How to Buy Bitcoin & Cryptocurrency with PayPal

Coinbase: Our Favorite Crypto Exchange That Accepts PayPal

While investing in crypto should be simple, the reality is that many payment methods come with delays or extra steps. Using PayPal on a trusted exchange such as Coinbase offers a faster alternative. You can purchase Bitcoin easily, along with other cryptocurrencies, with just a few taps. Just note, convenience often comes with higher fees.

Coinbase is one of the best crypto exchanges in the world and an effective platform when it comes to buying cryptocurrency using PayPal, particularly for US users. All you have to do is link your debit card or a bank account that’s connected to your PayPal. Then you can quickly fund crypto purchases without waiting for slow bank transfers.

Buying Crypto Directly Through PayPal

Now that we’ve covered how to purchase crypto using a safe crypto exchange, buying assets directly through the platform differs significantly—especially when it comes to fees, control, and long-term flexibility.

How Does PayPal’s Crypto Feature Work?

The platform offers built-in crypto services designed to make buying and selling cryptocurrency easier for everyday users. To access these features, you’ll need a PayPal Cash or Cash Plus account and the mobile app. Users can buy, hold, and sell supported cryptocurrencies starting from as little as $1, all within their app wallet. It’s important to note that their crypto services come with important limitations, especially around asset ownership, fees, and wallet control—which we’ll explore below.

If you’re using the platform as a funding method on an exchange like Coinbase, the process typically looks like this:

➡️ Choose the cryptocurrency you want to buy and select PayPal as your payment method.

➡️ Log in to your PayPal account (your PayPal email should match your exchange email, or you’ll need to complete additional verification).

➡️ Select or add a linked debit card or bank account.

➡️ Confirm the transaction.

Users can typically make purchases of up to $25,000 per day, depending on region and account status.

Understanding PayPal Fees

PayPal’s crypto fees are higher than most major exchanges and vary based on transaction size. These fees are built into the quoted price, which can make them less transparent than traditional trading fees.

For users prioritizing simplicity over cost, this may be acceptable—but fee-conscious buyers may prefer using an exchange instead.

Supported Crypto Wallets

When buying crypto directly through the payment platform, users do not initially control their private keys, meaning the platform holds custody of the assets. In select regions, they allow limited withdrawals to external wallets—but this feature is not universally available.

If self-custody is important to you, using PayPal to fund an exchange account and then transferring crypto to a private wallet may be a better option. We do a deep dive into the best crypto wallets that you can explore if you’re unsure.

Country Restrictions

All crypto features are region-dependent. While services originally launched in the United States, availability has expanded to selected international markets. However, not all features—such as withdrawals or using crypto as a funding source—are available everywhere.

In supported regions, PayPal allows users to spend crypto at checkout by automatically converting it to fiat, while merchants receive payment in traditional currency. Crypto functionality is also available through Venmo, though again… features vary by location.

Advantages of Using PayPal for Crypto Purchases

The biggest advantage is its sheer popularity and ease of use. Hundreds of millions of people already have PayPal accounts, making it one of the most accessible entry points into crypto.

They are widely trusted, offer strong security protections, and are arguably one of the fastest ways to acquire crypto—particularly for users who want to avoid bank transfer delays.

Disadvantages of Using PayPal for Cryptocurrency

Despite its convenience, the payment platform is far from ideal for serious crypto investors. Fees are significantly higher than bank transfers, purchase limits can be restrictive, and most major exchanges still don’t support the app directly.

Additionally, their custodial model means users don’t always have full control over their crypto—something that goes against the core principles of decentralization.

Quick recap: pros and cons of buying crypto on PayPal

PayPal Alternatives for Buying Crypto

Bank transfers remain the cheapest and most reliable way to buy crypto, though they can take several days to process. Credit and debit cards are faster but come with higher fees. You can also buy crypto with  Apple Pay or use Google Pay for crypto purchases. In fact, mobile payment options are becoming increasingly popular on crypto exchanges.

History of PayPal and Cryptocurrency

PayPal launched in 1998, originally aiming to create frictionless internet money—an idea that closely mirrors Bitcoin’s original vision. However, their centralized structure has historically made it incompatible with trustless crypto transactions.

While they have embraced crypto in recent years, it still operates very differently from decentralized systems, often requiring intermediaries when buying or selling digital assets.

Conclusion: Is Buying Crypto With PayPal Worth It?

Honestly, it depends on your preference and individual needs. Buying cryptocurrency on the platform can be a convenient option, particularly for beginners who already trust the platform. While they make it easy to buy, hold, and sell popular crypto, on the other hand, the fees and limitations make it less appealing for other traders.

So, if you’re looking for greater flexibility or lower costs, using PayPal to fund a crypto exchange may be the better route. Ultimately, the right choice depends on your experience level and how you plan to use your crypto.