How to Buy Bitcoin with PayPal in Kenya

How to Buy Bitcoin with PayPal in Kenya

👉 Buying cryptocurrency ten years ago required important insider information and certain tech-savvy abilities. However, by the time Bitcoin began making significant waves and reached all-time highs in 2017, several exchanges and firms had developed to satisfy the demands of investors.

👉 PayPal, a colossus of the finance industry, is among the numerous firms that have simplified the process.

👉 Users of PayPal in Kenya who want to invest in major cryptocurrencies may now do so with a single tap on the PayPal app. You can purchase, sell, or hold Bitcoin, Bitcoin Cash, Ethereum, or Litecoin with a single click.

👉 However, investors should be aware that purchasing Bitcoin through PayPal differs from other Bitcoin and cryptocurrency exchanges.

👉 Despite being one of the most convenient methods for novice investors to enter the crypto market, there are limitations compared to investing via other channels, such as investment applications.

Buy Bitcoin from PayPal

Set Up an Account

👉 Before Kenyans can start, they need to sign-up for a PayPal account on the official website. In addition, to establish a PayPal balance account, you will need to authenticate your identity, set up basic security measures, and connect your bank account, debit card, or credit card.

👉 To purchase Bitcoin, you must have a registered bank account and debit card connected to your account. You must also supply current tax details since crypto profits are subject to taxation.

Navigate the Dashboard

👉 On the primary dashboard (home page), you will see your PayPal balance and cryptocurrency underneath it.

👉 When you select crypto, you will be sent to a page that displays the most recent price fluctuations for Bitcoin, Bitcoin Cash, Ethereum, and Litecoin.

Select Your Crypto

👉 PayPal gives consumers access to four of the most established and secure cryptocurrencies. When you click on one, you will be sent to a graph like a stock or an index chart that displays each cryptocurrency’s daily, weekly, monthly, and yearly price fluctuations.

👉 Once you have decided which stablecoin to purchase, you may invest $1, $20, $50, or $100, or you can input a different amount. Once your debit card or bank account has been connected, you could begin with as little as $1 / 120 KES, and if you choose to invest more, the weekly limit is $100,000.

Agree to the PayPal Terms and Conditions

👉 PayPal’s terms and conditions must be accepted if you want to purchase, sell, or keep Bitcoin or other cryptocurrencies.

👉 In addition, due to the very volatile nature of cryptocurrencies, you must accept that PayPal is not liable for any market losses.

👉 In this agreement, you also consent to payments. While you cannot directly use Bitcoin to pay for products and services, you could immediately convert your Bitcoin balance to USD using PayPal.

👉 Users outside the United States cannot move their cryptocurrency outside the PayPal platform. This condition implies that if you invest in Bitcoin through PayPal, you will be unable to transfer your assets to an external wallet.

👉 This factor is undesirable for several reasons, particularly if you want to enhance your security by storing your assets in one of the finest cold storage-capable cryptocurrency wallets.

Consider the Fees

👉 PayPal’s fees might be expensive in comparison to other solutions. For example, investing between $25 and $100 incurs a 2.30 percent fee, which is likewise assessed on the opposite side of the exchange.

👉 Overall, this implies that you may incur costs of up to 4.5% when purchasing and selling BTC using PayPal, not including any currency conversion fees incurred when withdrawing funds to your bank account.

👉 PayPal will not charge you fees for storing cryptocurrency, but they will charge you transaction and conversion costs. In addition, since your PayPal account is linked to your bank, they may impose additional costs if you use your debit card or bank to purchase Bitcoin and cryptocurrencies.

Buy Bitcoin

➡️ Enter the desired purchase amount (in this example, $10). A helpful message informs that the price of Bitcoin fluctuates depending on when you pull the trigger: “Exchange rate includes a spread and often refreshes until you purchase or sell.”

➡️ Select Next to proceed, and your linked bank account or credit/debit card will show up if you have one connected with your PayPal account.

➡️ You can add more cards or bank accounts at this time, and after clicking “Next,” carefully examine your order.

➡️ PayPal’s transaction fees for consumer-facing transactions vary from 50 cents for sales under $25 to 1.5% of the transaction amount for purchases exceeding $1,000.

➡️ When you are ready to buy, click “Buy Now.”

➡️ After the purchase has been completed, the account will be updated to reflect the quantity and current value of the cryptocurrency acquired.

➡️ Return to the homepage to see your Bitcoin purchase listed under “crypto” with the option to buy or sell.

👉 The Cash Account balance part of the user’s account will display fiat cryptocurrency converted from cryptocurrencies sold via the PayPal app or website. Kenyans must examine PayPal’s fee table, and conversion spread to estimate the possible costs they could incur.

