How to Buy Bitcoin with PayPal in South Africa – Cheapest Providers for 2022
Based in South Africa and looking to buy Bitcoin from the comfort of your home – but wish to use Paypal instead of a debit or credit card? If so, this guide will show how to buy Bitcoin with Paypal in South Africa with a commission-free broker.
How to Buy Bitcoin with PayPal – Step by Step Guide 2022
Below you will find a simple 4-step overview of how to buy Bitcoin with Paypal in South Africa. You will find a more detailed walkthrough further down in this guide.
- Open an account with Avatrade: First, you’ll need to open an account with Avatrade – a regulated online broker with a stellar reputation. Simply provide some personal information and contact details to get your account open.
- Upload ID: You will need to upload a copy of your passport or driver’s license as part of a quick KYC (Know Your Customer) process.
- Deposit: Although Avatrade doesn’t accept PayPal directly, you can use another e-wallet that has been funded by PayPal. Opt to make a deposit via Neteller, Skrill, or WebMoney.
- Buy Bitcoin: Now that your account is funded you can buy Bitcoin. Simply search for ‘BTC’, enter the amount of Bitcoin you wish to buy, and click ‘Buy’.
The above 4-step process should take you no more than 10 minutes to complete. Best of all, you didn’t pay a single rand in commission!
Where to Buy Bitcoin With PayPal in South Africa
So now that we have explained the benefits of buying Bitcoin with Paypal in South Africa, we are now going to discuss the best bitcoin brokers to complete the process with.
1. Libertex – Overall Best Crypto Broker with Zero Spreads
Libertex is the best cryptocurrency broker in South Africa to buy Bitcoin with PayPal. The broker allows inventors to buy cryptocurrencies like Bitcoin with zero spreads, which means there’s no deviation from the ask and the bid price. This represents amazing savings for savvy investors.
As a reputable online broker, Libertex offers exposure to cryptocurrencies like Bitcoin through CFDs, allowing users to profit from small price movements. Besides the ability to buy Bitcoin, Libertex opens the investor to a world of possibilities where they can buy and sell their favourite digital assets. In addition to cryptocurrency purchases, Libertex also offers stocks trading, commodities, forex and ETFs.
Furthermore, for investors who might want to test the waters, Libertex allows you to trade your favourite digital assets for as little as €10. Deposits are also free, and you can choose to fund your account with your bank account, PayPal, credit/debit card, Sofort, and several others.
You can use the funds in your PayPal account to easily fund your Libertex trading account. The process is simple and straightforward. Using PayPal to fund your trading account with this broker is free and instant. There’s nothing to worry about. Regarding the security of user funds, Libertex is regulated by the CySEC, which means your funds are safe. Libertex is also accessible on the web, Android and iOS devices for all users.
- Large crypto offerings compared to other brokers
- Trusted and regulated broker
- Free deposits
- Reputable broker with two decades of experience
- Multiple payment methods
- Offers crypto CFDs only
- Inactivity fee of €5
74% of retail investor accounts lose money when trading CFDs with this provider.
2. Avatrade – Best Crypto Broker in South Africa – 0% Commission
We have mentioned Avatrade a few times in this guide on how to buy Bitcoin with Paypal in South Africa. Crucially, this is because the broker offers the safest and most cost-effective way of investing in cryptocurrencies. In fact, Avatrade is a 100% commission-free broker, so you won’t pay any fees to buy or sell.
On top of Bitcoin, Avatrade also allows you to buy Ripple, Ethereum, Litecoin, Bitcoin Cash, and 13 other top-rated cryptocurrencies. If you’re on a budget or wish to keep your Bitcoin investments modest – you’ll be pleased to know that the minimum deposit is just $100 on Avatrade. This amounts to about 1374 rands at the time of writing.
When it comes to using Paypal to complete your Bitcoin purchase – this couldn’t be easier. All you need to do is open an account and upload a copy of your passport or driver’s license to verify your account. Although Avatrade do not accept PayPal directly, you can fund your account via Neteller, Skrill, or WebMoney – and these options can in turn be funded via PayPal. This provides an indirect way to fund your Avatrade account via PayPal.
