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Simple ways to Buy Ethereum with PayPal

Cryptocurrency has evolved as a new form of currency accepted all over the world in the past few years. The increasing popularity of cryptocurrencies has made people interested in buying Bitcoins, Ethereum, Litecoins, plus many more. Identifying a reliable source to buy cryptocurrency is imperative. There are many exchanges on the market, offering excellent services but like anything, there are a few crooked exchanges out there. Often only looking to gain from you, either by stealing your cryptocurrency or your payment details.

Steps to Buy Ethereum with PayPal

  1. Select a reputable cryptocurrency exchange or brokerage accepting PayPal as a payment method
  2. Create a free account and provide your information to get verified
  3. Next, find an option to buy cryptocurrencies or deposit funds
  4. After arriving at the payment page, select PayPal
  5. Lastly, enter the amount of Ethereum that you wish to buy and make your purchase

Advantages and Disadvantages of Buying Ethereum with PayPal

Pros

PayPal is easy to use and a quick way to send direct payments
Your transactions are secure
Transaction fees for purchases are not that high
Buying ETH with PayPal is as close as you can get to buying a cryptocurrency anonymously these days

Cons

Only a handful of platforms have PayPal as an accepted payment method
It is hard to protect your ETH, as PayPal do not offer chargebacks

Buying Ethereum with PayPal Fees

Depending on the platform you use to buy Ethereum with PayPal, you will likely encounter different fee rates.

Typically there will be withdrawal fees you will need to pay for on most platforms. If you opted to buy a different cryptocurrency and then exchange it for Ethereum on another exchange, there will also be the transfer fee, a conversion fee and yet another withdrawal fee.

With this said, the fees can pile up, so buying ETH with PayPal certainly wouldn’t win any prizes for being the cheapest option available to you. However, it is quick and easy, which is why people still prefer to do it.

Is Buying Ethereum with PayPal the Best Method?

Buying Ethereum with PayPal has its positives and its negatives, as we have seen above. If you value speed and anonymity and are willing to take the risk that P2P platforms carry, then PayPal is a great way to buy Ethereum — just be aware that this will make it very difficult to reverse your transaction if you change your mind and request a refund.

Alternatively, users who are not in a rush, but prefer low fees and greater security tied to centralised exchanges will likely be better off buying ETH via bank transfers.

Bank transfers also allow you to use a greater amount of money as opposed to PayPal, which does have its limits.

You can also purchase ETH with a credit card, or better yet, a debit card. These two options are excellent in terms of speed and fees, while still providing high security.

Furthermore, Ethereum trading of this kind is nearly instant, simple, secure, although it will likely not be anonymous.

FAQs

  1. Yes, doing so is easy, although it is only available via certain P2P platforms, as Ethereum is not accepted as a payment method on most exchanges.

  2. There are safer methods of acquiring Ethereum than PayPal. The biggest concern lies in the fact that PayPal has chargebacks on payments, which can become costly if you want to refund a PayPal transaction.

  3. No, as a cryptocurrency, Ethereum cannot be transferred to your PayPal account. You can only transfer it to different crypto wallets, or crypto exchanges, where you can sell it for USD or some other fiat currency.

  4. Not at this time, no. PayPal does plan to roll out direct sales on cryptocurrency, and can be used for withdrawing funds from certain exchanges, however at the time of writing, PayPal doesn't have any direct link with cryptocurrency.

  5. You can use PayPal for making payments and withdrawals around the clock. With the crypto industry available at any time of day and night, you can purchase ETH with PayPal at any time. Provided there are sellers offering ETH for sale, of course.

  6. Once you complete the purchase and have Ethereum in your possession, the decision of what to do with it is completely up to you. Ethereum is believed to be a good investment, so holding it in hopes of price increases in the future could be worth considering. Alternatively, Ethereum can be used for smart contracts, dApps and for powering DeFi projects.

  7. No, instant payments are still not here. The best you can hope for is near-instant, but even this is not yet available with Ethereum. However, purchases with PayPal are likely among the fastest ways to pay for Ethereum by using a non-crypto payment method.

  8. Unfortunately, there are. As mentioned before, Ethereum does allow chargebacks, so a person selling ETH might get tricked by buyers who could pay with PayPal, receive their coins, and then request PayPal reverses the transaction. From there on, anything can happen, but the chances are that the seller will be at a loss. This is why you should only trade with reputable individuals and on P2P platforms where the coins are kept in escrow.

  9. A common risk associated with crypto, in general, is its volatility. The volatility is quite high, and you can never tell how prices might move. Prices could crash right after you bought a large amount, thus leaving you with a significant loss in the immediate term.

  10. Using PayPal to buy Ethereum in ways described above should not be a problem. PayPal is undoubtedly aware of its service's use for purchasing crypto, and it seems that the service is fine with it, as long as you understand the risks.

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