Pros and Cons, off using Paypal’s Service to Buy Cryptocurrencies.

[QueenVera]

I stubble upon an article as I was researching on the significant of paypal getting involved with the cryptocurrencies industry. So thought of sharing them with you and hopefully if you (the readers) have addition points you can contribute to the thread.


The article says; There are many advantages to use PayPal. It’s a payment giant, with 26 million merchants and 325 million active account holders worldwide. This would be a significant move for both Paypal and cryptocurrency traders and might drive the mass adoption of crypto payment. However, how’s this cryptocurrency service work?

According to Paypal’s official news, they will initially feature Bitcoin, Ethereum, Bitcoin Cash and Litecoin, directly within the PayPal digital wallet. And the service is enabled in the U.S. through a partnership with Paxos Trust Company, a custody provider of cryptocurrency products and services.

 
Here are the pros and cons to this;

1. Custodial vs Non-Custodial
So we can regard Paypal’s cryptocurrency service the same as other custodial wallets in the present crypto market. Using a custodial wallet means your private key is stored by a third party. You don’t have full control over your funds. If your wallet gets hacked, your coins may go missing.  A negative example of custody is the recent OKEx incident. Few weeks back, OKEx’s founder was taken away by the police. Since he’s the person who controls the private key, now all the OKEx users are not able to withdraw their cryptocurrencies from their accounts. Taking account of this, some in the crypto community have expressed their rejection of this custodial feature by Paypal on social media, as they think it a highly centralized and inflexible service. And cryptocurrency is based on blockchain technology and all about decentralization. There are 3 types of crypto wallets - software crypto wallet, hardware crypto wallet, and crypto wallet service that allows users to store their cryptocurrencies by blockchain private keys.


How to know a wallet is custodial or non-custodial?
Search “wallet” on dapp.com (https://www.dapp.com/search_product/?keyword=wallet), then you will see there is a custodial and non-custodial tag put on each wallet.

And those wallets with a “buy crypto” tag means you can trade cryptocurrencies directly inside the wallet. (Playlist - Wallet with Built-in Token Swap). Wallets with “Dapp Browser” tag means besides storing cryptocurrencies, you can also use dapps inside these wallets.  Among all the wallets, the safest type is the hardware wallet, such as Ledger, one of the top crypto wallets that have passed the security audit. It double protects your crypto assets as you need to obtain both the hardware and passcode to operate.

2. Buy, Stay and Sell. No Transfer, No Trading.
If you want to use PayPal as your fiat entrance to crypto and then do crypto trading to gain profits, just forget it. PayPal is not the way that can make this come true. Because all cryptocurrencies on the PayPal network must stay there, you can’t withdraw or transfer, but only buy it by fiat and sell it for fiat. If you want to buy crypto by fiat and transfer to another account as a way of payment, no, you can’t do this either. Buy, stay and sell, that’s all.

 
3. PayPal Accounts Shut Down
Another problem is the users’ complaints about their PayPal accounts being shut down from time to time. These are some of the comments Paypal users posted on Twitter. As we’ve mentioned before, it’s a centralized platform, which means it has full control of your personal account. Unlike decentralized projects, it doesn’t need to launch a community vote to shut down your account.

All in all, with all these pros and cons, will you use Paypal to buy, hold, or sell cryptocurrencies? Tell us in the comments.

My personal thoughts are, the only pros of this paypal service is it'll increase the mainstream of bitcoin and bring about global usage and nothing more.

Official source.

Note: I did some adjustments to make the article to be easily readable and straight to the point.

[SquirrelJulietGarden]

If you took an article and copy paste all of article, you must put word by word in quote brackets. If you don't do this, your topic can be considered as Verbatim plagiarism.

If you see a copy-paste topic from newsletters
Plagiarism and paraphrasing (Verbatim plagiarism)
Plagiarism as a result of cultural differences

If I were you, I would post like this

I stubble upon an article as I was researching on the significant of paypal getting involved with the cryptocurrencies industry. So thought of sharing them with you and hopefully if you (the readers) have addition points you can contribute to the thread.

The article says;

The quote brackets tell readers word by word in quote brackets are from the article.

There are many advantages to use PayPal. It’s a payment giant, with 26 million merchants and 325 million active account holders worldwide. This would be a significant move for both Paypal and cryptocurrency traders and might drive the mass adoption of crypto payment. However, how’s this cryptocurrency service work?

