What’s the Difference Between Buying Bitcoin on PayPal and Crypto Exchanges?

Bitcoin and Other Digital Currencies

Estimated reading time: 3 minutes

There are quite a few differences in buying your course of cryptocurrency. Two of the most popular methods being direct through PayPal or using PayPal on a third-party marketplace. They both have different benefits and reasons for using them, which you can find here.

Buying Bitcoin On PayPal

Strangely, PayPal has been quite slow in trying to get up to date on modern crypto practices. Which as a leading financial prover, you’d think they’d be right on.

While you can create an account and get a wallet for free, as with most other providers, you will find there are quite a few restrictions placed on the account. For example, it is only those who live within the US that can trade in crypto using their services, which is a bit of a hindrance.

Not only that, but even if you were to trade, you can’t send crypto to friends or family through PayPal, or even send anything to your external wallet. On top of that, you are also not able to purchase goods and services with this wallet, adding further restrictions.

PayPal has made promises that it will change and evolve its way, to benefit its users, but there are no guaranteed timescales on that, whereas crypto exchanges offer the benefits now.

SEE ALSO: What Is PayPal Credit & How To Use It

Buying Bitcoin Through Crypto Exchanges

Compared to the harshness of buying Bitcoin through PayPal, crypto exchange sites seem much more ideal. That’s because not only do they offer minimal to no fees, but they allow you so much more flexibility within crypto.

For example, you can use most sites to trade crypto at both local and international levels, depending on certain country restrictions. Not only that, but there is usually no time wasted waiting on funds being withdrawn, as most will offer this instantly.

You should do your research on different exchange sites and what they can offer you. It all depends on what you’re looking for. In all cases, you want to use a certified and reputable marketplace that has guaranteed security measures in place, such as with Paxful. They allow you to convert PayPal to Bitcoin at the press of a button, and as it’s a P2P marketplace, you can see who you’re trading with, to ensure they’re trustworthy.

The Future Of Buying Crypto

Many cryptocurrency experts predict that crypto will become a more conventional currency. This means that the blockchain itself will hold more credibility, and see it more accepted in businesses across the globe as a means of payment.

SEE ALSO: 3 Things You Need To Start Your Crypto Journey

When it comes to buying Bitcoin, many investors are buying up as much as they can to be prepared for this takeover. While many are buying to turn a profit, many wish to hold as much as they can for when it becomes a mainstream currency.

Of course, there will be more crypto that rises, such as the recent Dogecoin that dominated headlines, as well as slowly rising tokens such as Litecoin. The point is, the market is always changing, so the next big thing will likely come out of nowhere.