How to Buy Bitcoin With Paypal UK – In Under 5 Minutes
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
If you’re based in the UK and wish to buy Bitcoin (BTC) with Paypal – this will allow you to purchase the digital asset instantly and safely. In this guide, we walk you through the process of how to buy Bitcoin with Paypal UK via an FCA-regulated broker.
Table of Contents
#1 Bitcoin Broker in the UK – eToro
How to Buy Bitcoin With Paypal UK – Quick Preview
Below you will find a quickfire walkthrough on how to buy Bitcoin with Paypal in the UK.
- Step 1: Sign up with eToro – You will first need to open an account with eToro. This will require some personal data – such as your name, date of birth, home address, and contact details.
- Step 2: Complete KYC – You will need to upload a copy of your passport or driver’s license – as eToro is regulated by the FCA.
- Step 3: Deposit Funds With Paypal – You can now deposit funds with Paypal. Select ‘Paypal’ from the list of supported payment methods and enter your deposit amount. A pop-up box will then appear asking you to log in to your Paypal account. Then, confirm the transaction.
- Step 4: Buy Bitcoin – Now that you have deposited funds with Paypal – you can proceed to buy Bitcoin. Simply search for ‘Bitcoin’, click ‘Trade’ and enter your stake in the ‘Amount’ box. Finally, click ‘Open Trade’ to confirm your Bitcoin investment.
You have successfully bought Bitcoin with Paypal in four simple steps! The BTC tokens will remain in your eToro portfolio until you decide to sell – which you can do 24 hours per day – 7 days per week.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.
Where to Buy Bitcoin With Paypal UK – Full Broker Reviews
Very few cryptocurrency brokers support Paypal as a payment method. This means that your options are going to be limited when choosing a suitable provider. With that said, it’s still possible to buy Bitcoin with Paypal in the UK. To point you in the right direction, below you will find a selection of Bitcoin platforms that support Paypal deposits.
1. eToro – Overall Best Broker To Buy Bitcoin With Paypal UK
Next, you can then proceed to deposit funds with Paypal. The minimum deposit is $200 – or about £145. The fee to deposit with Paypal is just 0.5% – which is very competitive in the cryptocurrency brokerage scene. This fee also applies to deposits made with a debit/credit card, Skrill, Neteller, and UK bank transfers. Once you have deposited funds with Paypal, you can then proceed to buy Bitcoin at a minimum investment of just $25 – or about £18.
This means that you dabble in Bitcoin without needing to risk large sums of money. In completing your Bitcoin purchase, the digital tokens will instantly be placed in your eToro wallet. You can keep the tokens there safely for as long as you wish without being charged any fees. In terms of trading fees, eToro only charges a spread. This means that your fee is dictated by the gap between the bid and asking Bitcoin price – which starts from just 0.75%.
In addition to Bitcoin, you can buy a full range of other cryptocurrencies with Paypal. This includes everything from Ethereum, Ripple, and AAVE to Bitcoin Cash, Ethereum Classic, and Litecoin. More digital tokens are being added to the eToro library on a regular basis. You can even invest in a diversified basket of cryptocurrencies on the platform. This ‘CryptoPortfolio’ is professionally managed by the eToro team – so it’s a truly passive way to speculate on blockchain assets.
You might also be interested in the Copy Trading tool at eToro if you favor passive investments. This is because you get to ‘copy’ a successful eToro trader at an amount proportionate to what you invest. For instance, if you invest $500 into an experienced crypto trader that risks 5% of their capital on Bitcoin, you will automatically invest $25. We should also note that eToro isn’t just a cryptocurrency broker. On the contrary, the platform also offers thousands of 0% commission stocks and ETFs, as well as markets on forex, commodities, and indices.
Pros
- Invest in cryptocurrencies on a spread-only basis
- Buy thousands of international stocks at 0% commission
- Minimum investment per trade from just $25
- Supports debit/credit cards, e-wallets, and local bank transfers
- Regulated by the FCA, CySEC, and ASIC
- Used by over 20 million people
- Perfect for beginners
- Social and copy trading tools
Cons
- Perhaps too basic for technical traders
- No support for MT4 or MT5
Cryptoassets are highly volatile unregulated investment products. 67% of retail investor accounts lose money when trading CFDs with this provider.
