Key takeaways
- PayPal allows for fast payouts and real-world spending of Bitcoin, making it a convenient option for integrating crypto into daily life.
- While buying Bitcoin directly through PayPal is simple, users should be aware of fees, limited features and restrictions.
- PayPal users don’t truly own their Bitcoin, as it’s held in PayPal’s custody with no ability to transfer it to other wallets.
- Buying Bitcoin with PayPal on crypto exchanges is possible by connecting your PayPal account as a payment method.
Buying Bitcoin in 2025 can feel overwhelming, especially with the number of platforms, payment options and wallets to choose from. But what if you already use PayPal for your daily purchases — can you just use it to purchase Bitcoin (BTC) as well?
The short answer is yes. PayPal has made it easier to buy Bitcoin directly or use it as a payment method on crypto-friendly platforms. You don’t need to jump through hoops or be a blockchain expert to start, which makes it appealing for beginners.
But there’s more to it than just clicking a button. Buying Bitcoin with PayPal comes with a few catches, such as fees and restrictions on moving your cryptocurrency around.
So, is it worth it?
If you want the ease of PayPal but still want to make informed decisions, this guide will walk you through how to use PayPal to buy Bitcoin, the pros and cons, and how to store your crypto safely afterward.
How to buy Bitcoin directly in PayPal
Buying Bitcoin directly with PayPal is one of the easiest ways to dip your toes into crypto without the hassle of navigating exchanges or setting up complicated wallets. PayPal’s built-in crypto features make the process as simple as buying things online.
Buy Bitcoin through the PayPal website
Step 1: Locate Bitcoin
Head to “Finances” on your dashboard, click “Buy,” and pick “Bitcoin.”
Step 2: Set up payment
Decide how much Bitcoin you want to buy. You can start with as little as $1 and set a frequency: Daily, Weekly, Biweekly or Monthly. If you’re just testing the waters, stick to one-time purchases. Select your payment method and hit “Buy Now.”
Prefer the PayPal app? No problem. Below is a step-by-step guide to buying Bitcoin through the PayPal app.
Buy Bitcoin through the PayPal app
Step 1: Locate the crypto section
Tap “Accounts” and head to “Crypto.”
Step 2: Set up payment
Tap “Buy” and select Bitcoin. Choose your amount and frequency. Again, a one-time purchase is the best place to start. Confirm the details, select your payment method, and tap “Authorize.”
And that’s it. You’re a proud owner of Bitcoin in a few taps or clicks.
Keep in mind that PayPal charges fees and includes a currency conversion spread in its exchange rates, which refresh frequently. While the process is rather quick and user-friendly, the rates can fluctuate, especially if you’re setting up recurring buys.
Did you know? As of Oct. 1, 2023, PayPal has temporarily paused the ability for United Kingdom customers to purchase cryptocurrencies through its platform. PayPal offers Bitcoin purchases only to customers in the United States and US territories, so not all users worldwide can buy Bitcoin through the platform.
How to purchase Bitcoin using PayPal on a cryptocurrency exchange
Buying Bitcoin with PayPal is more straightforward than you might think, especially when using centralized exchanges like Coinbase or Crypto.com. So, how does it work?
Step 1: Create an account
First, sign up for an account on your chosen exchange and log in. Before you start, complete a quick Know Your Customer (KYC) verification and identity check. Once approved, it’s just a matter of a few clicks to own your first Bitcoin.
Step 2: Connect PayPal to a crypto exchange
To connect your PayPal to your exchange account, head up to the payment or deposit section of the exchange platform and select PayPal. It will ask you to log in to your PayPal account and request permission to link with the exchange.
After connecting to your account, you will see PayPal as a deposit option whenever you wish to purchase Bitcoin or other cryptocurrencies.
Step 3: Buy Bitcoin
After linking your PayPal account details to the crypto exchange, navigate to the cryptocurrency page and find Bitcoin. Most exchanges offer two buying options: You can either “Trade,” which allows you to purchase Bitcoin at its current market price, or place an “Order” by setting a price target (when Bitcoin hits your target price, your purchase is automatically executed).
