5 Best Ways to Buy Ethereum With PayPal in 2024

What Is Paypal? An Overview

PayPal is a safe and simple way to transfer money online. You can send and receive money to and from people anywhere in the world, as well as pay for online purchases. Transfers and payments can be made in a matter of seconds with PayPal.

You can set up a personal account on the PayPal website. You will then be able to receive funds from other PayPal users, which will go into your PayPal balance. If you want to add a funding source, you will need to go to the Wallet section and click “Link a bank” or “Link a card”, and then enter your account details.

Buying Ethereum Without Verification Using PayPal

All the platforms reviewed in this guide are regulated and, as such, require their users to complete identity verification as part of their KYC process. If you want to use PayPal to buy ETH without going through verification, you will need to use an unregulated platform that doesn’t require KYC, such as a P2P marketplace. You would also need to acquire a PayPal balance by receiving payments in PayPal, as verification is required if you want to add a funding source to your PayPal account.

Why Should I Buy Ethereum With PayPal?

There are a number of reasons why you might want to buy ETH with PayPal. Some of the most important are explained below.

Security

The good thing about selecting PayPal as the payment method on a crypto platform is that the platform won’t receive your bank or card details as PayPal doesn’t share this information when it processes the payment. Your data will be secured with end-to-end encryption.

PayPal provides buyer protection for many purchases and has measures in place to detect fraudulent transactions and freeze your account if they occur. On top of this, you can set up two-factor authentication with a PayPal security key.

Speed

Unlike with some alternative payment methods, you won’t need to wait for funds to clear when you pay with PayPal. You can make a payment in a matter of seconds and receive your ETH pretty much instantly.

Ease of use

You won’t need to have your bank or card details to hand whenever you make a payment with PayPal, as PayPal already has this information stored. All you need to do to buy ETH with PayPal is fill in your PayPal password, making it one of the most convenient ways to pay.

Faster Withdrawals

Some withdrawal methods are a slow process—you could even end up waiting days for your funds to reach your account. Thankfully, this isn’t the case when you select PayPal as your withdrawal method. With PayPal, you can receive your withdrawn funds almost instantly.

Reliability

PayPal has been around for a long time and attracted hundreds of millions of users. It is a Fortune 500 company with a strong reputation and industry-best security. As a result, PayPal’s many users view it as a reliable way to make payments.

Easy KYC

It doesn’t take long to verify your identity on PayPal. Once you click on the “Complete Your KYC” button, you’ll need to upload an image of your passport and proof of address, such as a utility bill or bank statement. This should only take a matter of minutes, and PayPal will verify your identity within two working days.

Acceptance

If you want to use a payment method other than credit/debit card or bank transfer, you may find that your choice of crypto platforms is limited. But PayPal is one of the more widely accepted payment methods after card and bank accounts, especially in the US.

Buying Ethereum Direct vs Crypto Exchange vs P2P

As you’ve seen above, there are a few different ways to buy Ethereum with PayPal, each with its own benefits and drawbacks. We’ll discuss each in more detail below.

Directly on PayPal

If you already have a PayPal account, buying ETH directly on PayPal is one of the easiest options, as you don’t need to set up an account on a crypto platform and learn how to use it.

PayPal’s electronic money and payment services are regulated, which may give users peace of mind. However, PayPal hasn’t provided any information about how it secures the omnibus accounts where it stores users’ crypto.

PayPal provides a smooth user experience and is easier to navigate than more technical crypto platforms. The limited choice of cryptocurrencies and lack of advanced trading features may leave more experienced users disappointed, though.

What’s more, the fees for buying ETH on PayPal could work out higher than on other platforms. The lowest possible transaction fee on PayPal is 1.5%, but this rises to a significant 50% if you only want to purchase £1 of ETH.

Crypto Exchange

For many users, crypto exchanges represent the best way to buy ETH with PayPal as they have affordable trading fees and deposit minimums, as well as all the tools and features you need.

If you choose to use a regulated crypto exchange, you will likely receive the best service and the strongest security. Regulated exchanges protect their users with security measures such as offline storage, crypto-insurance, two-factor authentication, and data encryption.

