Simple ways to Buy Litecoin with PayPal

Other Methods of Buying Litecoin with PayPal

Before Buying Litecoin or other digital currencies with PayPal, you will first have to understand the type of investor you are. Do you want to take possession of your LTC and store it in a hardware wallet for the long term?
Or are you simply content to gain exposure to Litecoin price movements, quickly and easily without the hassle of owning the coins?

If you are the former, you will need to find an exchange or P2P marketplace that will allow you to deposit funds using PayPal. Unfortunately, PayPal is not widely accepted by exchanges. The reason for this is that PayPal transactions are reversible, while blockchain transactions are not.

Brokers typically offer PayPal as a payment method, so are a good alternative to exchanges. This is because broker transactions are not directly on the blockchain so they are not limited by block confirmations. Brokers typically use CFDs rather than the actual asset.

A contract for difference (CFD) is a type of contract that offers greater flexibility and fewer fees for active traders than crypto exchanges can offer.

If you can’t find an exchange or broker that accepts PayPal and lists LTC, you might like to buy another coin first like Bitcoin and trade your Bitcoins for Litecoin.

Buying Litecoin With Paypal: Is it Safe?

Paypal is a great option for buyers, because you can report fraud and scams to Paypal, and they are very likely to get your money back. However, this conversely makes PayPal a sketchy payment option for Litecoin sellers, because buyers could always claim that they didn’t receive their funds, and PayPal would more likely take their side. We recommend only using Paypal through trusted platforms like eToro if you can help it. However, if you find a different exchange, or want to trade with an individual, PayPal may still be a solid option.

Fees when Buying Litecoin with PayPal

PayPal provides a level of convenience that bank transfers do not, as well as offering reduced fees compared to credit cards.

Many people are surprised to learn that PayPal does not actually charge for payments. However, the company does charge merchants for receiving payments and that is why you will still encounter fees when you deposit to a cryptocurrency broker or exchange.

These fees are passed on to you and are sometimes referred to as ‘convenience fees’. Typically, they are less than 5%, but it is a good idea to confirm these fees before depositing to a platform.

If you plan on taking profit regularly with repeated transactions made to a platform, you may want to consider a bank transfer to preserve more of your profit.

That said, PayPal still offers a convenient solution for people who are not tech savvy and merely want to buy Litecoin in bulk for a one-time purchase.

Is Buying Litecoin with PayPal the Best Method

As mentioned earlier, the best method for buying Litecoin will depend on the type of investor you are and your priorities.

If you value cost then there are more affordable methods than PayPal, such as a bank transfer. However, if you prioritise convenience then there are more convenient ways, such as a credit card.

PayPal is useful because it provides a combination of convenience and speed (approx 2.5 minutes per transaction) with a fee structure that is fine for one-off transactions.