How To Buy Bitcoin Using PayPal In 2022
PayPal is a leading fintech company that provides a wide array of services such as money transfers, coupons, and business funds processing. It is a major corporation currently valued at over $200 billion. Notably, it is one of the few large companies that have embraced cryptocurrencies. In this article, we will look at how to buy Bitcoin with PayPal in 2022.
Buy Bitcoin using PayPal platform
For years, it was impossible to buy Bitcoin directly using PayPal. That changed last year when the company announced its plans to embrace the industry.
Analysts believe that the company changed its mind because of the overall success of some of its biggest competitors in the industry. For example, Square, which owns Cash App, was generating billions of dollars in Bitcoin transactions.
The company also embraced Bitcoin because of its goal of creating a super-app. A super-app is one application where people can do multiple services at once. For example, in a super-app, one can send money, pay to a company, renew a subscription and even pay insurance.
In addition to Bitcoin, PayPal accepts other cryptocurrencies like Ether, Litecoin, and Bitcoin Cash. This makes its cryptocurrency offerings a bit limited considering that other companies offer a wider variety of coins.
Buying Bitcoin with PayPal is a relatively easy thing to do. First, you need to have a PayPal account. You can sign-up using your email address. All you will need is an email, a bank account, and a verifiable address.
After creating your account, you will need to link it to your credit or debit card. You will then receive a code that you must enter to verify. This process is needed because of know-your-customer (KYC) and anti-money-laundering (AML) rules.
Second, you need to have funds in your account. To do that, you can ask someone to send you money to your PayPal account. Alternatively, you can load your account directly from your bank.
Finally, you should go to the Finances section and then select the crypto option. After this, you should select the cryptocurrency that you want to buy and then execute the trade. You can also click the explore tab to find additional information on the coins.
Taxes and costs
There are two things you need to know when buying Bitcoin using PayPal. First, your cryptocurrency gains are taxable. This means that whenever you sell cryptocurrencies for a profit, you need to report your earnings.
Second, PayPal does not offer the service for free. The fee structure is a bit simple to understand. For any transaction between $1 and $25, PayPal will take a fee of $0.50. For transactions worth between $25 and $100, the company will take a fee of 2.30%.
Transactions between $100 and $200, the fee is 2% while those between $200 and $1,000, the fee is 1.8%. If you spend $1,000 and above, you will take a commission of 1.50%.
Buy Bitcoin using Venmo
Another option of buying Bitcoin using PayPal is to use its Venmo product. The process of doing this is similar to that of buying using PayPal’s application. All you need is to have a Venmo account, fund it, and select the coin to buy. If you have funds in your account, Venmo will deduct the amount from it.
On the other hand, if you don’t have funds in your account, you will be charged from the card you have linked to Venmo.
Buy Bitcoin using PayPal cards
The final option of buying Bitcoin using PayPal is to use its cards. In several countries like Canada, the UK, and the United States, PayPal offers a prepaid and a debit card. These cards are powered by Mastercard, a company that has also been open to cryptocurrencies recently.
To do this, you need to find a Bitcoin exchange who accepts card transactions. Most companies like Coinbase and Kraken accept these transactions.
Therefore, all you need is to create an account with these companies and then select the card option at checkout. The company will then complete the transaction by taking the funds from your PayPal card.
Final thoughts
There is another option of buying Bitcoin using PayPal. It involves using a cryptocurrency peer-to-peer exchange like PaxFul and LocalCoinSwap. In these platforms, you will select a seller who handles payments using PayPal and initiate the transaction.
After selecting the seller, you will buy Bitcoin and then complete the transaction using PayPal. While this process is a bit long, it is a safe option that is used by millions of people globally.
In addition to PayPal, you can use other options to buy Bitcoin such as wallets like Skrill and Neteller. You can also use centralized exchanges like Coinbase, Kraken, and Binance. Also, you can opt to use decentralized exchanges like Uniswap and PancakeSwap.
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