Once you’ve decided how much Bitcoin you want to buy, select “PayPal” as your deposit method and confirm the transaction.
Other ways to buy Bitcoin with PayPal
If you prefer alternatives to exchanges and direct purchases inside PayPal, consider peer-to-peer (P2P) platforms or third-party services. On P2P platforms, you connect directly with sellers who accept PayPal as payment.
Once the seller verifies your payment, Bitcoin is transferred to your wallet. It’s a flexible option, but beware of fraud or disputes from PayPal chargebacks.
In addition, third-party services, which act as brokers, allow you to buy Bitcoin with PayPal in just a few clicks. These platforms simplify the process but often charge higher fees for convenience.
Did you know? You can indirectly make a Bitcoin purchase with PayPal by purchasing Bitcoin gift cards from platforms such as Bitrefill or CoinGate, which can then be redeemed for crypto.
Advantages of buying Bitcoin via PayPal
Buying Bitcoin through PayPal is convenient, fast and ideal for both the casual trader and those new in the crypto market. One of the biggest strengths? Instant payouts. Unlike blockchain transfers that can take up to 10 minutes or more to be confirmed, PayPal offers immediate fund access where you can sell your Bitcoin for fiat money.
But the benefits don’t stop there. PayPal’s vast network of partnered merchants means you’re not just selling Bitcoin but unlocking real-world purchasing power. Imagine selling Bitcoin today and using those funds to shop at your favorite online store moments later. This could be a game-changer for anyone eager to integrate crypto into their everyday life.
For newcomers to the world of crypto, PayPal also provides a sense of familiarity and trust. The platform’s reputation as a secure payment provider can help users take their first steps into the crypto space without worrying about the complexities of private keys or exchange wallets.
Did you know? Even though PayPal charges fees for crypto transactions, it’s one of the most widely accepted platforms for crypto payments, and some merchants offer discounts to customers who pay using Bitcoin through PayPal.
Why think twice about buying Bitcoin with PayPal?
PayPal makes buying Bitcoin easy, and this simplicity is enticing for many users, especially those new to crypto. But, as with most things that sound too good to be true, there are strings attached — some of them are hard to ignore.
The true cost of convenience
Sure, PayPal streamlines the process, but it comes with a hefty price tag. The platform is notorious for its high fees, and its crypto transactions are no exception. These fees eat into your investment before you’ve even had a chance to see it grow.
And unlike traditional crypto exchanges, PayPal doesn’t offer the competitive pricing or flexibility you’d expect in a decentralized ecosystem.
Do you really own your Bitcoin?
When you buy Bitcoin through PayPal, you don’t actually own it. PayPal keeps custody of your crypto, meaning you can’t transfer it to a private wallet, use it for decentralized finance (DeFi) opportunities, or even send it to another PayPal user.
In short, your Bitcoin is stuck in PayPal’s ecosystem, more like a glorified digital token than a true crypto asset.
Missing out on the DeFi revolution
Decentralized finance is the epicenter of the crypto world, offering avenues to earn passive income through staking, lending and yield farming. But PayPal users are left out in the cold. Without private keys or the ability to move your assets, you’re missing the chance to tap into these lucrative opportunities that put your money to work.
Limited opportunities
The crypto universe is vast, with thousands of coins offering diverse opportunities. Yet PayPal limits you to just five options: Bitcoin, Ether (ETH), Bitcoin Cash (BCH), Litecoin (LTC) and its native stablecoin, PYUSD (PYUSD).
While these are established coins, they don’t represent the innovation or potential of the broader market. By sticking with PayPal, you’re settling for a fraction of what’s out there.
Buying Bitcoin with PayPal: The bigger picture
So, why does PayPal even bother with crypto? Some critics argue it’s less about empowering users and more about benefiting itself. By controlling your assets and limiting your options, PayPal gains exposure to the booming crypto market while keeping its risks low and profits high.
Buying Bitcoin with PayPal might seem like the easiest route, but convenience often comes at a cost. If you’re serious about crypto, you may want to consider alternatives that offer true ownership, lower fees and access to the broader benefits of the blockchain. After all, isn’t the point of crypto to take control of your financial future?