Chances are you and your friends already pay online with PayPal. The app also supports cryptocurrencies, letting you buy, sell, pay, and send them. It feels simple, but there are nuances — this ChangeHero guide shows how to send Bitcoin from PayPal, when transfers make sense, and when a dedicated Bitcoin wallet is the better choice.
Key Takeaways
- PayPal added cryptocurrency purchases and payments in 2020, but free movement of assets was initially restricted.
- Since 2022, you can transfer supported cryptocurrencies between PayPal users and to external wallets or exchanges; unsupported coins can’t be transferred into or out of PayPal.
- To send with the PayPal app, you need a contact or a valid crypto address, plus completed account identity verification.
PayPal to External Addresses — Benefits and Drawbacks
After PayPal enabled purchases of Bitcoin, Bitcoin Cash, Ether, and Litecoin in 2021, customers pushed for outbound transfers until the capability arrived in 2022. Today, the crypto feature acts like a custodial wallet: you can move assets to non-PayPal wallets and exchanges, or make fee-free transfers to other PayPal accounts.
With options to buy, sell, pay, send, and receive crypto inside a familiar payment app, it may feel like you need nothing else. In PayPal, transfers are limited to the following assets:
- Bitcoin (BTC)
- Bitcoin Cash (bch)
- Ethereum (ETH)
- Litecoin (ltc)
- PayPal USD (pyusd)
PayPal transfers work best when you treat them as a supported-asset feature, not a universal crypto wallet for every coin on the market.
Below, learn where PayPal meets everyday needs, where it falls short, and which alternatives can fill the gaps.
Self-Custody Explained
Calling PayPal a custodial wallet matters. Every blockchain address is controlled by a public and a private key used to authorize a transaction. Because addresses are pseudonymous, whoever holds the keys controls the funds — hence the saying, “Not your keys, not your coins.”
Custodial providers such as PayPal and centralized exchanges keep the private keys and typically expose only public addresses to users. This improves convenience because a trusted service signs transactions for you and removes the risk of losing your private key.
However, best practice in crypto is to manage both keys yourself. Withdrawal pauses and other custodian issues do happen, limiting your control over assets held by a third party. By safeguarding your seed phrase and storing funds in non-custodial or hardware wallets offline, you maintain continuous, independent control of your money.
PayPal Crypto Fees
PayPal’s well-known fees appear in its crypto product too, but mainly on purchases and sales. Sending to an external wallet or receiving crypto involves paying the blockchain network fee only, with no additional PayPal fee.
Buying or selling through PayPal can include a roughly 0.5% spread, plus a per-transaction fee:
| Transaction Amount | PayPal Fee |
|---|---|
| $1 minimum purchase | $0.49 |
| $1.00–$200.00 | $2.49 |
| $200.01–$1,000.00 | 1.8% |
| Over $1,000.00 | 1.5% |
In many cases, using a cryptocurrency exchange offers more favorable pricing.
Crypto taxes can also come into play on PayPal. Selling crypto, converting between assets, or using crypto to pay may be taxable events depending on your jurisdiction, and you’re typically responsible for tracking and reporting gains or losses to the relevant tax authorities. PayPal may provide your transaction history to help with recordkeeping and reporting.
Source: PayPal Newsroom
You can always acquire supported coins on a lower-fee exchange and then receive them in your PayPal account. Consider keeping only the amount you plan to send to other PayPal users, since the crypto transfer feature can be switched off by the provider.
How to Move Crypto From PayPal to Another Wallet Address?
Before you start, make sure the following requirements are met.
- Verify your PayPal balance account.
- Complete additional identity checks for external transfers.
Identity verification isn’t just paperwork; it’s often the step that determines whether a platform will allow outbound crypto transfers at all.
If you can’t send crypto, common causes include incomplete verification, account limitations or security flags, region-specific availability, or internal risk checks that temporarily restrict transfers.
- Open the Crypto tab in the Finances section of the PayPal app to view your holdings and current market prices.
- Select your Bitcoin balance, tap the Transfer arrows, and choose Send.
- Provide the recipient’s Bitcoin address by pasting, typing it manually, or scanning a QR code from your wallet or exchange. Ensure the correct network is selected — sending Bitcoin to a Litecoin address will permanently lose funds, and blockchain transactions cannot be reversed.
- Enter the amount to send in either fiat terms or exact BTC. The Bitcoin minimum is 0.001 BTC, and PayPal applies a rolling weekly crypto transfer limit of $10,000 per account; additional daily or transaction limits may apply.
- Review every detail carefully before tapping Send Now. Confirm only after double-checking to avoid errors.
Transfers to external addresses include a network fee charged by the blockchain, not by PayPal. PayPal does not charge an additional fee for sending crypto to external wallets, but buying and selling crypto on PayPal incurs separate spreads and transaction fees.
Until October 2023, the median Bitcoin transaction fee was under $1; with higher prices and congestion, it climbed above $10 that month.
How to Send Crypto to Other PayPal Users?
Moving crypto between PayPal users carries no PayPal fees, and the flow mirrors an external transfer with fewer steps.
Source: PayPal Newsroom screenshot
- From Finances, tap your crypto balance.
- Tap the Transfer arrows, then choose Send.
- Select the recipient from your PayPal contact list.
- Set the crypto amount in dollars or as an exact coin value. For internal Bitcoin transfers, the minimum is $0.01, and the weekly crypto transfer limit is shared between internal and external transfers.
- Confirm the details and tap Send Now. The recipient must claim the crypto within 30 days, or the transfer is automatically reversed.
Why PayPal’s Crypto Features Matter
When PayPal stepped into crypto in 2020, it already counted about 370 million active accounts worldwide. Bringing digital assets to such a broad audience was a milestone for mainstream adoption.
Early skepticism was common, especially before external withdrawals existed, leading some to think balances were just numbers on a screen. Once outbound transfers launched, it became clear the assets and movements were real and on-chain.
PayPal USD (pyusd) was integrated swiftly, accelerating adoption of the stablecoin. Its market cap and circulating supply are around $159 million. The main concerns mirror those of PayPal’s broader crypto offering: custodial control and usage limited by the ecosystem itself. Reports indicate the Securities and Exchange Commission has raised questions, which clouds pyusd’s outlook. Regulatory or compliance reviews can also temporarily prevent crypto transfers for some users. Even so, as a licensed and fully regulated dollar stablecoin, it still has promising potential.
Conclusion
PayPal’s crypto product is more than a typical custodial app; it meaningfully lowers the barrier for the public to interact with digital assets and serves as a bridge to self-custody when users are ready.