Transfer Your Bitcoin from an External Wallet

👉 Kenyans must note that PayPal has announced this new feature, which is currently only available in the United States. Therefore, this section is for informational purposes only until the feature is rolled out to users worldwide.

👉 In mid-August, PayPal started supporting the transfer of crypto funds from PayPal to external wallets and exchanges.

👉 Giving users the option to transfer Bitcoin, Ethereum, Bitcoin Cash, or Litecoin into, out of, and around the PayPal platform shows the company’s commitment to providing the finest platform in the industry and paves the way for users to engage with the crypto community at large.

👉 Customers that transfer their cryptocurrency to PayPal can use the Checkout with Crypto product to spend their cryptocurrency at millions of merchants. In addition, PayPal has been awarded a full Bitlicense by the New York Department of Financial Services (NYDFS).

👉 This achievement makes PayPal the first firm to convert a conditional Bitlicense into a full Bitlicense, demonstrating the company’s commitment to responsible innovation and growing the accessibility and usefulness of digital currencies.

👉 Simultaneously, PayPal still adheres to all regulatory requirements and best practices. The addition of the ability to move, transmit, and receive crypto is another milestone in PayPal’s mission to create a more accessible and efficient financial system.

👉 To transfer cryptocurrency to PayPal from an external wallet or crypto exchange, traders can follow these steps:

➡️ After logging into PayPal, go to the cryptocurrency area of your application and choose the coin you want to send.

➡️ Select “Receive” after clicking or tapping the Transfers icon.

➡️ Perform any additional ID verification procedures. This procedure is often necessary just once per user.

➡️ Share the unique address with the sender or enter it into the third-party crypto application from which you are transmitting. We suggest that you utilize the QR code or manually copy and paste the URL to prevent making any errors. If you manually input the address, please verify that it is accurate. Neither PayPal nor the sender can recover coins transferred to an incorrect address.

Moving Bitcoin from PayPal to an External Wallet or Exchange

👉 This is a function currently only offered to United States traders but serves informational purposes to Kenyans who use PayPal and are interested in this function once it becomes available.

👉 To move crypto from PayPal to an external crypto exchange or wallet, traders can follow these steps:

➡️ After logging into PayPal, go to the cryptocurrency area of your application and choose the coin you want to send.

➡️ Click or press the transfers icon and then pick “Send” to move cryptocurrency to a different address.

➡️ Perform any additional ID verification procedures. This procedure is often necessary just once per user.

➡️ You must provide an external crypto address if you want to move cryptocurrency outside of your account. Traders can copy and paste an address, manually input it, or touch the QR code icon to the right of the search box to scan a QR code.

➡️ Please note that cryptographic transactions are irreversible and cannot be reversed. Therefore, check the destination address carefully and check that it is the same as the currency you are transferring (Bitcoin, Ethereum, Bitcoin Cash, or Litecoin). Pay close caution while transmitting cryptographic messages to unknown addresses.

➡️ Sending cryptocurrency outside of PayPal will incur a Blockchain Network Fee, commonly known as a Network Fee. This does not constitute a PayPal Fee. The cost is determined by network congestion and other variables, subject to change.

➡️ On the confirmation page, PayPal will offer an estimate of your network costs. Traders should note that sending or receiving cryptocurrency to or from other PayPal users is free of network fees.

➡️ Verify the international transfer.

Sending and Receiving Bitcoin with other PayPal users

👉 To send or receive Bitcoin from another PayPal user, traders can follow these steps:

➡️ After logging into PayPal, go to the cryptocurrency area of your application and choose the cryptocurrency you want to transfer. Select “Send” by clicking or tapping the transfer icon.

➡️ Select the PayPal contact to whom you want to send cryptocurrency and complete the fee-free transfer.

Use PayPal to Buy Bitcoin via eToro

👉 EToro is a conventional brokerage and trading company outside the United States. eToro introduced crypto trading using contracts for difference (CFDs) in 2013. Except for purchasing Bitcoin using PayPal, eToro is the simplest and most affordable method.

👉 At eToro, you can purchase Bitcoin using PayPal quickly, easily, and inexpensively. Creating an account and uploading a copy of your identification takes less than two minutes. Then, you can use PayPal to put money straight into your eToro account.

👉 While US Clients do not pay any fees to purchase Bitcoin on eToro using PayPal, non-USD deposits via PayPal incur a 0.5% charge, which is still highly competitive. After your quick PayPal money has been confirmed, you can browse for Bitcoin and submit a $10 minimum purchase.

👉 In addition, eToro covers you if you want to invest in other cryptocurrencies via PayPal. This is because the platform offers more than forty digital currencies, all of which may be acquired on a spread-only basis.

👉 When linking your PayPal account to eToro, you do not need to worry about the security of your PayPal account. Not only is eToro SEC-regulated and FINRA-registered, and the broker provides a cryptocurrency wallet.

