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5 Best Ways to Buy Ethereum With PayPal in 2024

By Ashish Sood - Updated 09 January 2024
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Ethereum is a decentralized blockchain platform that hosts many applications and cryptocurrencies, including its native token, Ether (ETH).

PayPal is becoming a popular way to buy Ethereum due to its speed, security, and convenience. If you want to buy Ethereum with PayPal, you have a few options—you can select it as the payment method when using an exchange or broker, use it to pay on a peer-to-peer (P2P) platform, or buy ETH directly on the PayPal platform.

Which method you opt for will depend on your personal preferences, but overall, using an exchange or broker will likely be the best option as they lead the way when it comes to security, accessibility, and features.

To help you make an informed decision, we’re going to discuss in detail five ways to buy Ethereum with PayPal and provide step-by-step instructions to help you get started.

How to Buy Ethereum With PayPal

The best way to buy Ethereum with PayPal is to use an online crypto exchange. This makes it quick and easy to use PayPal to purchase ETH and a range of other cryptocurrencies with your computer, smartphone, or tablet. You can find our top recommended platforms below, and follow these steps to get started.

1. Choose a platform

Pick a platform that meets all your criteria regarding aspects such as features, fees, and security. We’re going to take a more detailed look at the best platforms in the next section to help you choose. To get started now, you can pick one of our top three places to buy ETH with PayPal from the table below.

1
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5
Up to $240 bonus!
Build a diversified portfolio with crypto, stocks, and ETFs — all in one place.
Trade on the world's leading social trading and investing platform
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Description:
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Payment Methods:
Bank Transfer, Debit Card, PayPal, Credit Card, Wire Transfer
Full Regulations:
CySEC, FCA
2
Min. Deposit
$ 100
User Score
4.95
CFDs on BTC, ETH, LTC, NEO, XRP, IOTA, EOS, BAB, ADA, TRX, XMR
No need to open a crypto exchange account or use a special wallet
Regulated Broker - FCA, ASIC, CySEC (license number 250/14)
Visit Site
Description:
Plus500 is a leading provider of Contracts for Difference (CFDs), delivering Leveraged trading on +2,000 financial instruments, including Forex, Commodities, Indices, Shares, Options and Cryptocurrencies. CySEC license number (#250/14)
Payment Methods:
Bank Transfer, Debit Card, PayPal, Credit Card, Visa, Mastercard, American Express, Trustly, Apple Pay, Google Pay, Discover, Bank Transfer: SEPA, Bank Transfer: FPS, skrill
Full Regulations:
ASIC, FCA, FSA, MAS, CySEC #250/14
82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
3
Min. Deposit
$ 0
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User Score
4.8
Get insights from millions of investors, creators, and analysts
Build your portfolio of stocks, ETFs, and crypto–all in one place
No minimum deposit
Visit Site
Description:
Public is an investing platform that allows you to invest stocks, ETFs, crypto, and alternative assets like fine art and collectibles—all in one place.
Payment Methods:
Debit Card, Wire Transfer, Check, Bank Wire
Full Regulations:
Cryptocurrency execution and custody services are provided by Apex Crypto LLC (NMLS ID 1828849) through a software licensing agreement between Apex Crypto LLC and Public Crypto LLC. Crypto trading on Public platforms is served by Public Crypto LLC and offered through APEX Crypto. Please ensure that you fully understand the risks involved before trading.

2. Create and fund your account with PayPal

Click the sign-up button and fill in any details required on the registration form. You may be asked to upload an image of your photo ID to verify your identity. After that, go to the deposit page to fund your account. Select PayPal as the payment method, enter how much you want to transfer, and enter your PayPal password to complete the payment.

3. Buy Ethereum

Search your platform for the trading pair for ETH and your local currency. You can create a limit order if you want to buy ETH automatically once it reaches a certain price. Otherwise, you can use a market order to buy ETH immediately at the current price—just fill in how much you want and click the “Buy” button.

Table of Contents

5 Ways to Buy Ethereum With PayPal

Here are reviews of some of the best places to buy Ethereum with PayPal, along with step-by-step instructions on how to do so.

1. eToro – Overall Best Way to Buy Ethereum With PayPal

eToro is the best place to buy ETH with PayPal as it is a regulated platform with strong security. It also provides access to a variety of other asset types and has a unique range of social investing features.

