How to Buy Bitcoin with PayPal in the UK 2023 – Best Methods Uncovered

Many crypto exchanges in the UK accept e-wallets like PayPal, offering a smooth, cost-effective, and fast investment process.

In this guide, we explain how to buy Bitcoin with PayPal in the UK. Read on to discover the best Bitcoin exchanges accepting PayPal and what steps to take to stay safe.

Where to Buy Bitcoin with PayPal in the UK

Choosing the best site to buy Bitcoin with PayPal is an important part of the process.

We prefer Bitcoin exchanges that are regulated by the FCA. We also give preference to exchanges offering low fees and small account minimums.

Read on to discover the best UK crypto exchanges for buying Bitcoin with PayPal in 2023.

1. eToro – Overall Best Place to Buy Bitcoin With PayPal in the UK (FCA-Regulated)

eToro offers the safest and cheapest way to buy Bitcoin with PayPal in the UK. Most importantly, eToro is authorized and regulated by the FCA. Not many Bitcoin exchanges meet this criterion, highlighting that eToro takes investor safety seriously. In fact, not only is eToro regulated, but it has been offering trading services since 2007. As such, eToro has been active for longer than Bitcoin itself.

When it comes to fees, eToro also stands out. For example, there are no fees to open an account, and PayPal deposits cost just 0.5%. That’s just 50p for every £100 deposited. The 0.5% fee can be avoided when depositing via the eToro Money crypto app. Available on iOS and Android, this doubles up as one of the best crypto wallets in the UK.

The minimum PayPal deposit on eToro is an affordable $10. This is also the case for other e-wallets like Skrill, as well as debit/credit card payments. Bank transfers, however, require a much higher minimum deposit of $500. When using PayPal to deposit funds, eToro will process and credit the deposit instantly. This allows UK investors to buy Bitcoin in a matter of minutes, from start to finish.

That said, UK investors will first need to register an account. There is also a quick KYC process to complete. This simply requires a passport or driver’s license and a recently-issued proof of address. When it comes to trading fees, eToro charges 1% of the purchase amount. 1% is also charged when selling Bitcoin. UK investors can enter and exit the Bitcoin markets at any time, 24/7.

eToro is also a great option for investors that want to diversify. It supports thousands of markets, including more than 90 other cryptocurrencies. This includes large-cap coins like Ethereum, BNB, Cardano, XRP, and Solana. eToro also supports commission-free stocks and ETFs, as well as currencies, indices, and commodities. All of these assets can be bought and sold through the same eToro account.

Smart portfolios are another option to consider when investing in cryptocurrencies. There are several to choose from, but the ‘Cryptos by Market Cap’ is favored by beginners. Through a single trade, this smart portfolio offers exposure to 20 different cryptocurrencies – including Bitcoin. Year-to-date, the Cryptos by Market Cap smart portfolio has generated returns of over 48%.

Those looking to actively day trade Bitcoin and other cryptocurrencies might prefer the eToro copy trading feature. First, users select a profitable crypto trader; there are thousands to choose from on eToro. After that, the user invests at least $200 (about £150), and all future trades will automatically be copied into their eToro portfolio.

Cryptoassets are highly volatile and unregulated in most countries. No consumer protection. Tax on profits may apply. Your capital is at risk.

2. Coinbase – Established and Regulated Bitcoin Exchange With Instant PayPal Transfers 

Coinbase is one of the most established Bitcoin exchanges in this space. Launched in 2012, this US-based exchange recently entered the UK market. Through its parent company, CB Payments Ltd, Coinbase is regulated by the FCA as an electronic money institution. This ensures that UK investors can buy Bitcoin with PayPal in safety.

Coinbase offers an ‘Instant Buy’ service. While expensive – this offers one of the fastest ways to buy Bitcoin with PayPal. This is because Bitcoin is purchased directly, so there is no requirement to place a trade after the payment is made. However, Coinbase charges 3.99% – which is much higher than eToro and Crypto.com. The only way to avoid this fee is to transfer funds from a UK bank account. This can take several days to process, which won’t suit all investors.

We also found that Coinbase charges high trading commissions. At 1.49%, that’s £14.90 for every £1,000 traded. That said, Coinbase is a good option for beginners that want to diversify. It supports dozens of other cryptocurrencies, including Ethereum, Litecoin, Cardano, and Solana. What’s more, Coinbase offers Bitcoin markets in GBP, so there are no foreign exchange fees involved. Coinbase also offers a secure web and mobile wallet, allowing UK investors to store their Bitcoins safely.

3. Crypto.com – Buy Bitcoin With PayPal via a User-Friendly Trading App 

The Crypto.com app for iOS and Android is popular with investors of all experience levels. The app is free to download, and registering an account takes minutes. This includes the KYC process, requiring UK investors to upload a copy of their passport or driver’s license. After that, Crypto.com app users can instantly deposit funds with PayPal.

