Introduction to Buying Ethereum via PayPal
In November 2020, PayPal revolutionized digital payments by introducing cryptocurrency trading features. This update enabled its 346 million global users (starting in the U.S.) to purchase and hold Ethereum, Bitcoin, Bitcoin Cash, and Litecoin directly through their accounts.
Key features for U.S. PayPal users include:
- Purchasing goods from 26 million global merchants using cryptocurrency (automatically converted to fiat at point of sale)
- Scheduled global rollout of these services in early 2021
This guide will walk you through the simple process of acquiring Ethereum through PayPal's platform.
Step-by-Step: Purchasing Ethereum on PayPal
1. Account Setup Prerequisites
- Existing PayPal account (linked to credit card or bank account)
- Verified email address
- U.S. residency (currently)
2. Initiating Your Purchase
- From PayPal's main screen (web or app), select the "Buy Bitcoin and More" banner
- Choose Ethereum (ETH) from the cryptocurrency options
Select your purchase amount:
- Preset quantities available
- Custom amounts starting at just $1
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3. Transaction Confirmation
- Review PayPal's cryptocurrency terms (highlighting volatility warnings)
- Confirm your personal information
- Note: Exchange rates include spreads and refresh frequently until purchase completion
4. Payment Method Selection
- Use existing linked bank account/debit card
- Or add new payment method
5. Finalizing Your Purchase
- Review transaction details
Standard fees apply:
- $0.50 for transactions under $25
- 1.5% for amounts over $1,000
- Click "Buy Now" to complete
Post-purchase, your account will automatically update showing:
- ETH quantity purchased
- Current market value
- Buy/sell options under "Your Crypto"
Limitations and Alternatives
PayPal's Current Restrictions
- No external transfers: Purchased crypto remains in PayPal's ecosystem
- Automatic conversion: Merchant purchases instantly convert to fiat
- U.S.-only availability (as of publication)
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Buying Ethereum Through Exchanges
While most platforms don't accept PayPal due to fraud concerns, eToro offers limited integration:
eToro Purchase Process:
- Log into your account
- Select "Deposit" → "PayPal"
- Transfer funds to your eToro wallet
- Purchase Ethereum with deposited funds
Frequently Asked Questions
Can I transfer Ethereum out of PayPal?
Currently no - purchased ETH must remain within PayPal's ecosystem until policy changes.
What are PayPal's cryptocurrency fees?
- $0.50 (<$25) to 1.5% (>$1,000)
- Includes built-in spread for conversions
When will global users get crypto access?
PayPal plans worldwide rollout in early 2021, though exact dates vary by region.
Can I use PayPal to buy ETH on other exchanges?
Very few exchanges (like eToro) accept PayPal deposits due to irreversible transaction risks.
Is there a minimum purchase amount?
Yes - you can buy as little as $1 worth of Ethereum through PayPal.
How quickly are purchases processed?
Transactions complete instantly, with ETH appearing in your account immediately.