Buy Crypto with PayPal on Binance: Best Beginner’s Guide

Published: 31st May, 2024 | Last Updated: 1st June, 2024

Markos Koemtzopoulos

Markos Koemtzopoulos is the founder and main writer of ElementalCrypto. He has been a lecturer at the University of Nicosia on cryptocurrencies and DeFi and has taught two courses on crypto and blockchain technology.

You can’t buy crypto on Binance using PayPal as a payment method. In this guide, I will show you a hack you can use if you’re hell-bent on using PayPal to buy crypto on Binance. I will also show you alternative ways to deposit money on Binance and buy crypto. Finally, I will also share with you which crypto exchanges support PayPal.

Alternatives to using PayPal

Since PayPal is not an accepted payment option on Binance, here are your alternatives.

  • SEPA bank transfers
  • Credit/debit card deposits

Making a bank transfer is the cheapest option and takes 2–5 business days. Bank card deposits are instant but incur heftier fees, so better to avoid them.

Depending on your country, you may see some other deposit options as well. However, PayPal is not available as a deposit option in any country.

If you live in the United States, you cannot deposit US dollars which means the only meaningful alternative is to transfer digital assets from another crypto exchange or a crypto wallet.

Elemental Crypto PayPal logo on a mobile phone

A hack to using PayPal to buy crypto on Binance

As of October 2020, PayPal users in the United States can buy crypto directly within the PayPal mobile app. The range is limited to Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and the new PayPal stablecoin, PayPal USD (PYUSD). So you can either buy these crypto assets directly within PayPal and store them there or you can buy crypto on PayPal and send it to your Binance account.

Binance accepts Bitcoin, Bitcoin Cash, Ethereum and Litecoin. Sending PYUSD is more complicated, as you need to set up a Binance Web3 wallet. I do not recommend you do that.

Let’s look at how you would go about this using Bitcoin

Step-by-step guide on buying crypto on PayPal and sending it to Binance

  1. On the PayPal app click on finance and click on buy
  2. Choose Bitcoin from the dropdown and enter the amount you wish to buy in US dollars.
  3. Confirm the transaction
  4. Go to your crypto balance and click on Bitcoin
  5. Tap the transfer arrows and then clock on send
  6. Now open your Binance app and click on the wallet in the bottom right
  7. Click on the deposit tab and search for bitcoin
  8. Click on BTC from the dropdown and click on Bitcoin as the network. I am not sure if PayPal supports BTC(SegWit)
  9. Copy the wallet address
  10. Paste the address into the tab you have open on PayPal and click send
  11. Your BTC should appear within the hour on Binance

While this may seem like a convoluted way, it will be faster than withdrawing your fiat currency to your bank account and then transferring that to Binance. On the other hand, keep in mind that PayPal fees are likely to be hefty compared to crypto exchanges.

Which cryptocurrency exchange platforms support PayPal

If you are open to using another exchange here is a list of crypto exchanges and brokers that accept PayPal as a deposit method

  • Coinbase
  • eToro
  • Bitstamp
  • OKX
  • KuCoin
  • Kraken
  • Bybit

If you don’t want to use a centralized exchange you can try using one that is decentralized. The easiest way to do this is to use a wallet that partners with MoonPay which is a fiat onboarding payment platform. US customers can use PayPal to load fiat into their wallets using MoonPay. When you do this you will need to verify your ID and share your personal information, such as name, email address, and phone number.

Reasons to use Binance

Binance is the largest crypto exchange globally. The reason people use is that it offers the following features

Offers a wide range of cryptocurrencies with more than 400 coins and tokens

Security measures such as two-factor authentication, the SAFU insurance fund

Intuitive user-friendly interface that is easy to use

Low fees and high liquidity

Available to download as an app on the Google Play store and Apple ioS App store

Advanced trading features such as limit orders and margin trading

PayPal transaction fees

Buying crypto on PayPal is convenient but it aint’ cheap. Paypal charges 1.5% for purchases over $1000 and more for smaller amounts. On top of that, they add a spread to the exchange rate. You are way better off learning how to buy crypto on an exchange where fees are less than 0.6% and go as low as 0.07%.

FAQ

Why does Binance not support PayPal?

Binance does not offer PayPal due to regulatory and compliance issues. As the largest crypto exchange it can afford to have quirks like that. For example Binance US does not accept USD deposits.

Can I use PayPal to buy USDT in Binance?

NO Binance does not accept PayPal as a payment method. I you want to buy USDT on Binance you would need to use a credit or debit card or make a bank transfer. Alternatively, if you live in the US you could buy bitcoin on PayPal and then send that BTC to Binance and use it to buy USDT.

Why can't I transfer crypto from PayPal?

Common reasons are that you have a negative PayPal balance or that your bank transfer has not cleared. Also make sure you have entered the correct address detail and network when sending crypto.

Does Coinbase accept PayPal?

Yes, Coinbase accepts PayPal as a payment method. In the US you need to have a debit card linked to PayPal. Credit cards are not allowed in the US.

Is it safe to store crypto on PayPal?

PayPal stores the majority of its funds in cold storage. However they take custody of your private keys which means that should anything go wrong you won't be able to get your crypto. For this reason you are much safer sending your digital currencies to an external wallet that you control.

Markos Koemtzopoulos is the founder and main writer of ElementalCrypto. He has been a lecturer at the University of Nicosia on cryptocurrencies and DeFi and has taught two courses on crypto and blockchain technology.

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