Avatrade’s product selection also includes ETFs, commodities, forex, index funds, and thousands of stocks from 17 international exchanges. Avatrade also offers a variety of educational materials for you which can help make your trading more effective. These comprise various guides, articles, videos, and more. Avatrade even offer a demo account to help you get to grips with the platform.
When it comes to the safety of your funds – Avatrade is heavily regulated. This is in stark contrast to most of the cryptocurrency exchange arena, which operates without a license. Avatrade, however, is authorized and regulated by the FCA, ASIC, and the FSCA in South Africa. Finally, Avatrade is also a great option if you are planning to buy Bitcoin on your mobile phone. This is because the broker offers a highly rated mobile trading app that is available on iOS and Android devices.
- Buy shares and index funds without paying any commission or dealing charges
- 2,400+ shares listed on 17 international markets
- Stellar reputation worldwide
- 1:2 leverage when crypto trading
- Perfect for beginners
- Vast amounts of educational material
- Mobile trading app
- Regulated by the FCA, CySEC, and FSCA
- Not suitable for advanced traders that like to perform technical analysis
67% of retail investor accounts lose money when trading CFDs with this provider.
3. Binance – Largest Bitcoin Exchange for Trading Volume and Liquidity
If for some reason Avatrade isn’t for you – the only other option you have to buy Bitcoin with Paypal in South Africa is to use Binance. However, although this cryptocurrency exchange is super popular – the process of using Paypal is nothing short of cumbersome.
In fact, you are not technically buying Bitcoin through Binance – as you will be going through its P2P (Peer-to-Peer) platform. The way it works is as follows – you will first need to register an account with Binance – ensuring that you enter your personal information and upload a copy of your passport or driver’s license.
Then, you’ll need to head over to the P2P department and enter your requirements. This should be the cryptocurrency you wish to buy (Bitcoin), how much you want to purchase, and your preferred payment method (Paypal). Then, you will be shown a list of users that are looking to sell Bitcoin and are happy to accept Paypal.
Then, it’s just a case of following the on-screen instructions to complete the P2P transaction. In terms of security, the Binance P2P platform uses an escrow system. This means that the seller would need to deposit Bitcoin into the Binance wallet – which the exchange would keep hold of until they confirm your Paypal transfer has arrived. Then, Binance would release the Bitcoin automatically on confirmation from the seller.
Although the purchasing process at Binance is far from convenient, perhaps the main benefit is that you will not pay any fees – however, this is also the case with Avatrade.
Your capital is at risk.
How to Buy Bitcoin with PayPal Today
If you’re wondering how to buy Bitcoin with Paypal in the fastest and most cost-effect way possible – the step-by-step walkthrough below will show you what you need to do.
Step 1. Open an Account with Avatrade
As we have noted throughout our guide on how to buy Bitcoin with Paypal in South Africa – Avatrade is the best broker in the market for this purpose. As such, to get the ball rolling you will need to visit the Avatrade website and quickly open an account.
This will require your personal information – such as your name, home address, date of birth, and mobile phone number. You also need to choose a username and a strong password.
Step 2. Upload ID
Avatrade will need to verify your identity – as per anti-money laundering regulations. Unlike traditional brokerage sites, the verification process at Avatrade is super fast. All you need to do is upload a copy of your passport/driver’s license and a recently issued bank statement or utility bill. In the vast majority of cases, the Avatrade website will verify these documents instantly.
Step 3. Deposit Funds with Paypal
Notably, Avatrade do not allow direct deposits with PayPal in South Africa at this time. However, what you can do is fund another e-wallet via PayPal, and then use that e-wallet to deposit into your Avatrade account.
So, once you have funded your e-wallet, head to your account section and opt to make a deposit. Avatrade currently accept Skrill, WebMoney, and Neteller.
