How to Buy Bitcoin with PayPal in the UK (2021)

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Looking to buy Bitcoin (BTC) with PayPal in the UK?

There aren’t many places where you can buy crypto using PayPal – especially if you’re looking to keep fees at a minimum.

In this list, I’ll run through the places that I know about where you can purchase Bitcoin (BTC) using your PayPal balance in the UK.

Here’s a quick look at the best options:

Let’s get started.

Best Ways to Buy Bitcoin (BTC) with PayPal in the UK

1. PayPal’s Crypto Hub

The simplest way to buy Bitcoin (BTC) using PayPal is to do so directly through PayPal itself.

PayPal is one of the world’s largest digital payments providers. The company specialises in credit card and bank transfer payments, but it launched a crypto purchasing platform in 2021 for UK investors.

This service is quick and easy to use as it’s designed primarily for people looking to get their first taste of crypto. You can buy as little as £1 worth of Bitcoin (BTC), Ethereum (ETH), and a couple of other popular cryptocurrencies using any payment method that’s linked to your PayPal account.

The downside?

Fees are pretty darn high with PayPal Crypto. You’ll pay a minimum of 1.5% on your transaction. But you could be charged much more in fees (think 5% or more) for a smaller order.

AmountTransaction Fee
£1.00 – £24.99£0.50
£25.00 – £100.002.30%
£100.01 - £200.002.00%
£200.01 - £1000.001.80%
> £1000.011.50%

And there’s another catch.

Even though PayPal Crypto is super easy to use, you cannot withdraw your Bitcoin to an external wallet. In my opinion, this makes the services useless for most investors.

Sure, if you just want to exposure to Bitcoin (BTC) price movements, then PayPal’s crypto service might be okay. However, there are so many other places out there where you can trade, withdraw, and hold crypto without being restricted in this manner.

For more information about PayPal Crypto, check out my review or head to the PayPal website.

PayPal WebsitePayPal Cryptocurrency Hub Review
How to buy Bitcoin (BTC) on PayPal

PayPal has made buying Bitcoin (BTC) as simple as possible.

However, even if you have an active PayPal account, you need to provide additional personal information and accept a new set of terms and conditions before you can purchase crypto. This is a one-time thing and it’s required as part of PayPal’s KYC (Know Your Client) requirements.

Once that’s sorted, to purchase BTC on PayPal, do the following:

  • Log into your PayPal account.
  • Navigate to the ‘Crypto’ tab.
  • Choose Bitcoin (BTC).
  • Press ‘Buy’.
  • Enter the amount of Bitcoin (BTC) that you want to buy.
  • Pick a payment method (bank transfer or debit card).
  • Review your transaction details, fees, and exchange rate.
  • Press ‘Agree and Buy’.

As soon as you purchase Bitcoin (BTC) on PayPal, your BTC should be available within your account in a matter of seconds.

2. eToro

eToro is an international online brokerage that’s based in Israel. It has been providing brokerage services since 2007 – but it only began to offer crypto spot trading in 2017.

Although eToro is primarily designed for stocks and ETFs trading, it now supports trades of Bitcoin (BTC), Ethereum (ETH), and 25+ other tokens and coins.

eToro is also one of the few major online brokerages that lets you withdraw a few of the cryptocurrencies from your account (BTC, BCH, ETH, LTC, XLM, & XRP). However, you’ll have to wait up to 60 days before you can do this (depending on the payment method you choose). Although that’s not ideal, it’s still better than what’s possible on similar brokerage sites.

Another key feature of eToro’s crypto trading platform is that it lets you buy Bitcoin (BTC) using PayPal. Most dedicated cryptocurrency brokers/exchanges only support bank transfers and credit card/debit card purchases.

eToro also offers unique (and popular) trading features called CopyTrader and CopyPortfolio. These features let you invest in pre-set portfolios and automatically copy the trades of other top investors.

