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Bitcoin, born in 2009, was the first of the more than 19,000 cryptocurrencies that are now bought and sold daily on various cryptocurrency exchanges. In 2020, PayPal announced a new feature that allows users to buy, sell and exchange select cryptocurrencies, including bitcoin, ethereum, bitcoin cash and litecoin, using the PayPal platform. Users also have access to PayPal’s Checkout With Crypto feature to pay for select purchases.
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Buying bitcoin and other supported cryptocurrencies on PayPal is a straightforward process. But before making a purchase, you should understand that buying cryptocurrency is an investment, and like with any investment, there is a risk.
A PayPal account is required to purchase bitcoin on PayPal. Sign-up is easy and can be done on the PayPal website or using the PayPal mobile app when you make your first bitcoin purchase.
How To Buy Bitcoin on PayPal
You can get started buying bitcoin with a purchase of as little as $1. During the purchase process, you’ll need to confirm your account information.
To buy bitcoin on PayPal:
- Sign in to your PayPal account.
- Go to the PayPal Dashboard.
- Click the “Crypto” button.
- Select “Bitcoin” from the list of available cryptocurrencies.
- Click the “Buy” button.
- Follow the prompts to accept PayPal’s cryptocurrency terms and conditions and confirm your account information.
- Enter or select a purchase amount and complete the purchase.
Fees for Buying Crypto on PayPal
You will pay a fee to buy and sell bitcoin and other cryptocurrencies on PayPal. PayPal fees range from 49 cents to $2.49 for crypto purchases of $1 to $200. Purchases of $200.01 to $1,000 have a 1.8% fee, and purchases greater than $1,000.01 have a 1.5% fee.
Setting Crypto Price Alerts via the PayPal App
Using the PayPal mobile app, you can set a customized price alert to receive a push notification on your phone if your set crypto value changes by 5%, 8% or 10% over a 24-hour period. Setting alerts can help you buy and sell at a profit.
Does PayPal Accept Crypto?
PayPal does not accept crypto directly as a form of payment. However, it provides a Checkout With Crypto feature for any U.S. user who has a sufficient PayPal crypto balance. If you select Checkout With Crypto when using your PayPal wallet to make a purchase, PayPal will convert enough crypto to U.S. dollars at the current exchange rate to complete your purchase.
Can You Withdraw Crypto From PayPal?
PayPal allows for the transfer of bitcoin and other supported cryptocurrencies from a U.S. PayPal wallet to other supported crypto wallets and exchanges and to other PayPal users, except those who reside in Hawaii. PayPal users can also transfer supported cryptocurrencies to a PayPal wallet from other supported crypto wallets and exchanges.
Takeaway
PayPal allows users to buy, sell, hold and transfer bitcoin and other supported cryptocurrencies using their PayPal account. Users can also convert a PayPal crypto balance to U.S. dollars during the checkout process to make a purchase. Whether you’re buying or selling crypto on PayPal or using it with the Checkout With Crypto feature, pay attention to exchange rates to minimize the risk of losing money on your bitcoin purchases. Cryptocurrency is an investment and should be managed as such.
Information is accurate as of Sept. 20, 2022.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