Step 4: Search for Bitcoin
Once you have funded your Avatrade account, click into the ‘search symbol’ bar on the Avatrade trading platform and type in BTC. When you see BTC/USD pop up, click on it and move to the next step.
Step 5: Buy Bitcoin With Paypal
The final part of the process is to complete an order form. All you need to do is enter the amount of money you’d like to invest in Bitcoin. You can also decide whether to use a stop loss or not. Once you are happy with everything, click ‘Buy’.
Congratulations! You are now invested in Bitcoin – totally commission-free!
Benefits of Buying with PayPal
Most investors in South Africa will buy Bitcoin with credit card or debit card. However, there are several benefits of buying Bitcoin with Paypal – which we elaborate on in more detail below.
When you buy Bitcoin with Paypal in South Africa with a cryptocurrency trading platform like Avatrade – your deposit will be credited instantly. This means that you can invest in Bitcoin and other digital currencies without needing to wait for your Paypal payment to be processed.
In fact, the steps required of using Paypal to buy Bitcoin are very straightforward. As soon as you select Paypal as your preferred payment type, a pop-up box will appear.
Then, you simply need to log in with your Paypal credentials. On the next page, you will see details of the transaction – which you then need to confirm. As soon as you do, the pop-up will automatically close and the deposit will be credited to your Avatrade account.
Many investors in South Africa are somewhat apprehensive about using their primary debit or credit card to buy cryptocurrency online. After all, there are many horror stories of Bitcoin-related scams – where people have lost money to unsavory cryptocurrency trading platforms.
This is where Paypal can relieve some of these woes – as the e-wallet provider offers a number of key safeguards that ensure you are able to transact in a safe environment.
For example, your chosen Bitcoin exchange will not have access to your Paypal login credentials. Sure, you will be required to enter your Paypal email address and username when the pop-up box appears, but this will be encrypted. In simple terms, this means that the brokerage site in question does not have the means to view the credentials that you enter.
Secondly, and perhaps most importantly, when you buy Bitcoin with Paypal in South Africa – you will benefit from that all-important ‘Buyer’s Protection’.
- As the name suggests, this is a protection policy that provides a safety net in the event something goes wrong with your purchase.
- For example, if you were to use Paypal to buy Bitcoin in South Africa and the platform turned out to be a scam – the Paypal Buyer’s Protection policy should be able to refund you.
To be eligible for this, you would need to raise a claim with Paypal within 180 days of making the purchase.
Ease of Use
Assuming you already have a verified Paypal account – then buying Bitcoin via the e-wallet provider is a breeze. After all, you will already have a payment method linked to your Paypal account – such as a debit or credit card.
As a result, there is no requirement to enter your payment details when it comes to completing your cryptocurrency purchase. Instead, as soon as you enter your credentials through Avatrade, you simply need to confirm the transaction.
Then, behind the scenes, Paypal will debit your linked payment type and the funds will be added to your brokerage account – instantly.
Many people are unaware that e-wallets like Paypal are the fastest method to withdraw funds from an online brokerage site. When using a debit/credit card, for example, it will take about 48 hours for the broker to authorize the withdrawal. In the case of Paypal, this is often completed within a few hours.
This is because there is less red tape involved with a Paypal withdrawal – as your account will have already been verified by the e-wallet provider. Furthermore, once the cryptocurrency broker does authorize the withdrawal, the funds will arrive in your Paypal account in less than a minute. In the case of debit/credit cards, this can take an additional 2-3 days.
When you buy Bitcoin with Paypal in South Africa, you will benefit from the e-wallet provider’s zero-fee policy. This means that you can invest in cryptocurrencies without needing to pay any transaction fees. This is especially the case when using Avatrade to buy Bitcoin with Paypal in South Africa – as the broker is commission-free.
- On the other hand, if you were to use a credit card to buy Bitcoin, this can be costly.
- Sure, Avatrade still allows you to buy Bitcoin with a credit card on a commission-free basis – but the card issuer will likely charge you a cash advance fee.
