Buying Ethereum With PayPal – Five Things Every Crypto Enthusiast Should Know

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PayPal is an online payment platform that has taken the global financial market by storm. With its host of features, affordable fees, and safety guarantees, the service has had many businesses and individuals rushing to register on its site.

However, in the past, various sectors of the financial market were excluded from the platform, such as cryptocurrency sales and purchases. This has all changed, though, and digital asset investors from the UK can now take advantage of investing in Ethereum inside the PayPal app.

The payment platform allows investors to buy cryptocurrency with as little as one dollar, which makes it very accessible to a lot more people.

Is Buying Ethereum on PayPal Safe?

Ethereum is the second biggest cryptocurrency after Bitcoin, and as such, it is no surprise that it was one of the first to be granted access to the PayPal platform. In terms of safety, PayPal has always been considered one of the safest money transfer options available, and as such, any Ethereum purchased through the platform is secure.

Do You Own Your Ethereum Stored on PayPal?

While PayPal allows investors to buy Ethereum and other digital currencies, such as Bitcoin, Litecoin, and Bitcoin Cash, there used to be a catch to this. The cryptocurrency purchased on the site did not actually belong to the investor in the same way as that bought on other exchanges.

The reason for this is that investors did not have the option of transferring any crypto from the platform. What this meant was that any digital assets stored on the PayPal platform did not actually belong to the investor because it was under the control of the platform.

This was not a favorable situation for investors, especially those who had very large amounts of cryptocurrency on the PayPal platform. However, since June 2022, this has all changed, and investors can easily transfer their holdings to other currencies and exchanges, such as Coinbase and Metamask.

How to Transfer Ethereum From PayPal to Coinbase

Transferring Ethereum from PayPal to Coinbase is very easy for investors who take the following steps:

  • Investors login to the PayPal platform using their secure password
  • They go directly to the crypto platform by selecting the cryptocurrency button
  • There is a “transfer” section under which they can find and click the “send” options
  • They will be given a list of options from which they can choose the desired crypto exchange or wallet to transfer to
  • After the transfer, investors will then confirm the transaction
  • First-time users will be required to complete a once-off ID verification step

How to Transfer Ethereum From PayPal to Metamask

Metamask is one of the trusted Ethereum wallets that is compatible with the PayPal platform. To transfer funds onto the wallet, users can take the following easy steps:

  • Users will log in to the PayPal platform and go directly to the crypto section
  • There are many coins to choose from, so users can search for Ethereum and select it
  • Under the transfer section, users will send their funds to a specific crypto wallet, in this case, Metamask
  • New users will be asked to complete the mandatory ID verification step
  • The external crypto address will need to be entered manually or by scanning a QR code
  • All transfers made will be final and cannot be reversed
  • Users will receive a breakdown of the transfer including all the relevant fees
  • The transfer can then be confirmed to complete the process

What Are the Pros and Cons of Buying Ethereum With PayPal?

Investing in Ethereum is very popular and one of the best ways to do that is by using PayPal. However, there are certain advantages and disadvantages that investors need to know, such as:

Pros

  • The process is easy
  • PayPal is trending and widely accepted
  • The security of the platform is very good
  • PayPal is available in many regions across the globe

Cons

  • There are significant fees charged for making transfers
  • PayPal limits the amount of crypto that investors can transfer
  • PayPal is only compatible with a limited number of exchanges

Final Thought

PayPal is one of the best tools for making quick payments and transfers across the globe. Now that this option is available to crypto investors, the possibilities are endless. With the removal of restrictions governing asset transfers, PayPal has become more attractive for crypto investors.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.