Cryptocurrency has gone big over the years. It has grown drastically since it was first launched as bitcoin. Initially, the concept stirred a lot of controversy and people were kind of skeptical. It wasn’t easy to purchase bitcoin as there was a lack of purchasing options available. Today, things are changing.
However, despite things being easier than they used to be, cryptocurrency buyers still face a lot of problems when trying to buy cryptocurrency through one of the most convenient payment platforms known to humans – PayPal.
Is there really a way to buy crypto using PayPal?
‘No’ is the simple and direct answer to the question. As of now, it doesn’t support crypto transactions directly through PayPal – but there are alternative routes.
When making an online transaction, people are naturally more inclined towards online payment platform, and PayPal is the most trusted player in that league. Unfortunately, PayPal hasn’t really boarded the crypto train yet. Doesn’t seem like it has stopped anyone. People use indirect ways to buy crypto through PayPal all the time.
Before, we talk about why you need to take the complicated route to buy crypto using PayPal, let’s talk about why PayPal isn’t much of a crypto fan.
Why PayPal Doesn’t Let You Buy Crypto?
First, you need to realize that cryptocurrency is more like a competitor to PayPal. They are used for the same purpose PayPal is used for, and that too without any central regulating authority.
For PayPal, allowing crypto purchase through their platform is just like setting a competitor’s kiosk at your store. That is definitely bad for business.
Moreover, PayPal doesn’t see crypto transactions as safe or trustworthy; they see crypto as volatile. One has to admit they have their reasons.
Crypto accounts attract a bigger horde of hackers and attackers than a normal currency account. There are more cases of fraud. And chargebacks aren’t allowed, which are kind of PayPal’s holy grail. PayPal has always supported reversible payment to secure their customers while cryptocurrency including Bitcoin, doesn’t allow reversible payment.
Now, while all these reasons make sense, crypto’s popularity is growing by leaps and bounds. In years to come, they may surpass PayPal as customer’s most favored method of online payment. Cryptocurrency faced heavy opposition from banks and other financial institutions during its early days but know even banks are bowing down.
For PayPal, the stance against crypto is not going to be so favorable in the long run as it is causing frustration for many customers.
Is There Any Way Around It?
Yes, there are several ways around it.
The process may involve you to take a few extra steps, but at the end of the day, you can buy your cryptocurrency through a payment platform your trust Many third-party platforms are created specifically for that very reason or added the feature to cater to the rising demand.
They are all indirect methods that allow users to buy bitcoins and other cryptocurrency using their PayPal account. Even though they are indirect, you ought to know that PayPal might still warn you for using their platform to purchase crypto. That is true for most of the commonly used platforms such as crypto exchanges.
However, there is nothing worry about since PayPal can’t really take any legal action against a user who utilizes those methods.
Let’s look at four ways you can buy crypto using PayPal.
There is at least one exchange that allowed cryptocurrency to purchase through PayPal for years. It is called VirWox. However, it has halted all its PayPal deposits for an undefined time. There is no word on how long this will take. If things get back to normal, you can trust it as the most reliable way to purchase crypto through PayPal.
Reliability comes from the fact that the user first needs to buy a mediator currency SLL from VirWox using your PayPal. Later, you can buy crypto through SLL.
These Peer2Peer marketplaces are slightly different from exchanges. Buyer and sellers can act without any intermediary. The transaction is carried out directly between the two parties. Many sellers accept PayPal payments, and you can choose those sellers to buy from.
The best thing about this option is that the process is simple. There is no lengthy verification process. However, there is a downside that comes with that much convenience. Liquidity is usually lower on these marketplaces so you may not always get the best rates.
Whoever came up with the idea must be a genius. Using a P2P lending platform, you can first borrow cryptocurrency, and then pay off the loan through PayPal. This may sound like the smartest way to trick PayPal, but it also has some downsides.
There is a long wait time involved, which might get better as these platforms gain more popularity. A higher number of users may also improve pricing.
This one may sound strange because banks have always been known for their stance against cryptocurrency. Many major banks have spoken openly in opposition, and they have also banned the use of crypto for their services.
That ban, however, was largely related to the KYC policies that were previously not embraced by crypto exchanges. Now that they are, most banks don’t seem to have any issue with your crypto purchase. Just transfer your PayPal balance to your bank and buy your bits from any exchange that allows debit card.
One great upside here is the lower fee and the fact that PayPal has no reason to poke their nose in your business. This may be a slower process, but worth the wait.
With the rising use of cryptocurrency, many wallet software now has an exchange connection feature. The atomic wallet is a great example as it simplifies the whole process. It allows you to buy or exchange cryptocurrency using bankcard or PayPal.
A Word of Caution
As much as everyone wants PayPal to be more lenient in the way it treats crypto, the stance is understandable. Crypto transactions are never free of risks, and it might take a few more years to get there.
Despite the unwavering stance from PayPal, the number of crypto exchange and platforms that allow you to buy crypto through PayPal is on the rise. And most of them are not trustworthy. On the other hand, many platforms that have a strong reputation like VirVox and Coinbase are now backing out and ending their PayPal support.
Many believe that crypto will be the end of PayPal. The fact that they are competitors makes things worse as people expect PayPal to show some support for their own worst competitor. It is catch-22 for a platform that reigned supreme the leading payment method for years.
However, there are loopholes. There are many ways you can buy cryptocurrency through PayPal as discussed in this article. Find a way that best suits your needs and requirements, and always looks for reviews and recommendations before you choose.