Tag: PayPal

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Crypto Daily Topic Cryptocurrencies

How to Buy Ethereum Using PayPal

For years now, Ethereum has been the most sought-after cryptocurrency right after Bitcoin. And in recent months, the coin seems to be on an unstoppable rally – which has only doubled down after the news that the long-awaited Eth2, an upgrade to the network, will be rolled out in December. At the time of writing, ETH is trading at over $500, according to Coinmarketcap. The currency has been oscillating within that range, which is a big deal considering the coin began the year with a tepid $130 in value. 

For years now, Ethereum has been the most sought-after cryptocurrency right after Bitcoin. And in recent months, the coin seems to be on an unstoppable rally – which has only doubled down after the news that the long-awaited Eth2, an upgrade to the network, will be rolled out in December. At the time of writing, ETH is trading at over $500, according to Coinmarketcap. The currency has been oscillating within that range, which is a big deal considering the coin began the year with a tepid $130 in value. 

For years now, Ethereum has been the most sought-after cryptocurrency right after Bitcoin. And in recent months, the coin seems to be on an unstoppable rally – which has only doubled down after the news that the long-awaited Eth2, an upgrade to the network, will be rolled out in December. At the time of writing, ETH is trading at over $500, according to Coinmarketcap. The currency has been oscillating within that range, which is a big deal considering the coin began the year with a tepid $130 in value. 

This is to say that Ethereum is more relevant than ever and will continue to command a huge share of the crypto market, at least in the foreseeable future. It’s also to say that demand for the currency is quite high at this point. 

For investors who wish to grab a piece of the Ethereum pie, what are their options to do so? Given that PayPal is one of the most widely used payment options, is it possible in 2020 to purchase Ethereum with it? 

This article set out to establish that. What we discovered is that PayPal is not supported in many crypto exchanges. However, you’re in luck because there are 2 or 3 places where you can buy ETH with PayPal, including on PayPal itself! 

Best Places to Buy Ethereum Using PayPal

#1. LocalCryptos

LocalCryptos is a peer-to-peer (P2P) cryptocurrency exchange that allows users to buy and sell crypto. The platform has tens of thousands of traders exchanging crypto with each other via various payment methods – PayPal included. 

When you purchase Ethereum via PayPal on LocalCryptos, you’re doing so directly from another user. The process is pretty straightforward. You’ll need to: 

  • Select a Buy With PayPal offer (posted by another user)
  • Enter the quantity of ETH you’d like to buy 

LocalCryptos requires the seller to put the ETH in an escrow before they can receive payment. When they do this, you can then transfer money with PayPal. You’ll receive the ETH after payment confirmation. The crypto-buying process on LocalCryptos is safe, beginner-friendly, and convenient. 

#2. eToro

eToro is a trading platform previously famous for CFD trading but has become one of the most reliable places to buy crypto in recent years. eToro allows buyers to purchase several cryptocurrencies with PayPal, including Ethereum, Ethereum Classic, Bitcoin, Bitcoin Cash, Binance Coin, Cardano, Litecoin, Dash, and more.

The platform even provides a dedicated eToro wallet, though not for every crypto (yet). However, at least it supports Ethereum. This makes eToro beginner-friendly to buy Ethereum. However, let the wallet be a placeholder as you look for a more solid and secure wallet. It’s good practice not to let your crypto hang around any exchange for too long since exchanges are susceptible to all kinds of online vulnerabilities. For some of the best wallet options in the market, see here. 

#3. PayPal

In highly welcome news, PayPal announced in October that they would start supporting the buying, selling, and holding of Ethereum, Bitcoin, Bitcoin Cash, and Litecoin on their platform. They also signaled support for the currency as a funding source for millions of merchants worldwide. 

There’s a caveat, though: this functionality will first be only available to eligible US accounts. Ethereum enthusiasts in other countries who use PayPal may have to wait a bit longer. 

Cost and Safety Implications

Buying Ethereum with PayPal is generally safe, especially since you can always initiate a chargeback if the seller doesn’t release ETH. However, be sure to use the function only if necessary; otherwise, overstretching it could get your account blacklisted by PayPal. 

