How To Buy Crypto With PayPal – Step-by-Step Guide 2023
Maryam Jìnádù
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PayPal is a household name in the digital payment space, offering fast and secure online payments. It is now a popular payment method on supported cryptocurrency exchanges and peer-to-peer (P2P) marketplaces, making it easy for users looking to learn how to buy crypto with PayPal.

Interestingly, the digital payment giant has recently activated direct crypto purchases for US customers. Now, crypto enthusiasts wondering how to buy crypto with PayPal can do so directly from their accounts. Now, let’s dive into how to buy crypto with PayPal balance, including its benefits and the best exchanges supporting PayPal. 

How to Buy Crypto with PayPal – Step-by-Step Guide 2023

Buying Bitcoin and other cryptocurrencies with PayPal may sound complicated at first. However, you’ll be glad to know that the process is more straightforward than you think. We highlight how to buy crypto with PayPal using the simple steps below.

 Step 1: Choose a Cryptocurrency Exchange

The first step is to select an online brokerage that supports Bitcoin purchases via PayPal. Top exchanges that allow users to buy crypto with PayPal include eToro, Coinbase, and Kraken. To get started, you’ll need to create a new account by filling in the required details and undergo the exchanges’ ID verification/ KYC. 

Step 2: Deposit Funds Using PayPal

After verifying your new account, add funds to your account using PayPal. This involves navigating the exchange’s deposit page, entering the amount to deposit, and choosing PayPal as the preferred payment option. You may be required to enter your PayPal password or complete two-factor authentication (2FA) to complete the transaction. 

Alternatively, you can use the “Instant Buy” feature on some exchanges, enter the amount of Bitcoin to purchase, and choose PayPal as the payment method. 

Step 3: Complete the Transaction

After selecting the PayPal payment option, complete the transaction using the “Buy” or “Trade” button. The purchased Bitcoin will arrive in your account instantly.

 Your capital is at risk. 

Benefits of Buying Crypto with Paypal

While buying Bitcoin with credit and debit cards is a common practice among crypto traders and investors, PayPal is a viable alternative to US users for many reasons. We highlight the pros of buying Bitcoin with PayPal below. 


When thinking of how to buy crypto with PayPal credit, one of the reasons you should opt for the option is because of the high-end security that PayPal offers. With end-to-end encryption, PayPal secures your sensitive data, including your bank and card details, which are never shared with the exchange. 

You can further secure your account using the PayPal 2FA feature called the PayPal security key, which you must enter to confirm every transaction. 

On top of that, PayPal monitors all your transactions to protect your account from fraudulent activities. To do this, PayPal keeps track of all your transactions and takes action when there’s any suspicious activity. 

Instant Deposits

Another perk of buying Bitcoin with PayPal is that it offers fast payments. Unlike traditional payment methods like debit/credit cards and bank transfers that take hours or days to settle transactions, PayPal transactions take only a few seconds. 

In other words, you don’t need a long waiting period for your funds to arrive in your wallet after making a PayPal deposit. Furthermore, you can activate the “One Touch” feature to access your PayPal account quickly and execute transactions faster. 

Ease of Use

PayPal offers one of the easiest ways to transact or buy cryptocurrencies on exchanges. This is because, unlike other payment methods, you don’t need to enter card numbers or bank account information. All you need to do is connect an active PayPal account with your preferred crypto exchange, enter your PayPal password and log in to your PayPal account. 

Once all the details you enter are correct, PayPal will complete the transaction for you, and your account will be credited immediately. In other words, you don’t need to be a pro to buy Bitcoin with PayPal on any supported exchange. 

You can also avoid the stress of configuring crypto transactions on PayPal because it can initiate recurring purchases on different cryptocurrency exchanges. So, you don’t need to switch across payment methods from one crypto platform to another. 

Fast Withdrawal

As with deposits, PayPal offers fast withdrawals to its customers. Instead of using conventional payment methods like debit/credit cards and bank transfers that usually take 3 business days or more, you’ll have a PayPal withdrawal in your account within minutes.

 Your capital is at risk.

Crypto PayPal Regulation

The use of cryptocurrencies is still heavily monitored by regulators and law enforcement agencies worldwide to crack down on illegal activities in the crypto space. As such, many global regulations are in place around buying Bitcoin with PayPal. 

