A majority of investors prefer to purchase Bitcoin (BTC) simply by using either bank account transfer, credit or debit card. Others prefer to use e-wallet channels like Paypal. The guess is that it is only a handful of online brokers that accept deposits through PayPal – which means that you have limited options. However, we have managed to take the hard work off you by discovering some of the best available Bitcoin platforms which are supported by PayPal.
In this post, you will learn the best way to buy Bitcoin through PayPal most securely and cheaply. This step-by-step guide will take throughout the entire process of investment.
- 1 The Complete Guide to Buying Bitcoin through PayPal in 2021
- 2 Quick steps to Buy BTC on eToro through PayPal
- 3 The Advantages of Purchasing Bitcoin through PayPal
- 4 Certain Banks do not Deal with Transactions Involving Bitcoin
- 5 The Regulation of Bitcoin PayPal
- 6 Best Places in the UK to Purchase Bitcoin
- 7 eToro – Best UK-Based FCA Broker to Purchase Your Bitcoin
- 8 Conclusion
- 9 FAQs
The Complete Guide to Buying Bitcoin through PayPal in 2021
For people who are looking to purchase Bitcoin through PayPal – while simultaneously benefiting from low charges and a trustworthy regulatory policy, eToro is the most excellent option. With eToro, you can purchase Bitcoin online through PayPal without having to pay any commission fees. The best part of the deal is that the platform is fully licensed by CySEC, ASIC, and the FCA.
The following processes will help you know what it takes to purchase Bitcoin through PayPal now.
Quick steps to Buy BTC on eToro through PayPal
- Open an account on eToro.
- Verify your identity on the platform.
- Select the payment method and deposit funds.
- Search for Bitcoin form your dashboard.
- Enter the BTC amount and buy.
For more detailed process take a look below:
First Step: Register for Your Brokerage Account through eToro
eToro is a brokerage site that is heavily regulated by financial authorities who monitor the platform constantly. Therefore, it stands to reason that you will register for an account and submit a means of identification.
For you to get things started, just log on to the official eToro website. Once there click on that “Join Now” tab.
In a while, you will be asked for your details, like your full names, your current home address, the date of your birth, as well as your national tax identification number. Subsequently, you will be needed to input and confirm both your phone number and your active email address.
Second Step: Upload Your ID
The moment that the account has been activated, you will be asked by eToro to provide some form of identification by uploading it to their website. Once more, this move is to ensure that it obeys the laws of anti-money laundering.
By mandate, you shall be required to upload these two important documents:
- An identification issued by the government like a driver’s license or an international passport.
- A document used to prove your address location, like a bank account statement or a utility bill.
It should be noted that eToro allows its new users the option to upload the documents at some later time. However, you will need to do this before depositing over $2,250 or withdrawing any money.
Therefore, people who have their documents close-by are generally recommended to complete the KYC process as soon as possible. When you do this, there will not be any delays in trying to cash out the Bitcoin investment you made.
Third Step: Depositing Your Money with PayPal
This is the step where you get to deposit your money to eToro. eToro has numerous methods of payment. However, people looking to deposit their cash through PayPal will need to choose this option displayed on the screen. Buyers will be needed to enter the right amount of money that should be deposited – but, they have to ensure that they the minimum amount which is $200.
The moment that the amount deposited has been confirmed, a pop-up dialog box will help redirect you to the main page of the PayPal website. You will be needed to input your login details for PayPal. After which details of your deposit will be displayed.
Once you confirm the correctness of the details, you will want to select the proper funding method in which you will deposit to PayPal. For you to instantly purchase the Bitcoin through PayPal, you must have linked up to your credit/debit card. Another alternative method of depositing money is if you have enough money in your PayPal account.
Important note: For all deposits originating from outside the UK, eToro charges a fee of 0.5% for exchange rates.
Fourth Step: Purchasing the Bitcoin
If everything goes according to plan, your new eToro account will become fully funded. All you need to do now is to purchase your Bitcoin. You will need to type “BTC” or “Bitcoin” into the search block provided at the upper part of the page. Click on the highest result (as shown below).
When you get to the following page, You will need to click on the shown “Trade” tab
There will soon be a purchase order for your Bitcoin through a pop-up form. You will be needed to input the Bitcoin amount that you are purchasing. the lowest amount you can enter is $25.
To finish the process of buying your Bitcoin, you will need to click on the “Open Trade” tab. Voila! This is all you need to buy Bitcoin through PayPal without ever paying any commission fees!
