Amidst several ups and downs, the cryptocurrency ecosystem has now completed 11 years. Out of these 11 years, the last few have been particularly exciting. Today, owing to their popularity, we have more alternatives than ever to purchase and obtain cryptocurrencies. Some of the trading platforms allow payments using debit and credit cards, as well as bank transfers. The PayPal payment processor has also emerged as a popular option for purchasing bitcoin and other cryptos.
If you are looking to purchase crypto using PayPal for the first time, you will need to create a PayPal account. The process to set-up a PayPal account is simple and you only require a valid email address and bank account. You will also have to register with a brokerage service or trading platform that sells digital currencies with PayPal. Finally, you would also require a cryptocurrency wallet that supports any specific crypto coin you are planning to purchase.
PayPal’s Functionality with reference to Bitcoin:
PayPal is currently one of the most extensively used online payment service providers. After creating a PayPal account for free, you can receive money from and send money to other PayPal users. For the purpose of withdrawals and deposits, PayPal accounts can be linked to bank accounts as well as credit cards. A high percentage of online shops currently accept PayPal as a popular payment method.
It is important to note here that PayPal is not a currency. With PayPal, it is possible to save money in any global currency one can imagine. Bitcoin transactions are not supported by PayPal and the platform doesn’t provide a tool for cryptocurrency conversion. However, in some places, it is possible to buy bitcoins using PayPal.
Ways to Purchase Crypto using PayPal:
Mentioned below are some of the best ways to purchase bitcoin or other cryptocurrencies using PayPal.
- Using an Exchange: One of the best ways is to use a crypto exchange that allows users to link their exchange accounts with their respective PayPal accounts. Depending on their place of residence, users can make use of the PayPal system to sell or purchase digital assets listed in the exchange. Before using this facility, it is essential to complete an identity verification process. Once you have confirmed your identity, the dashboard of the exchange will guide you to the PayPal login page. Now you can start purchasing and selling digital assets through the exchange using PayPal.
- Peer-to-Peer Marketplace: You can also use any of the peer-to-peer marketplaces to obtain cryptocurrencies. The first option here for you is to acquire encryption via peer-to-peer marketplaces such as Paxful or LocalBitcoins. Through these peer-to-peer markets, sellers and buyers can directly deal with each other without any difficulty. It is also possible for the sellers to set their own payment methods and exchange rates. As an additional advantage, some of these marketplaces accept PayPal as a method of payment. These platforms are similar to stock exchanges, but they connect the buyers and sellers directly without functioning as an intermediary. More and more sellers in these platforms are now willing to accept PayPal payments.
- Peer-to-Peer Lending: these days, we have many peer-to-peer lending platforms created solely for serving bitcoin lenders and borrowers. Out of these platforms, Coins is quite well known. Services Coins also include a loan from Bitcoin using PayPal as a payment method.
Pros and Cons of Buying Bitcoin with PayPal:
- Fast and convenient payment for PayPal account holders.
- Secure payment method.
- Allows purchasing crypto with US dollars
- Still not accepted widely by traditional cryptographic services.
- PayPal fees are quite high.
- PayPal is not private and for activities beyond a threshold, it contacts the IRS accounts.