💳 Since 2020, PayPal has brought cryptocurrency to millions of mainstream users, allowing customers to buy, sell, hold, and even spend digital assets. This guide explains how PayPal's crypto services work, what to watch out for, and how to decide if it's the right platform for your needs.
PayPal is one of the world's largest online payment platforms, with over 400 million active users. In October 2020, the company launched its cryptocurrency service in the United States, allowing users to buy, sell, and hold Bitcoin, Ethereum, Litecoin, and Bitcoin Cash directly through their PayPal accounts. Since then, PayPal has expanded its crypto offerings, including the launch of its own stablecoin, PayPal USD (PYUSD), in 2023, and the introduction of "Checkout with Crypto," enabling users to spend their digital assets at millions of merchants.
PayPal's entry into cryptocurrency was a watershed moment for mainstream adoption. By integrating crypto into a platform already used by hundreds of millions for everyday payments, PayPal lowered the barrier to entry for non-technical users. However, PayPal's crypto services come with significant trade-offs, including custodial control, limited functionality, and relatively high fees compared to dedicated cryptocurrency exchanges.
PayPal supports a limited but growing list of cryptocurrencies. As of July 2026, the following assets are available to eligible users:
Availability may vary by country. While PayPal's crypto services are available in the U.S., the U.K., and several other nations, not all cryptocurrencies are supported in all jurisdictions. Always check the PayPal app for the current list of supported assets in your region.
To use PayPal's crypto services, you need a verified PayPal account. Once verified, you can navigate to the "Crypto" tab in the mobile app or website. From there, you can:
When you buy crypto on PayPal, you are not receiving the actual coins on the blockchain; PayPal holds the private keys on your behalf. This is known as custodial storage. Your holdings are reflected as a balance in your account, but you cannot directly interact with the blockchain (e.g., send to a DeFi protocol, stake, or participate in governance).
PayPal allows users to send cryptocurrency to external wallets and receive crypto from external addresses. This feature was rolled out in 2021 and is subject to certain restrictions:
This functionality bridges PayPal's custodial ecosystem with the broader blockchain world, but it is not as seamless or feature-rich as using a dedicated crypto wallet.
One of PayPal's most innovative features is "Checkout with Crypto," which allows U.S. users to spend their cryptocurrency at millions of merchants that accept PayPal. Here's how it works:
This feature is convenient, but it means you are effectively selling your crypto at the point of purchase. The merchant is not actually accepting crypto—PayPal is acting as an intermediary.
PayPal's fee structure for cryptocurrency is more complex and generally higher than dedicated exchanges like Coinbase or Kraken. Understanding these costs is essential to avoid unexpected charges.
When you buy or sell crypto on PayPal, you pay a spread—the difference between the market price and the price PayPal offers you. PayPal charges a spread of 0.50% to 2.00% depending on the transaction size and market conditions. Smaller transactions tend to incur higher percentage fees.
If you use Checkout with Crypto or convert between crypto and fiat, PayPal charges a conversion fee. This is often bundled into the spread but can be up to 1.5% of the transaction amount.
When you send crypto from PayPal to an external wallet, you pay the standard blockchain network fee (gas). These fees vary by network congestion and can be substantial—especially on Ethereum, where gas fees can spike to $20 or more during peak times. PayPal does not subsidize these fees; they are passed directly to you.
PayPal may charge a fixed fee for withdrawing crypto to an external wallet, in addition to the network gas fee. These fees are typically a few dollars per withdrawal, depending on the coin.
| Feature | PayPal | Coinbase (Standard) | Kraken (Pro) |
|---|---|---|---|
| Trading Fees (Spread) | 0.50% – 2.00% | 0.50% – 4.00% (varies) | 0.10% – 0.30% (maker/taker) |
| Network Fees (Passed Through) | Yes | Yes | Yes |
| Number of Cryptocurrencies | ~5 | 200+ | 200+ |
| Self-Custody (Own Keys) | No (custodial) | Yes (with wallet) | Yes (with wallet) |
| Spend Crypto at Merchants | Yes (Checkout with Crypto) | Limited (with debit card) | Limited (via third-party cards) |
| Staking / DeFi Access | No | Yes (limited) | Yes (staking) |
| FDIC or SIPC Insurance | No (crypto not insured) | No | No |
| Ease of Use (Beginner Friendly) | Very High | High | Medium |
Fees and features are approximate and subject to change. Always verify current fee schedules and supported assets on the official PayPal website and exchange platforms.
PayPal's crypto services are not a one-size-fits-all solution. Here is a framework to decide if it suits your needs:
Beginners: PayPal is excellent for first-time crypto buyers due to its familiar interface and low friction. Advanced users: The lack of self-custody, limited assets, and higher fees make PayPal unsuitable for experienced traders.