Final Thoughts

Ethereum is currently roaring, and by all indications – it will continue to do so in coming months (and most likely years). With the impending protocol upgrade and an already incredibly bullish run, the currency shows no signs of stopping. With PayPal being one of the ‘mainstream’ payment methods today, it’s gratifying to know you can purchase the currency using the platform. 

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Crypto Videos

PayPal is the Reason for the Bitcoin shortage!

https://youtu.be/5UviEI0BY4Q

https://youtu.be/5UviEI0BY4Q


PayPal is the Reason for the Bitcoin shortage

PayPal’s entry into the cryptocurrency sector could be having a dramatic impact on Bitcoin’s price. In a newly published report posted by crypto investment firm Pantera Capital, the company says that a Bitcoin shortage is the main reason for the current price surge, and that the majority of the newly minted Bitcoin is being scooped up by PayPal. PayPal’s newly announced crypto service is, as Pantera states, “already having a huge impact,” adding that the payment merchant is buying up roughly 70% of all the newly mined Bitcoin.

Citing itBit’s data, Pantera claims that “When PayPal went live, Bitcoin’s volume started exploding. The increase in volume on itBit implies that within just four weeks of going live, PayPal is already buying up almost 70% of the new supply of Bitcoin.” According to Pantera, the data they analyzed suggest that PayPal and Cash App combined are buying up almost all of the newly-issued Bitcoin.


Bitcoin’s monetary policy is programmed in such a way that it is deflationary over time. With the recent widescale adoption, that would lead to higher purchasing power as well as supply scarcity. Pantera claims that it is exactly the supply scarcity that is contributing to Bitcoin’s parabolic surge.


PayPal has launched its crypto trading services in the US earlier this month, allowing its customers to trade up to $20,000 per week. The platform will expand its services out globally in early 2021. The online payment merchant currently has 300 million active users, which makes it dipping its toes into the crypto sector is a major stepping stone for adoption.

Pantera added that it’s a lot easier to purchase Bitcoin now than during the previous bull market in 2017. In addition to PayPal, the retail sector can now step into Bitcoin and other cryptocurrencies by using Cash App and Robinhood.


Wider adoption certainly means that the father of digital currencies is more likely to see higher price levels. Although Bitcoin remains extremely volatile, it showed the market that it could endure an unusually long period of stability by consolidating for over two months before breaking the sideways trading period and pushing towards the upside.

 

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Cryptocurrencies

How to Take Advantage of PayPal’s Crypto Adoption

Cryptocurrencies are officially becoming mainstream. PayPal recently announced that its users would soon be able to send and receive Bitcoin and other cryptocurrencies on the platform, and the news created some frenzy among crypto enthusiasts. Considering the high volume of transactions that PayPal facilitates, the introduction of crypto capabilities will certainly change things significantly. Bitcoin […]

Cryptocurrencies are officially becoming mainstream. PayPal recently announced that its users would soon be able to send and receive Bitcoin and other cryptocurrencies on the platform, and the news created some frenzy among crypto enthusiasts. Considering the high volume of transactions that PayPal facilitates, the introduction of crypto capabilities will certainly change things significantly. Bitcoin […]

Cryptocurrencies are officially becoming mainstream. PayPal recently announced that its users would soon be able to send and receive Bitcoin and other cryptocurrencies on the platform, and the news created some frenzy among crypto enthusiasts. Considering the high volume of transactions that PayPal facilitates, the introduction of crypto capabilities will certainly change things significantly. Bitcoin investors are already speculating how this move will affect BTC prices and what new opportunities could be in the offing. 

This article will explain how PayPal’s crypto adoption is likely to affect Bitcoin and other cryptos. We will also look at what early-bird opportunities this move presents.

What Is It All About?

On 21 Oct 2020, PayPal announced that plans are in place to allow its users to buy, hold and sell cryptocurrencies straight from their account. ‘…it will enable cryptocurrency as a funding source for digital commerce for its 26 million merchants,’ read the statement in part. 

