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PayPal now allows you to buy cryptocurrencies directly from its platform. However, the coins are restricted and can only be used within PayPal. If you want to withdraw the coins elsewhere, you need to use an external crypto exchange.
This guide compares the top 8 platforms for buying bitcoin with PayPal without restrictions. We also provide step-by-step directions for each platform.
Overview
- PayPal allows buying crypto but coins are restricted within platform
- To withdraw elsewhere, need to use external crypto exchange
- We compare 8 top platforms for buying bitcoin with PayPal
- Also provide step-by-step directions for each platform
What You Will Learn
- Steps for buying bitcoin with PayPal
- List of top tools to buy bitcoin with PayPal
- Detailed comparison of the top tools
- Reviews of each platform and how to use them to buy bitcoin
- Conclusion and recommendations
Steps for Buying Bitcoin With PayPal
Here are the general steps to follow when buying bitcoin with PayPal:
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Sign Up: Create free user accounts on the desired crypto exchange platform and PayPal if you don‘t already have them.
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Fund PayPal Account: Add money to your PayPal balance by linking credit/debit cards or bank account. You can also receive money into PayPal from a friend.
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Connect PayPal & Buy Crypto: On the crypto platform, choose PayPal as the payment method and connect your PayPal account. Enter your desired buy amount and complete purchase.
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Withdraw Crypto: Withdraw purchased coins from crypto platform to external wallet you control.
List of Top Tools to Buy Bitcoin With PayPal
- Pionex
- CoinSmart
- Crypto.com
- Coinmama
- Coinbase
- LocalCryptos
- LocalBitcoins
- xCoins
Below we compare the key features and fees for each platform:
| Tool | Features | Fees |
|---|---|---|
| Pionex | Auto trading bots. Buy with cards. Hosted wallets. | 0.05% per transaction |
| CoinSmart | Instant buy/sell. Cash out to banks. | Up to 6% for cards |
| Crypto.com | Variety of Visa card products. Earn interest. | 2.99% for cards, free ACH/wires |
| Coinmama | Buy crypto with cards, e-payments. SEPA/SWIFT transfers. | Card fees ~5%, SEPA/SWIFT free |
| Coinbase | High liquidity. Insured custodial storage. | 3.99% buy fee, 2.5% deposit |
| LocalCryptos | Non-custodial p2p platform. Escrow protection. | 0.25-0.75% p2p fees |
| LocalBitcoins | Private p2p platform. Online buys. | 1% seller fee, high buyer premium |
| xCoins | Lending market to access liquidity. | 15-30% of loan amount |
Below we provide an in-depth review of each platform and step-by-step directions for buying bitcoin.
#1 Pionex
Pionex is a cryptocurrency exchange offering trading bots, instant buy/sell, and hosted storage. It does not directly support PayPal.
The workaround is to buy crypto elsewhere with PayPal, then transfer it in to trade on Pionex. You can also fund Pionex by buying directly with credit card through their app.
Steps to buy bitcoin on Pionex using PayPal:
- Buy bitcoin on a separate platform like LocalCryptos using PayPal
- Sign up for a free Pionex account
- Deposit bitcoin purchased with PayPal by sending it to your Pionex wallet address
- Trade or withdraw bitcoin from Pionex
- 0.05% maker & taker fee
- 12 trading bots
- Buy crypto inside app with card
#2 CoinSmart
CoinSmart is a Canadian exchange supporting crypto purchases with cards and wire transfers.
You cannot directly link PayPal, but can transfer PayPal funds to your card to make buys on CoinSmart.
Steps to buy bitcoin on CoinSmart using PayPal:
- Add credit/debit card on PayPal account
- Transfer funds from PayPal to linked card
- Use card on CoinSmart to buy bitcoin instantly
- Instant trading with low spreads
- Cash out to CAD bank accounts
#3 Crypto.com
Crypto.com is a leading platform offering trading, Visa cards, DeFi services, and on-ramps from bank accounts and cards.
You cannot directly link PayPal to Crypto.com either. But you can top up your Crypto.com Visa card from PayPal and then use it to buy bitcoin and other cryptos.
