What is cryptocurrency?
Cryptocurrency has become much more mainstream in recent years, and almost everyone has heard of Bitcoin. But what exactly is a cryptocurrency, or crypto? A cryptocurrency is a digital currency where transactions are recorded using a decentralised system instead of a central issuing or regulating authority. It relies on cryptography to prevent counterfeiting and fraudulent transactions.
Where can I buy cryptocurrency using PayPal?
While there are many cryptocurrency exchanges in Australia, you need to choose one that is legitimate and safe. All of the ones in our list of the best crypto exchanges are tested by us, and secure to use. However, there are limited options when it comes to using PayPal. The best choice would be to use eToro Australia, with a user-friendly interface, 75+ coins, social trading aspect, and of course, deposits using PayPal. To learn more about eToro before you decide to sign up, you can have a look at our in-depth eToro Australia review, here.
How to buy cryptocurrency with PayPal?
There are four simple steps which I will go through in detail below:
Step 1: Compare crypto platforms
Step 2: Create an account
Step 3: Transfer AUD from PayPal into your crypto account
Step 4: Buy cryptocurrency
Step 1 - Compare the best crypto platforms
The first step is to compare crypto platforms that accept PayPal as a payment method, then choose the one that suits your needs. Based on our extensive testing at Marketplace Fairness, the 3 best options are listed below. We will be using screenshots from an eToro Australia account to show you step-by-step how to buy crypto using PayPal, so for simplicity, you can also sign up with eToro Australia.
Top 3 Recommendations
eToro Australia
Best Overall
Rating
4.9
Crypto assets are unregulated & highly speculative. No consumer protection. Capital at risk.
KuCoin
Over 700+ coins
Rating
4.6
OKX
Low Trading Fees
Rating
4.4
If you want to do more research before opening an account with a crypto exchange, have a read of our article on the best Australian crypto exchanges here. If you want to buy crypto with your mobile phone, then this article on best crypto mobile apps is useful. Remember you need to check if they accept PayPal before signing up with them.
Step 2 - Create an account
It is fast and simple to open an account with eToro Australia. Click on this link: https://www.etoro.com/au/ and you will be taken to eToro Australia's home page. Click to 'Start investing' or open an account, and you will see a page like the screenshot below. Choose a username, enter your email address, create a password, tick the boxes, then Create Account. You can also sign up using your Facebook or Google accounts if you want to streamline the process.
After creating your eToro account, you will need to verify your email address. Sign into your email and click the "Verify my Email" button. You will be taken back to your eToro account, which will look similar to the screen below. Click the green "Verify" button in the middle of the screen, then enter your personal details and follow the prompts until your account has been verified. Once you have completed this process, you will be able to deposit and buy crypto.
Step 3 - Transfer AUD from PayPal into eToro
After your account verification is complete, it's time to transfer AUD from your bank account into your eToro account. At the bottom of the left side, there is a blue "Deposit Funds" button. Click that, and a popup will appear. Click the dropdown arrow next in the Payment Method field and you can see the various deposit methods available. As seen in the screenshot below, you can choose PayPal, but it is only available after your first deposit. This means you need to use another payment method for your first deposit. It is easy to meet this criteria, as you can make a small deposit using credit/debit card or bank transfer. After that, you will be able to deposit using PayPal.
Step 4 - Buy cryptocurrency
Once your money has arrived in your eToro account, you are ready to buy some cryptocurrency. Click "Discover" in the menu on the left, then click "Crypto", as circled in red in the screenshot below.
You can browse the various cryptocurrencies on offer, or you can search for the coin you want, in the search field at the top. In my example here, I will choose Bitcoin. Click on the coin you like, and it will take you to a page like the one below. There is a social media news feed, stats, chart, research and news, which you can easily access from that page.
When you are ready to buy your cryptocurrency, click the blue "Trade" button at the top right, and you will see a popup like the screenshot below.
You will see the price of your chosen cryptocurrency showing at the top of the popup - note that the price of the coin is in USD. Enter the amount you want to spend (in my example below, I have typed in $1,000). When you are ready to make your purchase, click "Open Trade" and your purchase will be made.
Congratulations, you have now made your first purchase of cryptocurrency! To see your purchased cryptocurrency, click on "Portfolio" in the menu on the left, and you will see your coins there.
Frequently Asked Questions:
Where do I store my cryptocurrency after buying?
When you buy crypto with any of our recommended brokers you will be automatically given a wallet address where your cryptocurrency will be held. You can choose to hold your crypto here, for easy access and convenience, or you can send it to your personal wallet. For a list of the best crypto wallets in Australia, click here.
Is buying crypto with PayPal in Australia legal?
Yes it is legal to buy, sell and trade cryptocurrency using PayPal in Australia.
Is buying crypto using PayPal safe?
If you use a reputable crypto exchange, then it is safe to buy crypto using PayPal. The best Australian cryptocurrency exchanges all have multi-layered security, and you can buy crypto with peace of mind. Have a look below at my comparison table of the best crypto exchanges for Australian crypto investors. Keep in mind that most of them do NOT accept PayPal.
Does this method work for all cryptocurrencies?
This method will work for any cryptocurrencies that are listed on the crypto exchange you choose. For example, if you signed up with eToro, there are more than 75+ coins available. If the crypto you wish to purchase is available on eToro, you can follow the method above. If you want to purchase a coin that isn't available on eToro, you may need to sign up to a different crypto exchange, and pay using a different method, such as bank transfer or credit/debit card. You can also purchase crypto with Google Pay or Apple Pay.
eToro AUS Capital Limited ACN 612 791 803 AFSL 491139. OTC Derivatives are leveraged financial products and considered speculative. OTC Derivatives may not be suitable for all investors. You don't own the underlying assets. You risk losing all of your investment. This information is general only and has been prepared without taking your objectives, financial situation or needs into account. Consider our Product Disclosure Statement (PDS). See full disclaimer.
Comparison Table of the Best Crypto Exchanges in Australia
Marketplacefairness.org provides all its content for informational purposes only, and this should not be taken as financial advice to buy, trade or sell cryptocurrency or use any specific exchange. Please do not use this website as investment advice, financial advice or legal advice, and each individual's needs may vary from that of the author. This post includes affiliate links with our partners who may compensate us.
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