Small, occasional buys: PayPal is convenient. Large or frequent trades: Dedicated exchanges will save you significant money on fees.
Convenience over control: PayPal is fine. "Not your keys, not your coins": Choose a self-custodial wallet or an exchange that allows withdrawals to your own wallet.
Use crypto for shopping: PayPal's Checkout with Crypto is a standout feature. Holding long-term: You may prefer to hold your own keys.
PayPal is a regulated financial institution with a long track record of security. However, the crypto landscape introduces new risks that you should understand.
While PayPal has made crypto accessible to millions, the platform has significant limitations compared to crypto-native services:
Use this checklist to ensure you are using PayPal's crypto services safely and effectively:
Scenario: Sarah is a 35-year-old professional who has never bought cryptocurrency. She wants to buy $200 worth of Bitcoin as a small investment and also use some of it to make a purchase online.
Step 1 – Buying: Sarah opens the PayPal app and navigates to the Crypto tab. She selects Bitcoin and chooses to buy $200. PayPal shows her the current exchange rate, a spread fee of 1.2% ($2.40), and the total BTC she will receive. She confirms the purchase, and the Bitcoin appears in her PayPal account instantly.
Step 2 – Spending: A week later, she wants to buy a gift online from a merchant that accepts PayPal. At checkout, she selects "Pay with Crypto" and chooses to pay $50 worth of Bitcoin. PayPal converts the BTC to USD at the current exchange rate (with a small conversion fee) and completes the purchase. The merchant receives USD, and Sarah has spent a portion of her crypto holding.
Step 3 – Withdrawal: Sarah decides she wants to move the remaining Bitcoin to a hardware wallet for long-term storage. She selects the "Send" option, enters her hardware wallet address, and confirms the transaction. PayPal sends the BTC on-chain, deducting the network gas fee from her balance.
Outcome: Sarah's experience was seamless and beginner-friendly. However, she paid approximately $4 in fees across the purchase and the spend transaction—about 2% of her initial investment, which is higher than what she would have paid on a dedicated exchange. She is comfortable with this trade-off for the convenience.
As of 2026, PayPal supports Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), and its own stablecoin PayPal USD (PYUSD). The availability of specific coins may vary by region and is subject to change. Always check the PayPal app for the most current list of supported assets.
Yes. PayPal allows users to transfer supported cryptocurrencies to external wallets and exchanges. However, PayPal charges network fees for on-chain transfers, which can be substantial depending on network congestion. You will need to verify your identity and may be subject to withdrawal limits.
PayPal provides certain security protections, including insurance for hot wallets and fraud monitoring. However, crypto assets are not insured by the FDIC or SIPC. If you lose access to your PayPal account, or if PayPal is compromised, your crypto holdings could be at risk. Always use strong security measures.
Yes. PayPal charges a spread (markup) on crypto transactions—typically between 0.50% and 2.00% depending on the transaction size and market conditions. There are also network fees for transferring crypto out of PayPal. Fee structures are subject to change, so always review the fee disclosure before completing a transaction.
Yes. PayPal's Checkout with Crypto feature allows U.S. users to use their crypto balance to pay at millions of merchants that accept PayPal. However, you are not paying the merchant in crypto directly—PayPal converts the crypto to fiat currency at the point of sale. This means you are exposed to price volatility up until the moment of the transaction.
No. PayPal is a custodial service. You do not hold the private keys to your cryptocurrency. PayPal holds the keys on your behalf. This is convenient but means you do not have full control of your assets. You cannot use your PayPal-held crypto to interact with DeFi protocols or stake directly.
PayPal is convenient for beginners who already use the platform. It offers a familiar interface, regulatory compliance, and ease of use. However, it is not ideal for serious traders or long-term holders due to higher fees, custodial control, and limited cryptocurrency selection. For long-term investing, a dedicated exchange with lower fees and self-custody options may be better.
In many jurisdictions, buying, selling, and spending cryptocurrency are taxable events. PayPal provides transaction histories that can help with tax reporting, but you are responsible for calculating and reporting your gains and losses. Consult a qualified tax professional for advice specific to your situation.
This guide is for educational purposes only and does not constitute financial, legal, or tax advice. Cryptocurrency is volatile and carries the risk of substantial loss. PayPal's crypto services, while convenient, involve custodial risk—you do not hold the private keys, and your assets are subject to PayPal's terms and conditions.
Always verify current fees, supported cryptocurrencies, withdrawal limits, and availability in your jurisdiction through official PayPal communications. The information in this guide is based on publicly available data as of July 2026 and may become outdated. Cryptocurrency regulations vary by country, and tax treatment differs significantly.
You are solely responsible for your own financial decisions. Never invest more than you can afford to lose, and consult with a qualified professional for personalized advice.