Steps to buy bitcoin using Crypto.com app and PayPal:
- Order Crypto.com Visa card & top it up with PayPal after approval
- In Crypto.com App, go to Buy Crypto and select card payment
- Choose bitcoin and complete purchase with Crypto.com Visa that‘s loaded with PayPal balance
- Competitive pricing with low card fees
- Crypto rewards debit card options
- Earn up to 8.5% interest on cryptos & stablecoins
#4 Coinmama
Coinmama allows fast and easy bitcoin purchases with credit and debit cards. You can also fund buys with Apple Pay and Google Pay.
However, Coinmama does not directly integrate with PayPal. You need to take an extra hop by first transferring PayPal balance to your card.
Steps to buy bitcoin on Coinmama using PayPal:
- Add credit/debit card to PayPal account
- Transfer desired buy amount from PayPal to linked card
- Go to Coinmama and select card payment option
- Input your card details and complete instant purchase
- Established broker since 2013
- Easy and quick bitcoin purchases
- Cash out to bank account
#5 Coinbase
Coinbase Pro now allows US users to add PayPal as payment method for crypto purchases including bitcoin. This means you can directly link your PayPal account to fund buys.
However, if outside the US or wanting to withdraw purchased coins externally, Coinbase won‘t suffice since the PayPal feature only works for US accounts.
Steps to buy bitcoin on Coinbase with PayPal in US:
- Sign up for Coinbase account
- Go to settings and link PayPal account under payment methods
- Select desired crypto and amount & choose PayPal at checkout
- High liquidity and trading volume
- Insured custodial storage
- Strict KYC requirements
- US only PayPal integration
#6 LocalCryptos
LocalCryptos is a p2p crypto marketplace supporting purchases with 100+ payment options including PayPal.
It has an escrow system that helps safeguard your funds by keeping bitcoin locked until you confirm receiving payment. This prevents fraud and chargebacks.
Steps to buying bitcoin on LocalCryptos using PayPal:
- Sign up for accounts on LocalCryptos and PayPal
- Browse seller ads and find those accepting PayPal payment
- Choose ad and enter your desired purchase amount
- Contact seller to arrange PayPal payment & confirm they‘ve sent bitcoin to escrow
- Pay seller‘s PayPal address to complete deal
- No KYC requirements
- Privacy focused
- Direct chat for support & disputes
- 100+ local payment options
#7 LocalBitcoins
LocalBitcoins facilitates direct peer-to-peer crypto trading online. Sellers post ads with their desired payment methods and traded volumes.
You can browse LocalBitcoins to find suitable sellers accepting PayPal payments. The platform also utilizes an escrow system during trades.
Steps to buying bitcoin on LocalBitcoins using PayPal:
- Sign up for free account on LocalBitcoins
- Use filter options or browse available buy ads that accept PayPal payments
- Select desired ad and enter your intended purchase amount
- Contact seller through platform chat or provided details to arrange payment
- Pay seller‘s PayPal address and confirm receipt of bitcoin in your LocalBitcoins wallet
- No ID verification requirements
- Hundreds of various payment options
- Useful reputation system
- Access to global liquidity
#8 xCoins
xCoins offers a peer-to-peer bitcoin lending platform. Lenders provide liquidity by offering bitcoin collateralized loans to buyers. Loans get funded in buyer‘s preferred payment option, including PayPal.
It lets those needing PayPal access acquire bitcoin from lenders accepting PayPal payments. However, loan rates and lender fees mean you pay premiums.
Steps for buying bitcoin via xCoins using PayPal:
- Sign up for xCoins account
- Browse loan listings from lenders willing to accept PayPal payments
- Select desired loan terms and enter necessary info
- Pay lender‘s PayPal address to fund loan plus lender set interest/fees
- Lender releases bitcoin collateral to your xCoins wallet
- Access bitcoin directly with PayPal
- Global user base increases liquidity
Conclusion
I‘ve reviewed the top 8 platforms for buying bitcoin with PayPal without restrictions. Each has pros and cons to weigh when deciding.
P2P platforms like xCoins, LocalCryptos, and LocalBitcoins offer direct PayPal integration. This provides easy access but comes with higher fees in most cases.
Brokers such as CoinSmart, Pionex and Coinmama don‘t directly link with PayPal but allow card purchases. This means you can transfer PayPal balance to cards in order to buy bitcoin and other cryptos.
For convenience, Coinbase and Crypto.com have the best PayPal integration overall through linked debit cards. But availability depends on your country.
I suggest reading through the specifics to determine which platform best meets your needs and offers you the ideal experience.