BanklessTimes.com is dedicated to helping customers learn more about trading, investing and the future of finance. We accept commission from some of the providers on our site, and this may affect where they are positioned on our lists. This affiliate advertising model allows us to continue providing content to our readers for free. Our reviews are not influenced by this and are impartial. You can find out more about our business model here.
Buy Bitcoin With PayPal
This comprehensive guide will help you explore the best and most reliable methods of buying Bitcoin with PayPal through leading exchanges, brokers, crypto apps and even directly with your PayPal account. The platforms covered in this post have been cherry-picked based on multiple parameters including but not limited to fees, user interfaces, reputation among the customer base, and more. To save you time, the top providers for buying Bitcoin with PayPal are Plus500 and LocalBitcoins, while the top PayPal-accepting provider of Bitcoin CFDs is Plus500.
Top Bitcoin Brokers in the UK That Accept PayPal
Best Ways to Buy Bitcoin With PayPal in United Kingdom
There is a wide range of methods available for buying Bitcoin with PayPal, or trading Bitcoin. Here is a list of the top methods, and each comes with its own set of pros and cons:
Bitcoin Brokers
Bitcoin Derivatives such as CFDs
Bitcoin Exchanges
Bitcoin P2P Services
Bitcoin Apps
Buy Bitcoin Directly on PayPal with your PayPal account
Best Brokers to Buy Bitcoin With PayPal
Using a broker is an excellent method of buying Bitcoin, especially for beginners who are new to the cryptocurrencies. The broker charges a fee to facilitate the process of buying and selling on behalf of the customer.
Provider | PayPal Fee (GBP 1000) | Get Started |
🥇 Pepperstone | £0 | |
🥈 Webull | £0 | |
🥉 Binance | £0 |
The providers listed in the table above were chosen over competing alternatives because they charge the lowest fees, offer the best user interface experiences and have great reputations with their customer base. Also, they provide a wide range of cryptocurrencies if you want to take a break from Bitcoin.
Best CFD Brokers to Trade Bitcoin With PayPal
Although you can’t actually buy or sell Bitcoin through a CFD broker, you can speculate on its price. By creating a “buy” or “sell” order, you are really predicting whether its price will go up or down in the future. The difference between BTC’s price when you open and close a position decides how much profit you make when your prediction was right or how much loss you incur when your prediction was wrong.
The table below highlights the top 3 CFD brokers in the industry.
Provider | PayPal Fee (GBP 1000) | Get Started |
🥇 Plus500 | £0 | |
🥈 BDSwiss | £0 | |
🥉 Eightcap | £0 |
*Plus500 disclaimer: 86% of retail CFD accounts lose money.
The CFD brokers listed above were chosen because they charge no deposit fees followed by a wide variety of investment options and mobile apps for faster access to charts, notifications, updates, and more. Executing your first Bitcoin CFD trade on these platforms is a straightforward process because of the simple navigation menus.
Plus500 – Top Choice for trading Bitcoin CFDs
Plus500 has a user-friendly interface, so it’s the ideal choice for traders who want an intuitive CFD trading experience. Also, the mobile app is an intuitive platform, so you’ll be getting a consistent experience across multiple devices. However, remember that CFDs are complex instruments that involve significant risks, regardless of the platform, so should only be traded by experienced traders.
You can open a demo account in minutes if you want to get familiar with the platform and test out your strategies virtually without risking any money. Once you’ve been approved for a real account, you can fund it with PayPal without difficulty. Also, the spreads on Plus500 are close to the industry average, so you can expect a good deal.
The drawbacks are a lack of educational content that beginners need to learn about the markets.
Trade Bitcoin on Plus500 With PayPal: Step-By-Step Guide
In this section we will outline step-by-step the process of speculating on the price of Bitcoin on Plus500 with PayPal.
Step 1: Register with Plus500
Register with Plus500 by navigating to the homepage and clicking on the blue “Start Trading Now” button. You will be navigated to a screen where you need to enter your email and create a password. Alternatively, you can also authorize Plus500 to create your account through your personal Google, Facebook, or Apple account.
