Bitcoin has only been around for a little over a decade, but in that time it has taken the world by storm. What started out as a niche product is now being bought, sold, and traded all across the world. These days, even PayPal allows users to invest in crypto.
Table of Contents
Why Invest?
Though Bitcoin has been rising in popularity among mainstream investors, not everybody is on board with crypto trading and holding yet. Those who haven’t jumped on the bandwagon should consider the many benefits of Bitcoin before writing off crypto investing as a passing fad. They include:
- Decentralized structure.
Stable store of value.
High liquidity.
High return potential.
New opportunities.
Of course, everyone has his or her own set of reasons for investing in crypto. Regardless of why novice investors want to get their hands on some bitcoin, they should brush up on the basics by reading through a comprehensive Bitcoin via Paypal guide.
How to Get Started
PayPal makes buying bitcoin very easy. All users have to do is click the “crypto” button and choose Bitcoin. As long as future investors have linked either debit cards or bank accounts or have funds available, they can get started right away. All it takes is $1 in available funds.
Crypto Fees on PayPal
If there’s one thing that turns off some potential investors, it’s high associated fees. Unfortunately, PayPal does charge transaction fees based on the sale amount in US dollars. These fees start at a flat $0.50 for transactions worth up to $24.99 and go up to 1.5% for bitcoin purchases that exceed $1,000.
What Are the Downsides?
While PayPal makes it easy to buy, hold, and sell bitcoin, it doesn’t have the full functionality of true crypto exchanges and peer-to-peer lending platforms. There’s no way to transfer crypto from a PayPal account to another person’s digital wallet, which means the only way to access the investment capital stored in bitcoin is to sell it on PayPal and withdraw the money. As a result, users will have to report the sales on their tax returns and give up full control over their bitcoin or altcoins.
Who Should Use PayPal to Buy Bitcoin?
Buying some bitcoin using PayPal is a good way for complete beginners to dip their toes in the water, at least if they already have verified PayPal accounts with linked bank or debit accounts. It allows them to experiment with holding a small balance in bitcoin on a familiar platform. Once investors get more serious, though, it’s better to switch to an established exchange or peer-to-peer marketplace.
A Better Solution
Want to use PayPal to buy bitcoin to trade or hold but don’t want to give up the financial independence associated with traditional crypto marketplaces? Some platforms allow users to link their PayPal accounts to ordinary digital wallets when they sign up for new accounts. Taking this approach offers all the convenience of paying for bitcoin with PayPal without any of the restrictions.
Start Investing Today
Ready to start making money off crypto? The first step is to find a reputable platform that accepts PayPal and other convenient payment methods. From there, start out slow to get some experience and learn about the risks of crypto investing or find safer ways to make money off of bitcoin, such as peer-to-peer lending.
About Carson Derrow