For a long time, cryptocurrencies have struggled to enter mainstream payment platforms with little success. Part of the slow adoption is due to crypto’s high volatility. Also, regulators have been slow and hesitant in providing the necessary approvals for mainstreaming cryptos. 

The New York State Department of Financial Services (NYDFS) has granted PayPal a BitLicense, which will essentially allow the company to conduct any virtual currency activities. Although this license applies only in limited jurisdictions, it’s likely to pave the way for other regulators to give companies approvals for conducting cryptocurrency activities.

That aside, PayPal’s new service will serve US residents for a start and feature only Bitcoin. Although no dates have been given on when users outside the US can expect the services or when altcoins will be supported, this could be pretty soon given the whole idea’s ingenuity. Even so, smart investors do not wait for opportunities; opportunities find them ready!

How the New Service Will Affect Bitcoin and other Cryptos

Before preparing to take advantage of this latest integration, it is important to know how Bitcoin and other cryptos might be affected. 

First, Bitcoin has been performing well, especially in the second half of 2020. Generally, there has been positive news about Bitcoin and most altcoins. The news about PayPal’s crypto integration can only add to the basket of favors Bitcoin is already enjoying, and this is likely to spur the growth of cryptocurrencies. Some of these impacts are already being felt way before the service is active. Within a few days of the announcement, Bitcoin’s prices shot up by 8% to reach $12,800. PayPal’s share prices also rose by 5.55 immediately following the announcement. These outcomes are a clear reflection of investors’ desire to see virtual currencies in the mainstream economy. So, the question is, what opportunities are these investors and speculators seeing? Let’s take a look at some of them.

#1. Merchants

Unquestionably, merchants will be the biggest beneficiaries of this move. The service will allow merchants to receive payments in Bitcoin. Serious traders know that this is a gate of opportunities only limited by their imagination. By accepting payments in crypto, merchants will encourage buyers to try their services. 

A merchant accepting crypto can give them an edge over their competitors – perhaps from the touch of sophistication that crypto will introduce or because users will have an extra payment option. In either case, it would be folly for a merchant to not accept crypto with such convenience in their way. As a bonus, PayPal will do the conversions for merchants who still want their payments to be settled in fiat money. 

If you are a merchant, this is the best time to learn how the service is expected to work and how you can align your business to leverage the full potential of the new service. Waiting to see how the market responds is not a clever idea as it will always leave you admiring trailblazers. 

#2. PayPal Users

There are many PayPal users who, hitherto, have never bothered to care how Bitcoin can change their lives. Part of this indifference is a result of the (perceived) complexity of cryptocurrencies. Many people have yet to try out cryptocurrencies because they simply don’t understand what this concept is all about. This is about to change. 

PayPal’s crypto integration means that PayPal users, even those with only scant knowledge of crypto, will be able to buy, hold, sell or pay with cryptocurrencies on the first day, and without having to learn anything new. PayPal said that users would not need new wallets. So, in essence, it’s like PayPal users will have their wallets upgraded to hold crypto.

Even more interesting is that PayPal users will have a “mini forex market” due to the new capabilities that will allow them to buy and sell crypto within the platform. Considering how easy it will be to move crypto around, PayPal users should already be learning how to trade crypto, as crypto-trading will become easier and more accessible than ever before. 

#3. Bitcoin Users

Bitcoin users will enjoy advantages never seen before. The currency will now seem like a medium of value exchange more than ever before. Currently, only about 1% of the top 500 retailers accept crypto. People have been treating Bitcoin more like an asset than a currency. Ironically, the coin was developed to facilitate payments. Low online acceptance and perceived complexity of use have ensured this irony remains the reality. However, this integration will force merchants to embrace crypto or face the inevitable – extinction. In the end, Bitcoin users will discover new and exciting possibilities for using their coins. 

#4. Expanded Crypto Acceptance

Expanded crypto acceptance is a win for the entire crypto community and beyond. Cryptocurrencies will become a reality for laypersons as they are bound to experience crypto like never before. International trade, remittances – you name it, it’s all bound to change. 

