Should I buy Bitcoin on PayPal? What are its pros and cons? Read the guide to know more.
Before you buy bitcoin on any crypto trading platform, you need to understand what cryptocurrency is and how the trade operates. Cryptocurrency is a virtual currency that works through a distributed ledger technology known as the blockchain. Crypto comes in four categories that are: bitcoin, bitcoin cash, ethereum, and litecoin. On the other hand, PayPal provides an easy way to send and request finances online. You can transfer money to individuals at a fair exchange rate and also make purchases. Towards the end of 2020, PayPal announced that their platform would be available for crypto trade to their millions of customers worldwide.
Should I Buy Crypto on PayPal?
By now, you are probably wondering how advantageous it would be for you to buy, hold or sell bitcoin on PayPal. If this is an option you would want to use, here are some pros and cons you may want to look into.
Let’s start with the advantages
Account opening is free. Getting an account on PayPal is easy and fast; with few procedural steps, you should have a PayPal account up and running. You will require an internet connection and few personal details to get you started.
It’s a global payment giant. Paypal has over 300 million active users, and in the 21st century, it’s the most prominent online bank. By this fact it provides merchants with a big spread to buy hold and sell cryptocurrencies . Its reputable financial position is a boost to the bitcoin trade hence more worth and value.
PayPal supports various cryptocurrencies. Currently, PayPal supports all cryptos; Ethereum, Bitcoin, and Bitcoin Cash. This is good news for you if you want to get into the business.
Your profits from buying bitcoin go straight to your PayPal account. Bitcoin is heavy on profit, so as your coins gain interest, you make money that you can use as a payment method to acquire goods using PayPal.
PayPal covers fraud. All purchases and sales made as a result of unauthorized activity on their accounts will be refunded: the segment caters for the funds, transactions fee and final payments.
Facts about cryptocurrency on PayPal
With the PayPal app, the user will learn about crypto, how to buy bitcoin and the payment method; and track their trade process without leaving their app. Payments can be made directly using personal or premier PayPal cash/plus accounts; if you do not have these accounts, you can apply for one during your first purchase. If you choose to use a bank directly linked to PayPal, then there will be some fees made by your bank. PayPal`s Crypto fees offer an exchange rate that is determined by the market condition at that time. As you buy or sell Crypto assets, make sure to check out the PayPal fees page.
Why shouldn’t I trade using PayPal?
There has been positive PR about the recent move by PayPal to partner with bitcoin, but some disadvantages come from this merge. Here are some reasons:
You cannot cancel or reverse a purchase. If you make an error while using PayPal to make purchases, there`s no way for you to change that transaction. This creates a great deal of loss for the trader. The methods used to pay, make sale and transfer funds in one dimensional.
PayPal will not cover losses. PayPal will not cover losses made during price fluctuations; hence it’s a customer’s personal duty to do the studies independently. Does not support peer-to-peer trading. You cannot buy bitcoin from your friends on this platform. At this point, you can buy and hold for a while. All the crypto assets purchased stay on PayPal and not your crypto wallet.
It only uses USD for trade. The current status supports buying in US dollars alone. So for any transaction, you have to translate to USD first.
It’s only available in the US. Buying bitcoin on PayPal is a service only available in all the US states except Hawaii. The rest of the globe cannot access this product hence a disadvantage to those in the other parts of the world who want to use PayPal.
You aren’t provided with a private key. You own the cryptocurrency you buy, but you are not provided with the private key. You only have access to the balance you hold.
There is a maximum set on purchase. You can only purchase $20,000 monthly and $50,000 annually. That limits the sellers and buyers using this platform.
You cannot use credit to buy bitcoin. The only mode of payment allowed is PayPal Cash, Cash Plus Balance, or a PayPal linked debit card or bank account.
You cannot access your account just from anywhere else. The U. S Office of Foreign Assets Control (OFAC) has issued sanctions on some countries like Cuba, North Korea, and Iran, to name a few, and that means you cannot trade under these jurisdictions; hence you will suffer a loss on your investments.
You won’t be able to use your coins outside this platform. Buying and selling of crypto on PayPal have been subjected to dominance. All services provided revolve around this means of trade; this has made growth and business stagnant. Transaction and exchange is only made using a PayPal digital wallet.
There’s no transfer of bitcoin. Investors who own Bitcoin Ethereum on another wallet like Coinbase will not be able to transfer bitcoin on Venmo, users will not be able make peer payments outside PayPal's wallets.
Why Should I Buy Bitcoin on XanPool
If you are from any other country like India or Vietnam, Thailand or Philippines, you can consider using XanPool's cryptocurrency gateway to access Bitcoin along with other cryptocurrencies. You can access trading conveniences including:
Access cryptocurrencies - With our platform, you can not only access popular crypto like Bitcoin. But, you can also buy and sell altcoins including Ripple (XRP), Chainlink (LINK), Ethereum (ETH), Eos (EOS), Dash (DASH), and more.
Onboarding - XanPool facilitates a simple process of onboarding users into its platform. The registration process to access its services is easy. XanPool also enables automated KYC procedures to offer a user-friendly experience of onboarding crypto.
Local currencies - XanPool architecture allows a user to buy or sell cryptocurrencies using their local currencies. For instance, a user from Thailand can use Thai Baht (THB) to buy Bitcoin or receive THB by selling Bitcoin.
Instant orders - The services of XanPool enable near-instant and fast conversions of crypto into fiat. Users no longer have to wait for days or weeks for settlement. XanPool allows users to settle their cryptocurrency to local fiat currency within minutes.
Non-custodial - XanPool does not take custody of a user’s funds during the entire process. This further provides optimum security to a user’s funds.
Software solution - Our software provides easy integration for other platforms including cryptocurrency exchanges and wallet service providers to offer a crypto to fiat payment gateway to their customers.
XanPool offers an alternative payment gateway for users to buy or sell cryptocurrencies from countries other than U.S.