With time, people find a platform through which they can spend money. Many new bitcoin investing platforms are coming on the network, and it is becoming complicated for the novice to choose the right platform for investing in bitcoin. PayPal is also like an exchange such as Yuan Pay Group that provides only a payment transfer and receiving system, but now it has added some cryptocurrencies feature to buy from the same platform.
What is PayPal?
It is a payment exchange platform where you can send cash from your account to another PayPal account and receive money from your home country and foreign countries. PayPal was only the payment gateway, but the new feature of buying and selling cryptocurrencies in one platform increased the hope of this platform. So, in short, PayPal is a system of transferring national and international payments and provides the facility of selling and purchasing bitcoin and other cryptocurrencies.
Buying bitcoin through PayPal
It is straightforward to purchase or sell crypto coins with this payment gateway because the process is steady and precise. There is the following procedure for buying bitcoin in a simple way given below:-
- Go on the PayPal website or download the PayPal application to continue buying bitcoins.
- You must upload your identity documents to know about PayPal and stop the fraudulent activities.
- Now choose your currency according to your country, such as USD, INR, PKR, EURO etc.
- Enter your bank account number and verify it through a one-time password, and you can also add your bank debit or credit card for instant depositing and withdrawing from PayPal.
- When funds start appearing in your PayPal account, click on the UI search bar and search for Bitcoin. Then place your order by filling in the number of bitcoins, and after some time, your bitcoins will start appearing in your PayPal account.
Why should you not purchase bitcoin with this platform?
- Privacy Issues like Exchanges: When you go with a bitcoin exchange, they will ask for your identity since the government regulates bitcoin exchange. They have to give the data to the government according to the rules and regulations. Since PayPal is also a centralized system thus, this platform also collects users’ information, which means your privacy is not secure. But if you will go with a separate wallet (decentralized wallet), there is no privacy issue because the government does not regulate it.
- Exchanges Provide Better Interface: You know that thousands of bitcoin exchanges are made only for bitcoin and other cryptocurrency services. So they work only on one work such as buying and selling, trading and improving the user experience interface for smooth functioning. But PayPal becomes more complicated in one application because it provides a payment gateway in fiat currency and cryptocurrency. But people want simplification in purchasing, selling, sending, receiving or trading bitcoin.
- No holding of Cryptocurrencies: In actuality, the PayPal system does not have any proof of holding cryptocurrencies in users’ accounts, which means when PayPal users buy bitcoin, they are not buying bitcoin in their ownership. In simple words, PayPal bitcoin buyers buy bitcoin indirectly, but holding bitcoins is in PayPal owners’ accounts. Thus, you cannot send bitcoin to another exchange wallet or decentralized software wallet.
- No Private Keys: If there is no secret key to the bitcoin wallet, the owner or holder of bitcoin or other cryptocurrencies is the owner or founder of PayPal. Private keys recognize the absolute ownership of bitcoin crypto coins, but in this case, you do not have control over your cash.
- High Fees: PayPal charges higher maintenance or management cost for bitcoin holding, buying or selling than bitcoin exchanges. Bitcoin exchanges get made to serve cryptocurrency users to minimize their fees because they provide the same service in bulk to many bitcoin users.
- Less Selection: PayPal does not have enough cryptocurrencies to buy, which means it deals in limited cryptocurrencies such as Bitcoin, Ethereum, Litecoin etc., even though there are over thousands of cryptocurrencies available on the network. On the other hand, cryptocurrency exchanges especially come into existence to provide the trading features in the market in one application or platform.