PayPal is one of the world’s leading payment platforms, simplifying financial transactions for individuals and businesses. Since its launch in 1998, it has processed payments in 25 different currencies and across 200 countries.
While many people associate PayPal primarily with sending and receiving money, it also allows users to buy, sell, and transfer cryptocurrencies like Bitcoin and other digital assets.
However, PayPal has its limitations, especially in countries like Nigeria. For example, only users in U.S.-based territories can send and receive cryptocurrency through personal accounts, which restricts functionality for Nigerians and other international users.
In this guide, we will explain how to buy Bitcoin and other cryptocurrencies using PayPal. We will also introduce Mular as a flexible alternative for receiving cryptocurrency payments for users in Nigeria.
Buying Bitcoin with PayPal in Nigeria
With PayPal, you can buy Bitcoin and other cryptocurrencies like PYUSD, Ethereum, Litecoin, and Bitcoin Cash. Before using PayPal in Nigeria or buying Bitcoin, there are a few things you need to keep in mind:
- A Fully-funded Account
To use PayPal, you need to create and verify your account. After verification, you can fund your PayPal account by linking your debit card. This allows you to buy Bitcoin or other cryptocurrencies and make transactions.
- A Domiciliary Account
To access PayPal in Nigeria, you need a domiciliary account or a dollar card. A domiciliary account is a bank account that allows you receive, send and save international currencies like USD and GBP. Visit your local bank to open and activate a domiciliary account.
- Restrictions
PayPal in Nigeria has limitations. Only US based users can send and receive cryptocurrency through personal accounts. This restriction means PayPal does not support crypto transactions for Nigerian-based accounts. If you are based in Nigeria, consider using an alternative like Mular.
Getting Started on PayPal
To buy Bitcoin with PayPal, you first need to open and verify your account. Fortunately, the process is easy and straightforward. Here’s what you’ll need to get started:
- Personal Information: Full name, phone number, email address, and home address.
- Bank or Card Details: Link a debit or credit card to fund your PayPal account.
Here’s how to open an account on PayPal:
- Go to paypal.com or download the PayPal app from the Play Store or the App Store and click “Sign Up.”
- Choose the account type you want to create (Personal or Business).
- Enter your personal information, including your full name, phone number, email address, and home address.
- Verify your email by clicking the link sent to your inbox.
- Link a domiciliary bank account or dollar card. Any transactions you make or payments you receive will be processed through this account.
- Verify your phone number by entering the code sent via SMS to confirm your number.
Once your account is set up and verified, you’re ready to buy Bitcoin and other cryptocurrencies.
How to Buy Bitcoin with PayPal
Once you’ve opened and verified your PayPal account, you can easily buy Bitcoin and other cryptocurrencies like Ethereum, PYUSD, Litecoin, and Bitcoin Cash. The crypto you buy will be credited directly to your PayPal crypto wallet within minutes. You can buy, sell, transfer, or even use crypto as a payment option at online stores that accept it. However, this option may not be available for users based in Nigeria.
Here’s how to buy Bitcoin using paypal:
- Open the PayPal app or visit paypal.com and navigate to the “Finances” section and select “Buy.”
- Choose Bitcoin and enter the quantity you want to buy.
- Choose a purchase frequency—the default is “one time” but you can make it a daily, weekly or monthly recurring payment.
- Confirm the amount and select your preferred payment method, and tap “Next.”
- Click on “Authorize” and “Schedule” to finalize your purchase.
Your Bitcoin will appear in your PayPal crypto wallet shortly after the transaction is complete. You can then make transactions with your crypto directly through PayPal. However, the option for buying crypto may not be available for users in Nigeria.
PayPal Fees
PayPal offers Bitcoin and other cryptocurrencies based on the current market price, but like most crypto platforms, it charges fees on transactions.
Here’s how Paypal fees work:
- Buying or Selling Crypto: PayPal charges a fee for every purchase or sale of cryptocurrency. The fee varies depending on the transaction amount and ranges from a flat fee for small purchases to a percentage for larger transactions.
- Sending Crypto Outside PayPal: If you send cryptocurrency to an external wallet, you’ll incur a network fee(blockchain transaction fee). This is not a PayPal fee but a cost associated with the blockchain network, and it fluctuates based on network congestion.
- Receiving or Holding Crypto: You won’t be charged any fees for holding or receiving cryptocurrency in your PayPal account.
PayPal Cryptocurrency Transaction Fees
PayPal charges fees for buying and selling cryptocurrency based on the transaction amount. Below is a breakdown of the fees as of December 2024, sourced from PayPal’s fee schedule:
| Transaction Amount (USD) | Fee (USD) |
|---|---|
| $1.00 – $4.99 | $0.49 |
| $5.00 – $24.99 | $0.99 |
| $25.00 – $74.99 | $1.99 |
| $75.00 – $200.00 | $2.49 |
| $200.01 – $1,000.00 | 1.80% of the amount |
| $1,000.01 and above | 1.50% of the amount |
Source: PayPal
Buying Bitcoin with PayPal vs Mular
Mular is a crypto wallet that supports five popular cryptocurrencies: Bitcoin, Ethereum, USDT, BNB, and Solana. Unlike many other wallets, Mular allows you to spend your crypto directly as Naira, making everyday transactions like buying groceries or paying for rides more convenient. This way, you don’t need to manually withdraw or convert your crypto to fiat to spend.
Let’s take a closer look at how Mular compares to PayPal in key features.
| Feature | Paypal | Mular |
|---|---|---|
| Control Over Cryptocurrency | Limited control as it’s tied to your PayPal account. | Full control over your crypto with a dedicated wallet. |
| Payment Method | Requires a dollar account to buy crypto. | Buy crypto using Naira directly from your bank account—no dollar account needed. |
| Range of Cryptocurrencies | Missing key options like stablecoins (e.g., USDT). | Supports popular cryptocurrencies, including stablecoins like USDT. |
| Spending Crypto | You can’t spend crypto directly. | Spend crypto directly as Naira for everyday transactions like bills or Uber rides. |
| Accessibility | Only users in US territories can send and receive crypto. | Available to anyone in Nigeria for sending and receiving crypto. |
| Transaction Speed | Transfers between PayPal and the blockchain take around 2 hours. | Transactions complete in about 99 seconds. |
| Transfer Limits | Maximum weekly crypto transfer limit is $25,000 or less. | Allows daily transfers of up to $6,500 per day amounting to $45,500 per week. |
Key Takeaway
Mular offers more flexibility, faster transaction speeds, and better support for everyday crypto use in Nigeria, making it a superior choice compared to PayPal. Getting started is easy: create an account, verify your identity, fund your wallet, and start spending crypto directly as Naira.