Many Investors still prefer to use a debit or credit card when buying cryptocurrency. However, with increased crypto adoption rapidly taking place across the globe, investors can now use PayPal to buy Ethereum or other coins.
In this guide, we review how to buy Ethereum with PayPal, the best crypto exchanges for ETH, and the benefits of doing so.
How To Buy ETH with PayPal – Quick Steps
- Open an account: Visit the official website of your preferred broker and use any of the sign-up buttons to create a free account. Enter a username, email address, and password.
- Verify account: To confirm your account, complete all the KYC requirements and upload a photo ID and proof of address.
- Deposit: Once you have made a deposit, be sure to choose PayPal as your preferred payment method.
- Buy Ethereum: In the search bar at the top of the screen, type ‘Ethereum’. Once Ethereum appears, click ‘Trade’ and then enter the desired investment amount. Next, choose ‘Open Trade’.
Where to Buy Ethereum with PayPal
The easiest way to purchase Ethereum with PayPal is through an online crypto exchange. We have an in-depth explanation of buying Ethereum with PayPal and what these exchanges offer.
Binance — Excellent Crypto Exchange to Buy Ethereum with PayPal
Binance is arguably the most well-known crypto exchange, where you can buy and sell many crypto assets, from Ethereum to NFTs.
Binance’s platform lists over 600 cryptocurrencies and exposes traders to many segments of the greater crypto ecosystem, from DeFi coins to GameFi tokens.
Binance is primarily used as an exchange. However, you can still fund your account with fiat money. The sole way to purchase Ethereum via PayPal is through Binance Peer-to-Peer trading.
Regarding fees, Binance has extremely low fees of 0.1% for every trade made via their exchange. Moreover, if you want to buy Ethereum or crypto immediately, i.e., not via their exchange, you will be charged a marginally higher fee of 0.5%.
Finally, Binance caters to a large basket of individuals, ranging from casual users to full-time investors. It has something for everyone, especially with its low fees and wide range of crypto assets including Ethereum.
Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.
Coinbase — Easy-To-Use Crypto Exchange Enabling Direct Ethereum to PayPal Purchases
With its beautiful design and simple jargon, Coinbase is a great choice for beginners, particularly its ability to buy ETH with PayPal. If you are wondering how to buy Ethereum online with PayPal, Coinbase allows its users to purchase Ethereum directly via PayPal.
Furthermore, you must sign up with Coinbase, create an account, and fill out all the relevant information. Then, you can link your PayPal account directly with Coinbase.
Currently, only customers in the United States can purchase Ethereum or add US dollars using PayPal. Customers in other regions can only use PayPal to cash out or sell, and transaction availability varies by location. Coinbase allows its users to cash out using USD, GBP, or EUR.
In conclusion, and importantly, Coinbase can have high fees. When using the Coinbase exchange, Coinbase has a maker fee of 0.6% and a taker fee of 0.4%. On top of the 3.99% fee that they charge.
Crypto.com — Fast And Secure Crypto Exchange to Buy ETH with PayPal
If you are exploring the possibility of how to buy Ethereum with PayPal, Crypto.com should be one of the options that first come to mind. Crypto.com is one of the market leaders when it comes to safety and security and an array of other excellent features.
Crypto.com offers its users a diverse variety of cryptocurrencies, from the largest market caps in Bitcoin and Ethereum, to ‘hype’ tokens like Dogecoin and Shiba Inu. Furthermore, Crypto.com is well-known for its staking benefits.
Staking is when you set aside your cryptocurrency and receive rewards in return, much like a fixed deposit at a bank. You earn interest on your crypto. For instance, Crypto.com offers up to 14.5% annual interest on certain cryptocurrencies, making it one of the top APY crypto staking platforms.
Furthermore, Crypto.com makes it easy to buy Ethereum using PayPal. Users can top up their Crypto.com Visa card with PayPal. However, this does come with a 2.1% fee, but it happens instantly.
Additionally, Crypto.com has a maker/taker fee of 0.4% when you are trading via their exchange. Importantly, Crypto.com accepts fiat deposits like US dollars, meaning that PayPal customers can send US dollars through a bank transfer.
Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.
Why Buy Ethereum with PayPal
In this guide, we have discussed a wide range of benefits when using PayPal to purchase Ethereum, including PayPal’s safety, security, and accessibility.
We have looked at the advantages of purchasing Ethereum with PayPal below – which also applies to buying any crypto with Paypal in general.
1. Quick Deposits & Withdrawals
PayPal is well-regarded in many different areas, and one of those is its speed with deposits and withdrawals. The important thing to note is whether your chosen crypto exchange supports PayPal.
This is not an issue with the exchanges, as PayPal is integrated with them. Linking PayPal to your trading balance is easy; you can make deposits in just a few minutes.
Additionally, if you want to transfer Ethereum to PayPal, you have first to close your current trading position.
Once you have liquidated your current position on whatever exchange you are on, you can easily and quickly withdraw your money.
When using an exchange with PayPal, it can take as fast as 2 business days for your withdrawal to take place. However, if you want to buy Ethereum with a PayPal credit card, debit card, or bank transfer, this process can take up to 10 business days.