How to Buy Ethereum With PayPal on eToro

1. Create a free account

Go to the eToro website and click “Join Now”. This will take you to the registration page, where you can fill in a username, email address, and password. Tick the boxes to accept the terms and conditions, then click “Create Account”.

eToro Step 1 Sign up

2. Verify your account

Click the link emailed to you to verify your email address and then complete your profile with further details such as your full name, date of birth, and address. You may have to upload a photo ID to verify your identity, and you’ll need to answer some questions about your investing experience before you can get started.PayPal Step 2 verify your account

3. Make a deposit with PayPal

You can make a deposit by using the “Deposit Funds” button and entering the amount you want to transfer. Click on the payment method and select PayPal from the dropdown list. You will be redirected, and you will need to fill in your PayPal password to complete the transaction.Coinbase Step 3 deposit with PayPal

4. Buy Ethereum

Use the search box at the top to find Ethereum and click on “Trade” next to it. In the box that pops up, simply enter how much you want to buy and click “Open Trade”. You also have the option to switch from Trade to Order if you want to buy ETH once it reaches a certain price.

eToro Step 4 buy Ethereum

Why Use eToro?

eToro has attracted millions of users around the world and a reputation for reliability over the many years it has been operating. It is highly trusted as a safe place to buy Ethereum as it employs top-tier security practices such as cold storage and encryption.

The platform is easy to use, making it a great choice for beginners, and there are no fees for making PayPal deposits. You can even practise trading ETH risk-free in your virtual account. There are charts and tools to help with research and analysis of Ethereum and eToro’s 70+ other coins, while you can also invest in other asset classes, such as stocks, indices, and ETFs.

eToro stands out from competitors by virtue of its social investing features. You can connect with and learn from other ETH traders, and even replicate the trades of professionals with the unique CopyTrader feature.

PayPal can’t be used for deposits in some of the countries that eToro serves, and there will be a $5 fee if you want to use PayPal (or any other method) for a withdrawal, but the crypto trading fees are transparent and competitive at 1% plus spread. Read the full eToro review here.

Pros

  • Quick and easy to buy ETH

  • Secure and regulated

  • Virtual account

  • Multi-asset platform

  • Copy trading

  • Free PayPal deposits

  • Mobile app

Cons

  • PayPal deposits unavailable in the UK

  • $5 withdrawal fee

2. Coinbase – Best Way to Buy Ethereum With PayPal for Beginners

Coinbase aims to make crypto accessible to everyone. Its easy-to-use interface, strong security, and low trade minimums make it ideal for beginners who want to buy ETH with PayPal safely.

How to Buy Ethereum With PayPal on Coinbase

1. Create a free account

Head to the Coinbase website and click on “Get Started”. Fill in your full name, email address, and password to create an account. You will need to click the verification link you receive by email and then enter your phone number and the verification code you will be texted.

Coinbase Step 1 sign up

2. Verify your identity

Provide some further information, such as your address and date of birth, and then answer some questions about your work and investment activities. You will need to provide a photo ID, which you can do in the Account limits section under Settings. Select your ID type and upload an image of your driving licence or state-issued ID.

3. Link your PayPal account

Click on “Add a payment method” in the Payment methods section under Settings and then select PayPal. You will need to log into your PayPal account when you are redirected. After that, US customers will be able to make PayPal deposits or fund purchases with PayPal.

Coinbase Step 3 link PayPal account

4. Buy Ethereum

Click on the “Buy / Sell” button at the top, select Ethereum, and enter how much you want. If you haven’t already made a PayPal deposit, you can select PayPal from the list of options under “Pay with”. Click on “Preview Buy” and then hit the buy button if you are satisfied.Coinbase Step 4 buy Ethereum

Why Use Coinbase?

Coinbase has a very clear layout, and the platform is easy to navigate, making it the top choice for many beginners. It’s also great for those who only want to invest a little in Ethereum, as the minimum order amount is just $2.

There is a good selection of over 150 other cryptocurrencies, and if you don’t want to miss anything, you can add Ethereum to your watchlist to get price alerts. You can also use the recurring buys feature if you want to use a dollar-cost averaging strategy.

You can access more advanced features such as customisable charts and technical indicators through the Coinbase Pro platform. What’s more, the trading fees are pretty competitive at 0.6% plus spread.

UK and European users can’t use PayPal to make deposits or purchases, but they can still cash out with PayPal. If you’re in the US, however, you can make PayPal deposits for a 2.5% fee, or buy ETH directly with PayPal for a 3.99% fee. Read our full Coinbase review here.

