Why is it not a good idea to buy cryptocurrencies with PayPal

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: SQ) are now very popular financial management platforms. 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.
  • There are not many cryptocurrency options, you can only buy the following cryptocurrencies at PayPal:
    • Bitcoin (BTC)
    • Ether (ETH)
    • Bitcoin (BCH)
    • Litecoin (LTC)

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.

Disclaimer

  • The content of this site is the author’s personal opinions and is for reference only. I am not responsible for the correctness, opinions, and immediacy of the content and information of the article. Readers must make their own judgments.
  • I shall not be liable for any damages or other legal liabilities for the direct or indirect losses caused by the readers’ direct or indirect reliance on and reference to the information on this site, or all the responsibilities arising therefrom, as a result of any investment behavior.

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