Every time there is some hype surrounding Bitcoin, people who are new the cryptocurrency always want to know a few things right off the bat. These questions often include "how to buy Bitcoin with a credit card", "fastest way to buy Bitcoin online", or even "how to buy Bitcoin using Paypal". I get asked these questions a LOT, and I try to do my best to help, but also educate at the same time. In this day and age where you can buy just about anything with your Paypal card, unfortunately Bitcoin is NOT one of those things. I take a look at why you can't really buy Bitcoin with Paypal and some of the workarounds that people try to shill that just don't work that well (even though there is 1 option that does work to buy Bitcoin with Paypal.
Why Can't You Buy Bitcoin With Paypal
The problem starts with people wanting to buy Bitcoin fast. I totally understand this desire, after all, we have gotten really used to "everything on demand". When you get that intense fear of missing out wash over you, all you want to do is pull the trigger on a nice buy order for some Bitcoin without having to jump through all the hoops of getting an exchange account, KYC, etc.
If only Paypal would let you buy Bitcoin right?!? Here is why they don't: Chargbacks
Like most credit card processors, Paypal offers the protection of "chargebacks" where if a customer complains that they did not receive an item or service that they used their Paypal to pay for then there is a good chance that they will get their money back and the merchant is out of luck. Companies like this tend to side on the buyers side and it's this very "protection" that prevents Paypal with being ok with buying Bitcoin with their service.
Because Bitcoin is pseudonymous (or "somewhat anonymous "), a devious buyer could say they never received their Bitcoins for a purchase they made and end up getting their money back PLUS the Bitcoin if they complained to Paypal about the situation. They would then end up with both their money and the Bitcoin and there would be no real way that Paypal could track any of this even though the Bitcoin blockchain is private.
Paypal does not accept Bitcoin because of scammers using this chargeback protection to dupe people out of their Bitcoin. They don't want to be responsible for the mess. I understand this, but it does leave many people wondering about how they can buy Bitcoin easily with their Paypal or credit card.
Workarounds For Buying Bitcoin With Paypal
While you can't buy Bitcoin directly using Paypal, you can try some workarounds. There are a few ways that some other sites have talked about, but ultimately none of them work.
A service called VirWox used to allow you to buy Bitcoin with Paypal, but they ceased this ability in 2018.
eToro lists Paypal as an option on their website to fund your account, but ultimately it does not work for US citizens and I doubt it works for anyone else.
It's pretty much a fail at every turn, but this is because you are trying to deal with 3rd parties to make this happen.... Bitcoin is all about "peer-to-peer" transactions and that is really the way you need to go here for a workaround.
The only real option is using a website like LocalBitcoins to find a seller that is reputable in your area and make a direct transaction with them. While not all sellers will accept Paypal (and if they do you will probably have to have a good reputation on the platform already), you can find a few that will let you use Paypal to make purchases.
LocalBitcoins is a highly reputable site, but without your OWN reputation on there then buying Bitcoin with Paypal is going to be almost impossible. While this p2p method technically works great (especially if you are using another method besides Paypal), I think if you are buying Bitcoin for your first time it's better to be patient and jump through a few of those hoops I mentioned earlier.
While it won't satisfy that FOMO, you will learn a lot more about the ecosystem while registering for an exchange account or opening your own wallet and it gives you time to think things through instead of giving in to that impulse buy feeling.
How To Buy Bitcoin Fast With A Credit Card
If you absolutely need to buy Bitcoin quickly, then you might be better off using a credit card. Buying Bitcoin with a credit card can be a super fast way to jump in the game, but you are going to pay some high fees for this type of move. I always recommend being patient and going with the lowest fees to buy Bitcoin as I recommend in this article. If you really need to buy Bitcoin with a credit card here are the best 2 options in my opinion.
- Binance - They now allow you to purchase XRP with a credit card, Bitcoin with a credit card, Ethereum with a credit card, LTC & also BCH with a credit card. The fees are 3.5% per transaction or 10 USD whichever is greater. I do like that they quote you the total including the fee on their simple buy screen. Binance is my number one place to trade crypto and I highly recommend it. (this is my affiliate link, thanks for your support!)
- CEX - This is one of the oldest exchanges in the crypto business and they are also one of the only exchanges that has never been hacked! CEX was actually the first exchange I ever used back in 2013. They allow you to buy multiple cryptocurrencies with a credit card including: Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Bitcoin Gold, Dash, XRP, Stellar, and ZCash. Their fees are 2.99% for USD deposits, but do keep an eye on the withdraw fees. (this is my affiliate link, thanks for your support!)
I hope that helped to shed come light on why you can't really buy Bitcoin with Paypal. There are some other fast options out there, but always remember to do your own research and be patient. Educating yourself will always pay off greater in the long run.
"You can give a man a Bitcoin, and he can sell it for profit today. Or, you can teach a man to hodl Bitcoin, and he can be profitable well into the future".
'Stache That Crypto Friends!