Ethereum is one of the most popular and leading cryptocurrencies in the world. It has gathered a large community of followers and supporters over the years. The smart contract technologies and the innovative approach of the blockchain have made it stand out in the crypto markets. Cryptocurrency is available on some of the best crypto exchanges like PayPal. PayPal has grown to be one of the most trusted platforms for trading digital currencies. This article aims to provide a step-by-step guide on how to buy Ethereum using PayPal.
PayPal and Cryptocurrency
PayPal has been one of the most favorable choices among investors trading in cryptocurrency. Initially, PayPal did not develop much interest to integrate with the cryptocurrency. The main reason behind this was the concerns regarding the volatile nature of the crypto markets. With the rapid growth and popularity of cryptocurrency, PayPal has taken significant steps to support the wide range of cryptocurrencies.
It was only in October 2020 that PayPal officially started allowing users to buy or sell cryptocurrency using a PayPal account. This announcement marked the beginning of a remarkable relationship between cryptocurrency and PayPal. From then on PayPal grew to become one of the most trusted platforms for crypto investors. The platform now supports a large number of cryptocurrencies thus opening a wide world of opportunities for the users.
How To Buy Ethereum Using PayPal?
Ethereum can be bought easily either through crypto exchanges or directly through the PayPal application. Let us look at the steps towards buying ETH through exchanges.
1. Choose a Crypto Exchange
The first step involves choosing a crypto exchange for buying Ethereum. The exchange platform should support PayPal as a payment option. ETH is available on most of the popular crypto exchanges like Binance and Coinbase. Choosing a crypto exchange is an important decision that has to be taken carefully by the investors.
2. Create an Account
Users have to create an account on the selected platform by providing the necessary details and information. A verification process will be conducted by the platform to confirm the identification and details given by the users. The process may be completed within a few minutes or might take a couple of days depending on the platform.
3. Deposit the Funds
After the verification process, users have to deposit the funds using PayPal as the payment method. The deposited funds will be used for buying Ethereum. The funds can be deposited according to the needs of the users.
4. Make Your Purchase
Users can then search for the ETH Tokens on the platform and buy them using the deposited funds.
Ethereum can also be bought directly through the PayPal application. The process is somewhat similar to buying Ethereum through crypto exchanges.
5. Create an Account on PayPal
PayPal does not offer any charges for creating an account. Users can create an account by providing the necessary details and information. They would also have to create a secure password to access the account for further use.
6. Search for the Cryptocurrency Section
Users can then locate the cryptocurrency section on PayPal. This section offers a list of cryptocurrencies available on PayPal. This section will be available under the Finance tab.
7. Choose Ethereum
Choose Ethereum from the list of options on the platform.
8. Purchase Ethereum
After deciding on how much Ethereum the user wants to buy, they can enter the amount. The purchase can be made using a local currency like USD. Users should double-check the transaction details and other fees before confirming their purchase. The purchased Ethereum will be available on the PayPal wallet for future use.
Also Read: Buying Ether (ETH) On eToro: Easy Instructions
Limitations When Buying Cryptocurrency with PayPal
Even though PayPal offers many benefits to investors, there are also certain limitations abiding by the platform. One of the major challenges faced is that many of the crypto exchanges do not support PayPal as a payment method. This might cause a barrier to the trading process. The location is one factor that limits the choice of exchanges. For instance, in the UK popular exchanges like Coinbase do not support PayPal deposits.
PayPal also has some transaction limits. Users can send a maximum amount of $60,000 while for a single transaction, it is limited to $10,000. The transaction limits can also vary in different exchanges and locations.
PayPal majorly focuses on being a payment method. The platform does not provide any additional features like trading charts or strategies that are often provided by most of the crypto exchanges. These features are of great help to both novice and advanced crypto traders.
The Bottom Line
PayPal is increasingly becoming one of the most popular payment methods for purchasing cryptocurrency. The platform provides a convenient way to purchase Ethereum. The article has mentioned the detailed processes of buying Ethereum either through the PayPal app or an exchange. Even though there are certain limitations, PayPal is the best option for small-scale transactions. The platform also offers increased security measures often favored by investors.