PayPal has long been considered one of the most complex crypto-buying methods. PayPal is only supported as a form of payment on a limited number of platforms and incurs additional fees frequently.
PayPal announced in 2020 that US residents could purchase bitcoin via the PayPal app while Australian residents still needed to be eligible. However, it is still possible to buy crypto with PayPal if you so choose. Keep on reading to learn where and how to do it.
Can I buy Crypto with PayPal in Australia?
In Australia, unlike the United States and the United Kingdom, you cannot buy, hold, or sell cryptocurrencies directly via PayPal. There is speculation that this will change, but the only way to purchase cryptocurrency with PayPal is via a dedicated exchange platform.
Some crypto exchanges allow you to deposit PayPal funds into your account, which you can use to buy crypto. For instance, eToro enables Australian users to make fee-free PayPal deposits in Australia. Investors who want to deposit with PayPal can use eToro, which lets them do so immediately and for free in AUD.
If you’ve selected an exchange that accepts PayPal, verify that it offers a secure wallet to store your cryptocurrency. If it does, and you’d prefer to keep your cryptocurrency in a hot (online) or cold (offline) wallet outside of the exchange, check whether the wallet supports transfers and whether there are withdrawal fees.
Pros And Cons Of Buying Crypto With Paypal
Pros:
- Easy to use: One of the significant advantages of buying cryptocurrencies with PayPal in Australia is that it is straightforward and fast. PayPal is a well-known payment platform that many people widely use, so it is easy to get started with.
- Flexible alternative: Many debit and credit card issuers don’t support crypto purchases; thus, using PayPal as an intermediary can be a good alternative, allowing users to buy cryptocurrencies with their preferred payment method.
- Safe and secure: PayPal provides extra security through end-to-end encryption and helps get your funds back in case of fraudulent activity. This can be a significant advantage for those concerned about their transactions’ safety.
Cons:
- Transaction fees: Depending on how you fund your account, there may be PayPal fees to take into account. These fees can add up over time and reduce the overall value of the investment.
- Not every exchange supports PayPal: While most big exchanges take PayPal, many smaller or domestic ones do not. This can limit the choices available to buyers.
- Additional exchange fees: Numerous trading platforms charge exorbitant fees for PayPal transactions. These fees may comprise up to 10% of your transaction amount. Purchasing through a platform that does not accept AUD may incur currency conversion fees. PayPal’s fee for converting to US or Canadian currencies is 3.5% above the exchange rate. The fee for all other currencies is 4% over the exchange rate.
In conclusion, if you want to invest in cryptocurrencies, buying them with PayPal in Australia can be a safe and easy way to do so. However, users should be aware of this payment method’s potential fees and limitations.
How To Buy Crypto In Australia With Paypal?
There are five simple steps that we’ll go through in detail below:
Step 1 – Compare The Best Crypto Platforms
The first step is to compare crypto platforms that accept PayPal as a payment method, then choose the one that suits your needs. There are a few options to choose from if you want to use your PayPal account to buy cryptocurrency:
You can buy crypto through a peer-to-peer marketplace like LocalBitcoins or Paxful. These exchanges allow you to trade directly with other traders, giving you the freedom to set the exchange rate and accepted payment methods. Some sellers accept PayPal, and you can filter your search of available deals on the marketplace by payment method to help find a suitable seller.
Most exchanges don’t accept PayPal payments; however, you can use the VirWox platform to exchange fiat currency for SLL (Second Life Linden Dollars), which you can use for crypto purchases.
Regarding peer-to-peer lending platforms, xCoins is a good platform for crypto lenders and borrowers. It accepts PayPal as a payment method for people wanting to access a “secured loan” of cryptocurrencies.
Step 2 – Register An Account And Get Verified
The majority of Australian exchanges make it straightforward and quick to create an account. Choose a username, type in your email address, set your password, and check the right boxes, and your account will be made. You can sign up for many exchanges with your Facebook or Google account to speed up the process.
After establishing your exchange account, you must verify your identity by submitting your passport, driver’s licence, or another form of photo identification. Each exchange has its identity verification requirements. You might have to upload a photo of yourself holding your photo ID to match the two.
