For U.S. users curious about digital assets, PayPal offers a built-in way to interact with cryptocurrency without leaving its ecosystem. After completing identity verification, customers can buy, sell, and transfer a limited lineup of coins — Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), and PayPal’s own dollar-backed stablecoin, PYUSD. Access is available via both the web interface and the mobile app, with minimum purchases starting at just $1.
Those who prefer not to trade inside PayPal itself aren’t locked in. Many external exchanges accept PayPal as a deposit method, allowing users to move funds out and trade crypto elsewhere.
How to Buy Bitcoin Using PayPal Instantly
PayPal’s crypto flow is designed to be quick and accessible across devices. Whether you’re on desktop or mobile, the steps are largely the same.
To get started, you’ll need an active PayPal account — registration and verification are mandatory before purchasing BTC. In the mobile app, navigate to Finances, then select Crypto. From the supported asset list, choose Bitcoin, enter the amount you want to buy, and review the order.
Payment can be sourced from a linked bank account, a debit card, or your PayPal balance. After confirming the quote, complete the purchase, and your Bitcoin balance will appear in your account. For first-time users, the entire setup and initial transaction typically takes around 15 minutes.
Understanding PayPal Crypto Fees
PayPal applies a transaction fee when buying or selling crypto. The structure is tiered, which can lead to counterintuitive results — in some cases, spending slightly more moves you into a cheaper fee bracket.
Below is the fee schedule (as of December 13, 2023):
- $1–$4.99: $0.49
- $5–$24.99: $0.99
- $25–$74.99: $1.99
- $75–$200: $2.49
- $200.01–$1,000: 1.8%
- $1,000.01 and above: 1.5%
Compared with many exchanges, these costs are on the higher side, particularly for smaller orders.
Advantages and Limitations of Buying Bitcoin on PayPal
Why some users choose PayPal
- Low friction: Crypto purchases are integrated directly into an app many people already use.
- Unified view: Your crypto balances appear alongside other PayPal finances.
- Flexible funding: Pay via bank account, debit card, or PayPal balance.
- Fast execution: Buy and sell orders are processed almost instantly.
- Spending options: In some cases, crypto can be used to fund eligible purchases.
- Withdrawal support: BTC can now be transferred to an external wallet, while custody remains available for users who prefer PayPal to hold assets.
Where PayPal falls short
- Higher fees: Costs scale with order size and often exceed typical exchange rates.
- Limited selection: Only five crypto assets are currently supported.
Cryptocurrencies Available on PayPal (U.S.)
As of now, PayPal supports a small but mainstream-focused set of assets:
- Bitcoin (BTC) — the original cryptocurrency, launched in 2009.
- Ethereum (ETH) — introduced in 2015, powering smart contracts and decentralized apps.
- Litecoin (LTC) — a faster-payment alternative created in 2011.
- Bitcoin Cash (BCH) — a 2017 fork emphasizing larger block sizes.
- PayPal USD (PYUSD) — a stablecoin launched in 2023, backed by cash and short-term U.S. Treasuries.
Additional assets may be added in the future, but this is the current U.S. lineup.
Using PayPal on External Crypto Platforms
Beyond PayPal’s native crypto feature, many popular marketplaces allow PayPal-funded purchases. These include platforms such as Coinbase, eToro, Gemini, Bitstamp, bitFlyer, KuCoin, Huobi, Paxful, and Revolut.
In most cases, the workflow is similar: select PayPal at checkout, and funds are pulled from your PayPal balance or a linked bank card.
A few examples:
- eToro: Deposit funds via PayPal, then place a market or limit order for Bitcoin.
- KuCoin: Add PayPal as a payment method, then proceed through spot trading.
- Gemini: Link PayPal under payment settings and use it for one-time or recurring buys.
- Paxful: Choose a PayPal-based offer in the peer-to-peer marketplace.
- Revolut: Link a virtual card to PayPal, then buy crypto inside the Revolut app.
- Coinbase: Attach PayPal as a payment method and use it during checkout.
Selling Bitcoin Through PayPal
Liquidating crypto within PayPal is straightforward. On the website or app:
- Open Finances and select Crypto.
- Choose the asset you want to sell.
- Enter the amount to convert to USD.
- Review the details and confirm the sale.
If it’s your first transaction, PayPal may request additional tax information before completion.
Final Thoughts
PayPal offers a convenient on-ramp for buying and selling Bitcoin, especially for users who value simplicity and speed. That convenience comes at a cost, however, with fees that are generally higher than those on dedicated exchanges.
For users who prioritize self-custody, PayPal now allows BTC withdrawals to external wallets. And for those who prefer full exchange features while still paying with PayPal, platforms like Coinbase, Gemini, and others provide that flexibility.
Frequently Asked Questions
How fast can I buy Bitcoin with PayPal?
Once your account is verified, purchases can be completed in under a minute.
Do I have to buy crypto directly inside PayPal?
No. Many exchanges accept PayPal as a payment method.
What are the current fees?
Small purchases range from $0.49 to $2.49 up to $200, then shift to about 1.8% up to $1,000 and around 1.5% above that.