Crypto exchanges also tend to provide the smoothest user experience of any platform type. Major exchanges have high liquidity, so trades can be executed very quickly. They also often have tools for technical analysis, and many have added services for earning interest on your ETH and other coins.

One of the best crypto exchanges is eToro, as it is easy to use and accessible, with a low minimum deposit and transparent trading fees. It also has strong security, regulatory licenses, and unique social investing features, such as copy trading.

P2P

Those who don’t want to complete KYC may find P2P marketplaces to be the best platforms for buying ETH. There are no fees when trading P2P, but as the seller sets the price, you won’t necessarily get the best deal.

One of the downsides of P2P platforms is that they are generally unregulated. Escrow provides some security as it enables you to wait until you receive your ETH before releasing the payment. However, users should exercise caution and watch out for possible crypto scams.

The buying process is less user-friendly than on an exchange as the buyer needs to select a seller and send the payment through escrow. Buying ETH on an exchange is a much faster and simpler process.

Another drawback to P2P platforms is that they don’t tend to provide features like charts, technical analysis tools, or wallet custody. However, if you are using Binance P2P, you can still take advantage of the charting tools, exchange wallet, and earning products on the main Binance platform.

Going Through a Crypto Broker to Trade Ethereum With PayPal

If you want to potentially profit from Ethereum price changes without actually owning and having custody of any Ethereum, then a crypto broker is the way to go. They charge a spread and sometimes a commission when you trade Ethereum CFDs. However, they may require a higher deposit than crypto exchanges.

The best brokers provide strong security and have all the necessary licenses to operate in the countries they serve. They have a responsibility to prevent market manipulation and are often insured.

An attractive benefit of brokers is that they are often rich in features, with all the charting tools and technical analysis aids that the experienced trader needs. Beginners, on the other hand, may find some broker platforms too technical. As CFDs are high-risk instruments, they should only be traded by people with the necessary experience.

Buying Ethereum Anonymously Using PayPal

The main way that people buy ETH anonymously with PayPal is on P2P marketplaces. Users still need to complete KYC to access Binance P2P, but there are other P2P platforms that don’t require KYC, such as Paxful. Some of the sellers on Paxful will sell ETH to users who haven’t verified their identity, and some of those sellers accept PayPal.

You could use a separate email address to create an anonymous Paxful account, and PayPal doesn’t share your payment information with Paxful. However, you will still need to verify your identity on PayPal if you want to connect a funding source.

You can avoid verifying your identity on PayPal if you don’t connect a funding source. This means to use PayPal anonymously, you would need to set up an account with fake details and then receive payments to your account. You could then pay for ETH purchases with your account balance, without completing verification.

However, it can be dangerous to trade on unregulated P2P platforms and potentially leave you vulnerable to scams. Trading anonymously is unnecessary for most people, as in most countries, it is perfectly legal to buy ETH. It is therefore much safer and easier to spend a few minutes verifying your identity on a regulated platform, which will provide you with better security and services.

Global Regulations for Buying Ethereum With PayPal

To meet regulatory requirements, most brokers and exchanges now have a Know Your Customer process for ID verification. This generally involves providing personal information and contact details and then verifying this information by providing an image of a photo ID and some form of proof of address, such as a utility bill. In some cases, the process may involve facial recognition software.

There are also laws on Anti-Money Laundering (AML) that regulated crypto platforms must follow. PayPal is also affected by these laws as it is a financial services provider. This is why PayPal users must verify their identity before they can access all of PayPal’s services.

Ethereum in the United Kingdom

All cryptocurrencies are unregulated in the UK, including Ethereum, which means that if crypto users lose their funds or fall victim to a scam or hack, they’re unlikely to be able to access the Financial Ombudsman Service or the Financial Services Compensation Scheme.

However, buying Ethereum is perfectly legal in the UK, and some crypto platforms, like eToro and Coinbase, are regulated by the FCA. Buying Ethereum with PayPal in the UK can be difficult, though, as many platforms don’t offer PayPal deposits to their UK users.

Financial services providers that operate in the UK are overseen by the European Joint Money Laundering Steering Group and must comply with the Money Laundering Regulations 2017. This means that regulated crypto platforms require UK users to verify their identities.

