Ethereum is the #2 digital currency, while PayPal is one of the world’s top mobile payment companies.
Although PayPal is an innovative fintech company, it is not very fond of bitcoin and other digital currencies like Ethereum.
Last year, PayPal CEO Dan Schulman told TheStreet that he considered bitcoin “unsuitable” for payments.
This makes buying Ethereum with PayPal difficult.
You cannot buy Ethereum with PayPal on Coinbase, although you can use PayPal to withdraw funds from your Coinbase account.
You also cannot buy Ethereum using PayPal on major exchanges like Kraken. Kraken’s website explains why:
“Digital asset transactions, including bitcoin transactions, are nearly instant and practically irreversible. As such, the risk of fraudulent deposits from credit cards and similar are too high to take on for us right now.”
Where Can You Buy Ethereum with PayPal?
You can, however, buy bitcoin using PayPal on peer-to-peer exchanges like LocalBitcoins and Paxful.
Exchanges like Kraken don’t want to take the risks involved with accepting PayPal deposits, but individual traders on peer-to-peer exchanges might.
However, these traders will charge you higher prices to make up for this risk.
You can buy Ethereum with PayPal on a peer-to-peer exchange. Doing so requires one extra step: buying bitcoin with PayPal, and then selling this bitcoin for Ethereum.
Here is exactly how to buy Ethereum with PayPal using a peer-to-peer exchange.
LocalBitcoins is the largest peer-to-peer bitcoin exchange. It works much like Craigslist; people post ads saying they want to buy or sell. You can trade on LocalBitcoins either in-person or through the site.
Step 1: Sign up for a LocalBitcoins account
First, you need to sign up for an account on LocalBitcoins if you don’t already have one.
Create a username and enter your email address. Then think of a password for your account and type it in.
Finally, you will need to click the CAPTCHA to verify that you are a human.
You can read more about getting started with LocalBitcoins here.
Step 2: Buy Bitcoin with PayPal
Now go to this page: https://localbitcoins.com/buy_bitcoins
Click on the box that says “All online offers”, and select “PayPal”. Then click “Search”
This will take you to a page showing some offers from traders.
At the time of writing, the price of bitcoin on CoinMarketCap was $5,118.24. These traders are charging at least 10% more, because of the fraud risk that comes with PayPal.
In front of each trader’s username, you will see two numbers in parentheses. The first is the trader’s number of confirmed trades; the second is the trader’s feedback score.
Ideally, the number of confirmed trades will be high, and the feedback score will be close to 100%.
You will also see a column called “Limits”; this shows you the minimum and maximum value of a trade that this trader allows.
Let’s go with “monpitrover”. Click on “Buy”.
That will take you to this page:
This page comes with instructions on how to trade with monpitrover. Follow these carefully.
Type in the dollar value of the bitcoin you wish to buy, and then send a trade request.
Then confirm the transaction.
Step 3: Sell Bitcoin for Ethereum
Now you will need to sell the bitcoin you bought for Ethereum.
Go to this page: https://localbitcoins.com/sell_bitcoins
Click on “All online offers” and select “Ethereum altcoin”. That will take you to this page.
Here you can see offers from people willing to buy bitcoin with Ethereum.
These prices are close to the market price. At the time of writing, the bitcoin to Ethereum ratio was 31.
Choose a trader, and click on “Sell”. Let’s go with “vizboy”.
Follow the instructions, and type in the amount of bitcoin (in ETH) that you want to sell.
Be careful that you are giving the trader your correct Ethereum address. Remember, digital currency transactions are difficult to reverse.
Type in a message and click “Send trade request”. Afterward, confirm the transaction.
The ETH should now be added to your Ethereum address.
Congratulations! You have successfully bought Ethereum with PayPal.
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