How To Buy Bitcoin With PayPal In Australia
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PayPal can be a convenient way for investors to buy cryptocurrency, as many people already have an account. A small number of cryptocurrency exchanges in Australia with PayPal payments. This tutorial will demonstrate how to buy Bitcoin with PayPal in Australia, as well as explain the fees, risks, and exchanges that allow PayPal to fund an account.
How To Buy Bitcoin with PayPal in Australia – Quick Guide
To purchase Bitcoin with PayPal in Australia, follow these basic steps:
- Create an account with PayPal. Users that haven't registered an account with PayPal will need to do so via the official website. They will then need to link a relevant bank account or credit card so the account can receive and deposit funds. Some users may need to pass an additional verification process.
- Compare and select a crypto platform. Only a small number of exchanges support Australians buying crypto with PayPal. It is important to compare the crypto exchanges before making a decision. Considerations should include PayPal fees, transaction fees, listed digital assets, and customer service ratings.
- Create an account and complete KYC verification. Sign up for an account on the crypto exchange and pass the Know Your Customer (KYC) process, which is required to begin trading. To verify an account, new users must provide an email, mobile number, and images of government-issued identification.
- Link PayPal account. Navigate to the crypto exchange's deposit options and select "PayPal". Sign into PayPal via the pop-up box and confirm the amount of AUD to be funded.
- Buy crypto. Scroll through the exchange's supported cryptocurrencies and select Bitcoin or another asset to purchase. Confirm the transaction with the account's balance added via PayPal.
For a full guide on using PayPal to buy Bitcoin, click here to skip to the step-by-step tutorial.
Can You Buy Crypto With PayPal In Australia?
Yes, Australian residents can buy Bitcoin and crypto from platforms that support PayPal deposits. Traders can use PayPal to fund their crypto accounts and easily buy digital currencies. However, Australians will find only a few exchanges that support PayPal deposits, such as eToro.
Which Australian Exchanges Support PayPal?
Crypto investors within Australia who prefer PayPal as a payment method for obtaining digital assets have a few options to choose from. Based on our exchange reviews, these are the best places for buying Bitcoin in Australia using PayPal in 2022.
- eToro (best crypto platform in Australia for ease of use)
- Binance P2P (best platform with zero P2P transaction fees)
- Paxful (best P2P exchange to buy Bitcoin and crypto with PayPal)
How To Buy Bitcoin Using PayPal in Australia – Full Tutorial
Step 1: Register A PayPal Account
Head over to the official PayPal website and register an account. It is important to link an eligible credit/debit card or bank account to the account. Otherwise, spending with PayPal will be heavily limited. This can be done by scrolling down the PayPal dashboard and clicking 'Link a Card or Bank Account'.
Step 2: Sign Up On eToro
Visit the eToro website and create an account. eToro is one of the only centralized brokers Australians can use to buy crypto such as Bitcoin with PayPal. To register, users must provide an email address, username, and a secure password. Alternatively, new customers can streamline the process using their Facebook or Google accounts.
Step 3: Verify Your eToro Account (KYC)
eToro requires its customers to verify their identity. As an AUSTRAC-registered platform, eToro Australia must comply with Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) laws. To begin verification, click the 'Verify' button on the dashboard.
eToro's Know-Your-Customer (KYC) process requires personal information including a mobile number, residential address, and a Tax Identification Number (TFN). Next, new users will need to provide images of a government-issued document. This can be a passport or a driver's license. Additionally, customers need to submit proof of address with a recent bank statement or utility bill.
Users can deposit funds to their accounts without passing KYC protocols. However, all eToro accounts must be 100% verified before they can begin trading digital currencies. To find out how long the eToro verification process is, read this guide.
