Coinbase and PayPal are easily two of the most popular financial institutions in the world. Coinbase has made its name by creating a beginner-friendly crypto exchange interface. On the other hand, Paypal is renowned for its high-speed cash transfers between individuals and businesses. For those that use Coinbase, withdrawing funds to PayPal is one option to cash out in USD or another currency. This tutorial walks through the process of how to withdraw from Coinbase to PayPal.
Quick Guide: How to Transfer From Coinbase To PayPal
To transfer money from the Coinbase exchange to a PayPal account, follow these steps:
- Log in to Coinbase. The first step is to sign in to a registered Coinbase account. Account must be verified to withdraw cash.
- Link a PayPal account to Coinbase. Connect a PayPal account to Coinbase to enable transfers between the two.
- Select a fiat currency. Select the relevant crypto asset that's funded and sell for a preferred fiat currency (e.g. USD, GBP, EUR, or AUD).
- Transfer to a linked PayPal account. Select PayPal as the payment method and click ‘Confirm’ to complete the withdrawal process.
Can You Transfer From Coinbase To PayPal?
Yes, Coinbase customers can withdraw money from the exchange to their PayPal account as a fiat currency withdrawal. It is one of the best ways to cash out of Bitcoin to supported currencies such as USD, EUR, GBP, and CAD, amongst others. US residents can add and withdraw USD from their Coinbase account for PayPal transactions. However, non-US residents are only allowed to withdraw to their PayPal account.
There is also the option of withdrawing a selected group of cryptocurrencies from Coinbase to PayPal, however, there are certain restrictions. To withdraw from Coinbase to a PayPal account, Coinbase investors will have to generate a crypto wallet address from PayPal. Once this address is generated, cryptos can be sent from Coinbase to a PayPal wallet.
It's important to note that only one PayPal account can be linked to a single Coinbase account. Additionally, the name on PayPal must match the customer's registered name on Coinbase for withdrawal requests to be approved. For more information, read our full Coinbase review for details.
Does Coinbase Charge Fees To Transfer Money To PayPal?
Coinbase charges 1% for crypto withdrawals to convert digital currencies to cash. This fee is quite expensive, considering alternatives to Coinbase such as Binance enables investors to swap their cryptocurrencies for fiat with zero fees. Once converted to fiat currency, Coinbase has instant and free withdrawal options to PayPal such as using an ACH transfer.
How to Transfer Money From Coinbase to PayPal
For Coinbase users, here are the steps to withdraw cash from Coinbase to a linked PayPal account.
1. Log in to a Coinbase account
Visit the Coinbase website or open the mobile app, click the 'Sign In' button, and enter the registered email address and password. Users who do not have verified Coinbase accounts would need to complete this first as cash withdrawals to PayPal will not be available. Verifying a Coinbase account takes less than five minutes as explained in this guide on Coinbase verification times.
For registered Coinbase account holders, the next step would be to input a seven-digit code. This code is automatically sent to the customer's phone number during sign-in.
For first-time withdrawals, the recipient's PayPal account must be linked to the Coinbase platform first. To do this, tap 'Settings' and select 'Payment Methods'.
Proceed by selecting 'Link a New Account' from a desktop PC or 'Add a Payment Method' for mobile app users. From the list of payment options, select ‘PayPal’. This will bring up a new window to log in to the PayPal account. Enter the valid details to connect PayPal to the Coinbase account to facilitate withdrawals.
Note: only one PayPal account can be connected to the Coinbase account. If there is a need to add a new PayPal account, you have to unlink the old account and connect the new one. Furthermore, the registered PayPal name, email address, and country of residence must be the same as supplied on the Coinbase exchange.
3. Choose a crypto to sell to cash
The next step is to head back to the Coinbase platform. Choose the asset to be sold for fiat. Afterward, click on the ‘Buy & Sell’ icon. Select ‘Sell’ and the fiat currency to receive in return. Then type in the amount and click 'Preview Sell' to crosscheck the details.
The subsequent page will display a full breakdown of the asset price, fee, and total payout. Tap 'Sell now', and this will change it to regular cash in the user's Coinbase wallet. Conversions are charged at 1% and the fee amount will be shown on the screen. If the wallet is funded with fiat currency (e.g. USD), the above steps can be skipped.
Once the conversion is done, head back to the Coinbase platform and tap 'My Assets' on the left-hand side of the screen. Once it opens up, click on the fiat currency you intend to withdraw. Then, select 'Cash out' on the right-hand side of the screen which will bring up the withdrawal fields to populate.
Decide and enter the amount to withdraw and click on 'Continue'. The next dial box will pop up with the payment options. Select 'Withdraw to PayPal' from the list to proceed with transferring the money to the linked PayPal account.
How to Transfer Crypto From Coinbase To PayPal
1. Log in to a Coinbase account
Visit the Coinbase website or open the mobile app, click the 'Sign In' button, and enter the registered email address and password. A seven-digit code will be sent to the registered mobile phone, enter the code and complete the sign-in process.
Once logged into the Coinbase account, tap the 'Send & Receive' icon in the top right-hand corner. This section is set to 'Send' by default. Tap on the 'Asset' icon and search for the asset that would be transferred. For the purpose of this tutorial, we will show how to withdraw Bitcoin from our Coinbase account to PayPal.
3. Enter in the withdrawal details
The next step is to fill in the designated wallet address of the recipient. Since we're trying to withdraw crypto to PayPal, we have to head back to PayPal to generate the Bitcoin wallet address. For all crypto withdrawals, the blockchain network of the sender must match the receiver's network. Coinbase only supports primary blockchain networks – which is the default network on PayPal.
Within PayPal, navigate to the 'Features' menu and select 'Crypto'. This will bring up two options, to send BTC or Receive BTC. Click on 'Receive BTC'. The former option can be used to buy Bitcoin with PayPal and withdraw to an external wallet.
After clicking receive BTC, there will be an option to generate a Bitcoin address. Copy it to the clipboard and return back to the Coinbase platform and fill this wallet address into the designated dialog box. Insert an optional message and tap 'Continue' to proceed.
It's important to exercise caution when entering a crypto wallet address. Any error with a wallet address could result in the non-receipt of funds. It is one of the main reasons for Coinbase withdrawals being rejected.
4. Review and confirm transfer to PayPal
The final step is to review all the filled details before confirming the transfer of crypto. Ensure the amount, blockchain network, asset type, network fee, and wallet address are correct. After all the details are reviewed, click ‘Send Now’, and the cryptocurrency will be deposited to the linked PayPal account. To find the transaction history on Coinbase of the transfer, click here for a tutorial.
Frequently Asked Questions
Yes, Coinbase account owners can easily withdraw their funds to a PayPal account. The process largely entails converting a crypto asset to fiat and sending it to a linked PayPal account. The overall process should take no longer than 10 minutes to complete.
Coinbase withdrawals are not instant. PayPal withdrawals can be completed within a few minutes to days. This is determined by how many transactions the Coinbase platform is processing at the time. Based on our testing, it took 7 minutes to complete a USD withdrawal from Coinbase to reach the linked PayPal account.
There are several circumstances that can prevent Coinbase account holders from transferring funds to PayPal. First, this can occur when different email addresses are used to sign up for Coinbase and PayPal. Secondly, if the user's country of residence does not match, Coinbase will not be able to process the withdrawal to the linked PayPal account.