Step 2: Fund your account using PayPal
Click on the Funds button from the left sidebar. You will be asked to complete your account creation process by entering personal information and sharing answers to some basic questions. Once you hit submit you will be taken to the deposit funds page where you can select PayPal.
Enter the amount you wish to transfer and the available currency depends on your location.
Step 3: Buy Bitcoin
You will need to click on the Trade button from the left and search for “Bitcoin” in the search bar at the top. You will be presented with a screen where you can see a list of cryptocurrencies.
Here you can see the Bitcoin row with “Buy” and “Sell” buttons. Click on one of these buttons if you would like to open a long or short CFD position on Bitcoin.
*Plus500 disclaimer: 86% of retail CFD accounts lose money.
Best Bitcoin Exchanges to Buy Bitcoin with PayPal
Bitcoin exchanges are platforms that can be used to buy and sell Bitcoin using FIAT currencies or altcoins. The platform acts as an intermediary to manage the process of buying and selling cryptocurrencies like Bitcoin.
Exchange | PayPal Fee (GBP 1000) | Get Started |
🥇 Coinbase | £0 | |
🥈 Crypto.com | £0 | |
🥉 KuCoin | £0 |
The Bitcoin exchanges featured in the table above are industry leaders with the best functionality, which includes robust security, top-notch features, and a wide user base. The user interface is intuitive, hence, even a beginner using the platform will not have a tough time understanding different functionalities
Also, with trading fees as low as 0.01%, you’re getting a competitive deal compared to some of the more expensive methods of trading Bitcoin. The customer support team is great too because they are responsive and quick to reach, so you’re never more than a few clicks away from assistance.
How to Buy Bitcoin With PayPal on an Exchange
Bitcoin is the most popular cryptocurrency, so you will readily find it on almost any crypto exchange, which includes Coinbase, Binance, Kraken, KuCoin, and Crypto.com. To buy Bitcoin with PayPal on these exchanges you will need to register for a new account and complete the KYC verification process to start depositing funds.
Note that not all Bitcoin exchanges accept PayPal as a deposit method, so you will need to ensure PayPal is included in the accepted payment method before creating an account (all providers on this page accept PayPal as a deposit method). Once the account is created, you will need to navigate to the deposit page and select PayPal as the payment method. There might be some limitations regarding accepted fiat currencies based on your location and a limit on how much you can deposit in one transaction.
How to find Bitcoin on an exchange: To find Bitcoin on an exchange you need to navigate to the trade section of the platform. Since Bitcoin is the most popular cryptocurrency, it might automatically appear or you will need to search it using a search bar.
Altcoins and Bitcoin
Some altcoins cannot be purchased directly using fiat currency in your account, but you can buy them with Bitcoin. Simply buy the Bitcoin by following the steps as outlined in the process above and search for the altcoin you wish to acquire. Next, click on the buy button and choose the amount of Bitcoin you would like to trade for the altcoin.
Likewise, you can buy Bitcoin with other cryptocurrencies that you are holding without the need for PayPal. To complete this process use the search bar to find Bitcoin on the trading platform. Select the buy button and choose the cryptocurrency you would like to trade for Bitcoins. Note that the available cryptocurrencies for trading with Bitcoin will differ between exchanges.
Coinbase – Low Minimums Are Perfect for Beginners
Coinbase allows customers to get started with as little as £2 to start trading. This is perfect for beginners interested in figuring out if cryptocurrency trading is the right game for them without making a big investment. Also, the platform provides over 150 cryptocurrencies to choose from, which is more than most.
The platform has a simple user interface and makes the process of exchange between cryptocurrencies convenient. Therefore, new users will not have a long learning curve on their first day.
However, Coinbase has relatively higher fees than most at 0.5-4.5%, depending on the size of the transaction. Therefore, you might save money by choosing one of the alternative Bitcoin exchanges in our table above.
Can I Use Decentralised Exchanges With PayPal in the UK?
