Why You Should Not Buy Bitcoin with PayPal

[poutintsev]

PayPal’s cryptocurrency integration is an embarrassing attempt to deceive non-crypto people

Don't know why not many talk about this, but PayPal will not allow.

- No deposits or withdraws of cryptocurrency.
- No paying with cryptocurrency or sending cryptocurrency to other users.
- You will not have access to your private keys.

https://temporaryerror.com/why-you-should-not-buy-bitcoin-with-paypal/

[1714562331]

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[Welsh]

The best part about the Paypal adopting Bitcoin is not the service that it provides, but the fact that it almost acts as a "gateway drug" for a lack of a better phrase. Its the gateway for non crypto personal to adopt a new, and exciting concept, all because a reputable, and large company such as Paypal has implemented it into their system, which by extension improves peoples perception of Bitcoin, and its related technologies. The Paypal adoption is a very good way of intriguing people enough about Bitcoin, that ultimately they'll look more into it, and quickly come to realize the flaws of the Paypal system.

I do think this has been discussed though, there's been plenty of users here talking about how poor the implementation of Bitcoin into Paypal is for the end user, and how much it benefits Paypal, but that is usually the case in a capitalism world.

[RickDeckard]

Paypal just wants to grab the attention the average Joe that heard about BTC in the news and would likely be interested in buying due to the increases in price it has registered.

Generally that kind of people don't have all the information about BTC and the crypto world (I'm not really sure they want to know as well). They just want an easy way to get on the wave and reap the benefits. Enter Paypal a trusted & established company that just adopted BTC and is "happy" to give the average Joe a way into this world.

The move from Paypal is a good move but only for their side, not for their customers ...

[Ryker1]

Well, the part that the most having benefits to bitcoin is only the adoption that created awareness to their users that could be potentially large investors. You can buy bitcoin in Paypal but not for holding your crypto, you can use it to purchase in a merchant that using bitcoin and supported PayPal as a payment processor. If you were buying and hold your bitcoin in Paypal, that is a different story. Paypal not allow you to transfer your bitcoin, so it does not make sense if you bought it for holding.

[Rengga Jati]

In fact, there are already several complaints regarding cryptocurrency on PayPal on this forum. And most of them are related like what you have said. This is actually in PayPal's terms and conditions. And indeed if we don't read it first, we will be trapped in it because we can only buy and sell there and cannot withdraw. If you want to withdraw it, you must first convert it to the fiat available there.

At least, this is what in their PayPal Cryptocurrency Terms and Conditions

You currently are NOT able to send Crypto Assets to family or friends, use Crypto Assets to pay for goods or services, or withdraw Crypto Assets from your Cryptocurrencies Hub to an external cryptocurrency wallet. If you want to withdraw the value from your Cryptocurrencies Hub you will need to sell your Crypto Assets and withdraw the cash proceeds from their sale.

Yeah, it seems like PayPal uses the moment of BTC to attract many more people using PayPal. It is like a free promotion when very booming issue about PayPal and cryptocurrency several months ago. But in fact, this is not what expected as we are.

[RickDeckard]

In fact, there are already several complaints regarding cryptocurrency on PayPal on this forum. And most of them are related like what you have said. This is actually in PayPal's terms and conditions. And indeed if we don't read it first, we will be trapped in it because we can only buy and sell there and cannot withdraw. If you want to withdraw it, you must first convert it to the fiat available there.

At least, this is what in their PayPal Cryptocurrency Terms and Conditions

You currently are NOT able to send Crypto Assets to family or friends, use Crypto Assets to pay for goods or services, or withdraw Crypto Assets from your Cryptocurrencies Hub to an external cryptocurrency wallet. If you want to withdraw the value from your Cryptocurrencies Hub you will need to sell your Crypto Assets and withdraw the cash proceeds from their sale.

Yeah, it seems like PayPal uses the moment of BTC to attract many more people using PayPal. It is like a free promotion when very booming issue about PayPal and cryptocurrency several months ago. But in fact, this is not what expected as we are.

Thing is most people don't care. They just want an easy way to get into BTC/crypto (or at least to think they got) and continue their lives. The fact that a reputable company offers them that is just something that Paypal couldn't afford to lose ...

[dothebeats]

This has been discussed for months, and everyone agrees that what PayPal does is to give people the ‘experience’ on what it feels like buying and selling crypto, even though they technically don’t have any of it on their ownership. Even though PayPal announced that withdrawals in bitcoin would be allowed soon, I still don’t think it’s worth it to use their service at all. But even then, at the least, people can ‘get engaged’ in the buy/sell aspect of the coin and make a profit off of it from PayPal, and that’s what most people are looking for, ease of access to trading so they can get aboard the ship a lot faster.

[sunsilk]

Yeah, just like them, IIRC, there were threads about this discussion. At first when I've heard about it, I was happy that PayPal which is the said and once a rival of bitcoin before for payment processing suddenly turned and adopted bitcoin. But having said that they have adopted bitcoin and eligible users can use them to purchase, that's at least a good start for their service. I hope that they'll upgrade that soon and allow their users to touch and withdraw the real thing, btc.

Thing is most people don't care. They just want an easy way to get into BTC/crypto (or at least to think they got) and continue their lives. The fact that a reputable company offers them that is just something that Paypal couldn't afford to lose ...

