Can you buy BTC with PayPal with no KYC?
Want to buy Bitcoin (BTC) with PayPal without going through KYC verification? Learn whether it's possible and how to buy BTC on PayPal in our guide.
Can you buy Bitcoin on PayPal?
Yes, you can buy Bitcoin directly on PayPal. PayPal introduced cryptocurrency buying, selling, and holding in select regions back in 2020. PayPal users can buy Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. The process is as straightforward as you’d expect from one of the world’s leading payment processors.
However, it's important to note that while you can buy Bitcoin on PayPal, you don’t receive full control over your private keys. This means your Bitcoin is held within PayPal's custodial wallet. In order to hold full custody over your Bitcoin, you’d need to move it to a non-custodial wallet.
Read next: Best Crypto Wallets
What other cryptocurrencies can you buy on PayPal?
In addition to Bitcoin, PayPal supports:
Ethereum: The second-largest crypto by market capitalization and the backbone of smart contracts and DeFi applications.
Litecoin: A faster alternative to Bitcoin, often referred to as "digital silver."
Bitcoin Cash: A Bitcoin fork designed for faster and cheaper transactions.
PayPal occasionally reviews and expands its cryptocurrency offerings, but its selection remains limited compared to dedicated cryptocurrency exchanges like Coinbase or Binance.
Can you buy BTC with no KYC on PayPal?
No, you cannot buy Bitcoin or any other cryptocurrency on PayPal without completing KYC (Know Your Customer) verification.
As a regulated financial service provider, PayPal requires all users engaging in crypto transactions to verify their identity. This is to comply with legal regulations in the jurisdictions where it operates, including in the US.
If you're seeking to buy BTC without KYC, PayPal is not the platform for you. There are other options in the market that allow for less stringent identification processes, but these come with higher risks, such as scams or questionable reputations, so always DYOR.
Read next: Best No KYC Crypto Exchanges
Why does PayPal have KYC?
KYC (Know Your Customer) is a legal requirement for financial institutions and regulated platforms to verify the identities of their users. The primary reasons for PayPal implementing KYC include:
Regulatory compliance: PayPal operates under strict financial regulations in various countries. Adhering to KYC helps the company comply with anti-money laundering (AML) and counter-terrorism financing (CTF) laws.
Fraud prevention: By verifying user identities, PayPal reduces the risk of fraud and illegal activities on its platform.
Trust and security: KYC enhances the platform's trustworthiness, ensuring that only legitimate users can access its services.
Read next: Crypto Giftcards Without KYC
How do you complete KYC on PayPal?
Completing KYC on PayPal is a straightforward process. Here’s how you can do it:
Sign in to your PayPal account: Log into your PayPal account via the app or website.
Navigate to identity verification: Look for a notification or a section labeled "Identity Verification" or "Account Limitations."
Provide your personal information: Enter details such as your full name, address, and date of birth.
Upload identification documents: Submit a government-issued ID (e.g., passport, driver’s license) and proof of address if required.
Wait for approval: PayPal will review your submission and confirm your account status, usually within a couple of business days.
Once the process is complete, you’ll be able to access all of PayPal’s services, including buying and selling Bitcoin and other cryptocurrencies.
What are the PayPal crypto fees?
PayPal charges fees for buying, selling, and holding cryptocurrencies. These fees can vary based on the transaction size and region but generally fall into the following structure, at time of writing:
Transaction fees: Up to 1.5% depending on the amount purchased or sold.
Currency conversion fees: If you fund your crypto purchase using a currency other than your default account currency, you may incur additional conversion fees.
Spread fees: PayPal also applies a spread (difference between the buy and sell price) to crypto transactions, which can add to the overall cost.
These fees make PayPal more expensive for crypto trading compared to dedicated exchanges, but the convenience and familiarity of the platform may make it worthwhile for some novice users.
Read next: Top US Crypto Exchanges
Don’t forget the tax bill
Trading and selling cryptocurrencies on PayPal may come with a tax bill. In general, any gain from selling or trading a cryptocurrency is subject to Capital Gains Tax - but it depends on where you live. Learn more in our PayPal taxes guide or sign up to Koinly today to calculate your PayPal crypto taxes easily.
