Should you try the PayPal crypto service? | Pros & Cons
 
 
 
 
 
 

Should you try the PayPal crypto service?

/ 07:02 AM August 31, 2021

Have you heard about PayPal’s cryptocurrency services? This digital financial service now offers the most popular digital asset right now. We will explore whether or not you should use PayPal’s latest feature!

We will first talk about when PayPal released this feature and why it did so. And then, we will explain how you can start purchasing cryptocurrency from PayPal. More importantly, we’ll see if you should get your cryptos from PayPal.

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Cryptocurrency is spreading into more aspects of our lives, so it’s no surprise to see Paypal adopt it. That’s why we will share more details about it right now! However, you should be careful when trying these services.

When did PayPal start offering crypto?

This is the PayPal app.

The mobile payment app launched its crypto trading service on October 20, 2020. Back then, it was only available to the United States.

It allows PayPal users to buy or sell cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. The Paxos Trust Company helped build its crypto platform.

However, PayPal Vice President and General Manager Jose Fernandez da Ponte have bigger plans. The digital wallet wanted to expand its reach across the world.

That’s why on August 23, 2021, PayPal launched its crypto service in the United Kingdom. Now, PayPal users from the UK can buy, hold, and sell cryptocurrency.

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According to PayPal’s news report, it “marks the first international expansion of PayPal’s crypto service beyond the US.” But PayPal has even bigger plans ahead!

PayPal’s crypto service may soon offer more than just bitcoin. It wants to become a distributor of Central Bank Digital Currencies (CBDC). It’s the government’s answer to cryptos.

CEO Dan Schulman told his vision during PayPal’s investor day. What’s more, Schulman said the company is looking into tokenizing non-crypto assets and using smart contracts.

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How do I create a PayPal account?

If you’re not an existing PayPal user, you should make an account first. The following steps should help you start your crypto journey:

  1. Click the Sign-Up button in the upper right corner.
  2. You may pick either a Personal or Business account. Choose the former.
  3. Click the Next button.
  4. Type your mailing address and home/mobile phone number at the next screen.
  5. Click the Agree and Create Account button.
  6. Now you have a PayPal account! You’re still not done, though.
  7. You should be on the “You are in! What’s next?” page. Click on the first Get Started button.
  8. This is where you must link your debit card, credit card, or bank account to your PayPal account. Type the required info and then click the Link Card button.
  9. Wait until you receive a confirmation email. Once it has arrived, open the message, then click the Confirm My Email button.

You’re ready to use PayPal! Remember that all transactions will use the PayPal balance first. Then, it will use the registered banking options.

How do I buy crypto from Paypal?

These are cryptos.

Now that you have an account, we could talk about using PayPal’s crypto feature. Specifically, we will explain how to buy your first coins with the following steps:

  1. Log in to your PayPal account.
  2. Choose the Buy Bitcoin and more banner.
  3. Then, pick the crypto you want to buy. You have four options: Bitcoin, Bitcoin Cash, Ethereum, and Litecoin.
  4. Before proceeding with the purchase, you must confirm that you agree to PayPal’s Cryptocurrencies Terms and Conditions.
  5. You may select a preset amount of BTC. Or you may choose Buy to place your desired amount. Users may buy a minimum of $1.00 worth of Bitcoin. They could purchase a maximum of $100,000 per week.
  6. Select the Next button.
  7. The Review and buy screen should appear. It will show you how much crypto you’ll buy and the transaction fee. For purchases below $25.00, it’s 50 cents. If you’re buying over $1,000 worth of crypto, it’s 1.5% of your purchase.
  8. Once you’re ready, hit the Buy Now button.
  9. After it’s complete, your account will reflect the amount of crypto you bought. You will also see its current value.
  10. Go back to the homepage. You’ll see your crypto purchase under “crypto.” It will give you options to buy and sell your coins.

Should I use PayPal’s cryptocurrency service?

These are bitcoins and dollars.

You should know the benefits and risks before you buy crypto with PayPal. This will help you maximize returns and minimize risks. So here are some good things about the crypto service:

  • It has the same security that the classic PayPal gateway has.
  • PayPal’s customer service is ready to serve 24/7.
  • Checkout with crypto is fast and easy. It will convert your cryptos quickly into fiat when you’re buying stuff.
  • You can buy crypto worth as little as $1.00!

Unfortunately, the positives end there. There are more reasons why you might not want to use PayPal’s crypto feature. Let’s take a closer look at each one:

  • You don’t own the cryptos – PayPal users cannot take their coins out of the account. This is a huge problem, especially for serious investors. After all, wouldn’t you want to have control over the cryptos you’re buying? This is why you see more people using other crypto exchanges like Binance instead.
  • Market volatility – Cryptocurrency is well-known for its wild price movements. If you check the real-time prices on CoinMarketCap, you’ll be surprised! Still, most people invest knowing this risk. In a downturn, they could just convert their cryptos into stablecoins or store them in a hard crypto wallet.
  • Account shutdownsMany people complain about PayPal shutting their accounts. You may find some of these complaints on Twitter.

Final thoughts

As we said, there are other investment apps aside from PayPal. They provide more features, such as allowing users to pay directly with crypto and store them in external wallets.

Still, you should research more info about cryptocurrency. Make sure you know what you’re getting into before investing! You may start with the other crypto articles at Inquirer USA.

Note that this content is meant as educational content. If you disagree with our suggestions, feel free to use PayPal for crypto. It’s your crypto trip to the moon, not ours!

Learn more about buying crypto from PayPal

Can I use PayPal to buy cryptocurrency?

You may purchase cryptocurrencies using a PayPal account. It lets you buy Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), and Litecoin (LTC). You may buy as little as a dollar’s worth of crypto coins and up to $100,000 every week. However, you are not allowed to take out cryptos from your PayPal account.

Can I buy Dogecoin with PayPal?

In writing, you can’t buy Dogecoin (DOGE) with PayPal’s crypto service. You may only purchase Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), and Litecoin (LTC). If you want to buy Dogecoins, you’ll have to use other crypto investment services. These include Binance and Coinbase, the most popular cryptocurrency exchange platforms in the world.

Can I use PayPal to buy Bitcoin on Coinbase?

You could connect your PayPal account to your Coinbase account. This lets you use PayPal funds for buying crypto on Coinbase. Here’s how to do it:

  1. Verify your identity on Coinbase. You will have to follow different steps depending on your country.
  2. Open your Coinbase account.
  3. Open the Settings.
  4. Then, select Payment Methods.
  5. If you’re using a computer, click Link a New Account. If you’re using the mobile app, tap Add a Payment Method.
  6. Then, choose PayPal among the options.
  7. Use the following screen to log in to your PayPal account.

If you’re not in the United States, you can’t add US dollars to your Coinbase account using Paypal. US customers may cash out $25,000 every 24 hours.

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