For instance, there’s a mandatory know-your-customer (KYC) process that most exchanges use to ensure all customers verify their identities before trading on their platforms. Users must provide valid identity documents like a passport or driver’s license to complete KYC. 

Some trading platforms also require additional documents, including proof of address like a utility bill and a live selfie photo. Altogether, these requirements help combat money laundering and other illicit crypto activities. 

However, the regulations don’t end with exchanges, as PayPal itself must comply with the laws guarding the use of PayPal for crypto transactions. These include anti-money laundering (AML) policies that monitor the financial transactions on each customer’s account to detect any suspicious activities. 

That said, you can expect differences in each country’s regulatory stance around buying Bitcoin with PayPal. We highlight the specific regulations in the UK and US below. 

Regulations on Buying Bitcoin With PayPal in the UK

According to the UK Money Laundering Regulations 2017, there are obligations that private sector firms, including cryptocurrency exchanges and financial institutions, must comply with. For instance, the law specifies the KYC requirements for such organizations in the UK. These include the standard KYC and AML requirements in the country. 

For instance, UK customers can purchase Bitcoin with PayPal at reputable online trading platforms or use the on-the-counter (OTC) desk. However, most exchanges in the UK do not support PayPal as a payment method. 

It’s important to note that all cryptocurrencies are unregulated in the UK, but crypto purchases are legal in the country. The only drawback is that there’s no customer protection by the Financial Ombudsman Service or the Financial Services Compensation Scheme if you lose your investments or things go wrong. 

Because of such occurrences, we recommend that you choose a regulated platform with stringent security measures when thinking of how to buy crypto with PayPal credit. However, as a retail investor, you cannot trade Bitcoin derivatives in the UK. 

Regulations on Buying Bitcoin With PayPal in the USA

The US has varying crypto regulations because the laws are divided across the federal and state levels. The US government doesn’t consider Bitcoin a security at the federal level. That means the US securities laws don’t apply to the use and trading of Bitcoin by the US federal laws.

However, the US Financial Crimes Enforcement Network (FinCEN) mandates crypto exchanges in the US to register with it and comply with its measures to combat money laundering and financing of terrorism (AML/CFT). 

As stated earlier, some states in the US have specific laws around the use and trading of cryptocurrencies. For instance, states like Texas, Colorado, and Wyoming have favorable crypto regulations, while states like Hawaii and Maryland have several warnings against crypto investing. 

Whatever the case, buying Bitcoin with PayPal is legal in the US, as PayPal is one of the most-used crypto payment methods on US cryptocurrency exchanges.

 Your capital is at risk.

Where to Buy Crypto with PayPal

As stated earlier, when thinking of how to buy crypto with PayPal balance, you want to choose the best online brokerages for PayPal. After our detailed research of the best cryptocurrency exchanges for PayPal users, we discovered that tier-1 crypto exchanges like eToro, Coinbase, and Kraken are the top options. 

Now, let’s review the process for each exchange below.

How to Buy Crypto with PayPal on eToro

Based on our research, eToro is the best place to buy Bitcoin with PayPal. The multi-asset social investing brokerage tops our list because of its low fees, robust security, ease of use, and other exciting features, including a dedicated mobile app. 

Follow the easy steps below to purchase crypto with PayPal on eToro.

Step 1: Create a Free eToro Account 

Navigate the eToro website and click the “Join eToro” button at the bottom of the screen. Enter the required information, including a new username, a valid email address, and a password. Accept the eToro terms and conditions and click “Create Account” to complete the process.


Step 2: Complete ID Verification

As per its regulatory compliance, eToro requires you to undergo identity verification before trading on the platform. First, you need to verify your email by providing the verification code sent to your email by eToro. 

Afterward, you’ll need to submit extra details, including your full legal name, date of birth, phone number, residential address, and submit proof of identity and address. 

You’ll also need to disclose your trading knowledge and fill out a questionnaire on the purpose of trading. 

Step 3: Deposit Funds with PayPal 

After completing your profile and verifying your eToro account, add funds to your account using the “Deposit Funds” button on the bottom-left corner of the home screen. Choose PayPal from the available payment methods and click “Continue.” You’ll be redirected to the PayPal transaction verification page to complete the deposit. 

Step 4: Buy Bitcoin 

eToro processes transactions instantly, so you should expect the deposited funds to arrive in your account instantly. Once the funds arrive in your eToro wallet, find Bitcoin using the search bar at the top of the screen and select “Trade.” 

