You can buy, hold and sell cryptocurrencies with PayPal, even with as little as one dollar invested through a PayPal wallet. However, there’s a difference between normal Paypal transactions and how PayPal works with cryptocurrencies. In this article, we’ll delve into buying crypto with PayPal, which cryptos, and how to go about it.
What to Know Before You Buy Crypto On PayPal
Any person in the U.S. with PayPal can now buy, hold, and sell crypto with PayPal. PayPal allows instant transactions and low fees. This has made crypto more accessible and easily traded. However, this increased accessibility may also increase your crypto risk level. Due to this risk, you need to diversify your portfolio and have different investments so that you don’t over-focus on crypto investment, which is highly volatile.
PayPal holds and manages the key and wallets, which means that you don’t technically hold your own coin key. When you buy a crypto coin, there are two things to make your ownership official: A public key )your wallet address) and a private key to control that wallet. With PayPal coins, you’ll only get access to your wallet address, while PayPal keeps control of the private key. This means you cannot transfer tokens to any wallet outside the PayPal ecosystem. The best thing is that your wallet’s protection and security are guaranteed. For instance, if a crypto purchase turns out to be a scam, PayPal will investigate and refund the money.
Which Crypto Coins Can You Buy with PayPal?
You can buy four crypto types on PayPal:
- Bitcoin
- Ethereum
- Litecoin
- Bitcoin Cash
Of the four coins, Bitcoin and Ethereum are the most popular and the ones many experts recommend for new investors.
Steps to Buying Crypto With PayPal
The next question in your mind is “how to pay with PayPal” when buying cryptocurrency. Here are the steps:
- Create a PayPal account and complete the registration.
- Click the button called “crypto” from the navigation bar.
- Choose which coins you’d like to buy.
- Complete the identity check (this may involve sharing your personal information).
- After you pass the coin’s identity check, type/select the amount you’re satisfied to invest.
- Agree to PayPal’s crypto terms and conditions.
- Buy your cryptocurrency.
Once you buy the crypto, PayPal automatically converts it into U.S. dollars at no cost.
Note: Deposit Funds with PayPal.
To complete your crypto transaction on PayPal, funds must be available in your PayPal or have a linked debit card or bank account. You’ll also pay a fee for buying or selling crypto on PayPal, which varies based on the coin you’re buying and how much. You can sell your crypto anytime, but there will be associated fees depending on how much you’re selling and which coin.
Where to Buy Cryptocurrencies With PayPal
Many crypto exchanges only allow buying crypto with a bank account or credit card, and only a handful allow buying crypto with PayPal. Some of the trading platforms that can allow you to buy crypto with Paypal are:
- eToro
- Coinbase (best for beginners)
- Crypto.com (may need a credit card)
Endnote
Buying cryptocurrency with PayPal makes crypto investing even easier, but you need to remember that any crypto investment is highly volatile, and you should do it moderately. No matter what crypto platform you choose, learn about it as much as you can and practice smart crypto investing to avoid great losses.
