The concept of cryptocurrency needs no introduction. Since the launch of Bitcoin in 2009 and the release of the Bitcoin white paper in 2013, this investment model has been garnering acceptance from investors across the globe, Click here. In addition to owning cryptos as an investment option to make profits, today cryptocurrencies are also accepted as a legal medium of exchange.
The concept of decentralized finance and blockchain technology did work as motivating factors to allow for increasing investment. Considering the growing craze for these investments many countries have set up their steering committee to review these payment models including the pros and cons.
PayPal and its luck with Cryptocurrency payments
PayPal goes for being a pioneer in the online payment industry. Since the launch of Bitcoin, PayPal has been following this payment model. In 2014, PayPal came out with its official support for Bitcoin and other cryptocurrency payments through its online platform. PayPal was able to extend its partnership with a few major crypto exchanges like Coinbase, Bit pay, etc. to enable an online payment model. This was indeed the first step by PayPal to enter the cryptocurrency market.
How does PayPal create waves in the industry?
In 2018, PayPal came forward with its patent application. The application was submitted to the USPTO for an expedited virtual currency system. The proposed project promised to reduce the overall transaction time undertaken to execute crypto transactions. There would be a secondary wallet model created wherein the private keys will be tied down to a particular currency value. The proposed model was foolproof and allowed data security with negligible vulnerability and threat to loss of data.
Following this development, towards the end of 2018, the crypto exchange giant Coinbase announced that their US customers can now withdraw fiat currencies against crypto. The facility was enabled directly on CoinBase exchange and the amount will be credited directly into the PayPal account of investors without any additional charges.
These marketing techniques allowed PayPal to create a revolution in the crypto market. Now that PayPal has created its market presence in the US, the online payment giant is looking at establishing similar wings in the UK market as well.
PayPal’s entry into the UK crypto market
All eligible PayPal users in the UK can now trade Litecoin and Ethereum. Additionally, investors can also make use of Bitcoin as well for their transaction purposes.
How to buy cryptocurrency using the PayPal website?
If you are already a PayPal user, then you need to log in to the PayPal website first. The Crypto tab in the main menu can be used to purchase cryptocurrency. Once this tab appears enter the value or currency quantity that you wish to purchase. Complete the purchase using direct funds from your PayPal account or through a registered bank account or cards, as applicable.
The above concept works if you are looking at buying cryptocurrencies from the mobile-based app as well.
Are there any fees included to buy cryptos using PayPal?
Yes, there are transaction fees that come along for investors choosing to buy cryptocurrencies using a PayPal account. There is a standard rate structure. The fees vary between 0.50GBP to 1.5%. The transaction charges depend and vary on the volume of currency that you choose to buy.
Which additional platforms accept PayPal payments?
Ok, you have a PayPal account but do not wish to buy cryptocurrencies directly from its website or mobile app then you can go ahead with other available alternatives. Few such alternative solutions that allows you to use your PayPal account for transaction purposes are as follows –
Use PayPal in peer-to-peer markets: The peer-to-peer market allows you to buy and sell cryptocurrencies directly with one another. The buyer and seller are allowed to choose the medium of exchange and payment terms. In such cases PayPal payment option becomes handy.
Cryptocurrency exchange: Not every crypto exchange out there accepts PayPal payments. But there are a few exceptions too. Coinbase, eToro are a few popular names in the industry that allows its investors to make use of PayPal to buy and sell cryptos.
Currently, the PayPal payment scheme is available in both US and UK. Investors can buy and sell crypto tokens including Bitcoin, Litecoin, and Ethereum. The encryption keys and dual authentication security available in PayPal allow for data security. There is no additional private key created for such transactions.