Crypto.com charges a flat fee of 2.1% on PayPal deposits. This is more than what eToro charges, but more competitive than most other Bitcoin exchanges. Do note that there is a maximum daily and monthly limit of $1,000 (about £800) and $5,000 (about £4,000), respectively. Additional verification is required to increase these limits.

Once the Crypto.com app has been topped up with PayPal, users can proceed to buy Bitcoin. This will attract a marginal commission of just 0.075% – or about 75p for every £1,000 traded. Crypto.com is also one of the best Bitcoin brokers to buy other cryptocurrencies. There are more than 250 to choose from, ranging from Ethereum and Litecoin to Shiba Inu, Dogecoin, and Cardano. Crypto.com also offers Bitcoin savings accounts, loans, and an NFT marketplace.

4. Bitstamp – Bitcoin Trading Commissions Start From 0% – But High PayPal  Fees 

Founded in 2011, Bitstamp is a popular Bitcoin exchange that supports over 85 cryptocurrencies. It has a great reputation and is registered (but not regulated) with the FCA. Bitstamp has a simple and speedy registration process that takes minutes to complete. It supports debit/credit card and PayPal deposits that are processed instantly.

UK investors will pay 4% of the transaction amount, and GBP will be converted to USD automatically. However, Bitstamp has hugely unfavorable FX rates on GBP/USD. For example, the buy and ask spread currently being quoted is 1.3261 and 1.2208, respectively. This works out at a spread of over 8%. That said, Bitstamp is one of the few Bitcoin exchanges offering 0% commission trading.

This is available to UK investors on the first $1,000 traded every month, or about £800. We also like that Bitstamp has solid security features in place. This includes two-factor authentication and whitelisting. Moreover, 95% of client tokens are kept offline in cold storage. Bitstamp also allows investors to deposit their Bitcoin into a savings account. Currently, this is yielding 2%, and interest is paid daily.

Why Buy Bitcoin With PayPal in the UK?

To begin this guide, we’ll cover some of the benefits of buying Bitcoin with PayPal in the UK.

Fast Investment Process

First, buying Bitcoin with PayPal is one of the fastest methods available. Once an account has been opened with a suitable Bitcoin exchange, investors simply need to type in a deposit amount, log into the PayPal account, and confirm the transaction.

The vast majority of Bitcoin exchanges will process the PayPal payment instantly. Then, the investor can buy Bitcoin with their account balance. When using eToro – which is one of the best crypto exchanges in the UK, the process takes less than five minutes from start to finish.

Other payment methods, however, are not as speedy. For example, while UK bank transfers are processed via the Faster Payments system, this isn’t to say that the Bitcoin exchange will process them instantly. On the contrary, it can take several days for the bank payment to arrive.

Small Deposits Are Welcome

When exploring how to buy Bitcoin with PayPal in the UK, it’s also important to consider account minimums. Fortunately, we found that PayPal is one of the best payment methods for casual investors. This is because small deposits are welcome by many leading exchanges.

For example, when using eToro to buy Bitcoin with PayPal, the minimum deposit is just $10 (about £8). What’s more, the minimum Bitcoin purchase is also $10. This will appeal to first-time investors that want to start with small amounts. In contrast, the minimum bank account deposit on eToro is $500 (about £400). This might be a bit steep for some investors.

Convenient Payment Process

PayPal is also one of the most convenient payment methods to use when buying Bitcoin in the UK. This is because the investor’s payment details will already be attached to the PayPal account. In most cases, this is a debit or credit card, although bank transfers are also supported.

Either way, there is no requirement to enter any payment method. Instead, investors simply need to sign into their PayPal account – via their chosen Bitcoin exchange. After confirming the payment via PayPal, the exchange should credit the funds instantly. This also makes it more seamless to buy Bitcoin on a smartphone.

Safety and Security

Safety and security are other factors to consider when exploring how to buy Bitcoin with PayPal in the UK. Put simply, PayPal is one of the safest payment methods to use online.

And here’s why:

First and foremost, we mentioned above that there is no requirement to provide the Bitcoin exchange with any payment information. This is because the debit/credit card or bank account has already been added to the PayPal account.

This provides a major safety net for investors, as sensitive financial information does not need to be entered into the Bitcoin exchange’s website.

Moreover, when signing into the PayPal account to complete the deposit, the Bitcoin exchange will not be able to see the login credentials. Instead, the information is encrypted between PayPal and the exchange. This means that the PayPal account is never exposed to a third party.

Buyer Protection

Additional security is offered to those using PayPal to buy Bitcoin in the UK – Buyer’s Protection.