Peer-to-peer trade is one of the areas of commerce that’s likely to experience tremendous transformation due to PayPal’s latest offering. Global peer-to-peer markets are bound to grow partly due to the extra payment alternative and the hype that PayPal’s integration will generate. 

If you consider yourself a layperson when it comes to cryptocurrencies, it’s about time you paid some attention to them. PayPal’s crypto integration is not the first, but it will inevitably change how we make and receive payments, given the platform’s global acceptance and penetration.

Final Thoughts

PayPal’s integration with cryptocurrencies is a long-overdue solution to an age-old problem. This feature will introduce new possibilities for end-users and merchants alike. Laypersons will also have a chance to take part in crypto without the hassle of learning its intricacies. As early-bird investors always enjoy the pioneer advantage, this is the best time to explore the possibilities that will arise from PayPal’s integration with cryptocurrencies.

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Crypto Videos

Crypto Going Mainstream In 2021 As Paypal Adopts Bitcoin – Go Get Your Lambo!

https://youtu.be/MaJVZ1Oe0eI

https://youtu.be/MaJVZ1Oe0eI

Crypto Going Mainstream in 2021 – MAJOR Adoption by PayPal and Venmo


PayPal has officially confirmed on Wednesday, October 22, that it is entering the cryptocurrency market. The payments provider giant, with over 346 million active accounts all around the world, has pledged to make cryptocurrency not only an optional feature but rather “a funding source for purchases at its 26 million merchants worldwide.” PayPal also plans to expand this service to its peer-to-peer payment app Venmo in the first half of 2021.

The public already knew that PayPal was planning on moving into crypto in June, but the information came from anonymous sources, and nothing was certain. A month later, the Paxos exchange had been selected to act as support in PayPal’s crypto endeavors.
In a blog post that came out on Wednesday, PayPal said that the current pandemic had made it clear that people need digital payments of all sorts.
Starting in early 2021, PayPal’s customers will be able to instantly convert one of the supported cryptocurrencies to fiat currency, with no added incremental fees, PayPal said. Merchants will have no additional fees or integrations as all transactions will not be settled in crypto but rather in fiat currency at their current PayPal rates.

“Cryptocurrency simply becomes another funding source in the PayPal digital wallet, adding more utility to cryptocurrency holders, while addressing concerns surrounding volatility, cost as well as the speed of cryptocurrency-based transactions,” PayPal announced.
PayPal will initially have a $10,000 weekly buying cap as well as a $50,000 limit per 12-month period. All trades must be executed in US dollars, PayPal stated.

Everything sounds good… But!

As bullish the Bitcoin market has proven to be about this news at the moment, an initial review of the crypto services PayPal offers has a couple of cons. First off, the company will take a go-slow mindset, which is the complete opposite of how the markets reacted to the most recent adoption news. Critical caps limit who the buyers are, how much they can actually buy, and what they can do with their PayPal- sourced crypto. While this is not necessarily bad, crypto enthusiasts should take everything slow and with a grain of salt rather than instantly calling for the moon and ordering their Lambos.

However, there is completely bad news, rather than just a slight setback. PayPal is refusing to hand its customers’ crypto keys over, meaning that you own the cryptocurrency you buy on PayPal. Still, just like on centralized exchanges, you will not be provided with a private key,” PayPal casts this restriction as a loss-prevention tactic.
Another bad thing is that the users will not be allowed to send their crypto around or even withdraw it. PayPal stated that “you can only hold the crypto that you buy on PayPal in your account. The cryptocurrency in your account cannot be sent to other accounts on PayPal or off it.” This brought a lot of questions on whether PayPal’s crypto feature will have “paper Bitcoin” or if it will be covered by real cryptocurrency.


However, PayPal’s partnership with Paxos should be good enough proof that the crypto held on the payment provider will be the real deal. The New York State Department of Financial Services announced that it had granted the “conditional BitLicense” to PayPal, the first of its kind. The BitLicense was granted for a partnership with the Paxos Trust Company, enabling PayPal customers to buy and sell cryptocurrencies. Four DFS-approved digital assets that will be initially available are Bitcoin, Bitcoin Cash, Ether, as well as Litecoin, according to the DFS statement.
The service rollout also faces quite a few real-world restrictions. Out of the 50 US states, only 49 have coverage at launch, as Hawaii is excluded from the list.