Step 3 – Deposit Funds In Your Exchange Wallet
It’s easy to add money to your exchange account with PayPal, but the process can differ from exchange to exchange.
On some platforms, for instance, you may be required to link your PayPal account to your exchange account through the account preferences. Others might ask you to log in to your PayPal account and finish the transaction before they send you to the exchange.
In either case, depositing funds into your exchange account with PayPal is straightforward and quick.
Step 4 – Place An Order And Buy Cryptocurrencies
Once your PayPal funds have been deposited into your exchange account, input the quantity you wish to invest. The amount cannot exceed the PayPal prepayment.
Consider that, with the price of Bitcoin hovering around $20,000, you will likely be purchasing a fraction of one bitcoin. If Bitcoin was valued at $US30,000 at the time of exchange and you bought $1,000 worth, you would have acquired 3% of a single bitcoin.
Step 5 – Securely Store Your Cryptocurrencies
Your cryptocurrency holdings should be kept in a secure wallet, which you can get from your exchange, a third-party provider, or an external storage device you own.
Hot wallets are less safe than cold wallets because they are hosted online and can be hacked. You can get your assets back if you forget your passphrases.
Cold wallets are more secure than web-connected wallets because they are not connected to the internet. However, if you lost your access codes, you would need help to reclaim them, meaning you could lose access to your cryptocurrencies.
How to Buy Crypto With PayPal in Australia: 4 Methods
After researching and analysing the various methods for buying cryptocurrencies with PayPal, here are our top recommendations. Each method includes a step-by-step guide to help you start and simplify the process. Our guide will use Bitcoin (BTC) as a cryptocurrency you can buy with PayPal in Australia.
How to Buy Crypto With PayPal on eToro
1. Create an eToro account
Click the “Join Now” icon on the website and complete the registration form with a username, password, and email address. You can click “Create Account” after accepting the terms and conditions.
2. Verify your eToro account
Complete your profile by supplying additional information such as your name, date of birth, address, phone number, and proof of identity. You will also have to respond to queries regarding your investment experience.
3. Make a deposit with PayPal
Click the “Deposit Funds” icon, enter the desired deposit amount, and select your preferred currency. Click “Continue” after selecting PayPal from the list of deposit options. You will then be redirected to PayPal, where you must sign in to confirm the transaction.
4. Buy cryptocurrency on eToro
Use the search bar at the top to find Bitcoin, then click the “Trade” icon. Switch to “Order” to choose a future BTC purchase price. Otherwise, enter the amount you wish to buy and select “Open Trade.”
How to Buy Crypto With PayPal on Binance
1. Create a Binance account
The “Register” option is located at the top of the website. You can sign up with Apple or Google, or you can select “Sign up with phone or email” and provide your country, email address, phone number, and password. Enter the verification code sent to your phone or email address.
2. Verify your Binance account
In the upper-right corner, hover over your user icon and select Identification. Click “Verify” and select your country under Identity Verification. Enter your information and select your ID type. Then, you will need to upload an image of your ID or take a photo of it, and grant Binance access to your webcam so that facial recognition can verify your identity.
3. Add PayPal as P2P payment method
Select the Payment tab on the left-hand side of your dashboard. Click “Add a payment method” and “More” to locate PayPal and choose it. Enter your PayPal account information and verify it with the provided code.
4. Buy cryptocurrency on Binance P2P
Navigate to Binance P2P under Buy Crypto or Trade. Select “Buy”, “BTC”, and your local fiat currency. In addition to selecting PayPal as the payment method, you can filter by quantity and region. Click “Buy BTC” next to the desired ad, enter the desired amount, and follow the on-screen instructions to complete the PayPal transaction.
How to Buy Crypto With PayPal on Coinbase
1. Create a Coinbase account
Click “Get started” on the Coinbase homepage and provide your name, email address, and a unique password. Sign in to Coinbase by selecting the verification link emailed to you, then providing your mobile phone number and entering the verification code sent to you via text message.
