These days there are myriad ways people can purchase cryptocurrencies, and the payment platform Paypal is a popular choice. Multiple crypto brokerage services and exchanges allow people to buy digital currencies with the payment option. The following post is a simple guide and list of exchanges that support Paypal payments so you can get started buying crypto with the service.
Buying Cryptos With Paypal
The cryptocurrency ecosystem is 11 years old and there are more ways than ever to purchase and obtain cryptocurrencies in 2020. Some trading platforms allow users to pay with debit and credit cards and with bank transfers as well.
But there’s also a slew of businesses that allow people to purchase bitcoin and other cryptos with the Paypal payment processor.
In order to make your first cryptocurrency purchase by leveraging Paypal, you obviously need a Paypal account. You also need to register with a trading platform or brokerage service that sells digital currencies like BTC, BCH, and ETH with Paypal. There’s a good number of services that allow users to pay for their cryptos with the payment provider. Lastly, you will also need a cryptocurrency wallet that supports the digital asset you want to purchase. Bitcoin.com’s wallet is an excellent noncustodial wallet solution that allows you to store, send, and receive both BTC and BCH.
There are various ways to purchase cryptocurrencies and one method is by using Paypal.
Using an Exchange
A lot of individuals use the exchange Coinbase ever since they added the ability for customers to link their Paypal and Coinbase accounts. Depending on where you live you can purchase or sell Coinbase listed digital assets using the Paypal system. If you want to use Coinbase in order to utilize Paypal, then you must complete all of the identity verification procedures issued by the San Francisco firm. After your identity is confirmed with Coinbase, go to the “settings” section and then “linked accounts.”
Simply click the “new account” tab and choose Paypal and the Coinbase dashboard will prompt you to log in to Paypal. After all these steps are complete, you can then purchase and sell digital assets with Paypal using the exchange. However, you can only link your Paypal account to one Coinbase account, the company’s guidelines note.
The Coinbase FAQ on how to leverage Paypal with a Coinbase account.
Using a Peer-to-Peer Marketplace
Another way to use Paypal in order to obtain cryptocurrencies is by using the peer-to-peer marketplace Local.Bitcoin.com. If you want to buy bitcoin cash (BCH) with Paypal you can register and log into your Local.Bitcoin.com account and press the “trades” tab. This will give you access to the “find an offer” and “create an offer” tabs.
In the find an offer section, you can simply search for people selling BCH that accept Paypal for payments. Or, if you are planning to sell BCH, you can head over to the create an offer section and create one that accepts Paypal for payments. Looking at the worldwide listings on the BCH marketplace shows that there’s a great number of buyers and sellers who use Paypal. Other localized exchanges like Paxful, Localbitcoins, and Localcryptos (formally Localethereum) also let traders use Paypal.
The private, noncustodial BCH marketplace Local.Bitcoin.com allows people to purchase and sell cryptos with the Paypal service.
Weighing the Pros and Cons
Other trading services that allow you to purchase digital currencies via Paypal include Etoro, Xcoins, Cancoin, Cryptonit, and Wirex. Every platform and exchange has pros and cons when it comes to buying cryptocurrencies with Paypal. For instance some services, like certain peer-to-peer marketplaces, offer better privacy and you don’t need identity verification to trade with Paypal.
However, a bunch of the aforementioned companies do require account verification and KYC procedures like submitting a photo ID or proof-of-residence. Similar to Coinbase, in order to leverage Paypal with Wirex, you need to submit identification documents to deposit USD and be able to select the Paypal option. Most of the platforms that require identification will simply let you tether a Paypal account to the exchange as soon as you pass the verification services process.
It’s likely that anonymity won’t be a big deal to people who want to use Paypal to purchase cryptos because the Paypal system itself is not really anonymous or private. If ID verification is an issue, people can always utilize trading platforms like Local.Bitcoin.com for more privacy. With more than 260 million active Paypal users today, there’s definitely a number of individuals who want to purchase or sell digital currencies like ethereum or bitcoin cash with the payment service.