Pros

  • Easy to use

  • Buy as little as $2 of ETH

  • Over 150 other coins

  • Educational resources

  • Learn and earn campaigns

  • Set up recurring buys

  • Secure and regulated

  • Mobile app

Cons

  • High minimum deposit

  • PayPal deposits/purchases only available in the US

  • High fees for using PayPal

Sign up to Coinbase

3. Binance – Best Way to Buy Ethereum With PayPal Without Fees

With a huge array of cryptocurrencies and advanced trading features, Binance is a popular platform for experienced traders. Although you can’t make PayPal deposits on Binance, you can use PayPal as a payment method on Binance’s peer-to-peer (P2P) platform.

How to Buy Ethereum With PayPal on Binance

1. Create a free account

On the Binance website, click the “Register” button and then click “Sign up with phone or email” (alternatively, you can sign up with Apple or Google). You will then need to fill in your country, phone number or email address, and password. Then enter the verification code you receive by text or email.Binance Step 1 Sign up

2. Verify your identity

Select Identification from the menu under your user icon, and in the Identity Verification section, click “Verify” and select your country. Fill in some personal information, choose your ID type, and upload an image of your ID. You will then need to give Binance access to your webcam, so your identity can be verified through facial recognition.Binance Step 2 Verify identity

3. Add PayPal as a P2P payment method

Select the Payment tab on the left of your dashboard and click “Add a payment method”. You should be able to find PayPal under “More”. Enter the necessary information for your PayPal account and use your verification code to authenticate it.

Binance Step 3 add PayPal as a deposit

4. Buy Ethereum on Binance P2P

Under the Trade tab, click on Binance P2P and then select Ethereum. You can use the filters to set PayPal as the payment method, select your local fiat currency, and enter an amount and region if you wish. Next, choose a seller, click on the “Buy” button, and complete the PayPal payment by following the onscreen instructions.Binance Step 4 buy Ethereum

Why Use Binance?

Experienced traders will find Binance a great choice as there are more than 600 cryptocurrencies available in addition to ETH, as well as charts, technical indicators, and derivatives. Once you’ve purchased some ETH, there are also earning products, such as staking and savings accounts, that provide interest.

You can manage your account from anywhere with the Binance app, and if you’re new to crypto, there is a wealth of educational materials on cryptocurrencies and trading in the Binance Academy.

There are no trading fees when using Binance P2P, as you will be dealing directly with the seller. As the seller sets the exchange rate, you could still end up paying more than when buying elsewhere with fees, though. You can use the Express tab if you want a simplified P2P trading experience.

Escrow should give you some security, and you should not release your funds from escrow until you receive your crypto. You should still be cautious, though, when trading P2P and be vigilant for possible scams. Read the full Binance review here.

Pros

  • No fees on Binance P2P

  • Simplified P2P process for beginners

  • Funds secured with escrow

  • Earn interest on your ETH

  • Over 600 other coins

  • Technical analysis tools

  • Educational resources

  • Mobile app

Cons

  • Other P2P users may attempt to scam you

  • Price set by seller may be higher than other platforms

4. Buy Ethereum With PayPal on Skilling

Skilling leads the way when it comes to trading contracts for difference (CFDs). There is a wide array of crypto CFDs available on the platform for you to trade once you’ve made a PayPal deposit.

How to Buy Ethereum With PayPal on Skilling

1. Create a free account

In the top right corner of the website, click on the “Sign up” button. You will need to provide your email address, password, and country. Then, you can click “Sign up” to create an account.

2. Verify your identity

To verify your identity, you’ll need to fill in your phone number, tax number, employment information, and answer questions about your trading experience. You will also need to submit a photo ID and some form of proof of address, like a utility bill.

3. Make a deposit with PayPal

In your account settings, click on “Deposit”. The payment options available in your country will be shown at the top, and you can scroll along until you find PayPal. Fill in the amount, click “Deposit”, and follow the instructions to complete your payment.

4. Start trading Ethereum

Go to the crypto section of the platform and use the search box to find Ethereum. Simply fill in how much you wish to purchase and click on the “Buy” button.

Why Use Skilling?

The benefit of trading Ethereum CFDs is that they enable you to profit from crypto price changes without actually owning any coins—so you don’t need to worry about storage or security. CFDs are high risk, however, so should only be traded by experienced traders, as there is the potential for significant losses.

Users can take comfort from the fact that the platform is secure and regulated, while there is a customer support team on hand to provide assistance over the phone, email, or live chat. Skilling offers up to 50x leverage on Ethereum, and also facilitates the trading of other asset types, including shares, commodities, forex, and indices.