Disadvantages to trading on eToro include the firm’s high fees.

Technically, eToro is a “commission-free broker”. But even though the company doesn’t charge a commission, they do take a large spread on all crypto transactions. The spread on BTC is about 0.75%, but it can increase to 5% for low-liquidity tokens and coins.

On top of this, eToro’s exchange rates are often higher than the current GBP-BTC market rate that you’d find on places like Coinbase Pro or Kraken. When I checked, the markup wasn’t too bad (1% to 2%).

Check out eToro’s website to learn more about the company’s crypto trading features.

Find Out More*
*68% of retail CFD accounts lose money. Cryptoassets are a highly volatile unregulated investment product. No EU investor protection. Your capital is at risk.
How to buy Bitcoin (BTC) with PayPal on eToro

Buying Bitcoin (BTC) with PayPal on eToro is slightly more complex than doing so with a bank transfer (but it’s still quick).

To place a BTC trade on eToro using PayPal:

  • Log in to your eToro account.
  • Navigate to the crypto trading terminal.
  • Choose a market order (called a ‘Trade’) or a limit order (called an ‘Order’).
  • Enter the amount of Bitcoin (BTC) you want to buy.
  • Select PayPal as your deposit method.
  • Review the fees and exchange rate for your trade.
  • Confirm your BTC purchase.

If you place a market order, your BTC should be available in your eToro account immediately. Funds from limit orders will be available as soon as your trade executes at your stated limit price.

3. LocalBitcoins

LocalBitcoins is a Finnish-based peer-to-peer crypto marketplace that’s been around since 2012. It is arguably the world’s largest P2P crypto platform. However, it has lost a large amount of trading volume in recent years to alternative P2P marketplaces like LocalCryptos and LocalCoinSwap.

Despite its declining trading volume, LocalBitcoins is still one of the best places to buy Bitcoin (BTC) with PayPal in the UK.

One benefit of LocalBitcoins is that it doesn’t charge any fees to buyers who respond to listings (sellers pay 1% when they create a sell listing). You will also have to pay the network fees when you withdraw Bitcoin (BTC) to your external wallet (but this is normal across most places).

On top of this, LocalBitcoins provides buyers with a lot of information for vetting sellers before they make a purchase. You can check out a seller’s feedback scores, trading volume, escrow release times, and their total number of trades before you initiate a trade (by just clicking their name).

Of course, there are some downsides to buying Bitcoin (BTC) on Paxful with PayPal.

Although exchange rates are set by sellers, you’ll often find that the markup on listings that let you buy Bitcoin (BTC) using PayPal are high on LocalBitcoins. When I checked, the markup was between 5% to 7%. LocalBitcoins doesn’t show you this markup when you search through listings, so you’ll have to check this yourself (which sucks).

Check out my complete LocalBitcoins review or the company’s website for more information.

LocalBitcoins WebsiteLocalBitcoins Review
How to buy Bitcoin (BTC) with PayPal on LocalBitcoins

Once your LocalBitcoins account is active and verified, buying Bitcoin (BTC) with PayPal is usually a quick process.

To find a Bitcoin (BTC) listing on LocalBitcoins:

  • Head over to the LocalBitcoins marketplace and sign in.
  • Enter the amount of Bitcoin (BTC) you want to buy.
  • Select a fiat currency (e.g., British Pounds).
  • Choose a country where you want to see offers (e.g., UK).
  • Pick PayPal as your payment method.
  • Press ‘Search’ to see all available offers.

At this point, you have a list of all available offers where you can buy Bitcoin (BTC) using PayPal. Now, you have to find a listing that works for you and initiate a trade.

Do the following to start a trade:

  • Read through BTC sell listings to find an offer you like.
  • Verify the terms of the trade to confirm that you want to proceed.
  • Enter the amount of BTC you want to buy.
  • Send a message to the seller and click ‘Open a Trade’.
  • Make your payment via PayPal.
  • Click ‘I have paid’ in your LocalBitcoins dashboard.
  • Wait for the seller to confirm receipt of payment and to release your BTC from escrow.

