Paypal buy bitcoin? PayPal supports cryptocurrencies, but it’s not a good idea.
PayPal in my two books
In my book “The Rules of Super Growth Stocks Investing“:
- In sections 3-5, pages 208-215, when introducing the new growth industries of financial technology, the company PayPal (ticker: PYPL) is used as an example. Pages 210-213 in Sections 3-5 provide a detailed introduction to the operations of PayPal, the company’s products, and its achievements.
In the book “The Rules of 10 Baggers“:
- Section 5-7, pages 247-251, the entire section is dedicated to introducing the company Block (ticker:XYZ) and also mentions the comparison and differences with PayPal.
- On page 299 of Section 6-5, PayPal is used as an example to illustrate the impact of the company’s financial guidance and outlook on stock prices.
- Pages 160-161 of Section 3-5 illustrate the dominance of an e-commerce platform giant like Amazon (ticker: AMZN) and its huge influence on the payment industry. Readers may also refer to my other post for a detailed explanation of this topic: “Amazon’s dominance by its economic scale, impact share price of PayPal, Affirm, Fair Isaac, Visa, and Mastercard“
PayPal supports cryptocurrencies
Investors who are interested in cryptocurrency investment can refer to the column I wrote for the 275th issue of Smart magazine. This special article mainly introduces you to the expectation of cryptocurrency. If you are afraid of being hurt, it is better to invest in virtual currency concept stocks.
Well, now the problem is coming. There are many ways to invest in cryptocurrency, such as using PayPal (ticker: PYPL) to buy cryptocurrency; especially PayPal and Block (ticker: XYZ) are now very popular financial management platforms.
Disadvantages
However, using PayPal to purchase cryptocurrency has many disadvantages as follows:
Cannot transfer out
Once you buy cryptocurrency on PayPal, unless you sell it again, you cannot transfer your cryptocurrency from the PayPal platform to other platforms. Therefore, it is better to buy on any platform that supports Crypto wallets. The reasons are as follows:
- The platform may be hacked: then all your cryptocurrencies in it may be stolen.
- The platform may lock or close your account: then your cryptocurrency in it can no longer be used.
- Your account is hacked: then all your cryptocurrency in it may be stolen or removed.
- You cannot transfer the cryptocurrency you own to your family: this is very inconvenient, and it is not appropriate to hold it for a long time.
Cannot lend cryptocurrency
Both Gemini and KuCoin provide services for lending cryptocurrency, and the interest provided by the KuCoin platform is even as high as 25%!
Limited functions
PayPal is not a professional cryptocurrency trading platform, and the related functions it can provide are very limited.
Limited cryptocurrencies
There are not many cryptocurrency options, you can only buy the following cryptocurrencies at PayPal:
- Bitcoin (BTC)
- Ether (ETH)
- Bitcoin (BCH)
- Litecoin (LTC)
Block’s hardware wallet
This is also the fundamental reason why Block will create a hardware wallet specifically designed for Bitcoin, allowing consumers to have more control over the cryptocurrency they own (see my other blog post “Jack Dorsey, a fanatical supporter of bitcoin“). In this way, the user’s Bitcoin will not be controlled by Block or any other company (now it is kept by the trading platform), and can be accessed at any time without being restricted by any platform. Jack Dorsey even plans to integrate the wallet with the phone and develop it with the community in an open source way of software and hardware.

Postscript
On June 7, 2022 Paypal announced that it would finally allow users to transfer their crypto assets to external wallets. Users can now move their Bitcoin, Ethereum, or other supported cryptocurrencies into exchange wallets or hardware devices. There will be network fees to pay, and PayPal will take its cut of transfers out of its ecosystem.
Related articles
- “You should know the company Square (rebraned to Block)“
- “What company is Nubank owned by Buffett? How it makes money and its advantages?“
- “How do Coinbase and Binance make money? Advantages comparison“
- “Bitcoin ETF spot trading approval has far-reaching impact“
- “Strategy, slack off in original business, makes huge fortune from Bitcoin“
- “Enlightenment of Bitcoin reaching new heights“
- “Why PayPal plummeted sharply by 42% from its peak?“
- “PayPal’s current crisis and appeal“
- “PayPal buy bitcoin is it not a good idea“
- “Amazon’s dominance by its economic scale, impact share price of PayPal, Affirm, Fair Isaac, Visa, and Mastercard“
- “Cryptocurrency ETFs drive surge in related companies“
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