How to buy Ethereum with PayPal

In November 2020, PayPal introduced cryptocurrency buying and selling capabilities, allowing its 346 million users worldwide (starting with those in the US) to buy and hold Ethereum, Bitcoin, Bitcoin Cash, and Litecoin using its platform.

PayPal users in the US can also use cryptocurrencies to purchase from the platform’s 26 million merchants worldwide, converting their cryptocurrencies into fiat currency at the point of sale. The features will be rolled out to users around the world from early 2021.

The good news is that buying Ethereum on PayPal is a simple process. Here’s how it works.

How to buy Ethereum with PayPal

To get started, you’ll need a PayPal account, which you can set up using your credit card or bank account, along with an email address, at PayPal.com.

You’re now ready to buy some ETH (regardless of whether you’re using the PayPal.com website or the app, the experience is pretty much the same; we’re using the website for this step by step guide). From the main screen of the PayPal website or the App Payments screen, select the “Buy Bitcoin & More” banner at the top of the page.

Then, choose which cryptocurrency you want to buy; options currently include Ethereum, Bitcoin, Bitcoin Cash, and Litecoin.

PayPal offers the possibility to purchase a predefined amount of Ethereum; alternatively you can tap “Buy” to select a specific amount. The minimum purchase is just $ 1.00 of Ethereum. Below the purchase button, PayPal also includes a brief description of the asset you are purchasing, so you know exactly what you are stumbling upon.

To continue, you will need to confirm some information and accept PayPal’s Cryptocurrency Terms and Conditions, which include the usual disclaimers warning of the volatility and irreversible nature of the cryptocurrency.

Now you can actually buy Ethereum, entering the amount you prefer; PayPal reports that the price of Ethereum varies depending on when you buy, noting that: “The exchange rate includes a spread and updates frequently until you buy or sell.” Hit Next to proceed to the next step in the process.

At this point, you will have the option to use the bank account or debit card already associated with your PayPal account or to add a new one.

You can review your purchase after selecting “Next”. PayPal’s transaction fees are typical of consumer-facing exchanges, ranging from 50 cents for purchases under $ 25, to 1.5% of the transaction, for purchases over $ 1,000. When you are ready to purchase, select “Buy Now”.

After completing your purchase, your PayPal account will be updated to reflect the amount of encryption you have purchased and its current value.

Returning to the home page, you should see your Ethereum purchase under “Your Cryptography”, with the option to buy and sell.

Any cryptocurrency sold through the PayPal app or website is converted to fiat and will appear in the Balance section of the user’s account. PayPal has also included a commission chart and a conversion spread, so users can calculate the fees they might incur during the sale.

Purchase Ethereum on other sites using PayPal

For the time being, any cryptography purchased through PayPal is locked to PayPal; cryptocurrencies cannot be transferred from PayPal’s digital wallet, and when used for purchases by merchants, they are converted into fiat at the point of sale. That may change in the future, but for the time being it has proved a point of contention for cryptocurrency advocates, who argue that it goes against the often-married idea that “you are your bank” when using crypto.

If you are looking to buy Ethereum from cryptocurrency exchanges using PayPal, your options are limited. Most exchanges don’t support PayPal as a payment method, largely because crypto transactions can’t be undone. This means that a cryptocurrency buyer could falsely dispute a transaction, get their money back, and continue to receive the cryptocurrency they bought, leaving the seller out of their own pocket with no recourse.

The eToro cryptocurrency exchange will allow you to deposit funds from PayPal, before using them to purchase the cryptocurrency of your choice (in this case, Ethereum).

Buying Ethereum on eToro using PayPal is a simple process: log into your account, click “Deposit Funds” and select “PayPal” as your preferred payment method, then choose how much you want to deposit. Once the funds have arrived in your eToro wallet, you are free to purchase Ethereum.