Step 4: Deposit Using PayPal
Navigate to and click the 'Deposit' tab on the left-hand pane of the eToro dashboard. Select the desired payment method from the dropdown box provided. As of July 2022, customers cannot fund their accounts with PayPal until they've already made a deposit. Traders can make a $75 AUD deposit using an alternative payment method, such as a Credit/Debit Card or POLi. Once this transaction has cleared, investors will unlock the option to deposit with PayPal.
Repeat this step, but choose PayPal as the preferred payment method. Enter the amount of AUD to be spent on Bitcoin or another digital currency.
Step 5: Buy Bitcoin
Now that the eToro account has been funded, it's time to buy crypto. There are two ways to find an asset like Bitcoin – the easiest way is to type it into the search bar on top of the webpage.
Alternatively, navigate to 'Discover' to view the entire list of supported assets, including stocks, indices, and digital currencies. Click on the desired crypto asset and then select 'Trade'. This will bring up the ordering page. Users can choose between 'Trading' and 'Ordering' digital currencies. Trading will instantly purchase the crypto at the current market price, whereas Ordering sets a target purchase price. Finally, click 'Set Order' or 'Open Trade' and confirm the transaction.
Where To Buy Bitcoin Using PayPal Australia: 2022 Reviews
There are very few exchanges that allow Australians to add to their crypto portfolio using PayPal. As of 2022, no local Australian-based exchange supports this deposit method. However, there are still a few options for Aussies wanting to buy crypto with the popular payment gateway. Below is a review of the best platforms that accept buying digital assets with a PayPal account.
1. eToro Australia – Best Platform For Ease of Use
eToro is a multi-national trading exchange that is available in several countries such as the USA, the UK, and Australia. Customers can buy a huge range of assets, including stocks, CFDs, and digital currencies like Bitcoin. eToro is well-known for pioneering 'social trading' and is commonly regarded as a world leader in this space.
Social trading allows registered users to copy trades made by other, more experienced investors. eToro is a solid choice for beginners looking to diversify their investment portfolio. They offer over 120 cryptocurrencies, a native wallet, and a Bitcoin demo trading account with $100k of virtual funds for users to test their trading ability.
The use of PayPal to finance an account wallet is supported on the eToro platform. Although the process is a simple one, the minimum deposit amount for eToro is relatively high at $75 AUD. However, there is a catch – new users must have already funded their accounts using a different payment method. This may include credit card, POLi, bank transfer, Neteller, or Skrill.
While this is an inconvenience, all eToro account funding methods follow the same process and are easy to replicate.
- Create and sign into an eToro account.
- Select the green 'Deposit Funds' button in the bottom-left of the webpage.
- If a deposit hasn't already been made, select a preferred alternative to PayPal from the dropdown box labeled 'Payment Method'.
- If a deposit has already been made, select 'PayPal' as the payment option.
- Enter the relevant details and confirm the transaction.
eToro's native currency is USD. Therefore, buying crypto with cash deposits will be converted to USD by eToro which incurs a foreign exchange fee. The foreign exchange fee for using PayPal on eToro is 150 pips, equivalent to approximately 1% – 1.5%. eToro also charges a flat 1% fee on cryptocurrency transactions. Combined, these fees can be a relatively high price to pay for the convenience of PayPal.
With PayPal, users can fund their accounts with up to $10,000 AUD daily. For a full breakdown of the platform's fees and limits, take a look at our comprehensive eToro Australia review.
2. Binance P2P – Best For Low Fees
Binance is the world's largest cryptocurrency platform based on registered users and daily trading volume. The exchange supports the purchasing and trading of over 600 digital currencies, advanced trading tools, a comprehensive learn section, a prominent NFT marketplace, and a suite of financial management products.
Binance's cryptocurrency exchange does not support AUD deposits with PayPal. However, verified users can use a PayPal account on the Peer-to-Peer (P2P) marketplace to buy crypto. Rather than placing market orders with Binance as an intermediary, the P2P exchange connects investors directly with sellers.