First appearing in 2014, decentralized exchanges opened the gates for the users to trade cryptocurrencies in a peer-to-peer and non-custodial model without the involvement of any third party. There is no need to complete the registration process to use a decentralized exchange – not even an email address is required to interact with them. All you have to do is connect your decentralized Bitcoin wallet like MetaMask and access a world of opportunities like broadcasting the transactions, sending tokens, receiving tokens, and more anonymity is one of the core benefits of decentralized exchanges.
Hence, now you can understand why it is not possible to use PayPal directly with a decentralized exchange. You need to store some tokens in your decentralized wallet before you can start using a decentralized exchange. This means you can indirectly use PayPal to buy the crypto and then use the same to fund your cryptocurrency wallet before using the decentralized exchanges.
Best Bitcoin P2P Platforms to Buy Bitcoin With PayPal in the UK
P2P platforms connect users directly to buy and sell cryptocurrencies such as Bitcoin. In the table below you can see the top 3 Bitcoin P2P platforms:
Exchange | PayPal Fee (GBP 1000) |
🥇 LocalBitcoins | £0 |
🥈 Paxful | £0 |
🥉 Hodl Hodl | £0 |
The P2P platforms above were chosen because they have the best reputation in the industry. Also, a wide number of payment methods and coins available on these platforms means you can buy Bitcoin or a range of other popular cryptocurrencies.
LocalBitcoins – Has the Highest Trading Volume
LocalBitcoins was founded in Finland in 2012, so it has the best longevity out of any other P2P exchange. During its initial years, the platform acquired the biggest pool of customers with the largest trading volume, which is important for an exchange of this type.
It offers a variety of payment methods, including PayPal and there is no transaction fee for buying or selling Bitcoin on the platform. Therefore, you will save a large sum of money compared to other platforms.
However, the drawback of LocalBitcoins is that it only supports Bitcoin. Also, they ask for a lot of private information, which is not ideal for those seeking anonymity.
Buy Bitcoin on LocalBitcoins With PayPal: Step-By-Step Guide
In this section we summarize the process of buying Bitcoin with PayPal on the LocalBitcoins platform. This will save newcomers time and get you started without getting confused.
Step 1: Sign up for LocalBitcoins account
Click on the blue “Sign Up” button in the top right-hand corner of the homepage. You will be presented with an 8-step process that requests various information. Also, you will need to complete a KYC verification process.
Step 2: Search for an offer
Now you need to find a suitable offer for buying Bitcoin posted by other LocalBitcoins users. Enter the details as requested in the form to narrow your search for finding the offer. You will see a list of offers – choose one by clicking on the Buy button on the right-hand side.
Step 3: Inspect offer and confirm
When inspecting an offer, you need to look at the Bitcoin price and make sure that PayPal is an accepted payment method. Also, pay attention to the payment window, so that you send the money in time.
Step 4: Make a payment
Once you have agreed to the deal, then complete the purchase using PayPal.
Best Apps to Buy Bitcoin With PayPal
Mobile apps allow users to buy and sell cryptocurrency from the convenience of their smartphone. Most apps provide the same functionality as you get on the website using a desktop browser. In the table below you will find the top 3 mobile apps for buying and selling Bitcoin with PayPal.
Provider | OS | PayPal Fee (GBP 1000) | Get Started |
🥇 Plus500 App | Android / iOS | £0 | |
🥈 Robinhood | Android / iOS | £0 | |
🥉 Coinbase app | Android / iOS | £25 |
These providers are the best choice because they have competitive fees, offer a large selection of cryptocurrencies and are considered safe platforms. Also, they have low account minimums, which is perfect for new users that want to give the platform a test drive.
Plus500 App – Top Choice for User-Friendliness
The Plus500 mobile app has been fine-tuned to provide an intuitive experience with a short learning curve for beginners. Also, it delivers the same functionality as you can find on the desktop.
There is a 2-step authentication process to safeguard the login in mechanism and when executing transactions. The payment methods at Plus500 are also more extensive in the industry.
