How does a financial giant compare to thousands of cryptocurrency markets?
In the last quarter of 2020, PayPal surprised the crypto community with its year-end announcement that its platform began supporting various digital currencies . With millions of global users, PayPal could be a great opportunity for the cryptocurrency industry to gain global exposure.
However, when it comes to the ease of using digital currency , how does this financial giant compare to thousands of cryptocurrency markets? Is Paypal the best place to buy BTC? Or should I choose to buy BTC on Paxful? Let’s find out.
Should you buy cryptocurrency on PayPal?
When it comes to financial matters, you need to focus on a lot of things. If you’re having a hard time deciding whether to buy, sell, and hold BTC on this newcomer platform, PayPal, or stick with well-known cryptocurrency marketplaces like Paxful, here are the pros and cons .
Let’s start with the good…
- Creating an account is free. As with other mobile wallets, there is no fee to sign up for PayPal. Just provide the information required by the platform and complete the relevant registration process.
- It supports various cryptocurrencies . Currently, PayPal supports four digital currencies: Bitcoin (BTC), Bitcoin Cash (BCH), Ether (ETH) and Litecoin (LTC). This is good news if you want to try different cryptocurrencies.
- You can use your PayPal account to buy cryptocurrencies seamlessly. You can buy BTC with your PayPal Cash or Cash Plus balance, or with a debit or credit card associated with your PayPal account.
- The profit from your cryptocurrency sale will be automatically credited 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.
- Buy a fraction of BTC for as little as $1. You don’t need a few thousand dollars to enter, even with rising cryptocurrency prices. Start small and gradually move to large transactions.
- PayPal is a well-known, reputable provider of financial services. Currently, the platform serves more than 300 million users worldwide. If the platform expands its cryptocurrency services globally, it could quickly introduce bitcoin and other digital currencies to millions of users.
The above advantages sound wonderful, but before making a hasty decision, let’s think about it from another angle.
Why shouldn’t you buy cryptocurrency with Paypal?
- Cryptocurrency services on PayPal are for US users only. Currently, only PayPal users in the US (except Hawaii) can buy, sell, and hold cryptocurrencies. Therefore, if you live outside the US, you may want to choose a cryptocurrency market that is available in your country.
- You cannot send money or pay via PayPal with your own cryptocurrency. The platform also does not allow you to use your cryptocurrency balance to buy and transfer funds. To pay with cryptocurrency funds, you need to sell them on PayPal and convert them into dollars — which can make the whole process cumbersome, especially for those who use cryptocurrencies a lot.
- There are only three ways to buy BTC on PayPal. This includes PayPal Cash, PayPal Cash Plus, and a debit card or bank account linked to PayPal. If you’re using the platform for the first time, you may need to explore a bit to see how.
- You cannot transfer cryptocurrency funds to other wallets. This is one of the main concerns of many cryptocurrency enthusiasts. Currently, all cryptocurrencies purchased on PayPal stay on PayPal , not in your cryptocurrency wallet. At the same time, cryptocurrencies you purchase outside the platform cannot be transferred to your PayPal wallet (this is somewhat exclusive).
- The platform does not support peer-to-peer transactions. At least “not yet supported”. You cannot use your cryptocurrency balance to buy cryptocurrency from friends on and off the PayPal platform. As mentioned before, you need to first sell the crypto asset and convert it to USD at PayPal.
- The platform will not provide you with a key. Since you are buying, selling and storing on a highly centralized platform, you cannot manage your own keys. You can only log in to your account and then access your bitcoin funds.
So, should you buy it? The decision is entirely in your hands. If you are a seasoned US PayPal user thinking about buying BTC, BCH, LTC or ETH directly with your account, this might be a good place to start.
Why should you buy Bitcoin on Paxful?
If you’re in Hawaii or anywhere else in the world and want real ownership of your bitcoins, consider buying bitcoins on Paxful. You don’t need to go through the drawbacks we mentioned earlier, all that awaits you are convenient deals such as:
- Minimum Fees
- Paxful allows you to buy a small fraction of Bitcoin for minimum fees or for free!
- You can buy and sell Bitcoin and other cryptocurrencies locally and globally, and withdraw funds at any time.
- Since the cryptocurrency market is constantly changing, it is best to have a Bitcoin wallet where you can always check your funds at your fingertips. Paxful also offers over 350 ways to buy bitcoin , including the most popular payment method in your country.
- At Paxful, all users are required to undergo account verification according to KYC (Know Your Customer) regulations to protect you and your funds from compromise. This is especially important when you are dealing with traders all over the world.
- More Opportunities
- As the cryptocurrency space continues to expand, more and more financial opportunities will emerge. Paxful provides a trading environment where you can source great Bitcoin deals from other traders and build lasting business relationships within and outside your country.
Don’t worry if Paxful isn’t open yet in your area , just keep the above points in mind when looking for local bitcoin markets available !
Are you ready to start or continue your journey in this growing industry?
More importantly, will you try PayPal’s new cryptocurrency offering, or will you use Paypal to buy bitcoin on Paxful ?