PayPal has been allowing people to buy Bitcoin for some time now. However, this feature for now has only been added to users in certain countries, including the US and UK, so most users who use it globally can’t enjoy this feature yet.
Buy Bitcoin with PayPal from the app
To those who turn out to have been enabled, a new section appears within the PayPal website or app, specifically dedicated to buying and selling cryptocurrencies. It actually works as a crypto exchange, even if it actually relies on an external exchange. Users don’t perceive that the trades are made on another exchange, because it operates exclusively from the PayPal platform.
The company has also published on its official website a guide that shows how to make cryptocurrency trades directly on PayPal.
The process is really simple, because it is enough to access the “Finance” section and then select “Crypto”. At that point, once you enter the Crypto subsection, simply select the cryptocurrency you want to buy click on “Buy” indicating the amount. The funds to pay for the purchase will be taken, as usual, from your PayPal account.
In addition to Bitcoin, other cryptocurrencies are also available.
It is worth mentioning that PayPal applies a commission on cryptocurrency purchases, which is generally higher than that of the main professional crypto exchanges.
Buy Bitcoin paying with PayPal
Unfortunately, the thing is more complex if you are not among the users who have been enabled this feature.
In this case you can only use PayPal as a payment method on external platforms that allow the purchase of Bitcoin.
However, there are few crypto exchanges that support direct payment with PayPal, but there is a way around this limitation.
In fact, PayPal also offers its users the possibility to get a debit card that runs on the Mastercard network. Such a card allows making payments wherever Mastercard debit cards are accepted, and therefore also on most exchanges.
However, this mode has a limit, since the card can only draw on funds already deposited on your PayPal account, and not from external sources such as other cards or bank accounts. So you can use it only if you have funds already deposited on your PayPal account, and only to spend amounts equal to or less than the balance of your PayPal account at the time of payment.
However, your PayPal account can be “topped up” by drawing funds from a bank account or a credit or debit card.
Alternatively, some exchanges, such as Coinbase, allow you to either link a PayPal account as a source from which to draw funds, or to make payments with your own PayPal account. Unfortunately, there are not many, and these features are often not available worldwide.
One must keep in mind that the commission costs on direct payments made with a PayPal account tend to be higher than those made with a credit card, so it’s not surprising that many exchanges prefer the latter solution.
The post PayPal: how to use it to buy Bitcoin appeared first on The Cryptonomist.