How to Buy Bitcoin With Paypal UK – Detailed Step-by-Step Walkthrough
So now that we have established that eToro is the overall best broker to buy Bitcoin with Paypal in the UK – we can now walk you through the investment process step-by-step. After all, the quickfire guide that we provided earlier might not have been sufficient enough for you if you are a complete crypto-beginner.
As such, the tutorial below leaves no stone unturned!
Step 1: Open a Crypto Account
The first step will require you to visit the eToro website and open an account. This is a fast and simple process that rarely takes more than a couple of minutes.
You will need to:
- Click the ‘Join Now’ button
- Enter your personal information – such as your name, address, and date of birth
- Choose a username and a strong password
- Provide your mobile number and email address
Next, you will be asked to verify your mobile number. This can be done by entering the PIN that eToro sends to your phone via a text message.
Cryptoassets are highly volatile unregulated investment products. 67% of retail investor accounts lose money when trading CFDs with this provider.
Step 2: KYC
Now that you have registered an account, eToro will ask you to go through a quick Know-Your-Customer (KYC) process. This requires two documents that you can upload directly from your desktop device or mobile phone.
- For your proof of identity, you can upload a copy of your passport or driver’s license
- For your proof of address, you can choose from a wide selection of accepted documents – such as a utility bill or bank statement
As long as the uploaded documents are clear and visible, you should find that eToro verifies them instantly.
Note: You can skip the KYC step if you are not depositing more than $2,250 – which is about £1,600. However, this does need to be completed before you can require a withdrawal.
Step 3: Deposit Funds With Paypal
You can now click on the ‘Deposit’ button and look for Paypal from the list of supported payment methods. After entering your stake and confirming the deposit, a pop-up box will appear. This will ask you to enter your Paypal login credentials.
eToro is unable to see the information you enter as the pop-up box is encrypted. Once you are logged into Paypal and you confirm the deposit amount, the pop-up box will automatically close.
Then, you should see that the deposit has been processed instantly and funds subsequently reflected in your account balance.
Step 4: Search for Bitcoin
With a fully-funded account, you can proceed to buy Bitcoin. First, enter ‘Bitcoin’ or ‘BTC’ into the search box at the top of the page. When you see the correct market load (like in the image below) – click it.
On the next page, click on the blue ‘Trade’ button to populate an order box.
Step 5: Buy Bitcoin With Paypal
You will now be asked to fill out an order box. By default, this will be a market order – which means that your Bitcoin purchased will be executed by eToro instantly and at the next best available price.
If you want your trade places at a specific price, you can switch over to a limit order. This will allow you to enter the market at a pre-defined price that is more favorable for you.
Next, enter your stake in the ‘Amount’ box. This needs to be stated in US dollars. Plus, the minimum investment amount is just $25 – so you can purchase a small fraction of a Bitcoin token should you wish.
Finally, click on the ‘Open Trade’ button to complete your Bitcoin trade!
Step 6: How to Sell Bitcoin to Paypal
Now that your Bitcoin investment is complete, you can safely store your tokens in your eToro portfolio. There are no fees for using the in-built wallet service, so you can HODL your digital assets for as long as you wish. When the price of Bitcoin hits a level that you are happy with – the process of selling your tokens could not be easier.
- Simply head over to your eToro portfolio, look for Bitcoin, and click on the ‘Sell’ button.
- Assuming you opted for a market order, the sale will go through instantly at the next best available price.
- On completion, the funds will be reflected in your eToro cash balance.
- From there, head over to your account dashboard and request a withdrawal.
- Enter the amount you wish to cash out and by default – Paypal will be selected.
- This is because of anti-money laundering laws – which state that the funds need to go back to the original payment method used to fund the initial deposit.
In most cases, eToro will process your withdrawal request within 24 hours. As soon as it does, the funds should arrive in your Paypal account instantly.
Why Buy Bitcoin With Paypal UK?
The vast majority of Bitcoin investors in the UK will elect to use a debit or credit card. This is because the payment method is supported by most regulated brokerage platforms. However, if you’re thinking about using Paypal – there are many benefits of choosing this popular e-wallet to pay for your investment.
This includes:
Security
Paypal deposits are super secure – especially when completing the process with a cryptocurrency broker. This is because you are not required to enter your sentiment financial details into the website of the platform in question. On the contrary, when you elect to deposit funds with Paypal, a decrypted pop-up will appear.
