People cannot purchase cryptocurrencies through bank transfers or online brokerage services such as Fidelity. Investors, on the other hand, have several options for purchasing digital currencies. They can use centralised exchanges (CEXs), crypto wallets, decentralised exchanges (DEXs), and even online payment platforms like PayPal, Robinhood, and Venmo depending on their interests.
Since 2020, PayPal has allowed users to buy, sell, and hold Ether (ETH) and other cryptocurrencies using the platform's e-wallet. Aside from making the process less risky for beginners, PayPal provides a dependable option for buyers in countries with banking restrictions and other barriers to trading digital currencies. However, purchasing directly through the platform has drawbacks that can negatively impact the overall experience for an investor.
Fortunately, there are various ways to buy ethereum with PayPal, and every crypto investor can be confident that a mode of purchase that suits their needs is available. Here are the most common and simple methods for buyers to pay for their ETH purchase with PayPal, as well as the advantages of each method.
What you should know before purchasing Ethereum with PayPal?
Purchasing cryptocurrencies can be intimidating, and committing funds requires a high level of commitment and the right mindset. First, investors interested in this market should devote some time to learning about how cryptocurrencies work and becoming acquainted with the indicators of when to buy, sell, or hold their preferred cryptocurrencies. Learning all of this information does not guarantee that money invested in cryptocurrencies will generate a profit, but it can help investors minimise risk.
Before investing in cryptocurrency, whether through PayPal or otherwise, it's critical to consider various aspects of personal finance, such as settling a high-interest debt or having something set aside in emergency funds. Once an investor's finances are in order as well as they have a well-thought-out investment strategy in place, the very next step is to learn the tools provided by the platforms being used. Users who choose Ethereum with PayPal's direct transactions must be aware of the disadvantages, weigh them against the benefits, and make an informed decision.
Purchase Ethereum directly using the PayPal app
PayPal launched the "crypto" button in 2020, allowing users to buy, sell, and hold cryptocurrency as well as learn more about the entire investment venture. Because cryptocurrencies are volatile, the platform only allows the investors to exchange the four major coins: Bitcoin (BTC), Litecoin (LTC), Bitcoin Cash (BCH), and Ethereum (ETH).
When compared to the industry's most recent newcomers, these cryptocurrencies are thought to be more stable and have lower price volatility. As a result, they are frequently recommended by seasoned investors to newcomers to the field. Buying Ethereum directly through the PayPal platform is one of the simplest ways to acquire and own ETH. People who want to buy cryptocurrency on PayPal must first open a PayPal account and select a cryptocurrency to buy.
The rules governing cryptocurrency are stringent. As a result, before authorising any crypto transactions, PayPal typically requires all of its users to go through the Know Your Customer (KYC) verification process and agree to the platform's terms of service. This procedure entails issuing documents to verify the identity of the user and provide evidence. Copies of proof of address, a user's government-issued identity card, and bank linkage are some of the documents commonly used in this process.
What is the maximum amount of Ethereum that investors can purchase through PayPal?
On a weekly basis, PayPal allows investors to buy or sell ETH for as little as $1 and as much as $100,000. The transaction fees are determined by the amount purchased. While it is simple and secure, purchasing ETH directly from PayPal has some drawbacks that may annoy many crypto buyers, particularly those who prefer complete control over their assets.
Limitations related to buying Ethereum through PayPal
PayPal's platform enables crypto investors in the United States and around the world to easily buy, sell, and hold Ethereum. However, unlike native cryptocurrency exchanges such as Gemini and Coinbase, PayPal does not give users complete control over their own wallets. PayPal only allows users to own cryptocurrency as a fiat currency equivalent. As a result, an investor cannot transfer coins between PayPal accounts or sell their assets to others.
As a result, the only way to withdraw the coins purchased through this method is to sell them on PayPal. One of the main concerns for most buyers evaluating how to buy Ethereum with PayPal is Paypal locking.