However, Plus500 could improve the quality of its customer service team and provide lower fees to be more competitive with alternatives.
Buy Bitcoin Directly on the PayPal App in the UK
Customers with a PayPal account in countries like the US and UK can buy Bitcoin directly on PayPal without the need for Bitcoin exchanges or brokers. The low minimum deposit of just £1 means users can get started with little investment.
You can buy Bitcoin on your PayPal app using your balance or a payment method like a credit/debit card or a bank account. The newly acquired crypto can be sold to fill up your PayPal balance or you can send it to friends that are using the payment processor.
How to Buy Bitcoin with PayPal Account
Now let’s turn our attention to the process of buying Bitcoin on PayPal using your existing PayPal account.
Step 1: Log in to your PayPal Account
Log into your PayPal account and select crypto in the top right-hand corner of the UI. If you don’t have a PayPal account, you can easily sign up here.
Step 2: Choose Bitcoin
Choose Bitcoin from the list of available cryptocurrencies on PayPal.
Step 3: Select the amount
Select the amount you want to buy
Step 4: Choose the payment method
Choose the payment method, which could be the PayPal balance, debit/credit card or bank transfer.
Step 5: Review the transaction
Review the transaction details and click on the Buy Now button.
Fees for Buying Bitcoin With Your PayPal Account
Purchase or Sale Amount | PayPal Fee |
£1.00 – 4.99 | £0.49 |
£5.00 – 24.99 | £0.99 |
£25.00 – 74.99 | £1.99 |
£75.00 – 200.00 | £2.49 |
£200.01 – 1000.00 | 1.80% |
£1000.01+ | 1.50% |
Should You Buy Bitcoin With PayPal Account
PayPal is a good choice for users that already have the PayPal account and want to test out buying Bitcoin with the low minimum deposit of £1. Therefore, it is convenient to use PayPal if it’s an app that is already on your mobile device.
Also, PayPal is a trusted company with decades of experience, so you can safely store Bitcoin on their platform. Additionally, you can enjoy fast withdrawals or send the coins to friends who are also using PayPal.
The biggest drawback is the large transaction fees compared with alternative methods of buying Bitcoin. Using PayPal over the long term will lose you money. Also, there is a limited number of other cryptocurrencies.
- Widely available
- Low minimum of £1
- Trusted company
- Fast Withdrawals
- Fees
- Limited cryptocurrencies
Alternatively, if you think Bitcoin is not something you’re ready to put your GBP in, check out these guides to buying other coins in the UK:
Exchange or a CFD Broker: What Are the Differences?
Exchanges and CFD brokers provide methods of buying Bitcoin and speculating on its price, respectively, but there are important differences. We will explore them in the following section to help you determine if the method matches your requirements.
Buying Bitcoin With PayPal Using Exchange
Exchanges are centralized platforms where you can use funding methods like PayPal to purchase Bitcoin.
- Convenient
- Reliable
- Lots of choices
- Many cryptocurrencies available
- Excellent user interfaces
- Hacking possibility
- Transaction charges
Trading Bitcoin (BTC) With PayPal Using a CFD Broker
Bitcoin CFD brokers allow investors to bet on if the price of Bitcoin will increase or decrease over a specified time period. This transaction type does not provide ownership of the asset – it’s purely a speculative transaction.
- No stamp duty
- Low barrier to entry
- Can invest in rising and falling markets
- High leverage
- Investors pay the spread
- Poor regulation
- High volatility
Is It Worth Buying BTC With PayPal?
In this section, we will provide our opinion on if you should use PayPal as a deposit method for buying Bitcoin. Overall, it is a good choice because it is one of the most popular payment processors with wide availability on the top platforms.
However, you will face limitations on the amount of Bitcoin you can buy in one transaction using PayPal. The limits vary based on the platform you are using to make the transaction.
Is PayPal the Fastest Way to Buy Bitcoin?