Ethereum in the USA

Securities laws around cryptocurrencies, including Ethereum, are still evolving at the federal level. The SEC doesn’t consider Bitcoin a security, but other cryptocurrencies like Ethereum could be declared to be securities. If a crypto platform is deemed to be dealing in securities, it will need to make its order books audit-compliant and register as a broker-dealer.

The Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) laws already apply to crypto platforms, and they must register with FinCEN in order to operate legally in the US. Users who have verified their identities can then use these platforms to purchase Ethereum legally, and a number of platforms allow US users to pay with PayPal.

Cryptocurrency laws can also be passed at the state level, and rules can therefore vary from state to state. Maryland and Hawaii, for example, have warned investors against crypto, while Wyoming and Colorado have passed more crypto-friendly laws.

How Much Does It Cost to Buy Ethereum Using PayPal? What Are the Fees?

Unless currency conversion is involved, PayPal doesn’t charge any fees for paying for purchases via PayPal.

PayPal does charge a fee, however, when you purchase ETH directly on PayPal. The price quoted includes a spread, and there will be an additional transaction fee. The fees are as follows for UK customers.

If using PayPal to pay on another crypto platform, there may be a fee for deposits, purchases, or both. These are summarised in the following table.

Brokers and exchanges may also charge a trading fee or commission on each trade you make. For example, eToro charges 1% plus spread and Coinbase 0.6% plus the spread.

Binance doesn’t charge any fees on its P2P platform, but this doesn’t necessarily mean it’s the cheapest option. Each seller decides the price that they’re willing to sell at, so it could include a hefty markup.

Is Using PayPal the Best Way to Buy Ethereum?

There are a number of other payment methods you can use to buy Ethereum. Each has its own benefits and drawbacks, so which one is best will likely depend on your priorities. Some of the most popular alternatives are discussed below.

What are the alternative methods to buy Ethereum?

Credit Card

Buying Ethereum with a credit card is a popular option as credit cards are almost universally accepted. They are also a convenient option as they give you the flexibility to pay later or in installments, as long as you are happy with the fees and interest payments.

Debit Card

Debit cards represent another popular method of buying Ethereum. They are as widely accepted as credit cards but don’t have any fees or interest payments. They also don’t provide flexible settlement, so you will need to have the necessary funds in your account.

Bank account

Bank transfers are accepted by a wide variety of crypto platforms and are a popular choice as they are often the cheapest option. They can be less convenient, however, as it can sometimes take days for your funds to clear.

Skrill

Skrill is a digital wallet and e-money transfer service. It’s a convenient way to make fast and secure online payments. Though less widely accepted than the above methods, you can use Skrill to make free deposits on eToro.

What Are the Limitations When Buying Ethereum With PayPal?

Many crypto platforms don’t accept PayPal, so you could be limited in which platforms you can use with PayPal. This page details some of the few platforms that accept PayPal, but your location may limit your choice further. In the UK, for example, you can’t make PayPal deposits on eToro or Coinbase, but you can still buy ETH directly on PayPal.

When it comes to the limits on PayPal transactions, the maximum amount you can send is $60,000, but for a single transaction, you could be limited to $10,000.

Each crypto platform also imposes its own limits on how much you can deposit and buy. Both are $10,000 on eToro and $25,000 on Coinbase.

The minimum deposit and purchase amount are $10 on eToro, while Coinbase has a minimum deposit of $50 and a minimum purchase size of $2. PayPal lets you purchase as little as $1 of crypto directly on its platform.

There aren’t any overall limits on Binance P2P as each seller decides their own minimum and maximum.

When buying ETH directly on PayPal, you will be limited in the number of other cryptocurrencies you can buy. You will also be limited by the lack of access to charting tools, trading features, and ways to earn interest.

What Should I Look For in a Platform When Buying Ethereum With PayPal

Apart from whether a platform accepts PayPal, there are other things you’ll want to consider when deciding which platform to use. Some of the most important factors are discussed below.

Deposit and withdrawal fees

As well as the trading fees charged, you should check what the deposit and withdrawal fees are as these could potentially eat into your profits. Many platforms will only charge for either deposits or withdrawals.

