Buy Crypto with Paypal
Buying cryptocurrencies is easier than ever - all you have to do is take out your phone and open an app.
PayPal is one of the few popular mobile and online payment platforms where U.S. users can now buy, sell and hold cryptocurrencies for as little as $1. However, if you're looking to add cryptocurrencies to your portfolio, you should carefully consider the platform you're using -- and whether you should invest in cryptocurrencies.
Even the most popular and proven coins - Bitcoin and Ethereum - are still very volatile. For this reason, experts recommend investing no more than 5% of your portfolio in cryptocurrencies, and never let it get in the way of things like saving for emergencies or paying down high-yield debt.
When you decide to invest, where you buy cryptocurrencies can have important implications that you should consider beforehand. Buying cryptocurrency using the app you already use can be easy - and trust Paypal's security measures - but there are limitations compared to traditional cryptocurrency exchanges.
Here's what you need to know before you buy cryptocurrency from PayPal and decide if it makes sense for you.
What you need to know before buying cryptocurrency with PayPal
Any PayPal user can buy, sell and hold cryptocurrencies. You can also use cryptocurrency for opt-in purchases at checkout, but using any cryptocurrency as a payment method is generally not a good idea. Like other long-term investments, experts recommend buying and holding your cryptocurrency for the long term.
PayPal and other apps like Venmo and Robinhood are making cryptocurrencies more accessible, a big draw for many novice investors. But increasing accessibility also increases your risk.
"If you have a PayPal balance on your phone and you're curious about cryptocurrencies, you can open PayPal, tap Crypto and have a few hundred dollars worth of cryptocurrency in two seconds," says Certified Financial Planner at Concierge Wealth Management Julian Morris speaks in Boston. "They just made it very, very easy."
Given the value of the cryptocurrency market, it makes sense to own a little, said David Yemark, a finance professor at New York University's Stern School of Business who studies cryptocurrencies. But that shouldn't be your main concern.
"The secret to successful investing has always involved diversification -- don't put all your eggs in one basket, but try to have a little bit of a lot," he said.
How to buy cryptocurrency with PayPal
To buy cryptocurrency from PayPal, you need to set up an account. If you already have a PayPal account, to buy cryptocurrency, all you have to do is click a "Cryptocurrency" button and select the coin you want to buy.
You can buy four types of cryptocurrencies in the PayPal app: Bitcoin, Ethereum, Litecoin and Bitcoin Cash. However, if you are a new investor, experts recommend sticking with Bitcoin and Ethereum.
To complete a purchase, you must have funds available, a linked debit card, or a linked bank account. You can spend as little as $1 or as high as $100,000 per week. As with many cryptocurrency exchanges, buying and selling cryptocurrencies with PayPal incurs fees, depending on the purchase amount.