With cryptocurrencies on the rise, everybody is trying to get their share in this enormous industry. Even the famous payment processor PayPal includes the option to buy cryptocurrencies directly from their application, but it may be better to use it to buy it with than to buy it on Paypal.
You can start investing in crypto for as low as one dollar. That is possible because almost all cryptocurrencies are frictional, allowing you, as a buyer, to buy only a fraction of a coin instead of the whole coin. That is great because, at the time of this writing, one Bitcoin costs around $23.000.
Buying With PayPal or Buying on PayPal
As we already said at the start of this article, PayPal now has an option for buying directly on its platform. Now, we are going to see what is better and for what. Like every product, it must have something better than competitors or cease to exist.
- Buying on PayPal
Paypal now offers some regions (US and UK) to buy cryptocurrencies (BTC, BCH, ETH, and LTC) for one dollar, which may be interesting for new investors. That all may sound interesting, but there are some very strange limitations.
Paypal does not allow investors to move their newly bought cryptocurrencies. Although this is a new approach that we haven’t seen before, it has some drawbacks, like traders and investors can’t move them on their wallets that offer cold storage (usually USB sticks).
But, this can be great for someone who doesn’t want to set up an external wallet and is utilizing a long-term trading strategy.
- Buying With PayPal
With our research and acquired knowledge, we’ve found the best way to best way to buy Bitcoin with Paypal is to use crypto exchange platforms.
Almost all big platforms accept PayPal as a deposit method, and the list will get even bigger. The main difference between buying on exchanges and PayPal is that you have full ownership of the coin you decide to buy. Also, you have a lot more trading options.
PayPal as a platform for cryptocurrency is still in its early stages, and for now, we recommend using it as a payment processor and not a platform for trading.
Why buy with PayPal
If you ever look up how to buy cryptocurrencies with Paypal, you probably saw that PayPal has a lot of benefits. It’s not one of the Internet’s best and most used payment processors for nothing. Here are some key benefits of using PayPal to buy your cryptocurrencies.
- Degree of security
If you are scared of anything, PayPal is the right payment option. The level of security is unbelievable. Everything has end-to-end encryption. Every transaction is monitored 24/7, so they can alert you if anything suspicious is happening.
After every transaction, you will get an email so you can report if something is happening on your account without you doing it. All these are reasons why PayPal is so popular among crypto traders.
- Instant deposits and withdrawals
One of the most important reasons many experienced traders choose PayPal as a way of depositing and receiving money from exchanges is speed. If you are on a platform accepting PayPal, you can get your money from the exchange to Paypal in a few minutes and vice versa. Unlike other payment options like bank transfer, which can take up to 10 business days.
- User and crypto-friendly
Paypal is an incredibly crypto-friendly company, and they might create their own coin that will be backed by us dollars (even the best cryptocurrencies usually don’t have anything backing them). In addition, they are constantly increasing the number of cryptocurrencies you can buy directly from their app.
- Mobile app
Paypal’s mobile app has great features and a fantastic reputation for being user-friendly. You can find this app on Google Play or App Store, depending on what phone you have. The app allows you to send and receive money from anywhere in the world by only knowing their phone number or email address.
It can be very useful if someone is sending you money that you are going to use to trade because you can transfer it on an exchange in just a few clicks, and the best part is you can do it anywhere because it’s on your phone.
Another great feature is that you can set up every time when it’s activity on your account instantly and get notified on an app. That way, you can reduce any chance of fraudulent activity on your profile.
This guide should help you understand how to buy Bitcoin and other cryptocurrencies using PayPal as a payment processor. Many brokers and exchanges already accept Paypal, and we are sure the number will only go up as the crypto market expands.
Also, remember that the cryptocurrency market is highly volatile, and you should have basic knowledge before starting to trade crypto.
On PayPal or not, you should have your finances in order before you start investing. You should prioritize having an emergency fund and paying off high-interest debt if you have one.