PayPal's Secret Fees: The Real Cost of Buying Ethereum with Your Wallet

Trying to buy Ethereum with PayPal in Germany is not as straightforward as it seems. While there's no direct way to purchase ETH through PayPal, users can still use their PayPal account to fund a crypto exchange and buy Ethereum.

This process involves four steps: opening an account at a crypto exchange, verifying identity, depositing euros via PayPal, and buying Ethereum with the euro balance. However, there are some peculiarities to this process that users should be aware of.

The 72-hour withdrawal lock is one such peculiarity. After making a PayPal deposit, a withdrawal lock of 72 hours sits on the account, meaning freshly bought ETH stay on the exchange for three days. This lock applies not only to euros but also to all withdrawals, including crypto-assets.

The reason behind this lock is chargeback risk. If a user disputes a PayPal payment after the fact, the exchange would be left without any counter-value in a dispute. The same logic applies to card payments, but not to SEPA transfers, which have no withdrawal lock.