Since October 2020, any PayPal user in the US can buy, sell and hold Bitcoin.
But there’s a big catch, according to cryptocurrency experts: Any cryptocurrency you buy on PayPal isn’t technically yours.
You can’t transfer your cryptocurrency purchases off the platform unless you cash them out to US dollars first.
That may not seem like a big deal, especially for cryptocurrency newcomers. But for some investors, control over their coins is more important than convenience.
“When you go with a broker like PayPal, you get less flexibility and fewer options over managing your crypto,” said Adam Blumberg, a Certified Financial Planner and co-founder of Interaxisan education firm for fintech, blockchain and digital assets.
So, should you buy Bitcoin or Ethereum on PayPal? It depends on your long-term goals with cryptocurrency.
In this guide, we’ll explain how to invest in cryptocurrency on PayPal. We’ll also look at the pros and cons of using this popular payment processor to buy digital currency.
How to Buy Crypto on PayPal
If you already have a PayPal account, buying cryptocurrency is as simple as tapping “Finances” then selecting “Crypto” from the app or website homepage.
From there, follow these steps:
- Pick your cryptocurrency. PayPal currently offers four coins: Bitcoin, Ethereum, Litecoin and Bitcoin Cash.
- Enter how much cryptocurrency you want to purchase. You can buy as little as $1 or as much as $100,000 per week.
- Select your payment method. You’ll need to have available funds, a linked debit card or bank account to purchase crypto on the platform. You can’t use a credit card to buy cryptocurrency on PayPal.
- Confirm your purchase. PayPal charges a fee for each buy and sell order executed on its site (more about those fees shortly).
If you don’t already have a PayPal account, there are a couple additional steps you’ll need to follow.
First, create an account. It’s a relatively quick process, but you need…