How To Convert PayPal Money To Bitcoin (2021 Update)

If you want to convert your PayPal money to Bitcoin then you have to buy Bitcoin using your PayPal wallet. You can directly buy Bitcoin from your PayPal account or you can use your PayPal account to buy Bitcoin from various Cryptocurrency exchanges. Some of the popular Cryptocurrency exchange platforms from where you can instantly buy Bitcoin with PayPal are Coinbase, Paxful, Etoro, xCOINS, and Wirex.

Key Takeaways

• Until, October 2021, PayPal users were not able to buy Bitcoin with PayPal, but, now PayPal users in the USA can buy, hold and sell Cryptocurrency with their PayPal account
• You should keep in mind that Bitcoins bought on PayPal cannot be transferred out of PayPal’s digital wallet
• Converting PayPal money to Bitcoin is only possible if you buy Bitcoin using your PayPal Money
• There are 6 legal ways available to buy Bitcoin from your PayPal wallet
• The maximum limits of buying Bitcoin from a PayPal wallet are $20,000 per month and $50,000 per year

Until, October 2021, PayPal users were not able to buy Bitcoin with PayPal. But, now PayPal users in the USA can buy, hold and sell Cryptocurrency with their PayPal account. Though, there are some limitations in this feature like the Bitcoins bought on PayPal cannot be transferred out of PayPal’s digital wallet. Despite that, it is a very convenient feature for people who have PayPal and want to buy & sell Bitcoin.

6 Ways To Convert PayPal Money To Bitcoin

Converting PayPal money to Bitcoin is only possible if you buy Bitcoin using your PayPal Money. There are 6 ways you can buy Bitcoin from your PayPal wallet. They are – 

1. Buy Bitcoin directly through PayPal

2. Buy Bitcoin with PayPal through Coinbase

3. Buy Bitcoin with PayPal through eToro

4. Buy Bitcoin with PayPal through LocalBitcoins

5. Buy Bitcoin with PayPal through xCoins

6. Buy Bitcoin with PayPal through Paxful

1. Buy Bitcoin Directly Through PayPal

In October 2020, PayPal launched their direct purchases of Bitcoin feature that enables the PayPal USA users to buy Bitcoin within the PayPal digital wallet, through a partnership with Paxos. Now PayPal users can hold Bitcoin on their wallets as well as use them to pay PayPal-supported merchants. The maximum limits to buy Bitcoin from PayPal wallet are $20,000 per month and $50,000 per year. While buying Bitcoin you might have to pay fees between 1.5% and 2.3%, depending on the size of the purchase.

How To Buy Bitcoin Directly On PayPal

1. First, go to the PayPal website or open the PayPal app on your mobile

2. If you don’t have a PayPal account then Sign up for a new account, or

3. Log in to your account by providing a valid mail id and password

4. Now click on the “Your crypto” section and from the drop-down menu select “Buy and Sell”

5. Then click on Bitcoin and “Buy”

6. Enter the amount of Bitcoin you want to buy

7. Select your payment method and click “Next”

8. Now check the conversion rate and transaction fee

9. Finally, click on the “Buy now” to complete the process

2. Buy Bitcoin With PayPal Through Coinbase

Coinbase is one of the most trusted cryptocurrency exchanges that started to accept PayPal as a payment system in 2021. But, unfortunately, it doesn’t accept payment directly from the PayPal wallet. You can only be able to pay through a debit card or bank account that is linked to their PayPal account. The best part of Coinbase is its highest daily limit of $25,000. The fees of each transaction in Coinbase are 4%.