Enter the amount of Bitcoin you want to buy in the provided box and click “Open Trade” to complete the transaction. 

Why Choose eToro?

eToro is a global online brokerage offering 3000+ assets, including top cryptocurrencies like Bitcoin. The exchange is one of the oldest around, with over 30 million worldwide users, making it one of the most reputable exchanges around. 

Beyond its strong security features, including cold asset storage and SSL encryption, eToro is a top choice among crypto traders because of its simple and advanced trading features, including a straightforward mobile app, Bitcoin trading charts, and copy trading features. You can also opt for a demo account if you’re a beginner looking to understand how eToro works. 

Similarly, buying Bitcoin with PayPal on eToro is straightforward, and the exchange doesn’t charge a deposit or withdrawal fee with PayPal transactions. However, you should expect third-party fees directly from PayPal. 

Read our full eToro review to see how the digital asset brokerage compares to major competitors. 

✅ Pros

  • No deposit and withdrawal fees
  • Mobile app available
  • Supports anonymous Bitcoin purchases
  • 3000+ other digital assets are available

❌ Cons

  • Beginners need a steep learning curve

 Your capital is at risk.

How to Buy Crypto with PayPal on Coinbase

When thinking of how to buy crypto with PayPal balance, Coinbase is another top crypto exchange to consider. The online trading platform offers simplified trading via its mobile app and website, making it accessible to beginners and pro traders alike. 

At the same time, you can buy, sell, and trade Bitcoin and 9,200+ other assets on Coinbase, making it a top destination for popular and low-market altcoins. 

Now, let’s dive into how to buy crypto with PayPal on Coinbase below. 

Step 1: Create a Free Coinbase Account 

The first step is to join Coinbase using the “Get Started” button at the top-right corner of the screen. Enter the required information, including your full legal name, email address, and a new password. Click “Create Free Account” to submit the registration request. 

After, you’ll receive a verification link in your email. Click the link and enter your phone number in the provided box, then enter the SMS verification code as requested.


Step 2: Complete Identity Verification 

To access Coinbase’s full features, you must verify your identity. To do this, enter the full information required for identity verification. These include your full name, date of birth, full address (as on the government-issued ID), and answer some investing-related questions. Upload a selfie to complete the process. 

Step 3: Connect Your Account to PayPal 

Before you can use PayPal to buy Bitcoin on Coinbase, you need to add PayPal as a payment method to your account. To do this, click “Add a Payment Method” on the user dashboard and choose PayPal from the available options. 

Note that the payment option is only available to only US players.

Step 4: Purchase Bitcoin 

Finally, buy Bitcoin using the Coinbase “Buy and Sell” feature. Select “Buy” and choose Bitcoin from the coin options. Enter how much Bitcoin to purchase, click “Preview Buy,” and use the “Buy Now” button to complete the purchase. 

Why Choose Coinbase?

If you are thinking of how to buy crypto with PayPal on Coinbase, you’ll be glad to know that the exchange is an ideal place to begin your crypto journey – thanks to its focus on simplified trading and competitive fees. 

Similarly, you can start trading on Coinbase for as low as $2, and you can set a recurring buy order to automatically buy Bitcoin and other cryptocurrencies using PayPal. However, the payment method is available to only US customers, and Coinbase charges a 3.99% fee for direct PayPal purchases or a 2.5% fee when depositing funds using PayPal. 

You can read our full Coinbase review to learn about other exciting features and tools you can leverage to maximize your trading journey on the crypto trading platform. 

✅ Pros

  • Simplified trading experience
  • Mobile app available 
  • 9200+ assets, including Bitcoin, are available
  • Recurring buy feature compatible with PayPal

❌ Cons

  • High PayPal transaction fees
  • PayPal deposits and withdrawals are restricted in the UK and Europe

 Your capital is at risk.

How to buy crypto with PayPal on Kraken

Kraken is the last cryptocurrency trading platform on our list of the best online brokerages for PayPal users. The popular crypto trading platform has 200+ cryptocurrencies, including Bitcoin and a wide range of the best altcoins. As such, you can build a decent investment portfolio on Kraken – whether you’re a beginner or a seasoned crypto investor. 

Now, let’s see how to buy Bitcoin using PayPal on Kraken. 

