How to Buy Bitcoin with PayPal in the UK 2024 – 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.

How to Buy Bitcoin With PayPal in the UK – 5 Easy Steps

Still need some guidance on how to buy Bitcoin with PayPal in the UK?

The quickfire guide below highlights the steps with Coinbase. It takes just five minutes to complete the process from start to finish.

  • Step 1: Open a Coinbase Account – The first step is to open an account with Coinbase. UK investors will need to provide their first and last name, residential address, mobile number, and email.
  • Step 2: Complete the KYC Process – The next step is to upload a copy of a passport or driver’s license to complete the KYC process. Additionally, UK investors need to upload proof of address. A utility bill or bank statement will suffice.
  • Step 3: Set up PayPal Deposit – Next, click on ‘Deposit Funds’ and choose ‘PayPal’ from the list of payment types. Type in the amount of money to deposit and click on ‘Continue’ to proceed.
  • Step 4: Sign in to PayPal – The Coinbase deposit page will then redirect users to PayPal. Sign into the PayPal account and review the deposit details. If everything looks correct, confirm the deposit. The investor will then be taken back to Coinbase, where the deposited funds should have been credited to the account balance.
  • Step 5: Buy Bitcoin – Now search for ‘Bitcoin’ and click on the ‘Trade’ button. A pop-up order box will appear. Type in the amount of Bitcoin to buy.

Further down, we offer a more detailed explanation of how to buy Bitcoin with PayPal online in the UK.

Crypto assets are highly volatile and unregulated in most EU countries, Australia, and the UK. No consumer protection. Tax on profits may apply. Your capital is at risk. Don’t invest in crypto assets unless you’re prepared to lose all the money you invest.

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 2024.

1. 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 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.

Coinbase review

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.

Pros pros

  • One of the best ways to buy Bitcoin with PayPal instantly
  • Offers Bitcoin markets in GBP
  • Quick and seamless account opening process
  • Secure web and mobile wallet for storing Bitcoin safely

Cons cons

  • Charges nearly 4% to buy BTC with PayPal in the UK
  • Does not offer Bitcoin savings accounts

2. 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. 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.

Crypto.com review

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.

Pros pros

  • PayPal deposits are processed instantly
  • Account registration and KYC takes minutes
  • Pay just 75p in commission for every $1,000 worth of Bitcoin traded
  • Buy and sell over 250 other cryptocurrencies

Cons cons

  • UK investors pay fees of 2.1% when depositing funds with PayPal
  • Daily deposit limits of $1,000

3. 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.

Bitstamp review

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.

Pros pros

  • Established Bitcoin exchange operational for over 12 years
  • PayPal deposits are processed instantly
  • No commissions charged when trading less than $1,000 per month
  • Supports Bitcoin and 85+ other cryptocurrencies

Cons cons

  • 4% fee on PayPal deposits
  • Converts GBP to USD at highly unfavorable exchange rates

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 Coinbase – which is one of the best crypto exchanges in the UK, the process takes less than five minutes from start to finish.

coinbase advanced trade link

 

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.

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).

PayPal Buyer's Protection

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%.

How Much do PayPal Withdrawals Cost in the UK?

  • Unlike US clients, PayPal users in the UK do not pay any fees to withdraw their balance to a bank account.
  • What’s more, the withdrawal is usually processed instantly via the Faster Payments network.
  • This is on the proviso that the bank account linked to PayPal has already been verified.

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.

Is PayPal a Good Place to Buy BTC in the UK?

PayPal launched its crypto brokerage arm in 2021, allowing users to buy and sell Bitcoin without leaving their e-wallet accounts. However, this service is only available to US clients.

Fortunately, UK investors have plenty of other options when exploring how to buy BTC with PayPal. This includes the exchanges reviewed above – all of which support instant PayPal deposits.

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.
  • 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.
  • 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.

Bitcoin Minetrix Token – The Perfect BTC Alternative With Passive Staking Rewards

Bitcoin Minetrix ($BTCMTX) is an ideal alternative to straight Bitcoin investment. It provides stakers with an APY 59% as well as exposure to Bitcoin mining.

bitcoin minetrix connect wallet

The concept behind the project is simple. Once you have purchased your $BTCMTX tokens from the official presale website, you can put them to work to earn passive staking rewards. In return you will not only receive an impressive APY of 59% but also a share of ‘Cloud Mining Credits’ depending on your allotted stake. These credits can then be exchanged for time on the Bitcoin Minetrix cloud mining platform.

Bitcoin Minetrix tokenomics

As you can see, there are 4 billion total $BTCMTX tokens of which 1.4 billion have been ear marked for the mining operation.

With the Bitcoin halving soon approaching, the timing of the presale couldn’t be better. To secure your tokens, head on over to the official project website, follow the team on X and join the exclusive Telegram group.

Hard Cap
Total Tokens 4 Billion
Tokens available in presale 1.4 Billion
Blockchain Ethereum Network
Token type ERC-20
Minimum Purchase NA
Purchase with USDT, ETH, BNB, MATIC, Card

Conclusion

In summary, it takes just five minutes to buy Bitcoin with PayPal when using the right exchange.

For those looking for a suitable Bitcoin alternative that might provide better ROI, Bitcoin Minetrix Token is the best option, as per our research. While linked to the Bitcoin markets, it offers several additional incentives to make it an attractive alternative.

Crypto assets are highly volatile and unregulated in most EU countries, Australia, and the UK. No consumer protection. Tax on profits may apply. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take two minutes to learn more.

References

FAQs

Can I buy Bitcoin with PayPal?

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Kane Pepi
Editor
Kane Pepi
Editor

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…