Bitcoin is the most popular cryptocurrency in the world. Millions of people own it in their portfolio and several companies like Tesla and MicroStrategy have added it in their balance sheets. In this article, we will explain how you can buy Bitcoin with PayPal and whether it is a good idea. We will also look at some of the benefits of investing in Bitcoin, the risks involved, and the other alternatives for buying the coin.
Why buy Bitcoin?
There are several reasons why people opt to buy Bitcoin. First, they believe that it is a better performer than other assets. Indeed, historically, its performance has been better than that of other traditional assets like gold and stocks. It has managed to move from less than $1 in 2009 to almost $70,000. Therefore, people buy it in a bid to generate these returns.
Second, some people buy Bitcoin as a hedge against inflation. They believe that BTC will do better in a time when inflation is rising. In this regard, they see it as a better alternative to gold and other inflation hedges.
Third, Bitcoin has a payment utility value in that it is a good option for making payments. Indeed, some companies are now paying salaries using Bitcoin.
How to buy Bitcoin using PayPal
PayPal is one of the biggest fintech companies in the world. It has a market value of over $100 billion and more than 423 million customers globally. The company offers multiple services like peer-to-peer payments and the ability to pay companies.
PayPal is accepted in many companies such as the Washington Post and eBay. However, a closer look shows that not many Bitcoin exchanges accept it as a payment option. This is partly because PayPal tends to have higher fees than other payment processors. It is also highly bureaucratic, which makes it difficult for companies to accept it.
The first option you can use to buy Bitcoin with PayPal is to find a good exchange that accepts the platform. One of the most popular one that accepts the service is Coinbase, which is a publicly-traded company worth over $40 billion. Click here to find more companies that accept PayPal.
After finding such a company, you just need to create and verify the account. Finally, you should just link your account and send your money.
The second option is to use PayPal’s apps or website to buy Bitcoin. In 2021, the company announced that it will add Bitcoin and a select number of coins in its platform. The company’s goal was to create a super-app, where people can do most transactions
The service is available in the UK, US, and Canada. To do so, you just need to go to the app or website and then select the cryptocurrencies option. After this, you need to select the one that you want to buy and then complete the transaction.
If you have an account balance, PayPal will just take the funds from it. Alternatively, it will deduct the funds from the connected bank account. This is the easiest option of buying BTC using PayPal.
When using this service, PayPal does not charge a fee. Instead, it makes money from the spread of the bid and ask prices. At times, this spread can lead to higher hidden fees.
Third, you can buy Bitcoin using PayPal’s Venmo service. This is a popular peer-to-peer app that lets people send money to one another. The process of buying the coin is the same as when you are using the main PayPal app.
Additionally, you can use PayPal in peer-to-peer marketplaces like Paxful. Here, you need to create an account and verify it. Next, you should go through the marketplace and look at sellers who accept Bitcoin. Finally, you should select one and complete the payment.
Finally, you can use your PayPal card to buy Bitcoin in exchanges. The card works with most exchanges since it is linked in the Visa network.
Cons of using PayPal
There are several reasons why many people don’t use PayPal to buy Bitcoin. First, the option of buying Bitcoin inside PayPal’s app is not available globally. At the time of writing, the accepted countries are the US, UK, and Canada. On its website, the company says that it will expand to other countries.
Second, only a handful of well-known cryptocurrency exchanges accept PayPal. Most of the best-known ones like Binance, Okex, Gemini, and Kraken don’t offer it as a payment option.
Third, at times, PayPal fees are usually higher than other options like a credit or debit card. Additionally, when you are using p2p platforms like Paxful, it is often possible to receive a chargeback when you sell the coin. This happens when the buyer receives the coins and then initiates a chargeback with PayPal.
Summary
PayPal is a global company that is available in most countries. In this article, we have looked at some of the best ways of using the platform to buy Bitcoin and the cons of doing so.
