How to Buy Bitcoin With PayPal in the UK

The conventional ways of purchasing Bitcoin around the world are with credit/debit cards or bank transfers. Therefore, many crypto exchanges don’t offer the option to Buy Bitcoin with PayPal.

If you find one that does, they usually have quite high fees. This guide will walk you through each step on the best exchanges to buy Bitcoin with PayPal in the UK.

The best options for UK users include:

  • PayPal
  • eToro
  • LocalBitcoins
  • Paxful

Places to Buy Bitcoin With PayPal in the UK

1. PayPal

Buy Bitcoin with PayPal in the UK with paypal

PayPal is an American multinational payment service and is one of the largest electronic payment companies in the world. Meanwhile, the easiest and simplest way to buy Bitcoin with PayPal in the UK is via PayPal itself. 

PayPal offers several digital payment solutions, including bank and credit card payments. However, the company went one step further by incorporating crypto services for UK users in 2021.

Meanwhile, PayPal continues to be one of the most used payment platforms with a simple and comprehensible user interface. That being said, it is a perfect option for traders, especially beginners looking to buy Bitcoin with PayPal in the UK.

Apart from BTC, PayPal offers Ethereum and some other popular coins. It also allows you to buy as low as £1.

Paying with PayPal has a downside, though, as its transaction fees are exceptionally high. With PayPal, you will be paying at least 1.5% on each purchase.

The breakdown is as follows:

Amount Transaction Fee
£1.00 – £24.99 £0.50
£25.00 – £100.00 2.30%
£100.01 – £200.00 2.00%
£200.01 – £1000.001.80%
> £1000.01 1.50%

Another disadvantage is the fact that users cannot withdraw their assets, including Bitcoin, to any other external wallet. So, PayPal is like a closed crypto marketplace, making it useless for long-term holders and investors.

Even though holding crypto assets in PayPal will surely expose assets to unwanted and explosive price movements, there are other alternatives where you can quickly get your crypto with PayPal without any restrictions.

How to Buy Bitcoin With PayPal?

Buying BTC on PayPal is easy. However, before you purchase your first crypto assets, you must agree to the terms and conditions and provide additional information about yourself.

Additionally, there’s the KYC verification, which is normal since you’ll do that in their exchanges too.

Once you’ve set up your PayPal account for crypto purchases, you can buy your Bitcoin by following these steps:

  • Log in to your account by visiting Paypal.com and clicking the “log in” button on the top bar.
  • On your dashboard, go to the CRYPTO tab.
  • Choose BTC as the crypto asset you want to buy.
  • Click “BUY”.
  • Input the desired amount of BTC.
  • Choose the preferred payment method, which could be a card or Bank Transfer.
  • Ensure you check the transaction details, including fees and rates
  • Press “AGREE” and “BUY” to continue.
  • Once your transaction has been confirmed, the equivalent value of Bitcoin will be added to your account.

2. eToro

eToro is a long-standing crypto and brokerage platform. Based in Israel, eToro is one of the earliest financial trading platforms in the world, although it started offering crypto trading services in 2017.

Primarily, eToro is based on stock, forex, and ETF trading. Its years of experience have made it one of the biggest names in the crypto trading sphere. It supports more than 40 crypto listings including Bitcoin, Ethereum, and other popular cryptocurrencies.

eToro is known to be one of the few exchanges that offer many electronic payment methods, including PayPal for trading and buying cryptocurrency. They also allow their users and traders to withdraw their cryptocurrencies.

Withdrawals, however, come with one downside, namely that you will have to wait for several days, depending on the payment method, up to 2 months to receive it.

Apart from the wide payment service offering, it also offers Bank Transfer and Card payment methods.

Another benefit of using eToro is the advanced trading and investment tools they offer. eToro features a unique trading tool called CopyTrader and CopyPortfolio. This tool allows newbies and less experienced traders to invest and copy trades of the top traders on the platform.

However, they have one downside and that is their exorbitant trading fee. While eToro does not charge any trading commission, its large spread on assets makes it more expensive than other crypto platforms. The spread on BTC is usually 0.75%. This can go as high as 5%, especially for coins with lower liquidity.

Also, eToro’s exchange rate for GBP to BTC transactions is also higher than other reputable marketplaces like Coinbase Pro and Kraken.

Visit eToro here!

How to Buy Bitcoin With PayPal on eToro?

As we know, using a bank transfer or credit card is a very fast and easy method of buying Bitcoin or crypto assets. PayPal, on the other hand, is slightly different and more complex.

To buy Bitcoin with PayPal in the UK with eToro, you need to follow these steps:

  • Create or login into your trading account. Visit eToro here!
  • Head to the “CRYPTO” section.
  • Choose an appropriate market order or limit order.
  • Select the preferred amount of Bitcoin you’d like to trade.
  • Select PayPal as the preferred payment method.
  • Double-check transaction details, including the fees and rates.
  • Execute the order and confirm your transaction.
  • Once your order has been executed, you will receive the equivalent value of Bitcoin in your PORTFOLIO immediately.

If you used a limit order, your trade would be executed as soon as the price hits the marked point.

LocalBitcoins

This Finnish crypto exchange is one of the first P2P marketplaces in the world. It is also the largest and most reliable P2P marketplace.

