How To Buy Bitcoin With PayPal In Canada (Sep 2022)

August 2, 2022
Blog

Unfortunately, you can't buy Bitcoin with PayPal in Canada, but it is possible to do so if you're in the United States. However, there are a few drawbacks to consider before taking this approach: higher fees, exchange markups, and the restricted number of supported cryptocurrencies are all problems that are present when buying crypto with PayPal.

Taking everything into account, it's a good idea to look at other alternatives, such as buying Bitcoin with a credit card or using a cryptocurrency exchange like CoinSmart. CoinSmart is our top choice for purchasing Bitcoin because of its safety, simplicity, and the fact it has some of the lowest fees out of all crypto exchange options in Canada.

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Can I Buy Bitcoin With PayPal In Canada?

No. Buying, selling, and holding Bitcoin and other cryptocurrencies on PayPal is presently only available in the US and US territories (excluding Hawaii). All transactions must be completed in USD as well.

However, it's worth pointing out that PayPal intends to bring this feature to people outside of the United States soon.

How To Buy Bitcoin With PayPal In The U.S.

Here are the steps you need to follow to buy cryptocurrency with PayPal, which can only be done through a US PayPal account. You may do so by using the PayPal app or going online after you've logged in:

  1. Go to the cryptocurrency section of your account, which can be found on the homepage. You may also go to paypal.com/myaccount/crypto/ to get there.
  2. Choose the crypto token you want to buy.
  3. Click buy. Be aware that you'll need to confirm your PayPal account if this is your first crypto purchase.
  4. Choose the number of crypto tokens you'll buy and the payment method. Buying cryptocurrencies is typically done using your balance from bank accounts, debit/credit cards, or your PayPal account.
  5. Review all the details of your purchase and then click Buy Now to finish the process.

You'll be able to see your complete balances in your PayPal account once you've purchased cryptocurrency with it. Also, because PayPal keeps your crypto for you, you won't have control over your private keys, so you might need to use a different method to buy crypto if this doesn't bode well with you.

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How To Sell Crypto With PayPal In The U.S.

Because PayPal doesn't allow you to import or export cryptocurrency private keys as you would with a hardware wallet, only cryptocurrencies bought through PayPal may be sold.

To sell cryptocurrency through PayPal, you only need to follow these steps:

  1. Go to the cryptocurrency section of your account, which can be found on the homepage and has names such as “Curious about crypto?”, “Learn more about crypto”, and “Buy Bitcoin and more”. You can also find this page by visiting paypal.com/myaccount/crypto/.
  2. Choose the crypto token you wish to sell.
  3. Click the “Sell” button. Be aware that you’ll need to confirm some tax information if this is your first crypto sale.
  4. Choose the number of crypto tokens you wish to sell. (Remember that you can only sell crypto tokens that you've bought through PayPal).
  5. Thoroughly check the transaction details and click the “Sell Now” button to complete the process.

PayPal Crypto Fees

These are the transaction fees you can expect to incur whenever you buy or sell crypto with PayPal:

Buy/Sell Amount (USD)Fee (USD)
$1 – $24.99$0.50
$25 – $1002.30%
$100.01 – $2002%
$200.01 – $1,0001.80%
Over $10001.50%

You may sometimes save money by buying a little more cryptocurrency through PayPal. Buying $200 in cryptocurrency, for example, costs less than purchasing $199 worth of crypto. So, if possible, make one larger purchase rather than many smaller ones to save money on fees.

What Cryptocurrencies Does PayPal Support?

Currently, PayPal only supports 4 cryptocurrencies, which are Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC). This is quite a limited selection when compared to other exchanges and services that support dozens or even hundreds of cryptocurrencies, but PayPal does plan to add more cryptocurrencies in the future.

Pros & Cons Of Buying Crypto With PayPal

ProsCons
Intuitive: PayPal allows you to buy cryptocurrencies through its app or through the website in as little as a few clicks.Higher fees: You'll be charged a fee for each purchase you make, and these fees are frequently higher than those you would expect from a cryptocurrency exchange.
Allows you to track your portfolio: PayPal also allows you to visualize your current crypto portfolio, as well as its total worth.Not your keys, not your coins: PayPal does not provide access to your cryptocurrency keys, so you won't be able to store your crypto tokens in an external wallet.
A wide array of payment options: You can buy crypto through PayPal by using your debit card, your bank account, or using your PayPal account balance.Limited cryptocurrency support: To date, PayPal only supports 4 tokens, which are Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC).
Lightning-fast transactions: You can buy and sell crypto through PayPal instantaneously.Exchange markups: Conversion rates will apply to your purchase, so you'll be buying and selling cryptocurrencies at a small price disadvantage.
Not available in Canada: Despite the fact that PayPal plans to expand this service outside of the US in the future, it's not yet accessible for Canadian accounts as of this time.