You can choose the trading platform that best suits your experience and needs. Beginners will find the Skilling Trader platform ideal as its intuitive interface is user-friendly. Meanwhile, advanced traders may prefer the cTrader platform, where they can access algorithmic trading and technical indicators.

The minimum PayPal deposit is $100, and money can be deposited instantly for free. The trading fees start from 0.1% plus spread, but Ethereum CFDs aren’t available to users in the UK. Read our Skilling review.

Buy Ethereum with PayPal on Skilling 82% of retail CFD accounts lose money.

5. Buy Ethereum Directly on PayPal

The PayPal platform introduced support for a few of the most popular cryptocurrencies in 2021, aiming to make crypto accessible to anyone with a PayPal account.

How to Buy Ethereum on PayPal Directly

1. Create a free account

Click the “Sign Up” button and choose “Personal Account”, if you don’t have a PayPal account already. Fill in your email address, name, and password, and click “Continue”. You will then need to complete your profile with your address, phone number, and date of birth, after which you can link a card and/or bank account to your PayPal account.

Paypal Step 1 Sign up

2. Confirm your US taxpayer status

You will be asked to confirm whether or not you are a US citizen before you can purchase any crypto. You will then need to tick a box to confirm that you understand the risks of buying cryptocurrency.PayPal Step 2 confirm taxpayer status

3. Verify your identity

If you attempt to buy crypto, you will be prompted to verify your identity first. After clicking the “Get Started” button, you will need to fill in a few personal details, and then select your ID type and submit an image of it.

PayPal Step 3 Verify account

4. Buy Ethereum

Click on Ethereum in the crypto section and tap the “Buy” button. After entering how much you want to buy, click “Next” and select your funding source. Review the transaction and fees, and then click “Agree and Buy”.Paypal Step 4 buy Ethereum

Why Use PayPal?

PayPal provides a quick and easy way to purchase ETH and other popular cryptocurrencies, especially for those who are new to crypto and don’t yet have the skills to trade on a crypto exchange or broker.

It allows you to gain exposure to crypto without needing to risk a lot of capital, as the minimum purchase amount is just £1. There are also some educational resources on the platform if you want to expand your crypto knowledge.

Only Bitcoin, Ethereum, Litecoin, and Bitcoin Cash are available to buy directly on PayPal, so more experienced crypto users may be disappointed by the limited choice, as well as the lack of trading tools.

PayPal charges a fee of at least 1.5% plus spread on ETH purchases and sales. When buying smaller amounts, however, the fee can be much higher. If you want to withdraw your crypto to a private wallet, you can do so if you pay a network fee.

Pros

  • Very easy to use

  • Don’t need an account with a crypto exchange/broker

  • Minimum purchase of £1

  • Some educational resources

Cons

  • Only 4 cryptocurrencies available

  • Lack of indicators and trading tools

  • Only 1 order type available

  • Fees on smaller purchases are significant

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.

1
Min. Deposit
$ 10
User Score
5
Up to $240 bonus!
Build a diversified portfolio with crypto, stocks, and ETFs — all in one place.
Trade on the world's leading social trading and investing platform
Open Account
Description:
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Payment Methods:
Bank Transfer, Debit Card, PayPal, Credit Card, Wire Transfer
Full Regulations:
CySEC, FCA
2
Min. Deposit
$ 100
User Score
4.95
CFDs on BTC, ETH, LTC, NEO, XRP, IOTA, EOS, BAB, ADA, TRX, XMR
No need to open a crypto exchange account or use a special wallet
Regulated Broker - FCA, ASIC, CySEC (license number 250/14)
Visit Site
Description:
Plus500 is a leading provider of Contracts for Difference (CFDs), delivering Leveraged trading on +2,000 financial instruments, including Forex, Commodities, Indices, Shares, Options and Cryptocurrencies. CySEC license number (#250/14)
Payment Methods:
Bank Transfer, Debit Card, PayPal, Credit Card, Visa, Mastercard, American Express, Trustly, Apple Pay, Google Pay, Discover, Bank Transfer: SEPA, Bank Transfer: FPS, skrill
Full Regulations:
ASIC, FCA, FSA, MAS, CySEC #250/14
82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
3
Min. Deposit
$ 0
Promotion
User Score
4.8
Get insights from millions of investors, creators, and analysts
Build your portfolio of stocks, ETFs, and crypto–all in one place
No minimum deposit
Visit Site
Description:
Public is an investing platform that allows you to invest stocks, ETFs, crypto, and alternative assets like fine art and collectibles—all in one place.
Payment Methods:
Debit Card, Wire Transfer, Check, Bank Wire
Full Regulations:
Cryptocurrency execution and custody services are provided by Apex Crypto LLC (NMLS ID 1828849) through a software licensing agreement between Apex Crypto LLC and Public Crypto LLC. Crypto trading on Public platforms is served by Public Crypto LLC and offered through APEX Crypto. Please ensure that you fully understand the risks involved before trading.