- This is a fee that credit card issuers charge when you make a cash withdrawal from an ATM – but oftentimes, this is also applicable with brokerage deposits.
The cash advance fee averages 3-5% – so this is a further indication as to why Paypal is the best payment method to use. Take note, some brokers – such as Coinmama, will directly charge you 5% for using a credit card to cover to risk of chargebacks.
Bitcoin PayPal Regulation
If you’re wondering about Bitcoin Paypal regulation – then you should know that the e-wallet provider recently entered the cryptocurrency market itself. That is to say, Paypal now allows you to buy Bitcoin and other digital currencies directly from its website.
However, there are two key flaws with the cryptocurrency brokerage service being offered by Paypal. Firstly, the e-wallet provider is currently only allowing US residents to buy Paypal in this manner. As such, South African traders are not eligible. Secondly, and perhaps even more pertinently, is the fact that Paypal charges extortionate fees to buy Bitcoin.
|Purchase or sale amount||Fee|
|1.00 – 24.99 USD||0.50 USD|
|25.00 – 100.00 USD||2.30%|
|100.01 – 200.00 USD||2.00%|
|200.01 – 1000.00 USD||1.80%|
In fact, as you can see from the above, the best rate available on Bitcoin purchases is 1.80%.
To show you how expensive this is, let’s look at a couple of examples. In the first example, we’ll look at how much it would cost to buy $500 (about 7,145 rands) worth of Bitcoin directly from Paypal and then cash out if the investment hits $750.
- You buy $500 worth of Bitcoin – so Paypal will charge you 1.80% to complete the transaction
- This amounts to a fee of $9
- Then, a few months later – we’ll say that your Bitcoin investment has increased in value to $750 and you wish to cash out
- Again, you pay a fee of 1.80% – so that’s a commission of $13.50
- In total, you paid a commission of $22.50 to buy Bitcoin directly with Paypal
Now let’s repeat the same scenario, but this time – you will be buying Bitcoin with Paypal through regulated brokerage site Avatrade.
- You buy $500 worth of Bitcoin from Avatrade and pay a commission of 0%
- As such, you paid nothing in fees
- You sell your Bitcoin when it is worth $750 – and again, pay a commission of 0%
- All in all – you paid nothing in fees to buy and sell Bitcoin with Paypal via Avatrade
As you can see, even though it is likely that Paypal will start offering cryptocurrency services to South Africans in the very near future – you will pay significantly more in comparison to Avatrade.
How to get PayPal to Bitcoin
If you’re wondering how to get Paypal to Bitcoin – you will need to use an online broker. In a nutshell, you’ll need to choose a regulated broker like Avatrade that allows deposits via various e-wallets; although they do not allow direct deposits through PayPal, it is very easy to fund another e-wallet using PayPal, and then use this e-wallet to make a deposit into your Avatrade account.
- If you’re instead looking to get Bitcoin to Paypal, this isn’t possible.
- This is because Paypal only allows you to deposit funds with a fiat payment method like a debit/credit card or bank account.
- You might find an online platform that offers a Bitcoin to Paypal exchange – but tread with caution. Most of the Bitcoin to Paypal services that we came across look like scams.
- Crucially, if you’re looking to exchange Bitcoin to Paypal – you can sell your BTC at Avatrade back to cash and then transfer the funds to your e-wallet.
This is the safest way to do it – as Avatrade is heavily regulated.
Avatrade – Best Broker to Buy Bitcoin with Paypal in South Africa
This guide has explained the ins and outs of how to buy Bitcoin with Paypal in South Africa. As we have covered in great detail, completed the process with regulated brokerage site Avatrade is super easy.
In fact, it’s just a case of registering an account, depositing funds with Paypal, and then completing your Bitcoin investment. Best of all, Avatrade doesn’t charge any trading commissions when you buy and sell Bitcoin – and the minimum stake is just $25!
73.05% of retail investors lose money when trading CFDs at this site
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