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- PayPal lets US users buy, sell, or hold Bitcoin, Bitcoin Cash, Ethereum, and Litecoin.
- You’ll need $1 to get started, and transaction fees and exchange rates (including spread fees) will apply.
- PayPal’s newly launched “Checkout with Crypto” feature allows investors to use crypto as payment.
- Click here to get started with PayPal’s cryptocurrency services.
PayPal Holdings, Inc. is an electronic money transfer platform offering financial services to consumers and merchants in more than 200 markets around the globe.
Its cryptocurrency services have been available since 2020, but in March, PayPal expanded those offerings with its launch of the “Checkout with Crypto” service.
As long as you’re a PayPal user with crypto assets in the US, you can buy, sell, hold, and/or checkout with cryptocurrencies such as Bitcoin and Ethereum.
How to invest with PayPal
In order to purchase cryptocurrencies, you’ll have to complete a one-time Crypto registration process.
To invest in crypto using the PayPal app:
- Click on “crypto” from your PayPal dashboard
- Hit the “buy” button (PayPal will ask you to verify your identity)
- If you’re still uncertain about crypto and PayPal’s offerings, you can review its educational articles to learn more.
Another thing to note is that you can only hold cryptocurrencies you’ve purchased through PayPal. You can’t currently transfer cryptocurrencies in and out of your account.
PayPal also has maximum dollar limits for crypto transactions. There’s a $20,000 maximum dollar limit for weekly crypto purchases and a $50,000 limit for purchases over a 12-month period, according to PayPal.
PayPal: Account custody considerations
Though PayPal says that you own each cryptocurrency you buy on the platform, it doesn’t offer private keys for those assets. In the world of cryptography and crypto wallets, private keys function as heavily encrypted access codes that give you protected access to all of your crypto products.
Crypto services Electrum and Coinbase both offer private keys, which are one of two keys that popular cryptocurrencies like Bitcoin rely on when it comes to transactions. The other is a public key. As the name implies, public keys are publicly known and typically used for identification purposes.
Part of the allure of private keys in cryptocurrency investing is that — like a personal bank account number — they protect your assets from being compromised. A public key doesn’t mean the public get access to your assets; it…
Read more:How to invest in crypto through Paypal