While some platforms may have a flat fee for all deposits/withdrawals, on other platforms, you may find that the fee depends on your currency and payment method.

Speed of Platform and Transactions

When putting your own money on the line, you want to have a smooth trading experience. A poorly engineered trading platform that constantly lags and buffers can be very inconvenient. It’s also a good idea to select a platform with high liquidity as this should ensure that any buy or sell orders you create are filled instantly, enabling fast trading.

Reputation of Platform

Platforms earn a good reputation for a reason. It tends to mean that they have been operating reliably for some time and users are satisfied with the services they provide, such as features, security, and customer support. You can check ratings and reviews of platforms to get an idea of their reputation.

Security

Security is of the utmost importance as you will be trusting a platform to look after your funds and personal information. Strong security features that you should look for in a platform include cold storage, crypto-insurance, data encryption, address whitelisting, and two-factor authentication.

Licenses and regulations

A good sign that a platform is safe is if it has all the necessary licenses to operate in your country. In order to grant these licenses, regulators require that platforms meet certain standards with regard to security and anti-money laundering.

Usability

You’ll want to find a platform that is intuitive and enjoyable to use, especially if you are going to be spending a lot of time using it. Depending on your priorities, this could mean choosing a platform that is very easy to navigate or one that provides a variety of advanced features.

KYC Requirements

All regulated platforms will have a KYC process that users must complete, so it is worth checking what this entails and getting everything ready in advance. You will almost certainly need a photo ID, and the platform may give you a choice of ID types that are accepted.

Some platforms will also require proof of address, like a utility bill or bank statement. Some platforms can verify your identity in a matter of minutes, while others may take a couple of days.

Further Useful Tips for Buying Ethereum With PayPal

Finding the Cheapest Option

Most people want to get the best deal when they buy something, and Ethereum is no different. If you look at a few different platforms, you’ll likely find that Ethereum is trading at slightly different prices on each. With this information, you can tell which platform has the best exchange rate.

However, this won’t necessarily be the cheapest option overall. The prices on P2P platforms already include a mark-up and you won’t pay anything on top of that. But on exchanges, brokers, and PayPal, you may be charged a trading fee or commission on your purchase, so check the rates in advance. You could also be charged fees for deposits, withdrawals, inactivity, and account management on some platforms.

Safely Storing Your Purchased Ethereum

You should also think about Ethereum wallets, as you’ll want to keep your Ethereum somewhere safe once you’ve purchased it. The best place to store your Ethereum will depend on how much you have and what you want to do with it. Hardware wallets are the best option for long-term investors with large holdings as they provide the best security, although they can be a bit pricey.

Software wallets are another option that is reasonably secure, as your private keys will be stored on your device. Web wallets are the least secure option, but are the most convenient for regular traders or small investors who don’t want transfer fees to eat into their investment. Regulated platforms, like the ones on this page, provide the best web wallets as they store a significant amount of user assets offline to protect them from hackers.

Staying Safe

Whatever payment method you decide to use, you should do everything you can to keep your accounts secure. Use a strong and unique password for your PayPal account and set up two-factor authentication for extra protection.

You should also take advantage of all the security features offered by your Ethereum platform, such as 2FA and address whitelisting. To ensure you will be well protected, you should only use regulated platforms that implement strong security measures, like cold storage, encryption, and asset insurance.

Final Thoughts on Buying Ethereum With PayPal

PayPal is becoming an increasingly popular way of purchasing Ethereum due to its speed and convenience. Although PayPal is still not accepted in certain countries or on certain platforms, the best PayPal-accepting platforms are detailed on this page.

Overall, we believe that eToro is the best option for buying ETH with PayPal as it doesn’t charge any fees for PayPal deposits. On top of this, it has achieved a strong reputation and provides a secure and user-friendly environment for buying Ethereum and many other assets, with access to unique social investing features.

Methodology - How We Picked the Best Platforms to Buy Ethereum With PayPal

We want you to be able to trust the information we provide and use it to help you make the right decisions for you. This is why we have quality control processes and thoroughly test the platforms we review.

When researching platforms, we test a wide range of aspects, including registration, how to deposit, trading and assets available, speed, fees, regulation, security, compatibility, features, educational content, and customer support.