Transaction speed is an important factor to ensure you can get your hands on Bitcoin faster. PayPal offers instant payment processing in most cases. Occasionally a transaction may get held for verification by the customer service team. Buying cryptocurrency with a credit card also proves instant processing speeds.
Is PayPal the Safest Way to Buy Bitcoin?
PayPal is considered a safe method of buying Bitcoin because it is a trusted money transfer provider with decades of experience and is also regulated by the top regulators in all regions of the world where they operate. Also, they use 2-factor authentication to ensure that the transaction is completed by the authentic account holder.
Is PayPal the Cheapest Way to Buy Bitcoin?
When buying Bitcoin using platforms like Plus500 and Coinbase, there is no fee attached to PayPal. Therefore, it is one of the cheapest options in the industry. However, if you buy Bitcoin with PayPal app, then you will incur fees that cost between £0.50 and 1.8% of the transaction amount.
What Are the Fees in the UK When Buying Bitcoin With PayPal?
Now let us take a look at the fees when buying, selling or transferring Bitcoin with PayPal.
Provider | Pepperstone | Plus500 | Binance |
Deposit funds fee | No fee | No fee | No fee |
Buying Bitcoin fee | 1% | Market spread | 0.1% |
Transfer to wallet fee | No fee | No fee | No fee |
Selling Bitcoin fee | 1% | Market spread | 0.1% |
Payout fee | £5 | No fee | No fee |
Inactivity fee | £10 after 12 months | £10 after 3 months | No fee |
PayPal purchase fees | £0 | £0 | £0 |
Is Buying Bitcoin With PayPal Anonymous in the UK?
In most cases, buying Bitcoin with PayPal is not anonymous as you will learn in the following section.
Can You Buy Bitcoin With PayPal Without Verification or KYC?
The majority of Bitcoin buying methods with PayPal require verification of your identity. This includes buying from the PayPal app, brokers, and exchanges. However, if you use decentralized exchanges, then you can buy Bitcoin without the need to use PayPal.
Can You Buy Bitcoin With PayPal Without Registration?
No, you will need to register an account with PayPal to enjoy using the payment processors for buying Bitcoin. Also, you will need to register with the platforms where you want to buy Bitcoin with PayPal. For example, companies like LocalBitcoins have a lengthy registration process and a photo ID verification step before you can buy Bitcoin.
Reason to Buy Bitcoin With PayPal
When choosing a payment processor to buy Bitcoin, you need to consider the top reasons to figure out the best methods. PayPal is a good choice because it is widely available, there is no deposit fee and the transaction is processed instantly.
Alternative Payment Options to Buy Bitcoin With GBP
You might not have access to a PayPal account or dislike the services, so choosing an alternative will be your next step. In this section, we offer a range of alternatives to provide options for everyone.
Buy Bitcoin With Debit Card, Credit Card, or Amex
Buying Bitcoin with a debit or credit card also provides instant transaction processing and they are widely available on most platforms. Also, you most likely have one of these cards in your possession, which means there is no need to register for a new account.
Top cards you can choose to buy Bitcoin include PaySafeCard and Prepaid Card.
Buy Bitcoin With Bank Transfer
Almost everyone has a bank account, which means you can put it to good use for buying Bitcoin. Banks are a relatively safe place to hold money because of the strict regulations. Some banks offer convenient mobile apps that simplify the process of buying Bitcoin while on the move.
Buy Bitcoin With PaySafeCard
PaySafeCard is a good option to buy Bitcoin if you do not have a bank account and want anonymity. No personal information is attached to PaySafeCard purchases, so you can buy Bitcoin without revealing your identity.
Buy Bitcoin With PayPal on Digital Wallets
Buying bitcoin with digital wallets typically requires a low number of steps and the transactions are processed instantly. Most provide highly-rated mobile apps that come with intuitive user interface designs. Some of the top options include Apple Pay, Google Pay, Zelle, Venom, and Neteller.
What to Consider When Buying Bitcoin (BTC) With PayPal
Before buying BTC with PayPal you need to be aware of a few considerations. These ensure you understand the process and what to expect:
Must support PayPal: make sure to choose a provider that supports PayPal as a method of adding funds.