Although some alternative P2P exchanges like LocalCryptos continue to lower their daily trading volume, it remains one of the most relevant P2P markets to buy Bitcoin with PayPal in the UK.

Trading with LocalBitcoins comes with zero trading fees for its users. This is because sellers usually pay the listing fee that covers the whole transaction. LocalBitcoins also provide tutorials and educational content for buyers and sellers, especially new users.

In addition, you can check out the seller’s stats such as release time, trading volume, feedback, and the total number of trades they’ve executed to make your choice.

There is one caveat with this method, their exchange rates for PayPal to Bitcoin are excessively high. It is usually listed with a 5-7% increase. Prior to purchasing the assets, you need to check the markups and listing price carefully.

Steps to Buying Bitcoin With PayPal in the UK on Local Bitcoins

Before buying Bitcoin on LocalBitcoins, users must create an active account and verify their email address. Afterward, they can head to the marketplace and find a suitable Bitcoin listing.

  • To do this, users must sign in to their account and enter the desired amount of BTC.
  • Then select the preferred fiat currency type.
  • Choose preferred country listing (UK).
  • Choose the preferred payment method as PayPal.
  • Confirm search to view available listing.

After hitting the search button, a list of available offers will be displayed. By using this, you can find the best listing from the options.

To start trading:

  • Carefully read the details of the listing before you proceed.
  • Ensure you verify and confirm the terms and conditions.
  • Input the preferred amount of BTC you would like to buy.
  • Contact the buyer and let them know you are ready for the transaction. Afterward, start the trade by clicking “OPEN THE TRADE”.
  • Complete payment via PayPal.
  • Go to the transaction page on LocalBitcoins and confirm the payment.
  • Wait for a few minutes so that the seller can confirm the payment receipt.
  • Afterward, the seller will release your assets from the escrow, and the equivalent value of Bitcoin will appear in your LocalBitcoins wallets immediately.

You can initiate a trade dispute if you have any issues or complaints about the transaction.

Paxful

Founded in 2014, Paxful is a peer-to-peer crypto exchange based in the UK. The exchange is one of the oldest and largest peer-to-peer exchanges in the world. It offers more than 300 payment methods for its users globally.

It also has a simple, user-friendly interface where more than 4.8 million registered users can easily buy their preferred cryptocurrency.

One perk of using the exchange is its numerous payment methods which include PayPal and several other electronic payment methods. There are also cross-border payment options, including MoneyGram and gift cards.

Additionally, there are options for bank transfers and even cash in person for location-based transactions.

Like other P2P exchanges, marked prices for crypto-asset, especially Bitcoin, are slightly higher. However, in contrast to LocalBitcoins, it provides better information on marked assets. Using this, users can compare the seller’s asking price to the normal market price.

Transaction or trading fees that range from 0.5% to 5% are paid by the sellers. Therefore, there are no hidden or additional trading fees when buying Bitcoin with Paxful. However, buyers must pay 0.0005 BTC for withdrawal transactions.

One of the disadvantages of trading Bitcoin with Paxful is its activity in the UK. Unlike LocalBitcoins, Paxful is not widely used in the UK. Therefore, users may have a few options to choose from in the marketplace.

Also, price markups to buy Bitcoin with PayPal in the UK are excessively higher compared to other exchanges or payment methods.

Steps to Buying Bitcoin (BTC) with PayPal in the UK With Paxful

Using Paxful for your crypto transaction needs is simple. However, since it is an open marketplace, buyers are always responsible for their actions, especially when dealing with sellers.

Therefore, you must deal diligently. You can, however, report any complaints about the transaction through a dispute.

  • To search for suitable offers, sign in to your account and head to the marketplace.
  • In the filter, select Bitcoin as the preferred currency.
  • You will be prompted to choose your preferred payment method. In this case, choose PayPal.
  • Enter the amount, and hit the” FIND OFFERS” button.
  • Scan through the listings and choose the best offer from a high-rated trader. You can also check their response time to avoid delay.
  • Once you’ve selected an offer, read the details of the offer, including important pinned messages.
  • Confirm your readiness to transact and proceed by entering the specific amount of Bitcoin you want to purchase.
  • Check transaction details and continue with “BUY NOW.”
  • Proceed to PayPal and complete payment.
  • Mark payment as COMPLETED on Paxful.
  • Once the seller confirms the payment, your Bitcoin will be released from the escrow.

This way, you can;

  • Send your payment to the seller via PayPal.
  • Mark your payment as complete in Paxful.
  • Wait for the seller to confirm receipt of payment to release your Bitcoin (BTC) from escrow.
  • Your Bitcoin (BTC) should be available for withdrawal as soon as the seller releases your funds from escrow.

If you have a problem with your order or if the seller refuses to release your BTC, you can raise a dispute in Paxful.

Doing so will notify Paxful’s customer service team, who will try to mediate your dispute and send the escrow funds to their rightful owner.

Thanks for checking out this article about how to buy Bitcoin (BTC) with PayPal in the UK! I hope its covered all your questions.

Team

Our UK-based team writes articles to help beginners understand the world of cryptocurrency. We are firm believers that Blockchain technology has great application in our future.

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