To buy bitcoin through PayPal there are two ways. The first and most easiest approach is to buy cryptocurrency with a PayPal account linked to a payment method like a debit card or a bank account. The second alternative is to purchase cryptocurrency from a third-party supplier using the funds in your PayPal account. Because few third-party sites allow customers to purchase bitcoin via the PayPal button, this approach is not as convenient as the first.
There are only four cryptocurrencies namely Bitcoin, Ethereum, Litecoin, and Bitcoin Cash that can be purchased directly through PayPal. Residents in all states can utilise their existing PayPal accounts or create new ones, with the exception of those who live in Hawaii. You may now utilise the “Checkout With Crypto” function to buy products and services with your coins.
Requirements
The following information is required to open a crypto account with PayPal:
- Name
- Physical address
- Date of birth
- Tax identification number
When and How To Buy through PayPal
It is not feasible to buy Bitcoin with a credit card using PayPal. PayPal will display a price for the coin during the purchase process. However, because of the volatility of cryptocurrency markets, that price is vulnerable to quick change. It’s a good idea to make sure you have more money in your bank account than the amount you allocated for the transaction.
PayPal profits from the crypto spread, or the gap between Bitcoin’s market price and its USD exchange rate, when you buy bitcoin directly from them. In addition, each purchase is subject to a transaction fee. The amount of these fees is determined by the purchase price. For purchases between $100 and $200, for example, a fixed cost of $0.50 is levied. The fee is then calculated as a percentage of the total dollar amount. For crypto purchases between $100 and $200, for example, a fee of 2% of the whole amount is levied.
Drawback
One drawback of buying cryptocurrencies with PayPal is that you can’t transfer them outside of the payment processor’s platform. As a result, you won’t be able to move your bitcoin from PayPal’s wallet to an external crypto wallet or your own wallet.
Another downside of utilising PayPal is that only a small number of exchanges and online traders accept the payment processor as a method of payment. eToro is one of the few online trading platforms that accepts PayPal for bitcoin purchases.
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