A common question that arises with consumers now that the bitcoin craze has hit the mainstream is how to buy bitcoin with Paypal? Although you can purchase just about anything today with PayPal, bitcoin just is not one of the things that you can buy directly. This comes mainly from the fact that PayPal doesn’t really want to deal with the alternative currencies since they are in general not recognized by national authorities. Bitcoin is legal in the United States and Canada; however, to date those countries view the currency as more of an investment and do not afford the same legal protections that you would experience with a regular bank like being insured against loss from your wallet by the applicable federal authority (FDIC and CDIC respectfully).
So Why is Paypal not Widely Accepted at Crypto Currency Exchanges?
Since PayPal is not covered against losses, the company is generally against allowing the directly PayPal purchase link from being used on popular exchanges like Binance and Coinbase. This doesn’t mean that you can’t use PayPal to purchase crypto currency; however, we just have to go about it in different ways. You are able to withdrawal from Coinbase into your Paypal for a 2.5% free if you just don’t have time to wait for the deposit to hit your checking account, or you simply don’t want to flow the money through that avenue.
Using PayPal Credit and Debit Cards for Buying Bitcoin
The single best way to use your Paypal account to buy bitcoin is with the Paypal debit card. Depending on your account standing with the company, you will have access to either a prepaid Mastercard Paypal debit card or the PayPal Business Debit MasterCard. The business debit is the best option for those who would like to have immediate access to their Paypal funds or accounts that backup your Paypal. This will let you use the card at all of the major bitcoin exchanges that accept money for deposits to buy crypto currencies like Coinbase, TenX, BitPay, etc. If you do not have a card, you will need to log in to your Paypal account and signup for the MasterCard offer. It will generally take a week or two for the card to come in the mail, and when it does, you activate it similar to any other card you have. Once you have it in hand and active, you will need to add the card as an authorized payment method on your desired exchange. Paypal will charge you a fee per transaction to use the card, but for many crypto currency traders, this is an excellent option to purchase more currency.
What Bitcoin Brokers Accept Paypal?
You will find some brokers online that accept Paypal; albeit, with some big fees. This info is subject to change based no the policies of the respective exchange, so please make sure that you check them out first. You will find that it is cheaper to use your Paypal debit card than to use these services. PaxFul will charge you a big fee (between 40 to 70 cents per dollar) to buy bitcoin with PayPal, and VirWoX will let you do the same for a 10% fee. VirWoX does the transaction differently by having you buy another cryptocurrency that is then used to buy bitcoin. In either case, its cheaper to use your Paypal MasterCard.
Send Your PayPal Money to Your Bank Account
This seems obvious, but if you can wait a business day or two, then consider transferring your PayPal money to your desired bank account. You can then either do a bank wire or ach transfer to your preferred marketplace to complete your bitcoin or alt coin purchase. For those who prefer, demand, or require anonymity with their purchase, this method will not suffice as it is pretty open on being tracked.
Buy Bitcoin with PayPal at a Bitcoin ATM
So, at the time of this writing, you simply cannot login to your PayPal account at a Bitcoin ATM. Instead, you can use your PayPal Mastercard at the machine, so you will have to find one that does take MasterCard vice Visa only. You can then use the case to make a purchase through the ATM. This method does result in incurring two fees: 1- From the bitcoin ATM, and 2 – From PayPal.
The only way to purchase bitcoin through an ATM using PayPal would be to use your PayPal MasterCard at the machine. Not surprisingly this method only works at machines that accept MasterCard.
How to Use PayPal with Coinbase?
So, Coinbase actually lets you withdrawal proceeds from sales to PayPal for a 3.75% fee. This is a bit pricier than just withdrawing to your checking account that only runs you a 1% fee, so make sure you fully understand all of the financials before making your final decision on what method best suits your specific situation. To deposit money using your PayPal account, you will have to use your PayPal Mastercard on the account.
Step 1: Take the steps to verify your ID on the Coinbase payment method page after you have logged in to your Coinbase account. If you do not already have one, you can signup here, and we would both get a $10 bonus (a the time of this writing) 🙂
Step 2: Navigate to the “Payment Options” page and choose the “PayPal Account” menu option from those listed on the page.
Step 3: Choose the “Verify Now with PayPal” menu option. You should be set at this point.
Will PayPal Ever Work Directly with Bitcoin?
That is the big question that everyone is asking. Is PayPal going to come onboard with their own digital wallet at some point to let you buy bitcoin and other alt coins through their own wallet? The most likely answer is that PayPal may simply be waiting for additional guidance from the U.S. government before they make any additional moves with regards to their adoption of PayPal. Right now, conventional wisdom holds that the company would likely wait until the United States makes a decision on the status of crypto currencies as legal tender.