How to buy with PayPal on Coinbase? This guide explains all options Coinbase users have when using PayPal on Coinbase as a payment option.
Cryptocurrency exchange Coinbase now allows users in the US to buy various cryptocurrencies using their PayPal accounts. This new feature provides a trusted and familiar experience for Coinbase users. In addition, it acts as an intermediary between the user and the exchange, allowing them to avoid giving their bank account or debit card information directly to the exchange.
The $25,000 per day purchasing limit, as of this writing, applies to purchases made through PayPal. You can link your PayPal account to Coinbase via the “Add a payment method” option, which relates to the PayPal login screen. It’s important to note that prepaid cards or credit cards are not supported by this feature. Finally, Coinbase plans to roll out this feature to other countries in the coming months.
This guide is a step-by-step approach to how to add this new payment method, and also how to buy with PayPal on Coinbase.
How To Buy with PayPal on Coinbase: Quicktake
In general, buying crypto with PayPal on Coinbase is a straightforward process, however, first-timers must do some extra necessary steps before they can own new coins.
In short, below is the buying process for using PayPal on Coinbase:
- Register at Coinbase for free by email or mobile phone
- Verify your account(KYC)
- In settings, link your PayPal account
- Buy crypto(BTC, ETH, LTC, etc) on Coinbase with PayPal
Later in this guide, I’ll detail how every step works, including some helpful screenshots. Also, it’s good to know that using PayPal on Coinbase for buying crypto, only is allowed for US customers. However, in the near future, this might change very soon, when other countries will be added.
Why use Coinbase for Buying Crypto with PayPal?
Coinbase is a secure online platform for buying Bitcoin and more than 150 other cryptocurrencies, including Ethereum(ETH), Litecoin(LTC) and Binance Coin(BNB), and Tether(USDT). It prides itself on being one of the easiest platforms to use, with its clear layout, simple navigation, and low trading fees.
With minimal effort, anyone from beginners to professionals is able to buy and sell crypto on their platform. All in all, Coinbase is the ideal place for beginners to purchase Bitcoin with a PayPal account.
The history of PayPal and Cryptocurrencies
In November 2020, PayPal decided to add cryptocurrencies as payment options on its platform. Meaning, since then people are allowed to buy, sell and hold cryptocurrencies directly from their PayPal account. At the time of writing, PayPal only supports four cryptocurrencies natively — Bitcoin, Ethereum, Litecoin, and Bitcoin Cash — compared to the dozens available on Coinbase.
How To Buy With PayPal on Coinbase(In 4 Steps)
Next, the simple steps you need to perform to start using PayPal on Coinbase. Also, I assume you don’t have a Coinbase account yet. As a result, I have included the process for signing up and verifying the account first.
Step 1: Sign up for a Free Account
First of all, to get started on Coinbase, you have to fill in your name, and email address and provide a unique password at the website. Next, sign in to Coinbase by clicking the verification link emailed to you, then provide your mobile phone number and enter the code you receive by text.
Also, make sure to use the link above in the text to sign up at Coinbase. It will give you a bonus of $10 in Bitcoin when doing your first crypto purchase on the platform.
Step 2: Verify your Identity(KYC)
The next step is the KYC process. Enter your name, date of birth, and address as shown on your government-issued ID, and answer a few questions about your job and investing. In Settings, under Account limits, click “Verify photo ID”, select your ID type, and follow the instructions to upload it as a file or with your webcam or mobile camera.
Step 3: Link your PayPal Account
In Settings, go to Payment methods and click “Add a payment method”. Select PayPal and you will be redirected to PayPal where you will need to log in. You can now use PayPal to make a deposit (if you are a US customer).
Step 4: Buy Crypto with PayPal on Coinbase
Finally, you arrived at step 4 where you can buy the mighty crypto with your PayPal account. All you have to do now on the platform is to select your favorite coin you want to buy. It’s all very straightforward. In the pop-up screen, enter the amount in USD you want to buy crypto and choose PayPal as the payment method. Simply enter the amount you wish to purchase, click “Preview Buy”, and then hit the “Buy Now” button.