Alternatives To Buying Crypto With PayPal

Considering that using PayPal to buy cryptocurrency has plenty of disadvantages, you might want to explore other options to buy, sell, and trade cryptocurrencies.

One popular alternative is to buy Bitcoin with a credit card through a service like Coinbase or Bitpanda. These services offer the same ease of use as PayPal and don’t have the same limitations in terms of payment methods, supported countries or cryptocurrencies. However, they do come with their own set of disadvantages, such as higher fees, longer wait times for transactions to be processed, and the need to go through a verification process before you can buy crypto.

Another option is to use a cryptocurrency exchange. These platforms allow you to buy and sell a wide range of cryptocurrencies, often with lower fees than what you’d pay with PayPal.

Top 3 Crypto Exchanges To Buy Bitcoin In Canada

Here are our top picks for the best cryptocurrency exchanges to buy Bitcoin in Canada:

1. CoinSmart – $50 Signup Bonus

Best Overall

Trading fees: 0.2%
Security: 95% cold storage
Signup bonus: $50

$50 bonus ends September 31, 2022.

★★★★★

Rated 4.9/5

CoinSmart is, without a doubt, the best crypto platform in Canada in 2022.

For starters, CoinSmart has the lowest trading fees in Canada at just 0.2%. It supports 16 cryptocurrencies, verifies accounts instantly, prides itself on its helpful customer service reps, and has a beautiful, well-rated app.

CoinSmart has been designated a Registered Marketplace by the Ontario Securities Commission (OSC), is registered as a Money Services Business with FINTRAC, and is a member of the anti-money laundering group TRUST, all of which means they're a highly secure exchange. They maintain a 95% cold storage policy, and as a publicly-traded company, their financials are audited by a third-party firm at least once per year.

As a new CoinSmart user, you'll receive a $50 bonus upon funding your account, which you can use to buy Bitcoin, Ethereum, or any of the 16 assets CoinSmart supports. If you're looking for a highly secure, reputable crypto platform, CoinSmart is an excellent choice.

Features

  • Extremely low trading fees (0.2%)
  • 24/7 customer support available via live chat and email
  • Instant account verification
  • Supports 16 cryptocurrencies
  • Registered Marketplace by the OSC
  • Immediate deposits and withdrawals
  • User-friendly for both beginners and advanced traders
  • 95% cold storage policy keeps your crypto extra secure

Cost

  • Account Opening: Free
  • Trading Fees: 0.2%
  • INTERAC Deposit: 0%
  • Bank Wire Deposit: 0%
  • Bank Wire Withdrawal: 1%
  • EFT Withdrawal: 1%

Signup Bonus

$50 bonus when you sign up using this link and our promo code YOREOYSTER.

Best For

Investors looking to trade with low trading fees.

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2. Bitbuy — $50 Signup Bonus

$50 Signup Bonus

Trading fees: 0% – 1.5%
Security: 99% cold storage
Signup bonus: $50

$50 bonus ends soon.

★★★★★

Rated 4.8/5

Bitbuy is a great second option for Canadians seeking a reliable, trustworthy crypto exchange.

Like CoinSmart, Bitbuy's trading fees are also low, ranging from 0% – 1.5% depending on how much you trade. They offer excellent customer support available 24/7, and user accounts are verified instantly.

To date, Bitbuy has processed more than $4 billion in trades across its 400,000+ Canadian users. It's a Registered Marketplace and Investment Dealer as recognized by the Ontario Securities Commission (OSC), which means it's a highly safe and secure exchange that offers deep liquidity on all order sizes.

I've personally used Bitbuy for over a year, so I've seen them consistently improve their platform over time. For example, Bitbuy recently removed its fees on deposits and withdrawals, making the overall trading experience significantly cheaper for users. Those fees were Bitbuy's main drawback before, but now I'm very confident calling it the best crypto exchange in Canada.