How To Buy Bitcoin With PayPal Through Coinbase

1. First, log in to your Coinbase account

2. Now complete all identity document verification steps to add PayPal to the payment method

3. Then click on the Settings from the Menu

4. From the available options click Payment Methods

5. Then select Link a New Account from a computer or tap Add a Payment Method in the mobile app

6. Next, select PayPal from the available options and you will be prompted to log in to PayPal

7. Finally, log in to your PayPal account to complete the process

3. Buy Bitcoin With PayPal Through EToro

eToro is a multi-asset platform and it allows both investing in stocks and cryptocurrencies. Moreover, it is one of the easiest ways to buy Bitcoin with PayPal. But the problem with eToro is, you can easily buy Bitcoin but withdrawing them to your wallet will take an extensive amount of time and steps. Cryptocurrencies supported by eToro are – 

1. Bitcoin (BTC)

2. Ethereum (ETH)

3. Ripple (XRP)

4. Litecoin (LTC)

5. Bitcoin Cash (BCH)

6. Dash (DASH)

7. Ethereum Classic (ETC)

8. Cardano (ADA)

9. IOTA (MIOTA)

10. Stellar (XLM)

11. EOS (EOS)

12. NEO (NEO)

13. Zcash (ZEC)

14. Binance Coin (BNB)    

16. Deposit Methods of eToro are – 

17. Credit/debit card

18. Wire transfer

19. PayPal

20. Skrill

21. Neteller

22. Webmoney

23. Giropay

24. China Union Pay

25. Yandex

26. Local Online Banking         

How To Buy Bitcoin With PayPal Through EToro

1. First, log in to your eToro account

2. Then click on the Settings from the Menu

3. From the available options click Payment Methods

4. Then select Link a New Account 

5. Next, select PayPal from the available options 

6. Now log in to your PayPal account

7. Finally, when buying Bitcoin select PayPal as the payment option 

4. Buy Bitcoin With PayPal Through LocalBitcoins

LocalBitcoins is a marketplace where people can buy and sell Bitcoin. Here buyers and sellers can connect directly. So it means you are dealing with an actual person therefore you should check the seller’s credibility.

Buying Limits Of LocalBitcoins

1. T0 – Requires your name, country, email address, and phone number. The limit for trade is €1,000/year

2. T1 – Requires T0 + physical address, ID verification, and KYC info. The limit for trade is €20,000/year

3. T2 – Requires T1 + Proof of residence. The limit for trade is €200,000/year

4. T3 – Requires T2 + extra ID verification. There is no limit for trade     

Payment Methods Of LocalBitcoins

1. Paypal

2. Wire transfer

3. SEPA

4. Neteller

5 MoneyGram

6. Skrill

7. Cash deposits

8. Payoneer

9. Payza

10. WeChat

How To Buy Bitcoin With PayPal Through LocalBitcoins

1. First, register an account with LocalBitcoins

2. Next, add PayPal as a payment method

3. Then search for Bitcoin advertisements

4. Select an advertisement

5. Now make the payment using PayPal

6. Finally, mark “Payment Complete” to complete the process

5. Buy Bitcoin With PayPal Through xCoins

xCoins is a Bitcoin lending service that loan you Bitcoin instead of selling them. Here, you ask the xCoins to loan you some Bitcoin. Then you have to go through a short ID verification process. Then you will be requested to deposit the USD equivalent of how much you want to borrow + the transaction fees.

Supported Payment Methods Of xCoins

1. Debit and credit cards

2. Bank account (ACH)

3. eCheck

4. PayPal Credit

5. PayPal Balance   

How To Buy Bitcoin With PayPal Through xCoins

1. First, register an account in xCoins

2. Now choose the amount you want to buy

3. Next, agree to the loan agreement

4. In the next step, you have to verify your identity

5. Finally, make the payment using your PayPal balance

6. Buy Bitcoin With PayPal Through Paxful

Paxful is a similar platform to LocalBitcoins. It is a peer-to-peer marketplace that allows you to buy Bitcoin. The best part of Paxful is; it accepts lots of payment methods including Skype credits, Amazon gift cards, etc. Moreover, the process of buying Bitcoin is also very simple.

How To Buy Bitcoin With PayPal Through Paxful

1. First, register an account with Paxful

2. Next, add PayPal as a payment method

3. Then search for Bitcoin advertisements

4. Select an advertisement

5. Now make the payment using PayPal

6. Finally, mark “Payment Complete” to complete the process

FAQs About How To Convert PayPal Money To Bitcoin

References:

1. https://paxful.com/buy-bitcoin/paypal
2. https://www.paypal-community.com/t5/About-Payments-Archive/convert-paypal-to-bitcoin/td-p/910185

Last Updated on October 25, 2022 by Magalie D.