How to buy Bitcoin with PayPal?
It is also possible to buy Bitcoin through payment processor PayPal. There are two ways to purchase Bitcoin using PayPal. The first and most convenient method is to purchase cryptocurrencies using your PayPal account. The second option is to use the balance of your PayPal account to purchase cryptocurrencies from a third-party provider. This option is not as convenient as the first because very few third-party sites allow users to purchase Bitcoin using the PayPal button.
Four cryptocurrencies—Bitcoin, Ethereum, Litecoin, and Bitcoin Cash—can be purchased directly through PayPal. With the exception of those who live in Hawaii, residents of all states can either use their existing PayPal accounts or set up new ones.
To set up a crypto account with PayPal, the following information is required: name, physical address, date of birth, and tax identification number. There are a number of ways in which you can buy Bitcoin through PayPal.
Some of them are:
- The existing balance in your PayPal account
- A debit card linked to your PayPal account
- A bank account linked to your PayPal account
It is not possible to use a credit card to purchase Bitcoin using PayPal. During the purchasing process, PayPal will display a price. However, the inherent volatility of cryptocurrency prices means that those prices are subject to change quickly. You should make sure that you have sufficient funds in your account to make the purchase.
When you buy Bitcoin directly from PayPal, it makes money off the crypto spread or the difference between Bitcoin’s market price and exchange rate between USD and the cryptocurrency. The company also charges a transaction fee for each purchase. These fees depend on the dollar amount of the purchase. For example, a flat fee of $0.50 is charged for purchases between $100 to $200. Thereafter, the fee is a percentage of the overall dollar amount. For example, a fee of 2% of the total amount is charged for crypto purchases between $100 to $200.
One disadvantage of purchasing cryptocurrencies through PayPal is that you cannot transfer the crypto outside the payment processor’s platform. Therefore, it is not possible for you to transfer cryptocurrencies from PayPal’s wallet to an external crypto wallet or your personal wallet.
The other disadvantage of using PayPal is that very few exchanges and online traders allow the use of the payment processor to purchase payment. eToro is among the few online traders that allows the use of PayPal to purchase Bitcoin on its platform.