Step 1: Register on Kraken 

Create a new Kraken account by clicking the “Sign Up” button at the top-right corner of the home screen. Select the “Personal Account” option and input your email address, unique username, password, and country of residence. Agree to the exchange’s terms and conditions, then click “Create Account” to complete the process.

Step 2: Choose Between Kraken and Kraken Pro

Before you can access the Kraken trading platform, activate your account by entering the activation code sent to your email. 

Answer some questions related to your crypto trading experience, then select whether you want to Trade on the standard Kraken platform for beginners or Kraken Pro for advanced trading.

Step 3: Complete KYC 

Once you’re logged in to your new Kraken account, the exchange requires you to verify your identity. Click the “Verify Identity” button and enter the required information, including your full legal name, date of birth, residential address, and phone number, then click “Continue.”

Step 4: Activate PayPal as a Payment Method

Next is to add PayPal to your payment methods on Kraken. To do this, click the “Buy Bitcoin” option and click “Add Payment Method” to select PayPal from the available payment methods. Alternatively, you can click the “Buy Crypto” option at the top-right corner of the screen and follow the same process. 

Step 5: Buy Bitcoin 

Finally, enter the amount of crypto you want to purchase and click “Review” to access the transaction information, then add the PayPal information. Note that the PayPal details must be the same as the customer information registered on Kraken to be successfully added as a payment method.

Why Choose Kraken?

Kraken is a global cryptocurrency exchange offering crypto trading and investment services to 190+ countries. The trading platform offers competitive fees, secure trading, and many other features. 

One of the unique features of the Kraken exchange is its support for two distinct trading platforms: 

  • The standard Kraken platform for beginners looking to trade crypto with simplicity
  • The Kraken Pro platform is for traders looking for advanced trading tools and features, including charting and technical analysis tools. 

In other words, Kraken strives to cater to both beginners and pro traders looking to buy, sell, and exchange BTC and other cryptocurrencies. The minimum deposit amount using PayPal on Kraken is €10/£10. Transactions also attract a 0.9% fee for deposits, while other fees may vary. 

However, the PayPal payment option was recently rolled out by Kraken and is available to customers in the UK and Europe. Similarly, the PayPal payment feature on Kraken is only available on the Kraken app. 

You can read our full Kraken review to understand the other Kraken features and how the platform ranks compared to other centralized exchanges. 

✅ Pros

  • Competitive fees 
  • Kraken and Kraken Pro for beginners and seasoned investors 
  • Low minimum deposit 
  • Mobile app available 
  • Regulated online brokerage 

❌ Cons

  • Kraken users pay higher fees

 Your capital is at risk.

Best Way to Buy Crypto With PayPal – eToro Tutorial

As stated earlier, eToro is the best crypto exchange to consider when thinking of how to buy crypto with PayPal. Follow the simple steps below to get started on eToro before buying Bitcoin and other cryptos with PayPal. 

  • Navigate the eToro website and click the “Join eToro” button at the bottom of the screen. 
  • Enter the required information on the registration form. These include a unique username, email, and password. Check the terms and conditions box and click “Create Account” to complete registration. 
  • Verify your identity by providing your personal information, including your legal name, date of birth, and residential information. Upload the supporting identity documents, including a valid government-issued ID document and proof of address, like a utility bill and wait for feedback from eToro. 
  • Choose a payment method and start trading once eToro verifies your account. 

 Your capital is at risk.

How to Buy Crypto With PayPal – Conclusion

PayPal – the popular digital wallet – is fast becoming one of the most accessible and fastest payment options for buying Bitcoin and other cryptocurrencies. In this detailed guide, we’ve reviewed how to buy crypto with PayPal on eToro and other top exchanges supporting PayPal transactions. 

At their core, PayPal transactions are secure and offer instant settlements. However, when looking for the best way to buy crypto with PayPal, eToro tops other exchanges for many reasons. From its zero deposits and withdrawals to its overall seamless platform, eToro stands head and shoulder above competitor exchanges supporting PayPal payments for crypto purchases. So, you can create a free eToro account to enjoy the platform’s various benefits.

 Your capital is at risk.


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Maryam Jìnádù

Maryam Jìnádù

Maryam Jinadu is a prolific crypto and fintech content writer who has been in the space since 2018. Her sharp insights and creative takes have earned praise from top industry publications, with her work appearing on notable sites like TradingPlatforms, Dappgambl, BuyShares, Swapzone - just to name a few.