PayPal was revolutionary when it first appeared in 1998 as one of the first online payment processors. Flashforward over twenty years later and the payment powerhouse continues to be a leading method to buy anything online. The ease and convenience of its use allow you to buy virtually anything anywhere. As someone looking to dip their toes into the world of cryptocurrency and being one of the 346 million people with a PayPal account, one question naturally comes to mind: Can you buy Bitcoin with PayPal?
Can I buy bitcoin with PayPal?
In October 2020, the company announced that it’s possible to buy Bitcoin using your PayPal account. However, even though you are making the purchase, PayPal will control the private keys. These keys are what keeps your currencies secure and serve as proof that you own the coins. Any time cryptocurrency changes hands, there will be a public address and a private key. People can send money to your wallet without the key, but they would need the key to access it. If you think about your wallet like a mailbox, anyone can put letters into the slot, but only you have the key to unlock what’s inside.
Wire transfers from a bank are more secure but take longer to complete.
Buying cryptocurrencies with a credit or debit card is just as easy, and you have more freedom to spend your Bitcoin. Using other methods to acquire Bitcoin through exchanges or marketplaces gives you full control over private keys and encourages you to store them in any wallet you choose.
Ledger Live users based in the US can buy Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC) with PayPal. Your Bitcoin will be sent to the safety of your Ledger wallet.
How do you purchase bitcoin using PayPal?
Trading platforms and exchanges are digital marketplaces where traders buy and sell cryptocurrencies. These exchanges act as the intermediary between buyers and sellers, like a brokerage. To purchase Bitcoin on one of these platforms, you deposit money into your account; then, you use your account balance to trade Bitcoin.
Peer-to-peer marketplaces work by connecting people who have Bitcoin with people who want to buy Bitcoin. Both work together to determine a price and a payment method and then the Bitcoin goes into escrow until the money transfer goes through. The marketplace takes PayPal as a form of cash for transactions. The platform doesn’t take fees, and these marketplaces make it easier for people to get paid how they want. Users can directly exchange hundreds of fiat currencies, gift cards, and other cryptocurrencies.
If you’re based in the US, you can also buy Bitcoin with PayPal through Ledger Live. You can find the step-by-step instructions here.
What is PayPal’s position on Bitcoin?
The anonymity of the blockchain-powered Bitcoin means that many companies are wary about accepting it. Even though using Bitcoin to launder money digitally isn’t a common practice for most cryptocurrency users, the possibility has held crypto back in the past. That, along with the currency’s volatility, has been an obstacle to Bitcoin being accepted by mainstream retailers.
The change of heart that the company had with cryptocurrencies will have profound effects on the market. The most exciting announcement may not be that PayPal has its own cryptocurrency wallet, but that companies that use PayPal to process payments are able to accept Bitcoin. This opens up 26 million new retailers to accept Bitcoin.