs, although as we cover shortly, Crypto.com is arguably the best platform for this purpose.

When it comes to trading commissions, Binance is potentially the cheapest exchange in this marketplace. Even if you are trading small amounts, you will never pay more than 0.10% on your buy and sell orders. The major drawback with Binance – in addition to not supporting Paypal in the UK, is that the exchange is not regulated by the FCA.

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

4. Crypto.com – Popular Exchange With Crypto Visa Card That Supports Paypal 

Crypto.com is another top-rated crypto exchange that you might want to consider when buying Bitcoin in the UK. Just like the previously discussed Binance, Crypto.com does not directly allow you to buy Bitcoin with Paypal. However, what you can do is apply for the Crypto.com Visa card and then top it up via a Paypal deposit.

Before we get to the fundamentals, the Crypto.com Visa allows you to spend your digital tokens in the real world. This means that in addition to buying products online or in shops, you can also withdraw cash from ATMs. And, as the card is issued by Visa, you can also use it to purchase cryptocurrency from the comfort of home.

In order to fund your Crypto.com Visa card with Paypal, you will pay a fee of 2.1%. Moreover, once you have made a deposit with Paypal, you can then transfer the funds over to your main Crypto.com account. In doing so, you can then invest in Bitcoin at a fee of just 0.4%. This works out at just 40p for every £100 that you trade.

We also like Crypto.com for its industry-leading NFT marketplace. This gives you access to thousands of in-demand NFTs and no fees are charged when you make a purchase. There are also Crypto.com interest accounts that offer an APY of 10% on stablecoins and up to 14.5% on standard crypto assets.

The Crypto.com exchange is also popular with traders in the UK – not least because you will have access to over 250 tokens. Many UK residents also opt to download the free Crypto.com app for iOS and Android. This will allow you to buy cryptocurrency directly with your debit or credit card at a fee of 2.99%.

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

Why Buy Bitcoin with Paypal?

Now that we have reviewed the best places to buy BTC with Paypal in the UK, we can now explain why you might decide to use this payment method to complete your investment.

Buyer Protection

Perhaps the stand-out benefit to consider when learning how to buy Bitcoin with Paypal in the UK is that you will benefit from the Buyer’s Protection program.

For those unaware, this means that Paypal will elect to refund any payment that you make if it turns out to be fraudulent.

• And, unlike a traditional credit card chargeback, the Buyer’s Protection program at Paypal is a lot less cumbersome.
• This is because you are not required to call the card issuer and explain the process from top to bottom.
• On the contrary, with Paypal, it’s simply just a case of raising an online claim alongside a brief overview of the issue.

This means that you can be confident in the safety of your funds when using Paypal to buy Bitcoin in the UK.

Encryption

In addition to the aforementioned Buyer’s Protection program, Paypal offers plenty of other security features that aim to keep you safe at all times.

At the forefront of this is that when you buy Bitcoin with Paypal in the UK, your chosen exchange will never actually see what your login credentials are.

This is because when you type in your email address and password, this is done via a pop-up box. And, most importantly, everything that you type is encrypted anyway – which means that the exchange has no access to the information.

Convenience

Another reason why you might decide to buy Bitcoin with Paypal in the UK is that you are not required to type in your sensitive payment information.

Instead, if you already have a Paypal account, then your debit/credit card will be securely saved. And therefore, all you need to do is log into your Paypal account and choose your preferred source of funds.

Paypal will then complete the transfer on your behalf and your chosen exchange will subsequently credit your account with the funds.

Instant Payments

When you use a traditional payment method to deposit funds into a crypto exchange – such as a bank transfer, you should expect to wait a few business days until the funds are credited to your account.

Even if you opt for Faster Payments, there is no guarantee that this will be credited straight away.

If super-fast payments are important to you, then you might consider Paypal. The reason for this is that the transaction will be completed in the very same way as a debit/credit card – instantly.

Therefore, you can then proceed to buy Bitcoin for your portfolio without experiencing any unnecessary delays.

Low Fees

Another benefit of investing in Bitcoin with Paypal is that when choosing the right broker or exchange, you will have access to low deposit fees. As we mentioned earlier, FCA-regulated broker eToro will charge you just 0.5% for making a deposit with Paypal.

On the other hand, some exchanges in this space – such as Coinbase, are expensive when it comes to using Paypal. This is because the platform charges nearly 4% when opting for this payment method.

Fast Withdrawals

When you make a withdrawal request out of a crypto exchange, you will need to wait for the platform to authorize the payment.

When they do, then the number of days that you need to wait for the funds to land in your account will depend on the payment method.

• For example, bank transfer withdrawals will often take 2-3 working days.
• This is oftentimes the same for debit/credit cards too.
• However, in the case of Paypal, as soon as the withdrawal is approved by the exchange, it should land in your account within seconds.

Moreover, when you withdraw funds from Paypal to a UK bank account that you have already linked, the funds will arrive near-instantly.

Is Paypal a Good Place to Buy Bitcoin?

Paypal originally started offering crypto exchange services to US-based investors in 2021. The e-wallet provider has since expanded its offering into the UK.

However, Paypal is anywhere but the best place to invest in Bitcoin. First and foremost, we had to dig deep into the platform’s terms and conditions to get any sort of idea as to how much it charges on crypto trades.

Nonetheless, the first fee that you need to consider when you buy Bitcoin via Paypal is the commission. In order to get the lowest fee possible, you will need to buy at least £1,000 worth of Bitcoin via your Paypal account. This fee stands at 1.5%.

Anything between £200 and £1,000 will cost you 1.8%. While trades of between £100 and £200 will cost you 2%. This commission will apply when you both buy and sell Bitcoin on Paypal.