In a nutshell, Buyer’s Protection is very similar to a credit card chargeback. If the buyer did not receive the product or service they paid for, as advertised, they can make a claim with PayPal.

As described in the PayPal guidance notes for UK buyers:

Be prepared to provide PayPal with ‘compelling evidence’ to prove that you provided the intangible item and that it was as you described it to be (just as you do for tangible items).

For example, let’s suppose that an investor uses a Bitcoin exchange to deposit £500 with PayPal. After confirming the deposit, only £400 has been credited to the account. This represents a fee of 20%, but the exchange originally quoted 5%. Having taken the claim up with the exchange, no resolution was found. As such, the buyer can make a claim directly with PayPal.

As noted above, the Buyer Protection scheme requires claimants to provide compelling evidence. If this is provided, then there is no reason why PayPal will not award a claim in favor of the buyer.

Low Fees

PayPal does not charge any fees when making wallet-to-wallet transfers. This is the system used when depositing funds with PayPal into a Bitcoin exchange.

That being said, PayPal charges fees to merchants, such as exchanges. Therefore, UK investors should check what PayPal fees the Bitcoin exchange charges before proceeding.

• For example, Bitstamp charges 4% when depositing funds with PayPal.
• Coinbase charges 3.99%.

We found that the cheapest option is eToro – an FCA-regulated exchange. PayPal deposits on eToro are charged just 0.5%. This is an FX fee to convert GBP to USD.

That said, when using the eToro Money crypto wallet to deposit funds with PayPal, the 0.5% fee is waivered. This makes eToro the most cost-effective way to buy Bitcoin with PayPal in the UK.

Fast GBP Withdrawals

PayPal is one of the best payment methods to withdraw money from a UK Bitcoin exchange.

First, once the Bitcoin exchange approves the withdrawal, the payment will be released. Wallet-to-wallet transfers are processed in seconds, so investors should see the funds in their PayPal accounts immediately. This is because PayPal transfers do not go through third parties.

Second, PayPal users in the UK benefit from instant, free withdrawals to bank accounts. The only exception is if the PayPal system needs more time to investigate the withdrawal. This is usually only the case if it’s the user’s first withdrawal or a large amount of money is being cashed out.

Other payment methods are considerably slower. For example, withdrawing money from a Bitcoin exchange to a debit/credit card can take several days to arrive. Leading credit bureau Experian states this can take up to a week. This is because the payment goes through multiple parties.

While bank account withdrawals can be instant, this is only if the Bitcoin exchange uses the Faster Payments network. If it doesn’t, then the withdrawal can take several days to clear. As such, PayPal is the best option when cashing out Bitcoin.

Buying Bitcoin On PayPal vs Buying Bitcoin Using PayPal on Crypto Exchanges?

Although UK investors cannot buy Bitcoin directly on PayPal, the platform isn’t the best option anyway.

Here’s why:

• Fees: PayPal charges US clients 1.8% when buying and selling Bitcoin. Higher fees are charged on investments of under $1,000. In contrast, eToro charges just 1%.
• Supported Coins: PayPal only lists Bitcoin and three other cryptocurrencies – Litecoin, Ethereum, and Bitcoin Cash. In comparison, Crypto.com offers over 250 cryptocurrencies. This allows UK investors to create a much more balanced portfolio.m
• Trading Tools: PayPal offers very few trading tools, making it challenging to make informed decisions. Bitcoin exchanges specialize in the spot trading markets, meaning they offer charts, analysis tools, and live order books. eToro also offers passive investment tools, such as smart portfolios and copy trading.
• Wallet: The PayPal wallet is very basic and comes with limited features. It also remains to be how well protected its wallet is from remote hacking attempts. We found the eToro wallet to be much more suitable. Not only in terms of regulation and security tools, but eToro allows investors to swap cryptocurrencies without leaving the wallet interface.

How to Buy Bitcoin with PayPal UK on eToro – Tutorial

Read on to learn how to buy Bitcoin online with PayPal in the UK.

We found eToro offers the best way to buy Bitcoin with PayPal, considering it’s authorized and regulated by the FCA.

In just five minutes, investors can open an account with eToro, deposit funds with PayPal, and proceed to invest in Bitcoin.

Step 1: Register With eToro 

First, an account will need to be opened with eToro.

Visit the eToro website and click ‘Sign Up’. Fill out the registration form by choosing a suitable username and password.

Personal information will need to be entered too. For example, a first and last name, residential address, and mobile number.

Step 2: Upload KYC Documents 

Next is the KYC process, which requires eToro users to upload some ID. UK investors can opt for a passport or driver’s license.

eToro also requires proof of address. The document must have been issued within the prior three months. A utility bill or bank statement will suffice.

Step 3: Deposit Funds With PayPal 

The next step is to deposit funds into the eToro account.

First, click on the ‘Deposit Funds’ button and type in the amount to deposit.

