Cryptocurrency adoption continues to accelerate, and one of the most trusted digital payment platforms—PayPal—has officially entered the space. For users seeking a secure, familiar, and regulated way to access digital assets, PayPal offers a streamlined experience for buying, holding, and selling major cryptocurrencies. This guide walks you through everything you need to know about using PayPal for crypto transactions in 2025.
Why PayPal’s Entry Matters for Crypto Users
As a globally recognized payment processor, PayPal brings legitimacy and ease of use to cryptocurrency investing. Unlike traditional exchanges that may feel complex or intimidating, PayPal integrates crypto functionality directly into its existing app and website interface. This lowers the barrier to entry for mainstream users who want exposure to digital assets without managing private keys or navigating decentralized platforms.
Currently, PayPal supports four major cryptocurrencies:
- Bitcoin (BTC)
- Ethereum (ETH)
- Bitcoin Cash (BCH)
- Litecoin (LTC)
While you can't yet transfer crypto off-platform, the ability to buy, sell, and hold within a trusted financial environment is a significant step forward.
👉 Discover how to start your crypto journey with confidence today.
How to Buy Cryptocurrency on PayPal
Purchasing crypto via PayPal is designed to be intuitive—even for beginners. Here's a step-by-step walkthrough:
Step 1: Access the Crypto Feature
Log in to your PayPal account via the mobile app or visit paypal.com/myaccount/crypto/. Look for the “Crypto” tab on the home screen or navigation menu.
Step 2: Choose Your Cryptocurrency
Select from the available options: BTC, ETH, BCH, or LTC. Each coin displays real-time pricing and market data.
Step 3: Enter Purchase Amount
You can choose a specific dollar amount or set a custom quantity. PayPal uses dynamic pricing with a built-in spread, so always review the final cost before confirming.
Step 4: Select Payment Method
Supported funding sources include:
- Linked bank account
- Debit card
- PayPal balance
Note: Credit cards are not accepted for crypto purchases due to regulatory and risk policies.
Step 5: Confirm and Buy
Review transaction details including fees and exchange rate. Click "Buy Now" to complete the purchase. The acquired crypto will appear in your PayPal wallet instantly.
🔒 Important: Cryptocurrency held in your PayPal account is custodial—meaning PayPal manages the private keys. If self-custody is important to you, consider transferring funds (once withdrawal features launch) or using non-custodial wallets.
How to Sell Cryptocurrency on PayPal
Selling works similarly to buying and allows you to convert your digital assets back into fiat currency seamlessly.
Step-by-Step Selling Process:
- Go to the Crypto section in your account.
- Select the asset you wish to sell.
- Tap "Sell", then enter the amount.
- Choose your preferred payout method (e.g., linked bank account).
- Review tax implications and confirm the transaction with "Sell Now".
Funds typically arrive in your balance within minutes and can be used for online purchases or withdrawn to your bank.
Are There Fees for Using Crypto on PayPal?
Yes—PayPal applies a transaction-based service fee that varies by purchase size. While holding crypto incurs no fees, trading does involve costs:
| Purchase Amount | Estimated Fee Range |
|---|---|
| Under $25 | ~2.3% |
| $25–$75 | ~1.8% |
| Over $200 | ~1.5% |
💡 Pro Tip: Larger single purchases often result in lower effective fees than multiple small buys. Strategically timing higher-value transactions can help reduce overall costs.
👉 Maximize your returns with smarter trading strategies.
Can You Transfer Crypto From PayPal?
As of 2025, you cannot export private keys or transfer cryptocurrency to external wallets. All holdings remain on PayPal’s platform. This limits full ownership and interoperability with DeFi apps or NFT marketplaces.
However, rumors suggest future support for withdrawals may be under development. Until then, users seeking full control should explore alternative platforms that support direct wallet integration.
Alternatives: Platforms That Accept PayPal for Crypto Purchases
While PayPal restricts transfers, several third-party services allow you to use PayPal funds to acquire transferable crypto:
1. Coinbase
Allows limited PayPal linking for fiat deposits, which can then be used to buy crypto available for withdrawal.
2. eToro
Supports PayPal deposits and enables direct Bitcoin trading. Profits can be moved within eToro’s ecosystem or withdrawn as fiat.
3. xCoins
A peer-to-peer lending platform where users fund Bitcoin-backed loans via PayPal. After repayment, borrowers receive BTC directly into their personal wallets.
4. LocalBitcoins & Paxful (OTC Markets)
These over-the-counter platforms connect buyers and sellers directly. Some vendors accept PayPal payments in exchange for Bitcoin—though caution is advised due to fraud risks.
Why Don’t More Exchanges Support PayPal?
Despite its popularity, many crypto platforms avoid PayPal integration due to two primary concerns:
High Transaction Fees
PayPal reportedly charges some merchants up to 10% per transaction, making it economically unviable for high-volume traders.
Chargeback Risks
Unlike blockchain transactions, PayPal allows buyers to dispute charges—even after crypto has been delivered. Since crypto transfers are irreversible, sellers bear the loss if a buyer files a fraudulent claim.
This creates a dangerous imbalance: a dishonest buyer could receive Bitcoin and get a refund through PayPal, leaving the seller with zero recourse.
Frequently Asked Questions (FAQ)
Q: Is it safe to buy crypto on PayPal?
A: Yes. PayPal employs strong encryption, two-factor authentication, and fraud monitoring. However, because it’s custodial, you don’t fully own the private keys.
Q: Does PayPal report crypto activity to tax authorities?
A: In most jurisdictions, including the U.S., PayPal issues Form 1099-K for qualifying transactions, meaning your trades may be reported to the IRS.
Q: Can I use PayPal to buy crypto outside the U.S.?
A: Yes—PayPal has expanded crypto services to several international markets, including the UK and parts of Europe, though availability varies by region.
Q: Are there daily purchase limits?
A: Yes. Unverified accounts face lower caps (e.g., $500/week), while verified users can buy up to $100,000/month depending on location and history.
Q: Will I ever be able to send crypto from PayPal to another wallet?
A: Not currently—but industry experts anticipate this feature may roll out as regulations evolve and user demand grows.
Q: Can I earn interest on crypto held in PayPal?
A: No staking or yield-generating features are available yet, unlike platforms such as OKX or Coinbase Earn.
Final Thoughts: Pros and Cons of Using PayPal for Crypto
✅ Advantages
- User-friendly interface ideal for beginners
- Strong security and consumer protection
- Instant purchases using familiar payment methods
- No fees for holding crypto
❌ Limitations
- No private key access or external transfers
- Limited selection of supported coins
- Higher fees compared to direct exchange trading
- Risk of chargeback abuse affects broader ecosystem
👉 Explore advanced tools for greater flexibility and control over your digital assets.
Conclusion
PayPal has made cryptocurrency accessible to millions by integrating it into a trusted financial platform. While restrictions like non-transferability and custodial ownership remain, its role in driving mainstream adoption is undeniable. As infrastructure evolves, expect enhanced functionality—including potential support for withdrawals and expanded coin listings.
For now, PayPal serves as an excellent starting point for new investors who prioritize simplicity and security over decentralization. As your confidence grows, consider diversifying across self-custody wallets and feature-rich exchanges to unlock the full potential of the crypto economy.