Not only that, but Paypal also charges an exchange fee – as the platform notes that crypto transactions are carried out in US dollars. Unfortunately for you as the consumer, Paypal does not display what this exchange fee amounts to.

Instead, Paypal states that this will be made available only when you are about to confirm your Bitcoin purchase. All in all, we always suggest avoiding providers that charge hidden fees, so it’s best to stick with a trusted broker like eToro.

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

If you’re still not sure whether you should use a crypto exchange to buy Bitcoin in the UK or invest directly on the Paypal website – we discuss this in more detail in the sections below.

Transferring Bitcoin to a Private Wallet

In addition to charging super-high fees, anything major drawback with buying Bitcoin on the Paypal website is that you will not be able to withdraw your tokens to a private wallet.

While this might not matter to some of you, this means that you never truly have control over your Bitcoin tokens. Furthermore, this means that the only way to get your crypto funds out of Paypal is to create a sell order directly on the platform.

At eToro, you have the choice of keeping your Bitcoin tokens in the platform itself or withdrawing them to a private wallet of your choosing.

Asset Diversity 

When using the Paypal website to invest in crypto – you will only have access to four digital currencies – Bitcoin,
Ethereum, Litecoin, and Bitcoin Cash.

In comparison, the likes of eToro give you access to over 60 different crypto assets – so you can easily diversify.

Trading Tools

Paypal offers a completely ‘bare bones’ service when you buy Bitcoin directly from its platform. In fact, the only flexibility you have is in terms of the amount that you decide to invest.

When using a specialist crypto exchange, you will have access to educational tools, research materials, market insights, and custom orders.

Moreover, some platforms even allow you to invest in digital assets passively. For instance, if you use eToro to buy Bitcoin with Paypal in the UK, then you might consider its Copy Trading tool.

In a nutshell, this allows you to trade Bitcoin and other cryptocurrencies passively. Once you have selected a trader to ‘copy’, any investments that they make will automatically be replicated in your eToro portfolio.

At Paypal, you won’t have access to many tools like this when buying and selling crypto.

Can You Buy Bitcoin with PayPal Credit UK?

The simple answer is no – you will not be able to use the Paypal Credit feature in the UK to buy Bitcoin. The simple fact of the matter is that Paypal understands that investing in volatile digital currencies like Bitcoin on credit can be a dangerous game.

• After all, if you buy Bitcoin with Paypal Credit and then its value drops significantly, you are essentially in negative equity.
• This means that you owe more to Paypal than your Bitcoin investment is worth.
• Furthermore, Paypal Credit is known for its notoriously high interest rates.

On the other hand, if you have a verified credit card linked to your Paypal account, this can be used as a source of funds at a regulated broker like eToro. Just remember that buying Bitcoin on credit is very risky.

Can You Buy Bitcoin with PayPal with No ID?

When you buy digital currencies with a regulated broker, you will need to provide ID to be able to deposit ‘fiat’ money. This simply refers to actual currencies like GBP or USD, as opposed to Bitcoin or Ethereum.

Not only does this include payment methods such as debit/credit cards and bank transfers – but Paypal too. As such, if you wish to buy Bitcoin with Paypal in the UK – you will need to go through a KYC (Know Your Customer) process with your chosen broker.

The good news is that with all the platforms we have reviewed on this page, the KYC process typically takes less than two minutes. This is because once you have uploaded a clear copy of your passport or driver’s license, the platform will be able to verify it via automated technologies.

Ultimately, if you find a crypto exchange offering anonymous Paypal deposits – you can be sure that it is a scam.

How to Buy Bitcoin with PayPal UK on eToro – Tutorial

To conclude this beginner’s guide, the section below will show you how to buy Bitcoin with Paypal in the UK with the FCA-regulated broker eToro.

This step-by-step tutorial will explain the following:

• How to set up a verified account
• How to deposit funds with Paypal
• How to find Bitcoin
• How to complete your Bitcoin investment

Step 1: Open an Account

Opening an account at eToro is very straightforward. First, you will need to enter some basic personal information – which includes your name, nationality, and home address.

You’ll also need to provide some contact details and choose a suitable username.

As noted just a moment ago, you will also need to upload some ID before you can deposit funds with Paypal. As a UK resident, eToro accepts a copy of your passport or driver’s license.

Step 2: Deposit Money

You will now be redirected to the deposit page at eToro. First, in the ‘Amount; box, enter the size of your deposit. The minimum is just $10 at eToro – or about £8.

Then, from the list of supported payment options, choose Paypal. After clicking on ‘Deposit’, a pop-up box will appear asking you to type in your Paypal email address and password.

The information that you type in is fully-encrypted, so eToro will not be able to see the data. Then, you will need to select your source of funds.

This will either be the debit/credit card that you have linked to your Paypal account, or any funds that you currently have available in your balance.

After confirming the transaction via Paypal, the pop-up box will close automatically. Within a couple of seconds, you should notice that the funds have been added to your eToro balance.

Step 3: Search for Bitcoin  

If your Paypal deposit has been credited to your eToro account successfully, you can now search for ‘Bitcoin’.

Click on the ‘Trade’ button when you see Bitcoin appear below the search bar.

Step 4: Buy Bitcoin 

The final step is to type in the amount of money that you want to invest in Bitcoin. eToro operates in US dollars and the minimum investment stake is $10.

In our example below, we are staking $50.

To confirm your Bitcoin order – click ‘Open Trade’.

Conclusion

This guide has explained how to buy Bitcoin with Paypal in the UK in less than five minutes with the top-rated crypto broker – eToro.

Not only is eToro regulated by the FCA,  but the broker allows you to deposit funds with Paypal at a super-low fee of just 0.5%. Moreover, you only need to risk $10 to buy Bitcoin at eToro – which is about £8.

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

Frequently Asked Questions