2. Verify your Coinbase account
Enter your name, date of birth, and address as they appear on your government-issued identification card, and answer a few queries about your occupation and investment experience. Under Account limits in Settings, pick “Verify photo ID”, select your ID type, and follow the on-screen instructions to submit it as a file or using your webcam or mobile camera.
3. Link your PayPal account
Click “Add a payment method” in the Payment Methods section of Settings. You will be redirected to the PayPal login page if you select PayPal. You can now deposit with PayPal if you reside in the United States.
4. Buy cryptocurrency on Coinbase
Click “Buy” next to Bitcoin on Coinbase, or click “Buy / Sell” at the top and select Bitcoin. If you are not using previously deposited funds, select PayPal as your payment method. Simply input the quantity you wish to purchase, then click “Preview Buy” and “Buy Now” to complete the transaction.
How to Buy Crypto With PayPal on Paxful
1. Create a Paxful account
Provide your phone number or email address after clicking the “Register” icon at the top of the page. Create a strong and distinctive password, then select “Create Account.”
2. Verify your Paxful account
You must verify your email address and phone number by inputting the credentials you receive via email and text message. Depending on your location, you may be required to verify your identity to access all of Paxful’s features. Still, you can purchase Bitcoin with PayPal from some vendors without undergoing KYC.
3. Select a vendor
Select “Buy Bitcoin” after clicking “Buy” You can locate sellers who accept PayPal by selecting it from the “Pay via” menu on the left. Select your preferred vendor, then click Buy.
4. Buy cryptocurrency on Paxful
Enter the amount of Bitcoin you wish to buy in BTC or your local currency. Follow the instructions on the subsequent page to send the agreed-upon amount to the vendor via PayPal after clicking the “Buy now” icon. After clicking “Paid”, you should receive your Bitcoin.
FAQs
What is the best way to buy cryptocurrencies?
There are many ways to buy Bitcoin, including Australian-based exchanges that let people use BPAY and bank transfers to purchase cryptocurrencies with Australian dollars. In Australia, you cannot buy or sell BTC directly with PayPal, so your best option is to use a dedicated crypto exchange that accepts PayPal or a peer-to-peer marketplace.
Can you buy Bitcoin with the PayPal app?
You can now buy bitcoin and a few other cryptocurrencies through the PayPal app, but this feature is only available to people in the US. PayPal has not disclosed any intentions to launch the feature in Australia.
Why don’t more exchanges offer PayPal?
Primarily unlike PayPal, bitcoin (and other cryptocurrencies) transactions are irreversible. So, it’s easy for fraudsters to buy bitcoin with PayPal, say they never got the BTC they purchased, and ask for a chargeback. This lets them keep their money and get bitcoin for free. Because of this high risk of fraud, few platforms and exchanges accept PayPal deposits.
Is buying crypto using PayPal safe?
If you use a reputed cryptocurrency exchange, it is secure to purchase cryptocurrency with PayPal. The top crypto exchanges in Australia have multiple layers of security so you can buy cryptocurrencies confidently. Remember that the majority of them do NOT accept PayPal.
Where to store cryptocurrency after purchasing?
When you buy cryptocurrency through one of the brokers we recommend, you will get a wallet address immediately. You can store your cryptocurrency here, so it’s easy to get to or send it to your wallet. For more information, read our list of the top crypto wallets in Australia.
Is buying crypto with PayPal in Australia legal?
Yes, buying cryptocurrencies with PayPal in Australia is legal. Cryptocurrencies are not considered illegal in Australia, and no laws prohibit using PayPal to purchase them. However, individuals should comply with any tax laws related to cryptocurrency investments in Australia, including reporting any capital gains or losses on their tax returns.
Final Thought
PayPal can be used to purchase cryptocurrencies, but should you? Due to the high fees and small number of platforms that accept PayPal payments, other options are less expensive and work just as well.
You could use a platform to buy cryptocurrency directly with your credit card instead of using it to add money to your PayPal account and then use that money to buy cryptocurrency.
Several platforms accept PayPal if you insist on using this payment method. Compare the fees and features of these platforms to find the one that best suits your needs.