2. High Security
When considering how to purchase Ethereum using a PayPal account, this should be one of your top thoughts. You can feel secure knowing that you are protected. PayPal constantly monitors every transaction to keep you safe from any harmful actions. This includes identity theft, email scams, and fraud. All PayPal transactions are secured with two-factor authentication.
Furthermore, PayPal emails you every time you make a transaction. This way, if there is any undetected fraudulent activity on your PayPal account, you will get an email notification and you can rectify the situation right away with the help of PayPal.
3. Usability
Throughout this how-to-buy Ethereum review, we identified that PayPal has revolutionized how we view payments. They have become essential to so many people and businesses across the globe and offer simple payment solutions to their customers without the need for a debit or credit card.
Moreover, PayPal is well-known for its simplistic and minimalistic design and its easy-to-understand interface, making it user-friendly. PayPal integrates this beautiful aesthetic into its functionality and efficiency as a payment solution.
Furthermore, making a bank transfer into your PayPal account is the most practical approach to buying Ethereum. Your funds are safely secured and protected in your account, which can happen due to PayPal and its incredible security.
4. Mobile App
PayPal has a great mobile app available on the App Store and Google Play. One of the many reasons why PayPal is desirable to such a vast array of users is its app, and most of PayPal’s users use it from their smartphones. The user interface is minimal, clean, and easy.
PayPal has transformed cross-border payments. If you want to send money to someone in the United States from the United Kingdom, for example, you need only get that person’s email address, username, or phone number.
Furthermore, PayPal allows its users to track their payments and turn on notifications, which further adds to the experience and puts your mind at ease over any maligned activity.
5. Low Fees
How to buy Ethereum with PayPal at the lowest fees? Low fees are important for users to buy ETH using PayPal. PayPal charges zero transaction fees, with no lock-in contracts, hidden fees, or monthly fee.
Importantly, depending on your chosen exchange, fees are different per platform. For instance, if you use an exchange like Coinbase, where you can buy Ethereum directly with PayPal, there is a fee of 3.99%.
Buying Ethereum On PayPal vs Buying Ethereum Using PayPal On Crypto Exchanges
After all that we have gone through in this guide so far, most likely, there are two viable options that you are exploring. What is the best choice? Buying Ethereum on PayPal or buying Ethereum on a crypto exchange.
We will take a close look below at which is the better decision.
Buying Ethereum on PayPal
So, how to buy Ethereum on Paypal?
PayPal customers can directly buy a small number of cryptocurrencies on PayPal in the US and UK, respectively. You only have a choice of four cryptocurrencies to purchase on PayPal. Fortunately, Ethereum is one of those four, as Ethereum is a highly desirable crypto asset to own. The other cryptos include Bitcoin, Bitcoin Cash, and Litecoin.
Furthermore, one of the advantageous aspects of buying Ethereum on PayPal is that there is a $1 minimum deposit, which is great, as it allows crypto to be accessible to a broad group of people, as you can own some of the most appealing crypto assets for as little as a dollar.
Despite this, there are significant limitations to purchasing Ethereum and cryptocurrency directly through PayPal.
Firstly, PayPal does not have any of the in-demand altcoins at its disposal, severely limiting your exposure to the various sectors of the crypto ecosystem.
Secondly, PayPal does not allow users to store their tokens in an external Ethereum wallet. This means you can not move your Ethereum, for instance, off of PayPal.
This is a significant disadvantage of purchasing Ethereum directly through PayPal. Moreover, this limits your security because you are more susceptible to a potential breach of PayPal security. Furthermore, you cannot, for example, store your Ethereum safely ‘offline’ in a cold storage hardware wallet like Trezor.
On PayPal, buying ETH incurs a transaction fee of at least 1.5%, higher than other platforms.
For instance, you may have fees of 1.5%; however, this is for a trade with a minimum of $1000. Furthermore, all trades between $200 and $1000 will be 1.80%. Additionally, all trades below $200 have a flat rate of $2.49. This may not seem too high.
However, fees add up, especially as PayPal does not disclose its spreads. This is not in the spirit of openness, especially in crypto, where honesty is at the forefront of decentralization and blockchain technology. Importantly, this highlights the necessity for crypto exchanges, where you can still use PayPal, albeit not hold your Ethereum on PayPal itself.
Buying Ethereum Using PayPal on Crypto Exchanges
Buying Ethereum with PayPal is a great choice. It lets you use some of the best crypto exchanges worldwide, giving you their platform perks along with the convenience of PayPal as your payment method. You can easily deposit funds into your chosen cryptocurrency exchange using PayPal.
Since the best-of-class crypto exchanges like Crypto.com, Binance, and Coinbase are all centralised changes, they can have KYC, which in turn enables a platform like PayPal to be interoperable with such exchanges.
Depositing funds into your account via PayPal is easy and efficient. You need to link your current PayPal account to the platform you want and deposit the money.
Conclusion
In this How to Buy Ethereum with PayPal guide, we have closely evaluated the intricacies and nuances of which exchange is the best and why to buy Ethereum with PayPal. Exploring the world of cryptocurrency and making your first purchase can be overwhelming.
However, PayPal offers a simple and efficient way to buy ETH and other popular cryptocurrencies, which is especially helpful for beginners who don’t have the necessary skills to trade on a crypto exchange or broker. On the other hand, if you choose the right crypto exchange, you should be able to buy ETH without any issues.