According to Paypal’s official news, they will initially feature Bitcoin, Ethereum, Bitcoin Cash and Litecoin, directly within the PayPal digital wallet. And the service is enabled in the U.S. through a partnership with Paxos Trust Company, a custody provider of cryptocurrency products and services.

 
Here are the pros and cons to this;

1. Custodial vs Non-Custodial
So we can regard Paypal’s cryptocurrency service the same as other custodial wallets in the present crypto market. Using a custodial wallet means your private key is stored by a third party. You don’t have full control over your funds. If your wallet gets hacked, your coins may go missing.  A negative example of custody is the recent OKEx incident. Few weeks back, OKEx’s founder was taken away by the police. Since he’s the person who controls the private key, now all the OKEx users are not able to withdraw their cryptocurrencies from their accounts. Taking account of this, some in the crypto community have expressed their rejection of this custodial feature by Paypal on social media, as they think it a highly centralized and inflexible service. And cryptocurrency is based on blockchain technology and all about decentralization. There are 3 types of crypto wallets - software crypto wallet, hardware crypto wallet, and crypto wallet service that allows users to store their cryptocurrencies by blockchain private keys.


How to know a wallet is custodial or non-custodial?
Search “wallet” on dapp.com (https://www.dapp.com/search_product/?keyword=wallet), then you will see there is a custodial and non-custodial tag put on each wallet.

And those wallets with a “buy crypto” tag means you can trade cryptocurrencies directly inside the wallet. (Playlist - Wallet with Built-in Token Swap). Wallets with “Dapp Browser” tag means besides storing cryptocurrencies, you can also use dapps inside these wallets.  Among all the wallets, the safest type is the hardware wallet, such as Ledger, one of the top crypto wallets that have passed the security audit. It double protects your crypto assets as you need to obtain both the hardware and passcode to operate.

2. Buy, Stay and Sell. No Transfer, No Trading.
If you want to use PayPal as your fiat entrance to crypto and then do crypto trading to gain profits, just forget it. PayPal is not the way that can make this come true. Because all cryptocurrencies on the PayPal network must stay there, you can’t withdraw or transfer, but only buy it by fiat and sell it for fiat. If you want to buy crypto by fiat and transfer to another account as a way of payment, no, you can’t do this either. Buy, stay and sell, that’s all.

 
3. PayPal Accounts Shut Down
Another problem is the users’ complaints about their PayPal accounts being shut down from time to time. These are some of the comments Paypal users posted on Twitter. As we’ve mentioned before, it’s a centralized platform, which means it has full control of your personal account. Unlike decentralized projects, it doesn’t need to launch a community vote to shut down your account.

All in all, with all these pros and cons, will you use Paypal to buy, hold, or sell cryptocurrencies? Tell us in the comments.

My personal thoughts are, the only pros of this paypal service is it'll increase the mainstream of bitcoin and bring about global usage and nothing more.

Official source.

Note: I did some adjustments to make the article to be easily readable and straight to the point.

[QueenVera]

If you took an article and copy paste all of article, you must put word by word in quote brackets. If you don't do this, your topic can be considered as Verbatim plagiarism.

I think plagiarism is clearly defined as coping someone else's work without giving credit to the original works. While I'm not against your interest in my thread but don't think any of what you have stated is worth given attention since I give clear credit to the main source. I saw a thread online and decided to passed the information to the community. Initially I would had just posted a link but since the community don't advice that but to do some little contribute to the topic that's why I posted it this way.

I research on what you're accusing me of which is 'Verbatim plagiarism' and it says,

You commit verbatim plagiarism when you directly copy text from a source and paste it into your own document without attribution. If the structure and the majority of the words are the same as in the original, then it is verbatim plagiarism, even if you delete or change a couple of words here and there.
Source:

the key word there is without attributes but if you look at my thread I give attributes fully I don't think I'm quilty of whatever you're accusing me of.  I see you get your merit and pleasure mostly by attacking people on the forum but that's no way to go instead try to contribute more to discuss like adding some pros and cons to this topic above to enlighten those that'll be interested in reading.

[lovesmayfamilis]

I do not see plagiarism here, since there is a link to the source, and there is also the OP's own opinion.