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.

Pros and Cons of Using PayPal to Buy Ethereum

Pros

  • Speed: PayPal is one of the fastest payment options, enabling you to start trading with your funds immediately.
  • Convenience: PayPal already has your card or bank details, so all you need to do is enter your PayPal password to complete the transaction.
  • Some coins can be purchased direct: If you want buy Bitcoin, Ethereum, Litecoin, or Bitcoin Cash, you can easily acquire them directly on PayPal.
  • Ease of use: PayPal is a very user-friendly platform that makes the process seamless.

Cons

  • Lack of acceptance: Not that many crypto platforms accept PayPal as a payment method, especially outside the US.
  • Transaction limit: Those without a verified account can only send a one-time payment of up to $4,000, while those with a verified account could be limited to $10,000 in a single transaction.
  • No protection: Cryptocurrencies are likely to be ineligible for PayPal’s Buyer Protection Program.

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.

Transaction size

Fee

£1 – £24.99

£0.50

£25 – £100

2.3%

£100.01 – £200

2%

£200.01 – £1,000

1.8%

Over £1,000

1.5%

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.

Platform

PayPal deposit fee

Fee for buying with PayPal

eToro

No fee

n/a

Coinbase

2.5%

3.99%

Binance P2P

n/a

No fee

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 instalments, 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.

Frequently Asked Questions

Can I buy ETH directly with PayPal?
Yes, you can, if you reside in the US. But then you won’t be able to transfer crypto coins out of your PayPal digital wallet and will have to mandatorily use them for some online/offline purchase.In addition, there are other cryptocurrencies that you can buy directly through Paypal, at the time of writing this includes Bitcoin, Litecoin, and Bitcoin Cash. These crypto-assets can be purchased by logging into your account through the website or the PayPal app.
Is there a risk in buying Ethereum with PayPal?
No, there’s no risk in buying Ethereum with PayPal. PayPal has a very robust ‘Buyer Protection’ policy.
Which is a better place to buy ETH with PayPal, a crypto exchange or a crypto broker platform?
Broker platforms are normally preferred over exchanges as the good ones are fully compliant and regulated, offering you a lot of protection. They are more welcoming of PayPal payments too.
Is it legal to buy ETH with PayPal?
Yes, it is legal to buy Ethereum with PayPal as long as cryptocurrency purchases are allowed in your country.
Where can I store my coins after buying ETH?
It’s important to store your Ethereum coins in some secure wallet after buying them. Presently, hardware cold wallets are considered the best in this regard.
Can I backup my ETH wallet data somewhere?
Yes, each Ethereum user is provided a backup phrase which s/he can use to retrieve his/her coin and its private keys.
Can Ethereum accounts get hacked?
Ethereum is counted amongst the safest cryptocurrencies in the market today. But no system is full-proof so please use 2FA and other security measures to protect your account.
How long do I have to wait for my coin to arrive after buying ETH?
Ethereum transactions are processed within a maximum of 5 minutes.
Can you buy Ethereum with PayPal?
Yes. You can use PayPal to buy Ethereum on the platforms described on this page.
How do I buy ETH with my PayPal balance?
When you make a deposit or purchase and select PayPal as the payment method, you will be redirected to PayPal to complete the payment. Simply select your PayPal balance as the funding source at this point.
Is buying Ethereum on PayPal safe?
Yes. It is safe to buy Ethereum on PayPal, but you will have access to fewer features and opportunities than when buying ETH on a crypto platform.
Can I buy ETH with PayPal on Coinbase?
Coinbase users in the US can use PayPal for both deposits and direct ETH purchases. However, Coinbase users in the UK and Europe can only use PayPal to cash out.
How much Ethereum can I buy on PayPal?
PayPal has a weekly purchase limit of $100,000 worth of ETH, but the limit may be lower on some personal accounts.
Can I buy Ethereum with PayPal on any exchange?
No. Not all exchanges accept PayPal, but the ones reviewed on this page do
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