Conclusion

Bitcoin and other cryptocurrencies rallied following this announcement, which is just one of several major recent mainstream corporate adoption signs in 2020. The PayPal event happened following Microstrategy’s $425 million Bitcoin investment, as well as a similar but more modest move by Square.

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Crypto Daily Topic

PayPal to Allow People to Purchase Crypto

Digital payments company PayPal is planning to start facilitating direct crypto sales to its 325 million of users, per a report by CoinDesk. The publication says it spoke to three people familiar with the issue. 

Digital payments company PayPal is planning to start facilitating direct crypto sales to its 325 million of users, per a report by CoinDesk. The publication says it spoke to three people familiar with the issue. 

Digital payments company PayPal is planning to start facilitating direct crypto sales to its 325 million of users, per a report by CoinDesk. The publication says it spoke to three people familiar with the issue. 

A ‘well-placed’ source also told the publication: ‘My understanding is that they are going to allow buys and sells of crypto directly from PayPal and Venmo. they are going to have some sort of a built-in wallet functionality so you can store it there.” Another source confirmed the move is expected “in the next three months, maybe sooner.”

Which Cryptocurrencies Will be Listed? 

As of yet, it’s not clear which or how many cryptos will be listed. The source told CoinDesk that PayPal would likely “be working with multiple exchanges to source liquidity.” Luxembourg-based exchange Bitstamp and America’s largest exchange Coinbase are thought to be likely contenders, but both declined to comment. 

Venmo competitor Cash appSquare Inc. (S.Q.) currently lists only Bitcoin, while popular trading app Robinhood lists several cryptocurrencies, including Bitcoin, Ethereum, and Dogecoin. PayPal is set to see an increase in revenue after the move. After Cash App listed Bitcoin, the company reported to shareholders that revenue from the currency surpassed Fiat revenue for the first time. 

Dipping the Feet Deeper

If the news is true, it represents a step further in PayPal’s relationship with the crypto ecosystem – which started in 2014 after the company initiated partnerships with Coinbase and two other crypto payment processors. From 2018, Coinbase enabled instant Fiat withdrawals to PayPal for U.S. customers, while this functionality was enabled for European and Canada’s Coinbase users in 2019.

PayPal’s Blockchain Perspective

PayPal indicated its interest in crypto and blockchain as early as the beginning of this year. The company’s Chief Technology Officer Sri Shinavanda confirmed this to CoinDesk, saying the company would establish its own “perspective and view on [blockchain] technology itself to see how it can help us contribute to the concept of creating an open digital payments platform that can serve everyone,” adding “We are a strong believer in the potential of blockchain. The digitization of currency is only a matter of when not if.” 

The Crypto Community’s Reaction

Owing to PayPal’s popularity in the payments space, the news meant a great deal to the crypto community. Twitter was awash with excited reactions. 

The Wolf of All Stress tweeted:” If PayPal and Venmo are truly entering crypto, then this is arguably the most bullish news that we have seen in the space…ever.”

Crypto YouTuber Lark Davis said: ” If confirmed true, this is beyond big. The coming bull run will be insane.” 

Crypto analyst Ryan Watkins tweeted: “PayPal is planning to roll-out crypto purchases in the next three months. PayPal has 325 million users. then who is the largest consumer finance app in the U.S. As  Paul Tudor Jones said, Bull markets are built on an ever-expanding universe of buyers.” 

Other Twitter users pointed out the irony in PayPal offering direct crypto sales, considering its WikiLeaks saga ten years ago that helped push the demand for Bitcoin. 

Bitcoin researcher Jimmy Song chimed in, reminding Twitterati that ten years ago, PayPal froze WikiLeaks’ account, which prompted a push towards Bitcoin as a donation medium. “PayPal going to allow people to buy #Bitcoin. PayPal is the company that froze a WikiLeaks account and put #Bitcoin on the map back in 2010. only took a decade for this to come full circle.”