The biggest benefit of using Binance P2P is its huge list of payment methods. The platform offers over 60 gateways, including wire transfer, Osko, and PayPal. Binance P2P also charges zero transaction fees for buying Bitcoin using PayPal as the payment method. However, this does not necessarily make P2P more cost-effective, as sellers get to dictate the exact price of Bitcoin and other cryptos.
Using Binance P2P comes with some drawbacks. Traders only have access to seven digital assets to buy – USDT, BTC, BUSD, BNB, ETH, SHIB, and ADA. Customers can only buy a cryptocurrency if somebody is already selling it. For example, as of writing this article, there were no sellers listing Cardano or Shiba Inu on Binance P2P.
Traders are also quite limited in using PayPal to purchase crypto. Each seller on Binance P2P chooses which payment terms they accept, and very few sellers tend to accept PayPal. This also means trading limits will vary from vendor to vendor. Some will have minor limits ($100 AUD or less), whereas others will only allow purchases greater than $5,000 AUD.
Binance P2P uses an escrow system, which does add a layer of security to the transaction. However, buying and selling P2P is riskier than ordering from an exchange. When possible, novice investors should avoid using a PayPal account to buy Bitcoin or digital currencies on Binance P2P, given its limitations. To learn more about Binance, read our full review on Binance.
3. Paxful P2P – Best P2P Marketplace To Buy Bitcoin With PayPal
Paxful has been around since 2015 and is one of the most reputable P2P exchanges in the industry. The platform boasts over 6,000,000 customers and 12,000 trusted vendors. Paxful connects buyers with merchants to easily build their cryptocurrency portfolio via a P2P marketplace. The platform is known for its flexibility, supporting 350+ payment methods including a PayPal account. Paxful was originally intended as a marketplace for buying and selling Bitcoin. It has since expanded its services to offer Tether (USDT) and Ethereum (ETH).
Like other P2P marketplaces, those wishing to buy Bitcoin with a PayPal account must find sellers accepting PayPal as a payment method. Paxful has a thriving community and it should be easy for Australians to find vendors that receive PayPal payments. However, buyers can create their own listings on Paxful to be fulfilled by sellers.
Paxful has a minimum transaction for PayPal of $15 AUD, which is comparatively low. However, different sellers will have different sales limits. Certain sellers will also require specific information to accept transactions. This might include verifying the buyer’s identity or providing a receipt.
When using a P2P exchange like Paxful, it is always a good idea to research each seller before completing a purchase. Keep an eye out on their reviews, average trade speed, and if they're a Paxful verified merchant. This will help avoid scammers. For more information, read our in-depth Paxful review.
Crypto Exchanges That Support PayPal Compared
The table below lists and compares the best exchanges for buying Bitcoin and other cryptocurrencies with a PayPal account. Click on the individual reviews for more information.
|Exchange||Crypto Assets||Trading Fees||Rating||Promotion||Website||Review|
|600+||0% to 0.1%|
|Up to $50 welcome bonus||Visit Binance Au...||Binance Australia Review|
|None available at this time||Visit eToro Aust...||eToro Australia Review|
|3||Varies on seller|
|None available at this time||Visit Paxful||Paxful Review|
Is It Safe To Buy Crypto With PayPal In Australia?
Yes, PayPal is one of the safest payment processing methods in the world. They have a responsive and helpful customer service team that can assist with inquiries and have installed numerous policies to protect consumers from malicious sellers. PayPal utilizes top-of-the-line encryption to ensure all transactions and data are private. Users will also receive a confirmation email every time a PayPal transaction goes through.
Australian traders who opt to use a PayPal account as a payment method on popular P2P marketplaces should note that most platforms implement high-grade security measures. However, crypto sellers and buyers alike should understand the potential risks of trading without the exchange as the middle-man.
What Are The Fees Of Buying Bitcoin With PayPal?
