Can I Buy Bitcoin on PayPal?

Yes, users can invest in Bitcoin directly through the PayPal Crypto App. However, the asset selection is limited to a few cryptocurrencies, including PayPal USD, Bitcoin, Ethereum, Litecoin and Bitcoin Cash, and the fees tend to be higher than those on crypto exchanges. For a wider variety of assets and lower costs, users prefer regulated digital asset platforms that accept PayPal as a funding method.

How to Buy Crypto with PayPal

‍PayPal users can fund their accounts on regulated exchanges to invest in a wide range of cryptocurrencies. Kraken is a regulated exchange accessible from 160 countries with a multilingual platform. It supports PayPal deposits in multiple currencies, including USD, EUR, GBP and more. There are over 290 digital currencies available for spot and futures trading.

Follow this guide to buy crypto on Kraken using PayPal:

1. Create an Account: Go to Kraken’s official website and sign up for an account. Complete the KYC verification by submitting valid identification to activate your account.
2. Deposit Funds: Once your account is verified, navigate to the “Funding” section. Select PayPal as your deposit method to transfer funds into your account.
3. Choose Your Asset: Explore the extensive selection of cryptocurrencies available and select your desired asset.
4. Make Your Purchase: Enter the amount you’d like to buy, carefully review the transaction details, and confirm the trade to complete your purchase.

What are the Fees?

When buying cryptocurrency using PayPal or a digital asset exchange, it's essential to be aware of the different fees involved, including charges for funding, purchasing, and transferring assets.

If you buy crypto directly on PayPal, expect higher fees, often around 1.5% to 1.8% for trading costs, plus a spread of 1% to 2%. Kraken supports PayPal deposits with zero costs and offers competitive trading fees, starting as low as 0.16% for spot trading.

Reviewing fee structures on Kraken or other exchanges that accept PayPal deposits can help you make an informed choice and minimize costs associated with your crypto transactions.

About PayPal Crypto

PayPal offers a beginner-friendly way to buy, hold, and sell crypto, allowing users to access PayPal USD (PYUSD), Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. With PayPal, users can view real-time prices, track market trends, and start buying crypto for as little as $1. 

However, there are limitations, such as users can’t transfer their crypto to external wallets, which means assets purchased within PayPal must stay on the platform. Additionally, the service comes with relatively high transaction fees that can affect the costs for frequent traders or larger investments. 

Bottom Line

PayPal users can use regulated exchanges like Kraken for a broader crypto experience. With over 290 cryptocurrencies available for spot and futures trading, along with staking options offering up to 28% APY, Kraken allows users to diversify their portfolios beyond PayPal’s basic offerings. 

When investing, it’s essential to choose regulated exchanges, understand the fee structure, and stay informed about any guidelines surrounding cryptocurrency transactions.