Your Bitcoin (BTC) purchase will be available in your LocalBitcoins wallet as soon as the seller releases the funds from escrow. If you have an issue with your trade, you can initiate a dispute and get help from the platform’s customer service team.

4. Paxful

Paxful Logo Header

Paxful is a US-based peer-to-peer crypto trading platform that was founded in 2014. It offers a user-friendly marketplace where you can buy and sell Bitcoin (BTC) and Tether (USDT) directly with the platform’s 4.8 million other registered traders around the globe.

The benefit to using Paxful is that it offers more than 300 payment methods for UK-based investors, including PayPal. Other popular payment methods include UK bank transfers, gift cards, MoneyGram, and even in-person cash.

As is the case with most P2P marketplaces, the price you’ll pay for Bitcoin (BTC) on Paxful is normally above the real BTC to GBP exchange rate. But, unlike on LocalBitcoins, Paxful makes it easy for you to see the markup on any given listing as the marketplace’s interface shows you the difference between a seller’s asking price and the current market rate.

Plus, there are no additional trading fees to buy Bitcoin (BTC) on Paxful. The company charges a 0.5% to 5% fee to sellers. But buyers just need to pay the quoted price on their order plus a 0.0005 BTC withdrawal fee. Note that there are some trading limits on Paxful, but these are set independently by each seller—not by the company.

But there are a few drawbacks to using Paxful.

First, it’s not as active in the UK as LocalBitcoins – which means you’ll have fewer listings to choose from.

You’ll also usually find that the markup on Bitcoin (BTC) purchases with PayPal is high on Paxful (7% or more).

To learn more about how Paxful works, check out my review or go to the Paxful website.

Paxful WebsitePaxful Review
How to buy Bitcoin (BTC) with PayPal on Paxful

Buying Bitcoin (BTC) with PayPal on Paxful is straightforward, but it involves extra diligence on your part. Since Paxful is a P2P marketplace, you’re fully responsible for finding and vetting sellers on the platform.

To search for Bitcoin (BTC) sell offers on Paxful:

  • Go to the Paxful marketplace and sign in.
  • Select ‘Bitcoin’.
  • Choose ‘PayPal’ as your payment method.
  • Enter the amount of Bitcoin (BTC) you want to purchase.
  • Press ‘Find Offers’.
  • Sort through the listings to find a seller with good ratings and a fast response time.
  • Choose the offer that you’re interested in.

Once you have an offer you’re interested in, it’s time to initiate a trade. To open a trade on Paxful, do the following:

  • Read through the offer details to confirm that the seller is someone you want to buy from.
  • Enter how much Bitcoin (BTC) you want to buy.
  • Double-check your transaction total.
  • Press ‘Buy Now’.
  • Send your payment to the seller via PayPal.
  • Mark your payment as complete in Paxful.
  • Wait for the seller to confirm receipt of payment to release your Bitcoin (BTC) from escrow.

Your Bitcoin (BTC) should be available for withdrawal as soon as the seller releases your funds from escrow.

If you have a problem with your order or if the seller refuses to release your BTC, you can raise a dispute in Paxful. Doing so will notify Paxful’s customer service team who will try to mediate your dispute and send the escrow funds to their rightful owner.

Any Questions?

Thanks for checking out this quick post about how to buy Bitcoin (BTC) with PayPal in the UK!

Have any questions about the places I’ve talked about?

Comment below and I’ll get back to you ASAP!

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*eToro is a multi-asset platform that offers both investing in stocks and cryptoassets, as well as trading CFD assets. Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Cryptoassets are volatile instruments that can fluctuate widely in a very short time frame and, therefore, are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and, therefore, is not supervised by any EU regulatory framework. Your capital is at risk.

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