For you to effectively buy Bitcoin (BTC) with PayPal, you will have to rely on other online platforms. Some of these platforms include; eToro, Wirex debit card and Paxful. This article will give you a step by step guide on how you can use these platforms to buy Bitcoin using PayPal.
Method 1: Buy Bitcoin (BTC) With PayPal Using eToro
Buying BTC with PayPal using eToro is regarded as the easiest method available. However, there are some obvious limitations. For starters, eToro will enable you to buy Bitcoin, but you would not be able to send or withdraw your purchased BTC.
You will only be allowed to convert your Bitcoins to fiat currency such as U.S dollar, Euro or British pound Sterling. So using eToro will serve as a sort of investment. You buy BTC for a lesser price and then convert for more fiat currency than you invested in when the coin value rises.
The good news is, eToro is gearing up to launch a cryptocurrency exchange which will allow you to trade and withdraw Bitcoins. If you are resident in the U.S, you would not be able to use eToro. You will not require a bitcoin wallet when using eToro since you will not be able to withdraw the your coins.
For investment purpose, this is a great option; you should also note that eToro offers comparatively low service fees. Apart from PayPal, eToro also accepts other Bitcoin payment methods, but you can only make fiat currency withdrawals.
Method 2: Buy Bitcoin With PayPal Using Wirex
The second way to buy Bitcoin (BTC) with PayPal is by using Wirex. Wirex specializes in the supply of BTC debit cards, and this can be a physical or virtual card. They offer slightly higher fees when compared to eToro. Your Wirex debit card is also compatible with your PayPal account so you will be able to buy BTC this way. Here’s how you can make use of Wirex with your PayPal account.
A Step-by-Step Guide For Buying Bitcoin With PayPal Using Wirex Debit Card
- First of all, you have to order for either a virtual or physical Wirex debit card. To request for a debit card you have to visit the website and create a wirex account. On the site, you will see the “Request new card” menu, click on this menu and select your preferred card type. You can buy BTC with PayPal by using either the virtual or physical debit cards. Note that the debit card would cost you around $3.
- You can link the debit card from Wirex to your PayPal account and then verify the card. To do this, you will have to go to the “Wallet” menu of your PayPal account. Click the “Add a card” option to add the Wirex Bitcoin debit card.
- After adding the debit card the next step is to have it verified. You will need to have a minimum of $3 on your debit card to be charged by PayPal for the service. As soon as you are charged by PayPal, you will be provided with a four-digit verification code for your Wirex Bitcoin debit card saved on PayPal.
- To withdraw funds to your Wirex debit card, you need to go to your PayPal account. Click on “Wallet” and then “Withdraw funds” and finally select the option for “Withdraw funds to your card.” Select the Wirex BTC debit card and wait for the withdrawal which can take 7 business days to complete.
- Now that your Wirex debit card is funded, you can purchase Bitcoins with it. The only drawback with using the Wirex debit card is the long time it will take to process the card and fund it with your PayPal account.
Youtube Tutorial: Virtual Bitcoin Visa Card with Wirex
Method 3: Buy Bitcoin With PayPal Using Paxful
Finally, you can also make use of Paxful. The platofrm is known as a peer-to-peer trading platform which is similar to LocalBitcoins. On this platform, you will be able to purchase Bitcoins using a variety of payment methods. These payment methods include; Amazon gift cards, Skype credits and of course PayPal.
- To buy BTC using Paxful you will first have to create an account.
- Next, you have to select a method of payment (PayPal) for the purchase of Bitcoins.
- You then have to select a preferred seller of Bitcoins. This can be done manually, or you can just allow Paxful choose a seller on your behalf.
- As soon as a trade is initiated, you are transferred to chat with the selected seller via an online live chat. During the live chat, you will be able to conclude the trading transaction.
- Once you make payment for the seller’s Bitcoins through your PayPal account, the BTC are transferred to escrow. As soon as the payment has been confirmed, the Bitcoins will be sent to your respective account.
- Note that a trading transaction must be concluded within a particular timeframe or it will be canceled.
The good thing about Paxful is that there are a large number of Bitcoin sellers from different countries across the whole world. However, there are drawbacks to using this method of buying BTC with PayPal and these are;
- A pretty high rate of exchange
- A real risk of being duped by scammers
There are a few things you need to know when considering using PayPal as a payment method when buying Bitcoin:
- Many trading platforms impose high fees when you select PayPal as your payment method. These fees could be as high as 10% of your total transaction amount.
- If the trading platform payment currency is not in US Dollars, then an additional exchange rate may apply over the transaction fees. So for example, if you’re converting Canadian dollars then you will pay 3.5% as a conversion rate + transaction fees.
We understand that PayPal is one of the most convenient methods to use when it comes to payment methods. Especially when you have a verified Paypal account. It saves you time and avoids giving out your confidential credit card details to other platforms. Also, PayPal is known as a safe and secure payment method. However, very high fees and conversion rates from the above-listed services could make you think twice before it as a mean for buying Bitcoins.
If you haven’t read our guide about how to buy bitcoins with a gift card in 7 steps, make sure you do!