At this point, your done and ready to enter the exciting world of cryptocurrencies 😁
How to Withdraw Cash from Coinbase using PayPal(Optional)
Besides buying crypto on Coinbase with your PayPal account, it is also possible to withdraw fiat currency(USD, EUR, etc) to PayPal. Moreover, this option has been available for some time now and is also available in countries outside the US. Below are the steps you have to do when sending money to PayPal from Coinbase.
Step 1: Sell your Crypto for Fiat(USD, EUR, etc)
If you don’t have money in your Coinbase account, it is important to sell your cryptos first. After you have done this your money can be found under “My Assets”. Now click on this to view the Cash Out option and select “Cash Out All”.
Step 2: Select a Destination
Click the continue button and a new screen appears that asks you to choose a destination for your cash withdrawal. You have the following options:
- Add a debit card
- Add a bank account
Choose the third option, PayPal.
Step 3: Confirm cash withdrawal
Next, you only have to confirm if you really want to withdraw to your PayPal account. Also, the screen shows you the details including the fee which is zero for PayPal withdrawals.
The fee structure on Coinbase and Coinbase Pro
It is good to know that buying crypto with PayPal or any other payment method comes at a cost. For instance, if you decide to purchase Bitcoin on the platform you have to pay a fee of 3.99%. On top of that, if you want to deposit fiat currency like USD you have to pay a fee of 2.5%.
For Coinbase Pro, which is the platform’s more advanced trading platform, fees vary depending on the amount of cryptocurrency traded and the trading volume. The fees range from 0.50% for trades less than $10,000 to 0.05% for trades over $1,000,000.
Coinbase also charges a network fee for sending cryptocurrency from your Coinbase wallet to another address. The fee is based on the current network congestion and can vary significantly.
Withdrawing Cash from CoinBase using PayPal
As shown above, withdrawing cash from Coinbase is a straightforward process that can be done in just a few steps. You can withdraw cash directly to your bank account or use PayPal to transfer funds. If you choose to withdraw to your bank account, you’ll need to add your bank account details to your Coinbase account. Once your account is verified, you can initiate a withdrawal and the funds should arrive in your bank account within a few days.
Alternatively, using PayPal to withdraw funds offers a convenient and trusted option. You can link your PayPal account to Coinbase and transfer funds to your PayPal balance(for free). From there, you can easily withdraw the funds to your bank account or use them for online purchases. Overall, withdrawing cash from Coinbase is a seamless process that offers flexibility and choice for users.
Conclusion: How To Buy with PayPal on Coinbase
In conclusion, the ability to buy cryptocurrencies with PayPal on Coinbase makes the process easier and more secure for US customers. By allowing users to link their PayPal account to Coinbase, the exchange acts as an intermediary between the user and the exchange, allowing them to avoid giving their bank account or debit card information directly to the exchange. The process of buying crypto with PayPal on Coinbase is straightforward, and Coinbase’s clear layout, simple navigation, and low trading fees make it an ideal platform for beginners to purchase Bitcoin with a PayPal account.
It is important to note that the purchasing limit of $25,000 per day applies to purchases made through PayPal, and prepaid cards or credit cards are not supported by this feature. Furthermore, Coinbase plans to roll out this feature to other countries in the coming months.
In addition, Coinbase offers the option to withdraw fiat currency (USD, EUR, etc.) to PayPal, making it a two-way process. The withdraw feature already existed and is available for all Coinbase users and isn’t restricted to US customers.
Overall, the addition of PayPal as a payment method on Coinbase is a positive development for the cryptocurrency industry, making it easier and more secure for users to buy and sell cryptocurrencies.
Coinbase has once again shown its commitment to providing the best possible experience for its customers by introducing this feature, and we look forward to seeing more innovations from Coinbase and other exchanges in the future.
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