Australians can fund their exchange accounts via PayPal without any fees on most platforms. For example, eToro does not charge fees for PayPal deposits, however, eToro accounts funded with AUD will incur a 150 pips currency conversion fee, which typically ranges between 1% and 1.5%. Most P2P marketplaces only have merchant-side costs.
Advantages of Buying Bitcoin With PayPal In Australia
Buying digital currencies such as Bitcoin with PayPal presents some benefits to users. These advantages include:
- Quick deposits and withdrawals: Using PayPal can be popular due to lightning-fast transactions. Funding an account with PayPal is usually near-instant. In comparison, using a bank transfer or debit/credit card can take hours and sometimes multiple business days. Withdrawing AUD to PayPal and then to an associated bank account is also near-instant, although this may incur a fee.
- Convenience: PayPal is the largest payment gateway in the world, and most Australians will already have an account. This is an advantage for those without the means to open or use a credit card.
- Security: PayPal rose to the top of the payment processing industry by implementing industry-standard security measures. The gateway uses end-to-end encryption mechanisms and ensures that data transfer is secure. PayPal is also very flexible regarding refunds and addressing any suspicious account activity.
- Fiat currency support: PayPal natively supports over 25 fiat currencies, including AUD, USD, GBP, and EUR. This can benefit Australians as they can convert their AUD to USD before depositing to eToro, avoiding the 150 pips conversion fee. However, exchanging fiat currencies on PayPal incurs a 4% fee.
Downsides of Buying Crypto With PayPal In Australia
Before investing, individuals in Australia should also consider these downsides of using PayPal as a cryptocurrency payment option:
- Limited availability: Almost no crypto exchanges based in Australia have PayPal deposits. eToro Australia is the only centralized brokerage/exchange that currently lets Australians fund their accounts with PayPal. The alternatives are P2P marketplaces which may accept PayPal purchases depending on the vendor. Other platforms in Australia that has PayPal support include KuCoin, OKX and LocalBitcoins. Although, these are very similar to the above-listed exchanges in Australia that accept PayPal for payment.
- P2P limitations: Peer-to-peer marketplaces will often accept PayPal as a payment method. P2P platforms can be risky, as buyers deal directly with sellers instead of a central limit order book. This can leave traders vulnerable to scams.
- Low maximum orders: eToro Australia only supports deposits of up to $10,000 AUD per transaction using PayPal. This may be enough for most personal traders, however, professional investors or businesses will need to seek alternative payment methods.
- Linked to a debit card or bank: PayPal has limits on spending for users without a linked bank account.
Frequently Asked Questions
Yes, Australians can use PayPal to buy Bitcoin. Only a few exchanges currently support PayPal deposits, including eToro.
No, crypto investors in Australia can not use PayPal as a cryptocurrency wallet. PayPal has introduced a multi-token wallet for certain regions but it’s not yet available for Australians. Individuals that buy Bitcoin with PayPal will need to transfer the assets to a reputable crypto wallet in Australia.
No, Coinbase does not support PayPal deposits for Australians. The only way to buy crypto on Coinbase for Australians is with a debit or credit card. However, this information can change at any time.
Buying digital currencies with PayPal will usually have lower fees and faster deposit times than using a credit card. However, it lacks certain advantages of credit cards such as cash advances and a wider range of supported exchanges. For more information, read our guide on how to buy crypto in Australia with a credit card.
Cryptocurrency transactions are irreversible, whereas PayPal supports chargebacks. This makes it possible for scammers to purchase a digital currency, flag that they didn't receive it, and then claim a refund while keeping the crypto.
PayPal is one of the most-used payment gateways in the world. It can be incredibly convenient for investors to buy Bitcoin with PayPal in Australia. It is fast, secure, and has competitive fees. However, PayPal is only supported by a handful of exchanges. This can make it very difficult for traders to use their preferred platform. Luckily, Australians have plenty of deposit options if an exchange doesn't accept PayPal. These include POLi, bank transfer, PayID, and debit/credit cards which are viable alternatives to using PayPal.