Buying cryptocurrency is a breeze these days - all you have to do is download the TRASTRA mobile app and seven major cryptos are at your service. However, if your crypto-buying preferences lie elsewhere, buying crypto on PayPal is one of a few popular options that allow users in the U.S. to buy, sell, and hold cryptocurrencies with as little as $1 invested.
Any PayPal user can buy, sell, and hold crypto. You can also use crypto at checkout for select purchases since cryptocurrency is gaining popularity as a form of payment. As with other long-term investments, experts recommend buying and holding your crypto long term.
PayPal, along with TRASTRA, is making crypto more accessible, which is a major draw for many beginner investors.
How to Buy Crypto on PayPal
To buy crypto from PayPal, you’ll need to set up an account. If you already have a PayPal account, all it takes to buy crypto is clicking a button that says “crypto” and choosing which coins you’d like to buy.
You can purchase four types of crypto on the PayPal app: Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. However, we recommend sticking to Bitcoin and Ethereum if you’re a new investor.
To complete your purchase, you’ll need to have available funds, a linked debit card, or a linked bank account. You can spend as little as $1 or as much as $100,000 a week. Like many crypto exchanges, there’s a fee for buying and selling crypto on PayPal, which varies depending on how much you buy.
You also have to verify your identity, fill out a W-9, and agree to the PayPal terms and conditions. If you decide to make a purchase with crypto, PayPal will automatically convert it into the U.S. dollar at no additional cost.
Alternatives to Buying Crypto on PayPal
Investing in crypto using PayPal is simple – especially if you already use the app for online payments. But it has limitations.
The crypto you buy through PayPal is not the same as buying crypto on an exchange. When you buy crypto from a traditional exchange, you have the option to transfer it to a wallet for secure storage or to someone else – a key distinction when it comes to full crypto ownership.
That’s not the case with PayPal. You can’t transfer crypto from your account to other accounts on or off PayPal, and you have to sell your crypto on PayPal to make a withdrawal, which you’ll also be responsible for reporting on your tax return.
If you want full control over your coins, TRASTRA is a much better option with more flexibility with your coins and lower fees. You can use the TRASTRA app or our highly intuitive web interface to buy and sell crypto via an external wallet, SEPA transfer, wire transfer or a regular debit card.
Still, PayPal can make sense for new investors who want to experiment with a small crypto balance on a familiar platform. Even for those well-versed in traditional investment options like stocks and index funds, crypto investing using exchanges can be complicated.
Investing in a small portion of your portfolio in Bitcoin on a platform you already trust can make sense for beginners, especially if you don’t anticipate adding large amounts you might want more control over (like your own wallet storage) later.
There’s no wrong or right way to invest in crypto — it ultimately depends on your personal preferences. What matters more is taking the time to learn about crypto before investing in it.