As Bitcoin’s popularity soars, it is fundamental to find sites that support its seamless purchase. In this guide, we outline how you can purchase Bitcoin through PayPal, a leading digital wallet.
Recently, PayPal, a leading Fintech that has been in existence since 1998, has incorporated features that allow its US-based clients to sell and buy crypto. As much as one could trade on the site, the process was confusing and complicated. Additionally, any transactions you make through the site are processed instantly, with just a few clicks.
Before finalizing to purchase Bitcoin with PayPal, ensure that your CEX.IO and PayPal accounts have the same e-mail address for a seamless depositing and withdrawal process.
A Guide to Buying Bitcoin with PayPal
Setting Up Your PayPal Account
Firstly, you need to have an active and verified PayPal account. If you lack the proper knowledge on how to go about setting up an account, visit the official PayPal site. Also, ensure you provide the correct e-mail address and phone number for a smooth verification process.
PayPal is predisposed to security breaches, like any other online website. However, PayPal can circumvent this by asking for identification, either a National ID or a passport. PayPal then verifies your account, which stamps its eligibility to process huge transactions like purchasing and selling Bitcoin.
Linking Payment Methods
The next crucial step of purchasing Bitcoin with PayPal is adding a payment method among the myriad of options available. You can opt to fund your account using Visa or Mastercard – for seamless transactions. Linking your preferred bank account allows you to make direct transfers and deposits, an added advantage when transacting large amounts due to the affordable transaction fees. To navigate to this option, go to the ‘wallet’ section on the PayPal site and enter the relevant information.
Additionally, you can link a debit or credit card to your PayPal for quicker transactions, which is a good option because there are no wait times during transfers. To link your credit or debit card, fill in the correct card details. You will be charged a small fee during the verification process, which will be refunded later.
Making the Purchase
Once the verification process is complete and with enough funds, you can start trading. Log into your PayPal account through the website or app and navigate to the “crypto” section through the menu under the ‘finance’ or ‘more’ tab option. Here, you will find information crucial for your trading escapades, such as available cryptos, current market prices, exchange rates, and transaction fees.
Additionally, if you are using your CEX.IO account, follow the steps below:
- Log into your CEX.IO account and select the “instant buy” option from the tabs.
- Choose your preferred number of tokens.
- If PayPal is among the options listed, navigate to the ‘field’ option and select it.
- Click the ‘buy now’ to finalize the transaction process.
In case you want to make another purchase, select your preferred coins and follow the steps above.
Before authorizing the transaction process, review all the transaction details to know how much you will spend and how much Bitcoin you will receive. Finalizing this process adds Bitcoin to your PayPal crypto wallet.
PayPal Crypto Fees
You will not incur additional costs if you opt to purchase crypto with PayPal. Before finalizing any transaction, the site discloses the transaction fee and exchange rates you will incur, which do not apply to US residents. If you linked a debit or bank card as a purchase payment method, your bank will charge you transaction costs, including insufficient funds or overdraft.
Note that crypto is categorized as digital money because you swap currencies during the trading process. The exchange rates inform you how much crypto you will receive after the swap.
Pros and Cons of Purchasing Crypto with PayPal
Pros
Convenience
Buying your crypto via PayPal is highly convenient for amateurs and beginners in the trading space. The site has an intuitive design, offering a seamless experience for those navigating its features. Having an active and verified PayPal account reduces the hassle of finding a platform that promotes a seamless trading process.
Security
PayPal’s thorough verification process offers its users a secure space to trade and hoard their assets. The site employs tight security measures that include 2-factor authentication and password verification to protect its user’s transaction and financial information. Moreover, PayPal has integrated buyer protection policies, which protect your identity when transacting online.
Instant Transactions
Ensure PayPal is verified and has enough funds to trade for instant transactions. PayPal’s seamless transaction process is advantageous for trade enthusiasts who benefit from the market conditions.
Consolidated Funds
Using PayPal for your trade endeavors allows you to consolidate your funds in one place for easier management. Also, if PayPal is your preferred site for online shopping or sending money, adding a crypto feature boosts your financial management process. Such a consolidation reduces the hassle of keeping multiple accounts and tracking investments.
Cons
Fees
PayPal will charge you for trading on the site, and often, these fees may be higher than other crypto exchange sites. Therefore, if you use PayPal for all your financial transactions, this charge may dent your finances. Eventually, these additional costs may make PayPal an ineffective trading platform.
Privacy Information
To enjoy the perks of a verified account, submit personal details such as your National ID or passport, e-mail address, and phone number. Such a process ensures no anonymity on the site, which may not be a suitable option for traders who opt for privacy in their financial activities.
Limited Crypto Options
PayPal has an array of crypto options, but they are limited compared to what other dedicated crypto sites offer. Such a limitation makes it hard for trade enthusiasts to diversify their options.
Conclusion
Although the crypto market is volatile, it offers a safe space for trade enthusiasts looking to diversify their financial portfolios. However, before you buy or invest in crypto, it is crucial to research the market conditions, charges, and the sites that support your preferred trading objectives. By following the guidelines in the article above, you enjoy a seamless trading process with PayPal at an affordable fee.
