Investors can purchase digital currencies use centralised exchanges (CEXs), cryptocurrency wallets, decentralised exchanges (DEXs), and through online payment platforms such as PayPal, Robinhood, Venmo, among others, according to Cointelegraph.
According to the publication, PayPal allows users to purchase, sell, and hold Ether, and other cryptocurrencies by use of the platform’s e-wallet. PayPal aims to offer a banking option for countries which face bank restrictions, and other barriers to entry for trading digital currencies. In 2020, PayPal introduced the ‘crypto’ button to allow users buy, sell and hold cryptocurrencies for Bitcoin, Litecoin, Bitcoin Cash, and Ethereum. Purchasing Ethereum from PayPal is considered one of the convenient ways to buy and own. People who intend to purchase cryptocurrency PayPal are required to open a PayPal account and choose a cryptocurrency to buy. PayPal ask for users to undergo the Know Your Customer (KYC) verification process and agrees to the platform’s terms and conditions before authorising any cryptocurrency transactions.
How much Ethereum can investors buy on PayPal and what are the fees?
PayPal allows investors to do Ethereum transactions from as little as one dollar to as much as $100,000 on a weekly basis. While the process is considered straightforward, Ethereum purchase from PayPal has drawbacks that bother cryptocurrency buyers, mainly those who want to have maximum control over their assets.
Limitations resulting from buying Ethereum on PayPal
PayPal allows cryptocurrency investors to buy, sell and hold Ethereum through this platform. However, PayPal doesn’t allow users maximum control over their wallets as it allows users to own their cryptocurrency as a fiat equivalent. PayPal locking is one of the biggest concerns for most buyers regarding how to buy Ethereum through the platform. Despite everything, PayPal remains ideal for beginner investors who are still navigating and working their way around cryptocurrency exchanges. Users are looking for flexibility with their coins with lower transaction fees.
(With insights from Cointelegraph)
Also read: What are the uses of BNB in DeFi ecosystem
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