PayPal is one of the few mobile platforms that allows online payments and also allows its users to buy and sell cryptocurrency with any amount they have to invest. Despite the limitations (which are just a few) it is still good to buy cryptocurrency on PayPal.
Buying cryptocurrency is now so easy that even a newbie can buy cryptocurrency on his/her phone. All you need to do is make some basic research and you’re good to go.
PayPal was founded in 1998 and is currently one of the most popular platforms for online payments
PayPal is a financial service that allows individuals and businesses to make and receive payments, transfer money, and accept credit card payments online.
This article will help you understand how to buy cryptocurrency on Paypal, either as a newbie or semi-expert.
Steps on How To Buy Cryptocurrency on PayPal.
Buying cryptocurrency on PayPal is as easy as reciting your numbers. The following steps will put you through buying cryptocurrency on a trusted platform (PayPal).
1. Create an account
To use PayPal, you have to first create an account on the PayPal website. Follow the procedure and correctly fill in your details. Creating an account also allows you to send and receive payments.
PayPal also offers a range of tools and services for businesses, including the ability to process credit card payments, manage invoices, and track sales and expenses. So, if you’re a business person, asides from buying cryptocurrency on Paypal, you can use it for other things.
2. Click the “Crypto” icon
After creating your account, click the “crypto” icon and choose any cryptocurrency you want to buy.
On the PayPal app or website, you can buy four different cryptocurrencies: Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. If you’re a novice investor, experts advise sticking with Bitcoin and Ethereum. But, you can decide to buy any coin of your choice.
3. Verify your identity
You also have to verify your identity, fill out a W-9, and agree to the PayPal terms and conditions. If you decide to purchase crypto, PayPal will automatically convert it into the U.S. dollar at no additional cost. Please note that you are to fill in your details correctly to avoid any setbacks in future.
4. Link your debit card
You must have linked your debit card or your bank account in order to complete your purchase. Spending might range from $1 to $100,000, weekly. Just like many crypto exchanges, PayPal charges a fee when you buy and sell cryptocurrency, and the fee changes based on how much you buy. So, be prepared for some extra charges.
5. Click on “Bitcoin” and “Buy”
Click the Bitcoin icon and enter the amount of Bitcoin you want to buy and click on it. As a beginner, you can start with a few dollars and increase it as time goes on.
6. Complete your transaction
After clicking buy, select your payment method and click “Next”.
Make sure to cross-check the conversion rate and transaction fee to see if you have enough to go ahead.
That’s it! Click ‘Buy now’ to confirm the purchase and the coins would have reflected in your PayPal digital wallet.
What You Need to Know Before Buying Crypto on PayPal
PayPal protects eligible purchases from fraud if you check out with crypto.
PayPal is making cryptocurrencies more accessible, along with other programs like Venmo and Robinhood, which is a big advantage for many novice investors. But more accessibility can also put you at greater risk.
Limitations to using PayPal to buy cryptocurrency
Investing in cryptocurrency using PayPal is simple — especially if you already use the app for online payments but if you don’t, it’s still simple. But it has limitations.
Buying crypto on PayPal is not the same as buying through a broker or a cryptocurrency exchange. When you buy from any of these options, you have the freedom to transfer your crypto into a wallet or a trustworthy person for a secure transaction.
But, with Paypal, You can’t transfer your crypto from your account to another account on or off PayPal. It is compulsory to sell your crypto on PayPal before you can make a withdrawal.
If you want full control over your coins, a cryptocurrency exchange may be a better choice.
This doesn’t mean that Paypal isn’t a good option. You can start with PayPal and know the cons before moving to exchange platforms.
PayPal Crypto Fees
PURCHASE OR SALE AMOUNT/ PAYPAL FEE
1.00 – 4.99 USD 0.49USD
5.00 – 24.99 USD 0.99USD
25.00 – 74.99 USD 1.99USD
75.00 – 200.00USD 2.49USD
200.00 – 1000.00USD 1.80%
Is It good to buy Crypto using PayPal?
Yes, PayPal protects purchases from fraud if you check out with crypto. PayPal is making crypto more accessible and is a good thing for beginner investors.
What are the questions PayPal will ask you before buying cryptocurrency?
PayPal will ask for some of your details like your home address, means of identification, and many others.
Are there fees to buy crypto on PayPal?
Yes, for every transaction on the USD value of the combined crypto purchase, you will pay a transaction fee. Additionally, you will pay 1% only on the USD value of the crypto that you receive in your external wallet.
Do I need to link my broker account to my Paypal account?
It’s important to note that Paypal’s terms of service do not allow the direct purchase of cryptocurrency using Paypal, so you will need to use an intermediary such as an exchange or broker.
Conclusion
If you’re a new investor with a few dollars that you want to grow or multiply, PayPal can be a good place to start. Investing in a small portion of your portfolio in Bitcoin on a platform you already trust can make sense for beginners, especially if you don’t anticipate adding large amounts you might want more control over (like your own wallet storage) later.
There’s no wrong or right way to invest in crypto, it ultimately depends on your personal preferences. The most important thing is to learn the basics before investing in any platform. Before you go ahead to buy, make sure you have done your research and you are also prepared for the risks that come with it.
Buying crypto on PayPal is a good investment but you should be aware that it comes with risks, nevertheless, trust the process.