Although this topic has been discussed more than once, and everyone has expressed their opinion, the presentation of the OP may be more understandable for someone.
As for my opinion, I do not see any holiday in the fact that PayPal allowed buying bitcoin. I can say that this payment system will never do something at a loss. Therefore, by accepting bitcoin and allowing them to pay in online stores, the direct benefit here is greater for the system itself than for consumers.

[skarais]

If the Paypal service can only be used as a place to buy, store and resell without being able to transfer it to another wallet then I think this service will only increase the number of bitcoin transaction and in my opinion it will not increase the adoption of bitcoin as a global payment system.

• Pro: Paypal can help bitcoin become more globally recognized.
• Disadvantages: Cant be used as a payment system, cant be transferred, high risk to existing account and asset.

Remember, without a private key, all our asset must be entrusted to a third party. Bitcoin is our own bank and we should have the freedom to do anything with it legally, so I don't think Paypal can give user the freedom to use bitcoin properly because they only have buy, store and sell feature.
 

[Husires]

The service will not serve much development and will not be used by many people:

 

• it will be considered a way to keep money instead of leaving the balance in US dollars.
  
• It will motivate small individuals, institutions and governments to impose clear foundations, regulations and plans for taxes, and thus official recognition as digital currencies and not assets of accounting value.
• It will not change the market capacity nor make bitcoin jump to $ 100,000

[SquirrelJulietGarden]

I do not see plagiarism here, since there is a link to the source, and there is also the OP's own opinion.

Even it is not a Verbatim plagiarism, copy and paste word by word need to be presented in quote brackets. As a reader, I don't want to spend my time to know where is opinion of OP. I don't see any bad if quote brackets will be use when posters share articles word by word.

If you write a thesis, it is not accepted if you copy and paste hundred or thousand of words and write a short sentence for your opinion. A link is not enough.

My advice to use quote brackets and when OP used quote brackets in the reply, it looks better.

If I want to share and discussion with my opinion, I want my opinion will be easily seen by readers. I don't create a puzzle for readers to find where is my opinion.
If it is better, please do not hesitate to use quote brackets.

Please don't see my posts as attacks, see them as contribution.

[mk4]

If the Paypal service can only be used as a place to buy, store and resell without being able to transfer it to another wallet then I think this service will only increase the number of bitcoin transaction and in my opinion it will not increase the adoption of bitcoin as a global payment system.

Fortunately(and unfortunately), buy and sell transactions will most likely only reside off-chain, hence it wouldn't even increase the number of bitcoin transactions.

Disadvantages: Cant be used as a payment system, cant be transferred, high risk to existing account and asset.

..yet. I think it's highly likely that they will allow us to withdraw and spend our coins in the future. For a huge business as PayPal, I'm pretty sure they're totally aware that there's a demand for withdrawing and spending, it's probably just that their platform is not ready yet hence why they haven't released it.

[Inkdull]

Paypal accounts shutdown isn't happening for no reason sake, I knew about paypal funders that use the platform to make money by hijacking others fund and sending through PayPal thus landing the original owner into problem, there are many cases like this online, PayPal will only shut down fraudster accounts

[fortunecrypto]

My personal thoughts are, the only pros of this paypal service is it'll increase the mainstream of bitcoin and bring about global usage and nothing more.

For long time users of Cryptocurrency, it did not offer any pros, but for new users they consider it a big boost of Cryptocurrency and will explore option on how to get hold of Cryptocurrency through Paypal, I for my part will not be looking to buy Cryptocurrency using my PayPal dashboard I always adhere to the teaching of Nakamoto that if you are not holding your key, you really do not own the coins.

[DdmrDdmr]

<…>

Not really, at least not at this stage. As a Coinbase user, you are able to send your crypto from the Exchange to another wallet outside the Exchange, be it your own wallet (Ledger, Trezor, Electrum, etc.), or someone else’s.

Paypal on the other hand does not currently let you move your crypto outside it’s ecosystem, and this is one of the key factors. It’s acting as a capped Exchange at best for now. You will, however, be able to pay with crypto to a Paypal accepting merchant, using the platform’s act of prestidigitation, whereby your BTC are turned into FIAT to make the payment. It creates the illusion of paying with Crypto, although it’s not the real thing, is it?