The minimum first-time deposit for UK investors is $10.

Click on the ‘Continue’ button. The investor will then be taken to the PayPal website. Sign in to the PayPal account and review the deposit.

After confirming the payment, the investor will be taken back to the eToro website. The PayPal deposit should show in the eToro account.

Step 4: Search for Bitcoin 

Now that the eToro account has been funded via PayPal, the next step is to go to the Bitcoin trading page.

Simply type in ‘Bitcoin’ in the search bar. Then click ‘Trade’ to proceed.

Step 5: Buy Bitcoin 

Similar to the image below, an order box will now appear. eToro makes it incredibly easy to buy Bitcoin from this point onwards.

Investors simply need to specify how much Bitcoin they want to buy. In the ‘Amount’ box, enter the amount in US dollars.

Remember, the minimum purchase amount is $10.

Finally, clicking on the ‘Open Trade’ button will confirm the order.

Bitcoin Minetrix – Bitcoin Alternative With Stake-to-Mine Rewards exceeding 2000%, Raised Over $300K Within A Week

Bitcoin Minetrix ($BTCMTX) is an emerging cloud mining player offering a unique “Stake-to-Mine” model, effectively transforming the traditional mining process. 

The recently launched presale of its native token, $BTCMTX, quickly captured investor attention, raising over $300,000 within a week.

The presale offers $BTCMTX at an initial discounted rate of $0.011, which will rise to $0.0119 by the final stage. 

With a hard cap target of raising over $30 million, the project plans to allocate 70% of its total 4-billion token supply for the presale.

Instead of traditional cloud mining, which often involves buying cash contracts, Bitcoin Minetrix offers a new-age “Stake-to-Mine” method. 

Here, users stake the BTCMTX tokens to get non-tradable ‘mining credits.’ The Bitcoin Minetrix whitepaper highlights how these credits can acquire Bitcoin mining power.

All this is manageable through an integrated dashboard, allowing an overview of your earnings and mining credits.

Key Features

• Simplicity: Mining is made easy for beginners; all operations can be managed from a desktop or mobile.
• Security: A third-party smart contract audit backs the platform, minimizing scam risks.
• Flexibility: No locked-in contracts; sell your $BTCMTX tokens whenever you wish.
• Environmental Impact: Offers an eco-friendly cloud mining option compared to traditional methods.

Bitcoin Minetrix Stake offers a staking system where rewards are distributed per ETH block and calculated based on your staking balance and share of the pool. 

The BTCMTX token rewards are distributed at a rate of 158.5 BTCMTX for every mined Ethereum block over 2 years.

The rewards you get are proportional to your share in the staking pool and the percentage of the annual return. The dynamic annual estimated rewards rate at press time is nearly 2616%.

Also, over 15 million tokens have been staked within just a week of its launch, showing strong community trust in the platform.

Stay updated by following Bitcoin Minetrix on X (formerly Twitter) or joining their Telegram group.

Conclusion

In summary, it takes just five minutes to buy Bitcoin with PayPal when using the right exchange. At eToro, UK investors will benefit from an FCA-regulated framework and low deposit fees.

In fact, PayPal deposits on eToro are charged just 0.5%. eToro will also suit investors on a budget, considering the minimum deposit amount of just $10 (about £8).

Cryptoassets are highly volatile and unregulated in most countries. No consumer protection. Tax on profits may apply. Your capital is at risk.

References

• https://www.wearepay.uk/what-we-do/payment-systems/faster-payment-system/
• https://www.paypal.com/uk/webapps/mpp/merchant-fees
• https://www.paypal.com/uk/webapps/mpp/business-updates/protection-improvements
• https://register.fca.org.uk/s/search?q=583263&type=Companies
• https://www.experian.com/blogs/ask-experian/how-long-does-a-credit-card-refund-take/
• https://www.swift.com/your-needs/financial-crime-cyber-security/know-your-customer-kyc/kyc-process
• https://www.coinbase.com/legal/user_agreement/payments_europe-updatedterms
• https://www.bloomberg.com/quote/GBPUSD:CUR
• https://www.reuters.com/article/paypal-cryptocurrency-idINL1N2HB14U

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Kane Pepi

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Kane Pepi

Kane Pepi is an accomplished financial and cryptocurrency writer who has an extensive portfolio of over 2,000 articles, guides, and market insights. With his expertise in specialized subjects such as asset valuation and analysis, portfolio management, and financial crime prevention, Kane has built a reputation for providing clear explanations of complex financial topics. He holds a Bachelor's Degree in Finance and a Master's Degree in Financial Crime, and is currently pursuing his Doctorate degree, which focuses on investigating the complexities of money laundering in the cryptocurrency and blockchain technology sectors. Kane's wealth of knowledge and experience in the field make…

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