It’s no news, Coinbase is one of the big players in the market when it comes to the exchange of cryptocurrency and storage through its Coinbase Wallets.
As individuals and businesses begin to embrace receipts and payments through Bitcoin, some of these transactions still have to go through traditional financial institutions utilizing linked debit cards or bank accounts during fiat to crypto conversions.
These financial institutions are regulated by government policies and restrictions.
As a user of crypto, having to link or enter your payment information on different crypto platforms face poses challenges especially if you are in a jurisdiction that places limits on the use of crypto. See countries that place limits on the use of crypto.
PayPal is a renowned payment platform that now provides crypto payments and receipt options for its users.
You can use PayPal to buy Bitcoin on Coinbase with your existing PayPal account, and in this article, I’ll explain how that works.
Key Takeaways
• On PayPal, you can use a debit card or bank account with some level of animosity.
• Buy cryptocurrency on Coinbase up to a maximum daily limit as high as $25,000 without having to use ACH or Wire transfer.
• With PayPal, you can purchase crypto instantly from Coinbase without having to link your bank account or debit cards again.
• PayPal is considered a very secure method of sending payments online.
Using PayPal
PayPal is an online commerce payment platform that offers payment services between merchants and clients using online transfers. Safe to say, PayPal acts as an intermediary between a payer and a receiver.
Payment on PayPal is done via user accounts on the platform linked to the user’s bank cards or your bank account or both. This facilitates the transfer of funds without exposing payment information to the merchant.
PayPal and Coinbase
Coinbase has now added PayPal amongst its payment options. Funding your PayPal with crypto is only available to US customers for the time being.
For other users, you can only use the PayPal option for cashouts or sell on Coinbase, depending on your region.
Learn How To Transfer Money From Coinbase To PayPal.
So you can buy Bitcoin and other cryptos on Coinbase using PayPal so long as you are in the US.
How to Purchase Bitcoin on Coinbase using PayPal
Getting your crypto purchase on Coinbase is an easy process. Using PayPal to pay for your purchase is even easier.
You need a Coinbase account to be able to make a crypto purchase on Coinbase.
Sign in or Sign up to Coinbase if you do not have an account yet.
- Click on Buy / Sell button at the top right area of the screen. For mobile, click on the Buy tab on the home screen.
- Click on the Buy tab/panel and select the Cryptocurrency you want to purchase. In this case, Bitcoin (BTC).
- Input the amount of the crypto asset you are willing to buy in the crypto domination or your local currency domination.
- Click on the payment method and then select PayPal from the list.
- To ensure the details you entered are correct, click on Preview Buy and check the summary of the transaction you are about to make. Click on the back arrow if you want to make any corrections.
- Click on Buy to proceed with the transaction.
Your purchased crypto will be in your wallet in no time.
How to Add PayPal as a Payment method on Coinbase
To buy or sell crypto with PayPal on Coinbase, you must first add it as a payment option. Here is how to link your PayPal account to your Coinbase account.
- If you already have a Coinbase account, sign in to your account. If not, then create an account on Coinbase.
- As a new or existing user, you will need to have completed all your identity verification steps with the needed documents.
- Navigate to the account settings menu.
- Click on Payment Methods on the settings menu.
- Click on the Add a Payment Method button.
- Select PayPal from the available options and log in to your PayPal account when prompted to do so.
For security purposes, you will be prompted to complete a two-factor authentication process if your PayPal email address does not match that on your Coinbase account.
If you do not see the option to link your PayPal account as a payment method, then the feature is not yet available for your country or region.
To solve this issue, you can read How to fix – I can’t link Coinbase to PayPal.
Only one Coinbase account can be linked to a PayPal account at a time.
Please note that Coinbase currently does not support buying crypto or funding accounts via Prepaid cards, credit cards, and business cards linked to your PayPal account.
Only bank accounts and debit cards are supported as a valid payment method linked to your PayPal.
Frequently Asked Question
Q1. What is the PayPal fee for buying Bitcoin?
While you can spend between $1 to as much as $100,000 weekly on PayPal, there are fees charged for buying and selling crypto on PayPal. This depends on the amount involved in the transaction.
PayPal charges the following amount of transaction fees or percentages.
- For transactions below $25, a fee of $0.5 is charged.
- Transactions between the $25 and 100$ range attract 2.30% of the transaction value as a charge.
- Above $100 to $200 transactions attract a 2.00% fee.
- Above $200 to $1,000, a fee of 1.80%.
- A 1.5% fee is charged for transactions above $1,000.
Q2. Is PayPal cheaper than Coinbase?
Whether or not buying crypto with PayPal is cheaper than buying directly on Coinbase, depends on the amount you are buying.
PayPal is cheaper than Coinbase for transactions involving small amounts.
Big transaction amounts favor Coinbase as the less expensive alternative to PayPal. A fee of 1.49% is charged on amounts above $1,000 as opposed to a 1.50% charge on PayPal.
Q3. Can I use PayPal to purchase other cryptocurrencies other than Bitcoin?
Bitcoin is not the only cryptocurrency you can purchase on Coinbase via PayPal. Currently, four crypto assets – Bitcoin, Ethereum, Litecoin, and Bitcoin Cash can be purchased on PayPal.
Security and ease of transactions are what everyone wants. While PayPal is yet to make this service available to more countries, you can make your Bitcoin purchase directly on Coinbase.
Also, other exchanges offer secure, fast, and cheap bitcoin purchases.
Binance is one of such. get a 5% rebate on your deposit. when you sign up Binance now. Or you can make your pick from our list of 10 best crypto exchanges in 2022 and purchase crypto of your choosing.
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