The ability to buy Bitcoin directly via PayPal is now possible through a new partnership with crypto exchange Paxos. Users can hold their Bitcoin purchased this way within the PayPal digital wallet or use it at PayPal-supported stores. While the move is an exciting development for many, more ardent cryptocurrency proponents are concerned about the loss of direct ownership over their coins. “You’re basically buying a financial contract for your bitcoin and that’s not good,” said one such advocate.
To purchase cryptocurrencies on PayPal, users must first deposit money into their eToro account through a PayPal-supported method (like an ACH or SWIFT transfer). Once the funds have been deposited, they can search for Bitcoin and select it to open a trade. Investors must then provide a valid home address and a document verifying their identity. Once the documents have been verified, the Bitcoin purchase will be instantly reflected in their account balance on eToro.
In addition, if users want to send their BTC held on the platform to an external wallet, they must enter in a unique Bitcoin address and complete the required ID verification steps. This is a necessary step as incorrect addresses can result in irrecoverable losses of the cryptocurrency being sent. Moreover, users can only sell their Bitcoin within the app if they’re able to find a willing buyer. If they are unable to do so, they will be able to cash out the coins only to fiat currency. bitcoin to paypal