Aside from the rise of Bitcoin (BTC) prices in the last quarter of 2020, the crypto community was also surprised by PayPal’s year-end announcement of supporting various digital currencies on its platform. With millions of users across the globe, this might be an excellent opportunity for the crypto industry to gain worldwide exposure.
But when it comes to the convenience of utilizing digital currencies, what sets this financial giant apart from thousands of other crypto marketplaces? Is Paypal the best place to buy fractions of BTC or should you buy Bitcoin on Paxful instead? Let’s cut to the chase and find out.
Should I buy crypto on PayPal?
There are lots of things to bear in mind when it comes to your finances. So if you’re having a hard time thinking if you should buy, sell, and hold BTC on this new market player or stick with the widely known crypto marketplaces like Paxful, here are some of the benefits and drawbacks you might want to look into.
Let’s start with the plus side…
✔︎ Creating an account is free of charge. Like with other mobile wallets, signing up on PayPal won’t cost you anything. Just provide all the information they require, complete some registration procedures, and you’re all set.
✔︎ It supports various cryptocurrencies. Currently, PayPal supports four different digital coins: Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), and Litecoin (LTC). This is great news if you’re planning to try your hand at different cryptos.
✔︎ You can seamlessly buy crypto using your PayPal account. You can purchase fractions of BTC using your PayPal Cash or Cash Plus balance, or a debit or credit card linked to your PayPal account.
✔︎ Your profits from selling crypto will be automatically added to your PayPal account. You can use your earnings like regular funds or deposit them into your debit card or bank account linked to your PayPal account.
✔︎ You can buy fractions of BTC for as little as 1 USD. Even with the rising price of cryptocurrencies, you won’t need thousands of dollars to get started. Start small and work your way up to bigger trades.
✔︎ PayPal is a well-known and reputable financial services provider. At present, it provides services to over 300 million users worldwide. If the platform expands its crypto services globally, it can introduce BTC and other digital currencies to millions of users in no time.
These features may sound promising, but let’s check out what’s on the other end of the deal before making any rash decisions.
Why shouldn’t I buy crypto on Paypal?
✘ Crypto services on PayPal are exclusively for US users. Currently, only PayPal users in the United States (except Hawaii) can buy, sell, and hold crypto. So if you’re living outside the American borders, you might want to start with a crypto marketplace that’s available in your country.
✘ You can’t use your crypto to send money or pay with PayPal. Purchasing and transferring money using your crypto balance aren’t allowed on the platform yet. To use your crypto funds for payments, you need to sell and convert them into USD on PayPal—this is an extra layer of complexity, especially if you use crypto on a regular basis.
✘ You only have three ways to buy BTC on PayPal. Your options include PayPal Cash, PayPal Cash Plus, and a PayPal-linked debit card or bank account. If you’re a first time user, you might need to explore the platform a little bit more to learn the ropes.
✘ You can’t transfer your crypto funds to other wallets. This is one of the main concerns of many crypto enthusiasts. For now, all cryptos bought on PayPal will stay on PayPal—not in your crypto wallet. At the same time, the cryptos you bought outside the platform can’t be transferred to your PayPal wallet (we’re feeling some exclusivity here).
✘ It doesn’t support peer-to-peer trading. At least “not at this time.” You can’t buy cryptocurrencies from your friends in and out of the PayPal platform using your crypto balance yet. As mentioned earlier, you need to sell your assets and convert them into USD on PayPal first.
✘You won’t be provided with a private key. Since you’re buying, selling, and storing on a highly centralized platform, you won’t be managing your own private keys. Just log in to your account, then you’ll get to access your BTC funds.
So should you buy or not? That solely depends on you. If you’re a seasoned US-based PayPal user who’s looking into directly using your account to buy BTC, BCH, LTC, or ETH, then this might be a good start for you.
Why should I buy Bitcoin on Paxful?
If you’re from Hawaii or other parts of the world and you want true ownership of Bitcoin, you might want to consider buying BTC on Paxful. You won’t need to worry about experiencing the drawbacks we mentioned earlier—only the trading conveniences, such as:
- Minimal fees – Paxful allows you to purchase fractions of Bitcoin with minimal to no fees!
- Availability – You can buy and sell Bitcoin and other cryptos locally and internationally, and withdraw your funds whenever you want.
- Convenience – Since crypto markets never sleep, it would be best to have a Bitcoin wallet where you can check your funds with just a few taps on your phone 24/7. Paxful also offers over 350 ways to buy Bitcoin—this includes the top payment methods in your country.
- Safety and security – At Paxful, all users are required to verify their accounts in compliance with know your customer (KYC) regulations to protect you and your money against bad actors. This is especially important when you’re dealing with traders worldwide.
- Greater opportunities – As the crypto space continues to expand, more and more financial opportunities will emerge. Paxful provides a trading environment where you can scout great BTC deals from fellow traders and build lasting connections in and out of your country.
Don’t fret if Paxful isn’t available in your region—keep these things in mind when scouting for a Bitcoin marketplace that’s available in your area!
The first few days of 2021 were unquestionably full of twists and turns for the crypto community. Are you ready to kickstart or perhaps continue your journey in this developing industry? Most importantly, will you try out possibilities on the newly rolled-out crypto products on PayPal or buy Bitcoin on Paxful instead?
Share your thoughts in the comments below!
*The content of this article is for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, or other advice.