For a limited time, Bitbuy is offering a $50 bonus to Yore Oyster readers who fund their account with $250 or more. If you’re looking for a highly-respected exchange that offers the lowest fees in Canada, excellent customer service, and a slick mobile app, open a Bitbuy account today.

Features

  • Low trading fees (0% – 1.5%)
  • Easy to use for both beginners and more advanced traders
  • Supports 25+ cryptocurrencies
  • Excellent customer support via live chat and email
  • Powerful mobile app (rated 4.6/5 on the App Store)
  • 99% cold storage policy keeps your crypto extra secure

Cost

  • Account Opening: Free
  • Trading Fees: 0.1%
  • INTERAC Deposits/Withdrawals: Free
  • Bank Wire Deposit: Free
  • Bank Wire Withdrawal: 1%

Signup Bonus

$50 bonus when you deposit $250 using this link.

Best For

Investors looking for extremely low fees and the best overall trading experience.

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3. VirgoCX – $30 Signup Bonus

Best For Fringe Coins

Spreads: ~0.5%
Security: 95% cold storage
Signup bonus: $30

Low spreads, great platform.

★★★★

Rated 4.5/5

Based in Toronto, VirgoCX is another one of the best Canadian crypto exchanges. Its users appreciate that it offers 50+ cryptocurrencies, one of the widest selections of any exchange on this list. 

VirgoCX’s trading platform and mobile app are intuitive and easy to use, even for beginners. It offers 24/7 customer support via live chat and email, plus an extensive FAQ section on its site.

VirgoCX charges no deposit or withdrawal fees on fiat and covers the first $6 in mining fees on ERC20 withdrawals. It requires 2-factor authentication on all accounts, and maintains a 95% cold storage policy to keep your assets safe at all times.

Features

  • Supports 50+ cryptocurrencies
  • Free fiat deposits and withdrawals
  • Free deposits and withdrawals on most cryptocurrencies
  • 24/7 support available via live chat and email
  • User-friendly for both beginners and more advanced traders
  • 95% cold storage policy keeps your crypto extra secure

Cost

  • Account Opening: Free
  • Cash Deposits: Free
  • Cash Withdrawals: Free
  • Crypto Deposits: Free
  • Crypto Withdrawals: Free for all major coins
  • Spreads on trades: Around 1%

Signup Bonus

$30 when you fund your account with $100 or more using this link.

Best For

Investors looking to buy altcoins before everyone else.

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Free account, instant verification

In Summary

Sadly, you can't use PayPal to buy Bitcoin in Canada, but you can use it to buy Bitcoin if you're in the U.S. However, keep in mind that there are a few disadvantages that you should be aware of before using this method: higher fees, exchange markups and the limited number of supported cryptocurrencies are all potential drawbacks to using PayPal to buy crypto.

Taking this into consideration, it's a good idea to explore other options like buying Bitcoin with a credit card or using a cryptocurrency exchange like CoinSmart instead. Because of its security, ease of use, and the fact it has some of the lowest trading fees in Canada, CoinSmart is our top pick for buying Bitcoin.

CLAIM MY $50 BONUS
Offer ends September 31, 2022.

Buy Bitcoin With PayPal In Canada FAQs

Do I Need Another Account To Buy Crypto With PayPal?

No, everything you'll need is already in your PayPal account. Once you've accepted the crypto terms and conditions, the platform will make sure your account information is up to date before allowing you to buy and sell cryptocurrencies.

Do I Need To Sign Up For Anything To Buy Bitcoin With PayPal?

All you have to do for personal PayPal accounts is verify some account information when you first make a purchase. You can apply for a personal PayPal account when buying crypto if you don't already have one.

Can I Use Cryptocurrencies To Pay Or Send Money On PayPal?

As of this writing, you cannot use cryptocurrency to pay or send money on PayPal.

Can I Transfer Crypto In And Out Of My PayPal Account?

You may purchase bitcoin on PayPal and keep it in your account, as of now. Furthermore, the cryptocurrency in your PayPal account cannot be transferred to or used on other platforms.

Want to earn $50 in the next 6 minutes?

CoinSmart is a highly-rated, fully regulated Canadian crypto platform that’s giving new users $50 for depositing $200 or more. Trade with low fees and withdraw your money at any time.

Click below to claim your $50 bonus today. Offer ends October 1, 2022.
CLAIM MY $50 BONUS
Offer ends October 1, 2022.