Because the use of cryptocurrencies is not yet widespread in all fields, cryptocurrencies cannot be used directly at this time. Crypto owners need to convert their money into Fiat money so that it can be used for transactions.
Unfortunately, this conversion process is often too costly to go through an exchange. In addition, the time spent on the conversion process also increases the likelihood of failing to get the desired price, because Bitcoin’s value fluctuates very quickly. Not to mention, crypto exchanges are quite prone to risk and theft, so putting large amounts of money in is highly discouraged.
One of the best crypto storage options is via PayPal, which is a popular and widely used payment system globally. Storing Bitcoin on PayPal is one of the favorite alternatives to exchange Bitcoin for Fiat currency because PayPal is known to be safe and users can withdraw funds in USD at relatively low fees, as well as faster transaction times.
Is It Possible To Store Bitcoin On PayPal?
The news about PayPal wanting to embrace Bitcoin started sticking out in 2014, but it didn’t come to fruition until now. That means, there is no way to store Bitcoin directly on PayPal.
As clients’ interest in Bitcoin has increased, some service providers claim to offer Bitcoin storage services on PayPal or vice versa. As promising as it may sound, trusting such a service can have negative consequences, from data theft to embezzlement of funds by irresponsible parties.
But don’t worry, because there are still several solutions to be able to store Bitcoin on PayPal safely. If you have Bitcoin, you can easily exchange it for banknotes and withdraw funds to your credit card linked to your PayPal account.
To date, there are several exchanges that allow the exchange of Bitcoin to PayPal USD, some of which are:
How to Save Bitcoin on PayPal
How to Save Bitcoin on PayPal With Coinbase
On 22 June 2016, Coinbase announced that clients can now withdraw USD balances to their PayPal accounts. This means you can move Bitcoin to your Coinbase account and withdraw it as USD directly to your PayPal.
This option requires you to verify your ID by uploading a copy of the proof of identity. You also have to pay a 3.75% commission for each withdrawal. Even though you have to spend additional funds, this method is the fastest and safest way to save Bitcoin as USD to your PayPal account.
The steps are:
- Move the Bitcoin you want to sell to your Coinbase account.
- Select the “Buy / Sell Bitcoins” button and click “Sell Bitcoins”
- Decide how much Bitcoin you want to sell.
- Select PayPal as the payment method (Make sure you have filled in the previous PayPal Account details).
- Click “Sell Bitcoins”.
How to Save Bitcoin on PayPal With BitPanda
BitPanda (formerly Coinimal) is an Austrian startup that is involved in buying and selling Bitcoin to other cryptocurrencies, Fiat currency, and various digital currencies including PayPal . Although it does not allow its clients to buy crypto with PayPal , BitPanda provides a Bitcoin to PayPal withdrawal feature in USD.
The steps are:
- Register yourself as a member at BitPanda.
- Select the “Sell” option and specify “PayPal ” as the withdrawal method.
- You will be faced with the Wallet Address info to which Bitcoin is sent to. After Bitcoin is sent, the funds will automatically be transferred to your PayPal account.
Also Read: 5 Best Apps to Make Money PayPal
Advantages And Disadvantages of Using PayPal
PayPal is the largest third-party payment provider and is most often used by online businesses, freelancers, or other individual users who frequently buy and sell on the internet. While its popularity and credibility are beyond doubt, there are a number of pros and cons to consider before using the service, especially for the purposes of storing Bitcoin.
Advantages of Using PayPal
- Easy to use
PayPal is very easy to use. Whether you buy goods Online or set up PayPal as a payment option for doing business, PayPal is very simple and easy to manage. Apart from that, setting up a PayPal account is also free and only requires a valid email account. Linking credit cards and bank accounts to your PayPal account for withdrawals and funding takes the hassle out of making online transactions.
- Complete Transaction Traces
You can easily review transactions by browsing the transaction summary page provided. Creating and tracking invoices for businesses is easier than ever thanks to PayPal’s features. You also have the option to send an e-check, follow up on payments, even request a refund in the event of an unsatisfactory transaction. For small businesses, you don’t need to hire a bookkeeper to check online financial transactions, because you can directly copy and paste the required financial data from the PayPal platform.
- Equipped With An Encryption System For Security
PayPal is also equipped with encryption features that protect your data with high-security standards. Compared to other payment options, PayPal has a higher level of data protection. Even when someone hacks PayPal public server, all funds have been backed up Offline.
- Mobile Friendly
Like the desktop version, PayPal has a very easy-to-use mobile application. You can shop, send and withdraw money, anywhere and anytime. Although other payment providers have started to provide mobile app versions of their services, the PayPal mobile app remains the relatively easiest to use and is chosen by many users.
- Discount For Loyal Customers
To loyal customers who shop Online via PayPal, there is a special discount program offered. This is what makes many people interested in converting their Bitcoin to PayPal USD.
Disadvantages of Using PayPal
- There Are Fees Charged When Receiving Money
Although PayPal is free for personal use, there are fees for business use. When you sign up for a business account, PayPal charges a fee of 2.9% when it receives money for transactions of goods or services. Even though it is relatively small, the imposition of this fee is often a burden, especially for small entrepreneurs who often carry out transaction activities to many accounts.
- PayPal Can Freeze Accounts
One thing that needs to be considered from using PayPal is: this application can freeze accounts without warning. The PayPal algorithm sometimes detects suspicious behavior in your account, and when it does, PayPal can automatically freeze the account as well as with the funds in that account. If your account is frozen, the fund’s transfer facility is also suspended. This of course can affect business activities and cause you to lose money.
- Bank Additional Fees
Some banks require a transaction fee when you transfer funds from your PayPal account. These additional fees vary from bank to bank, but usually, a fixed rate applies.
- PayPal Is A Target For Phishing And Scams
Also Read: How to Change Your PayPal Password
The internet is a place where crime can take many forms. You may receive fake emails or online messages from people pretending that they are PayPal affiliates. These scammers will then ask for your PayPal info. To avoid a Scam when storing Bitcoin on PayPal, you have to be a lot vigilant and recognize its characteristics.