PayPal Bitcoin users in the US can gladly now buy cryptocurrencies including bitcoin directly via the platform. In November 2020, PayPal announced that all its account holders in the US can buy and sell cryptocurrencies via its platform.
However, this news came after its announcement in October 2020 that it would introduce another option for cryptocurrency. This option will be for buying and selling, via a partnership with Paxus crypto Brokerage.
PayPal bitcoin launch came first on Twitter https://t.co/QS6JRmG9hspic.twitter.com/uHBatfZKbF from PayPal October 21, 2020. The digital payment system company made the move to push more into crypto last year. At the PayPal platform now users in the US can buy, sell, hold, and checkout with cryptocurrencies.
This includes Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. Also, with Venmo, the mobile wallet owned by PayPal, customers can also buy and sell cryptocurrencies. On the PayPal platform, you can start by investing as small as $1, and you don’t need to open a special account to trade in cryptocurrencies.
Technically, those coins you buying are not yours. PayPal manages your wallets, meaning you cannot hold your own bitcoin. However, PayPal manages the wallet and you do not have to hold your own bitcoin.
Paypal Bitcoin Exchange
Typically, when you buy Bitcoin, you’ll have a public and a private key pair making you the official owner of the bitcoin. But, this not the same with PayPal bitcoin. PayPal customers cannot transfer their bitcoin to cold storage, nor can they transfer tokens to a wallet outside of the PayPal ecosystem.
On a PayPal bitcoin account, your public and private keys are secure. As a novice in the Crypto space keeping your private and public keys are very vital and once you lose them your coins are gone.
The former Ripple’s CTO, lost his private key, forfeiting about $400 million worth of bitcoin at today’s token price https://grow.acorns.com/bitcoin-users-forgotten-password/.
How to Buy PayPal Bitcoin?
To use the PayPal platform and purchase bitcoin, you must have a PayPal account. You’ll need to create it using your credit card or bank account and a valid email address at PayPal.com. You can buy bitcoin via the PayPal website or the PayPal app. Here are the steps to follow:
- To get started visit paypal.com.
- On the website, move to the Buy Bitcoin and More widget at the top of the home screen.
- Select the Cryptocurrency you want to buy. The only options, for now, are Bitcoin, Ethereum, Bitcoin Cash, or Litecoin.
- Click on the Buy option or choose a preset amount of bitcoin to purchase. A user can get a minimum coin as low as $1.00 worth of bitcoin.
- Next, confirm some of your information and agree to PayPal’s cryptocurrencies terms and conditions.
- Then enter the amount you’d like to buy. A note that will explain the price of bitcoin varies depending on when you make the purchase.
- Click on the Next button.
- Your bank account or credit card/debit card linked with will display. You may add another bank account if you want.
- Then click on the ‘Next button.
- This will take you to a page to review your purchase. You will see the transaction fee that ranges from ¢50 for purchases that are below $25 to 1.5% of the transaction for purchases of $1,000 above.
- Click on “Buy Now” when you want to purchase. Once you’re done purchasing, the account will be updated to reflect the amount of crypto purchased and the present value.
After all these processes return to the home page and see your bitcoin purchases. This will be below “Crypto” with options to Buy and Sell. Also, cryptocurrency sold on the PayPal platform will be converted into fiat and it will show in the Cash Account balance section of the user’s account. The fee chart and conversion spread across for users to be able to calculate how much in fees they may have.