Two of the biggest things that the crypto community is always on the lookout for are peace of mind and ways to make life a little easier. After all, thanks to the volatile nature of crypto, it can be tricky to find stability, and the rise in cybercrime during 2020 had all of us thinking about adding a few more weapons to our online security arsenal. When PayPal announced that they were going to start supporting digital currencies, a lot of people wondered whether this massive site might be exactly what they were looking for their trading needs.
But is PayPal really that different from the rest of the crypto exchanges out there? Let’s break it down.
So, What Does PayPal Offer?
As you might expect, one of the most enticing things that PayPal has to offer is its brand. This will be especially appealing for anyone who is not particularly experienced in buying and selling Bitcoin who is looking for the security of that kind of reputation. They can also use the ability to buy different kinds of crypto using their PayPal account, with any profits made going directly into that account. It’s worth noting that you can create a PayPal account free of charge.
OK, So What Does PayPal Not Offer?
Well, for starters, PayPal is currently only offering its cryptocurrency services to users in the United States. So, anyone who is reading this outside of the US automatically has one very good reason to use PayPal. It’s also worth noting that you can’t actually purchase or transfer your money with funds from your cryptocurrency balance as of yet, and right now PayPal does not support peer-to-peer trading.
Traders who like to spread their crypto funds around may be put off by the fact that any cryptos which are bought on their platform will stay there, and you can’t transfer funds bought anywhere else into your PayPal wallet. Now, of course, these conditions may change, but the only way to own actual Bitcoins is to purchase them on regular and peer-to-peer exchanges. These exchanges are quite beginner friendly as they buying process is really simple and they publish guides on n how to buy Bitcoin with PayPal and other modes of payment. One such marketplace is Paxful where you can purchase BTC far cheaper than other sources and there’s no extra fees involved.
Final Thoughts
When it comes to the big issue of security, some people may feel more comfortable using their pre-existing PayPal account, but seasoned Bitcoin traders will have their own security options set up and will almost certainly be using an exchange they know they can trust. The question of experience may also apply to the current issue of exclusivity; if you’re just starting out then the idea that you can only use the PayPal payment system may not seem so restrictive, but anyone who wants to keep their options open will want that freedom that comes with using another trading platform. Finally, the US-only restriction is clearly a huge impediment for anyone looking to trade their Bitcoin internationally.
We all know how quickly things can change in the market, so being able to move quickly and decisively may well be the deciding factor.