Fees: most providers do not charge a fee for adding money with PayPal. However, a fee might be charged for withdrawals to PayPal. Compare these extra fees to get the best deal.
Taxes: you may have to pay taxes when buying and selling Bitcoin, depending on your location, so research the local laws. However, in the United States, the losses and gains need to be reported on IRS Form 8949.
Safety: consider where you will keep the Bitcoin after the purchase. Decide if you want to hold it on the platform or transfer it to a wallet for safekeeping.
Amount: Bitcoin is relatively volatile compared to fiat currency. Therefore decide on the amount of Bitcoin that you are comfortable with buying.
How to Sell Bitcoin Using PayPal in the UK
In this section we share the details of how to sell Bitcoin using PayPal. The simple process allows users to take money off the platform once they are done trading. In this example we use Coinbase, but you can expect a similar process with others.
Click the Buy & Sell button
Once you’ve logged into your account, click the Buy & Sell button at the top of the page and click on the Sell tab.
Enter an amount
Enter how much of your BTC you want to sell, or click “Sell all” if you want to sell all of it.
Sell your BTC
Click the “Sell Bitcoin” button, preview the trade and fees, and than confirm the sale. The GBP proceeds from the BTC sale will be added to your GBP wallet.
Cash out
Scroll through your assets to GBP and click on it. Select the Cash out tab on the right and enter an amount. Once you’ve clicked “Continue”, select PayPal as the payment method. Your GBP funds will arrive in your PayPal account within 1 business day.
In addition to selling BTC, you can also sell other cryptocurrencies following similar process. However, if you want to learn more about sellcing coins such as DOGE, check out our full in-depth guide to selling Dopgecoin in the UK.
Do All UK Platforms Accept PayPal to Buy Bitcoin?
PayPal is not available on all Bitcoin exchanges, which you should know about before registering an account to set the right expectations.
Provider | PayPal Accepted | Review |
Coinbase | Yes | Read Coinbase review |
Binance | Yes | Read Binance review |
Luno | Yes | Read Luno review |
Wirex | Yes | Read Wirex review |
Poloniex | No | Read Poloniex review |
Should I Buy Bitcoin With PayPal?
In conclusion, buying Bitcoin with PayPal is possible on some platforms and provides a convenient option. However, the limited number of platforms that accept means it may not be the best option for many users.
Our top choice of places to buy Bitcoin with PayPal is Plus500, as it provides free deposits, a demo account, and unique features like copy trading.
Can I Buy Any Other Cryptocurrencies With PayPal?
Yes, you can buy hundreds of other cryptocurrencies with PayPal. Some of the more popular ones include Binance Coin, Dogecoin, Ethereum, Litecoin, and XRP.
FAQs
Where is the best place to buy Bitcoin with PayPal in the UK?
The top place to buy Bitcoin with PayPal is eToro as it doesn’t charge its users for deposits.
Does PayPal accept Bitcoin as a deposit method?
Yes, you can deposit Bitcoin with PayPal.
Is it illegal to buy Bitcoin with PayPal?
You can legally buy Bitcoin with PayPal, but depending on your location you may need to share the transaction details with tax authorities.
Can you send Bitcoin with PayPal?
Yes, you can send Bitcoin to other PayPal users like any other currency.
Can you store Bitcoin on PayPal?
It is possible to store Bitcoin on PayPal, or you can transfer the coins to a wallet.
Can you buy Bitcoin with PayPal under 18?
You must be 18 years of age to use any services at PayPal, including the buying of Bitcoin.
Can you buy Bitcoin with PayPal on the blockchain?
PayPal or any other centralized application cannot directly interact with a blockchain network, hence you cannot buy Bitcoin with PayPal directly on the blockchain.
Is there a Robot for trading Bitcoin?
There are many bitcoin trading bots available now, some for free and some in exchange for a subscription fee. You can use Bitcoin Bank for bitcoin trading.
Related Bitcoin Guides
Contributors
