Redaksinet.com – Since the use of crypto money is not yet widespread in all fields, it cannot be used directly at this time. Crypto owners need to convert the money they have first into Fiat money so that it can be used for transactions.
Unfortunately, this conversion process often costs too much to go through an exchange. In addition, the time spent on the conversion process also increases the chances of failing to get the desired price, because bitcoin’s value fluctuates very quickly.
Not to mention, crypto exchanges are quite vulnerable to risk and theft, so placing large amounts of money is highly discouraged.
One of the best crypto storage options is through PayPal, which is a popular and widely used payment system globally.
Storing bitcoins with Paypal is one of the favorite alternatives to exchanging Bitcoins for Fiat currency, as PayPal is known to be secure and users can withdraw funds in USD with relatively low fees, as well as faster transaction times.
Is It Possible To Store Bitcoins In Paypal?
News about Paypal wanting to embrace Bitcoin started to surface since 2014, but it hasn’t come to fruition until now. That means, There is no way to store Bitcoin directly in Paypal.
As client interest in Bitcoin increases, some service providers claim to be able to offer bitcoin storage services on PayPal or vice versa.
As promising as it sounds, 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 bitcoins on Paypal safely.
To date, there are several exchanges that allow the exchange of Bitcoin to Paypal USD, some of which are:
On June 22, 2016, Coinbase announced that clients can now withdraw USD balances to Paypal accounts. This means you can transfer Bitcoins to your Coinbase account and withdraw them as USD directly to your Paypal.
This option requires you to verify your ID by uploading a copy of your proof of identity. You also have to pay a 3.75% commission for each withdrawal. Although it requires additional funds, this method is the fastest and safest way to deposit Bitcoin US USD into your Paypal account.
- Decide how many bitcoins you want to sell.
- Select Paypal as your payment method (make sure you have filled in your Paypal account details beforehand).
- Click “Sell Bitcoin”.
BitPanda (formerly Coinimal) is an Austrian Startup engaged in buying and selling Bitcoin to other cryptocurrencies, to Fiat currency, and various digital currencies including Paypal. Although it doesn’t allow its clients to buy crypto with Paypal, BitPanda provides a feature of withdrawing Bitcoins to Paypal in USD currency units.
- Register as a member on BitPanda.
- Select the “sell” option and specify “Paypal” as the withdrawal method.
- You will be presented with the address info of the wallet where the Bitcoin was sent. Once the Bitcoins are sent, the funds will be automatically transferred to your Paypal account.
Advantages and Disadvantages of Using Paypal
PayPal is the largest third party payment provider and is most frequently used by online businesses, freelancers, or other individual users who frequently buy and sell on the internet.
While its popularity and credibility is unquestionable, there are some pros and cons to consider before using this service, especially for the purpose of storing bitcoins.
Advantages of Using Paypal
1. Easy to Use
PayPal is very easy to use. Whether you are buying goods online or setting 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 card and bank accounts to PayPal accounts for withdrawals and funding eliminates the hassle of making online transactions.
2. Record Complete Transaction Traces
You can easily review transactions by browsing the transaction summary page provided. You also have the option to send an e-check, follow up on payments, and even request a refund if an unsatisfactory transaction occurs.
For small businesses, you don’t need to hire bookkeepers to check online financial transactions, as you can directly copy-paste the required financial data from the PayPal platform.
3. Equipped With Encryption System For Security
Even when someone hacks Paypal public servers, all funds are backed up Offline.
4. Mobile Friendly
You can shop, send and withdraw money, anywhere and anytime. Although other payment providers are starting to provide mobile app versions of their services, the PayPal Mobile App remains relatively the easiest to use and many users prefer.
5. Discounts For Loyal Customers
For 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.