Bitcoins need no introduction as they are one of the most valued cryptocurrencies on the planet. Until recently, commoners who did not know about trading exchanges struggled to buy and sell bitcoin using cryptocurrency exchange platforms. The most widely used online money payment system, PayPal, now allows its users to purchase bitcoins directly or through other services.
- Buying bitcoins through PayPal is quite helpful for several people who do not want to register with exchanges or pay extra commissions.
- Besides, millions of merchants around the world use PayPal to receive payments. It is easy for them to buy using PayPal instead of transferring the money to the bank account, exchange, or use their credit cards with limited security.
- PayPal also allows them to pay others in the form of bitcoins which will help the vendors use their investment balance if necessary, without much hassle.
PayPal users can buy bitcoins directly using multiple other platforms like Coinbase without spending much on commission. Cryptocurrency investors usually use PayPal to buy Bitcoins from four significant sites, Coinbase, eToro, xCoins, and LocalBitcoins.
1) Buying bitcoins directly through PayPal
Purchasing bitcoins directly through PayPal can be made easily and instantly. Users from the US and the UK can buy bitcoins by logging into their accounts and selecting the “Buy Bitcoin and more” banner. They will find the banner under the Payments screen in the PayPal mobile app. The remaining steps are self-explanatory which involves selecting the cryptocurrency and making the payment.
You can transfer the money to purchase bitcoins from the PayPal Wallet or a bank account or card linked to the PayPal account. The transaction fee is 50 cents for all bitcoin purchases under $25 and 1.5% commission for purchases exceeding $1000. The procedure is fairly straightforward but has a few limitations too.
Major concerns: Experts warn about PayPal’s tendency to freeze the account suddenly. The digital currency will also be inaccessible in such scenarios. Purchasing through PayPal is much more secure than using various credit cards, but the bitcoin holdings will remain only in the PayPal wallet. The user must encash it to receive money in the bank account. Users cannot move bitcoins from the PayPal wallet to other exchanges directly. There is a $100,000 per week limit on purchases.
2) Bitcoin Purchase through Coinbase
Coinbase is the most trusted platform in the industry and beginner friendly. Users can pay for bitcoin purchases through the bank account or card linked to the PayPal account. The commission charges vary from 2.5% to 4%, and the purchase limit is $25,000 per day, which is relatively higher than PayPal’s direct weekly purchase limit.
Major Concern: The major downside is, users cannot purchase bitcoins through PayPal balance in their digital wallet and pay high commission charges and depend upon their card or bank account for payment. Several countries around the world restrict both PayPal and Coinbase transactions.
3) Easy eToro platform
eToro is the next most popular way to purchase bitcoins through PayPal. Most investors who want to buy bitcoins and save hold them intact as long-time investments choose eToro. It is easy to buy bitcoins and protect them through PayPal. There is no need to pay for a separate bitcoin wallet, and the commission for purchase is also meager. The only drawback is the complex procedure to transfer bitcoins to others.
4) Purchasing bitcoins through LocalBitcoins and Paxful
Both these platforms were created to eliminate the shortfalls in eToro and Coinbase. They act as a meeting place for bitcoin buyers and sellers who can pay quickly using their PayPal account. The sites require the users to register with them and interact with other users regarding buying or selling bitcoins. Paxful even selects the best people to contact based on the user’s experience, purchase capacity, and expertise.
Major concern: LocalBitcoins and Paxful both have transparent systems and are very user-friendly. But they do not check the background of users or give any guarantee regarding the buyer or seller’s authentication through their ID verified accounts.
The chances of getting scammed or cheated are high after the seller receives the money and does not deliver the bitcoins. The same can happen with buyers who don’t pay the required amount fully. But they are pretty famous and are used by several PayPal users to buy and sell bitcoins instantly.
Borrowing bitcoins through PayPal
There are other ways to purchase bitcoins through PayPal, like transferring the money to cryptocurrency exchanges directly instead of a bank account. Some people use websites like xCoins.io, which lends bitcoin to people for a certain period.
They use it to showcase their rich digital assets and land a project or a contract and return the bitcoins to the company after a short period. PayPal payment is accepted by most of the bitcoin services as it is secure, genuine, and trusted by more than 25 million customers around the world unanimously.