👉 Copy Trading is an additional essential function provided by eToro. This passive investing instrument enables you to.

👉 To open an eToro account and buy Bitcoin, Kenyans can follow these steps:

➡️ Visit the eToro webpage on your computer and register for a free account. You will be prompted to enter your email address, username, and password, which will serve as your login credentials.

➡️ eToro requires all new users to undergo identity verification per anti-money laundering rules. This is accomplished by selecting “Complete Profile” and inputting the required personal information for KYC checks.

➡️ Next, you must submit images of the following documents:

➡️ A valid form of identification includes a passport, government-issued ID, or driver’s license.

➡️ Evidence of residence, such as a bank account or utility bill

➡️ eToro must validate these papers, but you will be contacted by email when this is complete.

➡️ Click ‘Deposit’ on your account dashboard and enter the deposit amount (minimum of $10) in the display box. Follow the on-screen steps to connect your accounts and make the deposit by selecting PayPal from the drop-down option.

➡️ When the cryptocurrency displays, enter ‘BTC’ or ‘Bitcoin’ into the search field and click ‘Trade.’ A box will display in which you can input your preferred position size

➡️ Click ‘Open Trade’ when you are satisfied, and eToro will execute your position instantly.

Use PayPal to Buy Bitcoin via LocalBitcoins

👉 LocalBitcoins was launched in 2012 as a peer-to-peer Bitcoin trading platform. Purchasing Bitcoin with PayPal on LocalBitcoins is extremely simple. To purchase Bitcoin, Kenyans can follow these steps:

➡️ Register for a LocalBitcoins account to receive a free and secure Bitcoin wallet online

➡️ Visit the homepage, click the “search box,” and enter the amount you want to purchase in your currency, location, and payment method (PayPal).

➡️ Choose one of the advertisements from traders with many deals and a high reputation score. The response time indicator indicates if a trader responds within five minutes (green), 30 minutes (yellow), or more than 30 minutes (red) (grey).

➡️ Click the “Buy” button to discover further details about an advertisement.

➡️ After clicking the “Buy” option, you will be presented with further details about the advertising, including the conditions of the transaction. If you do not wish to use them, you can return to the previous page and choose a different ad.

➡️ To initiate the trade, enter the amount you want to purchase in the blue box, provide a note for the seller, and click the Accept terms and submit trade request button.

➡️ When clicking the button, Kenyans must be ready with payment. Otherwise, the deal will be cancelled if they do not pay before the payment window closes.

➡️ Once payment has been made, click the “I have paid button.”

➡️ Once the trader has confirmed that they have received your payment, your Bitcoin will be released from escrow and immediately accessible in your LocalBitcoins wallet.

Use PayPal to Buy Bitcoin via Coinbase

👉 Coinbase is another option when it comes to purchasing Bitcoin with PayPal. This online cryptocurrency exchange is among the biggest in the world, and Coinbase is also listed on the NASDAQ.

👉 Thousands of Coinbase customers utilize PayPal for their global fiat currency transactions. Coinbase customers can sell Bitcoin and get USD in their PayPal accounts through this connectivity. Beginners will like Coinbase’s straightforward design, and account creation takes a few minutes.

➡️ If you already have a PayPal account, you may immediately begin making transactions on Coinbase.

➡️ When you are ready to finance crypto purchases using PayPal, choose the cryptocurrency you want to purchase, then press “Add a payment method” and select PayPal.

➡️ You will be sent to a PayPal login page; if your PayPal email address differs from your Coinbase email address, you will be required to complete a two-factor authentication routine.

➡️ After logging in, you can select or add a debit card or bank account connected to your PayPal account.

➡️ After that, you could spend up to $25,000 daily using your PayPal account.

Use PayPal to Buy Bitcoin via Paxful

👉 Paxful is another P2P platform like LocalBitcoins. They provide the possibility to trade with millions of other users utilizing more than 300 different payment methods. Kenyans can easily buy Bitcoin through Paxful by following these steps:

➡️ Register an account free of charge and access your Bitcoin wallet.

➡️ Start by browsing the homepage of Paxful and click the “Buy Bitcoin” button towards the top of the page, which will take you to the purchasing page.

➡️ You can then select PayPal as your payment option and choose the quantity you want to purchase. This will provide a list of merchants that accept PayPal and have the desired quantity in stock.

➡️ Look for a seller who has confirmed their email, phone number, and identification, as well as one with a vast number of transactions and a great reputation score.

➡️ After selecting a seller, click “Buy,” confirm the quantity you want to purchase and read the vendor’s guidelines to ensure you agree with them.

➡️ Confirm the amount, and your coins will be held in escrow until the payment is received.

➡️ After payment, click the “Paid” button, and your coins will be released after the seller verifies that they have received payment.