The Advantages of Purchasing Bitcoin through PayPal
Just like we previously mentioned at the beginning of this post, most investors usually prefer to purchase Bitcoin by using the traditional credit or debit card. Therefore, the demand for withdrawing and depositing through PayPal has been on a steady increase – especially for the purchase of digital currencies.
For the benefit of those who are still having their doubts about PayPal being the most excellent method to purchase the Bitcoin, will need to see the listed benefits below.
One of the first things that most people think about when doing such transactions is the security of the process. When purchasing Bitcoin with PayPal, you are never required to input your credit or debit card information into the chosen crypto trading platform. However, you are expected to link the payment method to your official account with PayPal. Therefore, after inputting your deposit, you would be required to input the login credentials for PayPal.
Now you will need to choose the method of funding you prefer to use – or even better, you could use the funds that are in your PayPal account already. It is essential to note that your e-wallet provider uses data encryption protocols, therefore the Bitcoin exchange that you choose will never have any information on your login credentials.
Additionally, PayPal also has a feature known as “Buyer Protection”. According to this policy, buyers are shielded from unsolicited purchases and fraud. Technically, this mechanism works in the same way as the chargebacks system that credit/debit card providers offer their users.
If you have chosen an authorized broker, buying Bitcoin with your PayPal account is instant. This is possible since you are either making use of the balance in your PayPal account or paying for this deposit by using your credit/debit card.
Admittedly, this is worlds apart from the conventional bank wire- that usually take some days to get completed.
One interesting thing here is that if you pay for your PayPal purchase by using a connected bank account, you might get an instant money transfer. However, PayPal only decides on who gets this privilege and this depends on the amount of time that you have been using the platform.
PayPal does not Charge Any Fees
If you purchase any item online with the use of your account with PayPal, you will not be charged any fees by the provider of the digital wallet. Though this is what typically happens when you use bank account transfers and debit cards, it is crucial to avoid being charged unnecessarily when purchasing Bitcoin.
When it comes to easy usage, PayPal still offers an excellent option since it is highly convenient. For instance, imagine that you are trying to buy Bitcoin through an online medium but your credit card is at home. Technically, you will not have any problems if your PayPal account is active since your credit/debit would have been linked to it.
Consequently, so long as you remember your login details for PayPal, you could still buy the Bitcoin. This is possible because there will not be any need for your credit/debit card numbers (which are too difficult to remember) to be requested from you. This will not be done anymore once you link the card to your account with PayPal.
One of the most excellent advantages of buying Bitcoin through PayPal is the fact that the end-to-end fund withdrawal system is very fast. One of the first reasons for this is that online brokers usually treat e-wallet withdrawals more rapidly than bank accounts and credit/debit cards.
This is possible due to the lesser bureaucratic nature of PayPal, which means that you get to make fewer checks. This is possible since you would have already finished your PayPal ID confirmation the moment you first joined the platform. the Bitcoin broker you select will see this, which will let them treat your request for PayPal withdrawal on that same day.
Furthermore, the moment that your broker has been able to treat your withdrawal, this is the place it truly pays to use PayPal to buy Bitcoin. So, the time that the money transfer is complete, within a split-second, you get to see this on your account with PayPal, On the other hand, if you were to make use of credit/debit cards, you could end up waiting for between 2 and 3 days.
Similarly, even slower are bank accounts. This depends on your chosen banker; you could spend between 3 and 7 days. The moment that this money gets to the account with PayPal, with just one click of the button, the funds can be sent to your bank account. In most cases, this should get into your bank account in the UK instantly.
Certain Banks do not Deal with Transactions Involving Bitcoin
Rumour has it that some banks do not like to associate themselves with Bitcoin. This is primarily because of the anonymous and faceless people you have on the blockchain. With this in mind, the smartest ways to avoid having complications is to buy bitcoin with your PayPal UK account.
This is usually because the trail of the transaction will appear just like the following:
- Funds were deposited by you from your credit/debit card or physical bank account into your PayPal account.
- The funds from PayPal are then spent by you to purchase Bitcoin from a broker online.
- The time you cashed out, the funds were withdrawn back to your account with PayPal from your broker.
- Finally, the funds got transferred by you to your bank account from your account with PayPal.
As can be seen from the analysis above, the financial institution or bank involved will not be able to see that you use your funds from PayPal to both purchase and sell off Bitcoin. Contrarily, the only that that seems apparent to them is that you deposited some funds in your account with PayPal, and you then decide to withdraw this money and transfer back to the bank account.
