In recent years cryptocurrency has gained a lot of popularity with more new people wanting to invest in crypto and digital assets. Because the demand is growing, platforms are looking for easy ways to make crypto purchases more accessible to everyone.
One such platform is Paypal. Through which users can now buy, sell, and hold different cryptocurrencies. In this blog, we will tell you how you can buy cryptocurrencies with Paypal in easy steps along with its advantages and limitations.
What is PayPal?
PayPal is an online payment system that is widely used by people. It allows users and businesses to send and receive money very easily. This payment system was founded in 1998.
And till now it has become one of the largest internet payment companies in the world used by millions of users. It is widely used because it offers a secure and convenient way of transferring money acting like a bridge between buyers and sellers.
PayPal stepped into cryptocurrency a bit late in 2020. With this, it also announced that users in the US can only buy, sell, and hold cryptocurrencies through their PayPal accounts directly. This decision has made it easy for anyone to start buying, selling, and holding cryptocurrencies making PayPal familiar and more trustworthy.
Steps to buy cryptocurrencies through PayPal
Here are the steps through which you can easily buy cryptocurrencies through PayPal:
Eligibility
As of now, buying and selling cryptocurrency is only available in some countries so check thoroughly if you can use PayPal for buying crypto or not.
Set up your account
If you don’t have a PayPal account then start by creating one. Fill in all the necessary details, verify your identity, provide all the necessary documents, and complete your KYC ( know your customer ) regulations.
Link to a funding source
To add money to your account connect your bank account, credit card, or debit card with your PayPal account to fund the crypto transactions.
Go to the crypto section
Login to your PayPal account and then go to the cryptocurrency section. You can find this section in the main menu or the dashboard.
Choose your cryptocurrency
After going to the cryptocurrency section choose any cryptocurrency you wanna buy. You can find different cryptocurrencies on this platform like Bitcoin, Ethereum, and more.
Enter your purchase amount
Write down how much you want to invest in a cryptocurrency and enter the amount. You can either enter the dollar amount or the cryptocurrency amount.
Confirm
Before you press confirm, go through all the information again including the transaction fee and the amount you entered. Then confirm the purchase if you are okay with everything.
Complete the transaction
Once everything is confirmed PayPal will process your purchase deduct the amount from your payment method or funding source and then credit your account with the cryptocurrency you choose.
Advantages of Buying Cryptocurrency through PayPal
There are a lot of advantages to buying cryptocurrency through PayPal:
- Using PayPal to buy cryptocurrency is very easy and direct, especially for those people who are regular users.
- For newcomers and new investors, PayPal can be a great option. It is safe and also has a very easy-to-use interface.
- PayPal has very robust security which adds a layer of security for your transactions.
- Transactions are processed quite fast allowing you to take advantage of the market prices.
- And you don’t need to have a different account for crypto, you can easily manage crypto transactions with other activities.
Limitations of buying crypto through PayPal
Here are some limitations you can face while buying crypto through PayPal:
- PayPal does not have extensive options for cryptocurrencies.
- The cryptocurrency bought through PayPal cannot be transferred to any external wallet or cannot be exchanged with other users.
- Buying through PayPal also means that the prices will change due to market volatility.
- Sometimes PayPal charges a high fee for crypto transactions as compared to other crypto exchange platforms.
- The availability of cryptocurrency might change over time based on the changes in regulations.
Conclusion
Buying cryptocurrency through PayPal provides an easy and direct way to enter the world of cryptocurrency and perform exchanges. Its main advantages are convenience and integration with a reputable payment platform.
But it is also important to consider the limitations that come with it like higher fees, not much variety of cryptocurrencies, and the inability to transfer crypto to external wallets. Before making any investment do thorough research and understand the risks involved.