Then, it’s just a case of signing into your Paypal account and confirming the transaction. Crucially, you will either already have funds in your Paypal account or have a debit/credit card linked. This means that you can complete your Bitcoin investment in a safe and secure environment.
Buyer Protection
Paypal offers all UK residents its Buyer’s Protection safety net – which ensures that you can purchase Bitcoin online without worry about being scammed. This is because you will be refunded in the event you use your Paypal account to buy Bitcoin and you never receive what you paid for.
Fast and Convenient
Paypal allows you to buy Bitcoin in the UK in a fast and convenient way. This is especially the case if you have a linked debit/credit card or even better – funds in your Paypal balance. In fact, as soon as you confirm the transaction – brokers like eToro will credit your account instantly. This means that you can proceed to invest in Bitcoin in a matter of seconds.
Speedy Withdrawals
Using Paypal to buy Bitcoin in the UK is also great when it comes to withdrawals. After all, you will at some point look to sell your Bitcoin tokens back to cash. When you do, Paypal ensures that you receive your proceeds in a speedy manner. Once your chosen broker has processed the withdrawal request, the funds will typically arrive in your Paypal account in less than a minute.
Then – and assuming that you have already linked your UK bank account, you can withdraw the funds out of Paypal instantly. Best of all, withdrawals from Paypal to your UK bank account attract no fees!
Fees to Buy Bitcoin With Paypal UK
Like all payment methods, you will need to pay a fee when you elect to buy Bitcoin with Paypal in the UK. In fact, there are likely to be fees in addition to just your Paypal deposit – such as those surrounding commissions and spreads.
Below we unravel what fees you should expect when using Paypal to buy Bitcoin in the UK.
Deposit Fee
Once you find a cryptocurrency platform that accepts Paypal – you need to check what deposit fees apply. This is because we came across several providers that do accept Paypal – but the fees were astronomical.
In fact, some platforms charge in excess of 10%. This is why we did not list the respective platforms on this page. The good news is that eToro – which is regulated by the FCA, allows you to deposit funds into your account with Paypal at a fee of just 0.5%.
Commission
After you have made a deposit, your chosen platform will likely charge you a commission to buy Bitcoin. Some platforms charge a flat fee – such as $10 per trade.
However, the more common way of charging a commission is to calculate the fee against the size of your stake. For instance, if the broker charges 2% per slide – a £400 buy order would attract a commission of £8. At eToro, you will only need to pay the spread – which we cover in the section below.
Spread
Brokers like eToro operate a spread-only pricing model as opposed to a more conventional commission fee. This is the difference between the buy and sell price of Bitcoin. At eToro, the spread on Bitcoin purchases amounts to just 0.75%. As such, your fee for buying £400 worth of Bitcoin would amount to just £3.
Withdrawal Fee
You will also need to pay a withdrawal fee when you cash out your Bitcoin investment. The fee to transfer the funds back to your Paypal account will vary from broker to broker. At eToro, this amounts to just $5 (about £3.50) – regardless of the size of your withdrawal.
Why Don’t More Bitcoin Brokers Accept Paypal?
if you’re wondering why so few Bitcoin brokers accept Paypal in the UK – this is largely because of the e-wallet provider’s Buyer’s Protection scheme. While this is a superb safeguard for those using Paypal to make investments, it isn’t ideal for those accepting it.
After all, the buyer could, in theory, activate the Buyer’s Protection option with Paypal after buying Bitcoin – claiming that they never received the tokens. As Bitcoin transfers are irreversible, this is a major risk for cryptocurrency platforms.
How to Buy Bitcoin With Paypal UK – Conclusion
In summary, you now know that very few cryptocurrency brokers allow you to buy Bitcoin with Paypal in the UK. The one notable exception to this is rule is eToro – which is an FCA-regulated broker used by over 20 million investors.
By quickly opening an account with eToro – you can deposit funds with Paypal at a super-competitive rate of just 0.5%. Plus, when you proceed to buy Bitcoin – the broker only charges a spread of 0.75%. The final icing on the cake is that eToro allows you to buy Bitcoin with Paypal at a minimum stake of just $25!
eToro – Best Broker Buy Bitcoin With Paypal UK
FAQ
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