The Regulation of Bitcoin PayPal
Bitcoin PayPal Regulation
Essentially any online payment platform can accept PayPal as a payment option. However, this isn’t safe when buying cryptocurrencies. The reason for this is that cryptocurrency exchange websites will need to have the legal authority to be able to accept payments in fiat currency.
This includes all card transactions, bank account transfers, and e-wallets. Therefore, you are not allowed to launch a website and let people use their PayPal account to buy Bitcoin. This is only reserved for the platforms that are heavily regulated.
For instance, we explained a step-by-step process of using PayPal to buy Bitcoin with eToro. The reason for this is that eToro is an online-based broker which is approved by CySEC, ASIC, and FCA. eToro has also been registered with FINRA, a US-based watchdog.
This is the reason users need their government-issued IDs to purchase Bitcoin through PayPal. If you do not have government-issued identification, buying Bitcoin through PayPal or any conventional payment manner will not be possible.
PayPal works according to anti-money laundering law, and any unregulated payment system that tries to use its services without the needed authorizations will get their funds frozen and their accounts terminated.
Best Places in the UK to Purchase Bitcoin
Just like we mentioned earlier, there are just v handful of UK-based platforms that lets you purchase Bitcoin through PayPal. Currently, there is no reason for this even though the e-wallet system is quite popular. For instance, whereas Coinbase allows people to get their funds withdrawn through PayPal, the platform forbids you to deposit funds through the e-wallet. This is not viable enough.
LocalBitcoins is one good option, however, it is not a platform that the FCA regulates, meaning that it isn’t safe. This then gives us just a single option – eToro. People who are still doubtful about eToro can get a good review below.
eToro – Best UK-Based FCA Broker to Purchase Your Bitcoin
eToro is a “swiss army knife” in the UK investment sector. You can purchase 16 different digital cryptocurrencies. The platform also does business in every other type of assets. For instance, eToro hosts about 1,800 different shares – that are listed in 17 various markets. This includes hundreds of UK-based stocks and stocks from other companies that have been listed in Canada, Hong Kong, Germany, the US, and more.
eToro allows you to purchase Bitcoin with PayPal, credit/debit cards, Neteller, bank transfers, and Skrill. The most amazing thing is that the lowest Bitcoin purchase that can be done is about $25. This offers an opportunity to start buying with just little amounts.
One excellent thing about using eToro is that users do not get charged any fee per transaction. You only get to pay the “spread” as its only fees. This is typically within 0.75% for a Bitcoin and can be quite competitive. eToro is the broker of choice for new UK-based investors.
- You can buy Bitcoin plus 15 different leading cryptocurrencies.
- You get to purchase Bitcoin without paying any commission fees.
- There are over 13 million users of the eToro platform.
- You get to purchase cryptocurrencies using bank transfers, e-wallets, and credit/debit cards.
- You only get to invest a minimum of about $25.
- Accepts copy trading for the automation of Bitcoin trades
- Completely regulated by the FCA in the UK
- Offers over 150 ETFs and 1,700+ stocks from different countries.
- Users only get to pay a small fee from withdrawal.
- The US dollars is the official currency of the platform.
Summarily, people who live in the UK looking to buy Bitcoin through PayPal have limited options. Surprisingly, PayPal has millions of users from different parts of the world. However, this does not mean that you are totally out of luck. eToro, which is a broker that is regulated by the FCA allows people to simply get their funds to deposit by using PayPal, Neteller, and Skrill.
The moment that your account has been added, you could easily purchase Bitcoin by investing as low as $25. Moreover, the eToro platform is free from commissions from brokers. People who buy Bitcoin are not traditionally charged any commission.
Can I purchase Bitcoin without using any ID?
It is not possible to buy Bitcoin without any type of identity. Online brokers that accept fiat currency whether in the form of bank transfers, PayPal, or credit/debit cards will need to confirm your identity. Even though you get an online Bitcoin broker who provides PayPal without the use of ID, they are legally not allowed to do that.
How can I purchase Bitcoin in the UK by using PayPal online?
eToro is the only regulated platform that allows you to buy Bitcoin with PayPal. You get to sign up within minutes in the platform which is regulated by the FCA. This will then make you easily purchase Bitcoin through payment with PayPal.
It is legally allowed to purchase Bitcoin using PayPal?
Yes, however the cryptocurrency or the Bitcoin has to be controlled by the appropriate agencies. This is very legal if the platform is FCA-regulated.
Is Bitcoin accepted by PayPal?
In October 2020, PayPal made it known that it now allows its users to purchase, sell, and keep Bitcoin. PayPal has since created an e-wallet for Bitcoin. But this service is only available to citizens of the United States.