PayPal found a way not lose their customers and even attract more and the terms are still favorable to them.

[jamalaezaz]

PayPal’s cryptocurrency integration is an embarrassing attempt to deceive non-crypto people

Don't know why not many talk about this, but PayPal will not allow.

- No deposits or withdraws of cryptocurrency.
- No paying with cryptocurrency or sending cryptocurrency to other users.
- You will not have access to your private keys.

https://temporaryerror.com/why-you-should-not-buy-bitcoin-with-paypal/

whatever said in that article is 100% true. Paypal is just fooling it's users pretending that they are letting their users to HODL and use bitcoin in the system. but in actual they are playing this dirty game at backend and everything still being done with fiat.

No thanks, I am ok with Bitcoin through direct sources. I don't need a third party like Paypal to control my BTC and fake my money with it's buggy system. I am glad I never used paypal for anything.

[Lorence.xD]

The best part about the Paypal adopting Bitcoin is not the service that it provides, but the fact that it almost acts as a "gateway drug" for a lack of a better phrase. Its the gateway for non crypto personal to adopt a new, and exciting concept, all because a reputable, and large company such as Paypal has implemented it into their system, which by extension improves peoples perception of Bitcoin, and its related technologies. The Paypal adoption is a very good way of intriguing people enough about Bitcoin, that ultimately they'll look more into it, and quickly come to realize the flaws of the Paypal system.

I do think this has been discussed though, there's been plenty of users here talking about how poor the implementation of Bitcoin into Paypal is for the end user, and how much it benefits Paypal, but that is usually the case in a capitalism world.

They are still tied to some laws that could implicate their company into bankruptcy, I understand the way Paypal did what they did but I agree that the execution was a clunky and failure one. They want to prevent any possibility of money laundering. As the quote above said, Paypal created an unintended benefit for crypto community although gateway drug seems to be on the harsh side of things. 

[bL4nkcode]

What I only see to PayPal adopting of crypto is just a media and awareness to its millions of users globally that benefits cryptocurrency especially bitcoin, a lot. The community will only feel the adoption when they enable the withdrawal and the use to purchase to its millions of merchants.

[Kakmakr]

Let's add some conspiracy theories to your concerns...

A lot of people are buying bitcoins that are stored on a centralized ledger at PayPal and they have no control over those coins. We know what centralized companies do with that power and that information. (Everything is reported to the governments and the tax authorities)

Another concern is all the bitcoins that are going out of circulation, because it is stored on PayPal's cold storage. (These coins do not generate miners fees, because the transactions are done off-chain on PayPal's internal ledger system) 

[concept2]

I dont think that PayPal only brings worse things for non-crypto users. Because we have spent many years working with crypto and related business, there are still many people who are not even use bitcoin for even once. This creates an opportunity for them to integrate with bitcoin and therefore, if they are eager to learn, they will find sources of knowledge and various ways to own not just bitcoin but also other cryptocurrency

Moreover, many people who do not have time to learn can easily buy bitcoin or ethereum for investment. Since Bitcoin was implemented into paypal, its price was more than a double. Whoever buys bitcoin has earned quite an amount of money

[Leviathan.007]

I would not use bitcoin on paypal because there is a rule saying not your keys not your coins and paypal won't give you any private key or recovery seed to your bitcoins. In the other hand, paypal is centralized and using bitcoin as most famous decentralized currency on a centralized place on paypal doesn't make any sense. Due to the recent success of bitcoin, paypal allowed users to have the experience to feel like they are buying bitcoin, by doing this paypal wanted to earn some more attention between people.

[masterrex]

PayPal’s cryptocurrency integration is an embarrassing attempt to deceive non-crypto people

Don't know why not many talk about this, but PayPal will not allow.

- No deposits or withdraws of cryptocurrency.
- No paying with cryptocurrency or sending cryptocurrency to other users.
- You will not have access to your private keys.

https://temporaryerror.com/why-you-should-not-buy-bitcoin-with-paypal/

If that's the case why we patronized that kind of lousy service, there's a lot of platforms out there that providing a better service than Paypal. By the way, Paypal's crypto integration only serves as a kind of promotion, All we know that Paypal is a popular payment Gateway and also a mainstream player so the crypto industry has benefited a little from that so-called PayPal crypto adoption.

[Renampun]

I will not buy Bitcoin on Paypal because I have no reason to buy there...
I am comfortable and used to buy/sell Bitcoin on Binance and Kucoin. I don't know the advantages and disadvantages if I transact there.

[Fundamentals Of]

This was already a talk of the town when PayPal announced that they will be offering buying and selling of Bitcoin and a few altcoins on their platform. This was already discussed over and over again.

This may not seem interesting as far as cryptocurrency people are concerned but this is surely something new to a lot of people who haven't heard of cryptocurrency yet, or at least to those who have come across crypto in passing but never given it enough attention. This may be a good start to someone who is a complete stranger to cryptocurrency.

[rokon1234]

I never use paypal and i have not much idea about this payment system.That's why i'm always love to exchange crypto with binance amd kucoin exchange site.

[kryptqnick]

Well, the part that the most having benefits to bitcoin is only the adoption that created awareness to their users that could be potentially large investors. You can buy bitcoin in Paypal but not for holding your crypto, you can use it to purchase in a merchant that using bitcoin and supported PayPal as a payment processor. If you were buying and hold your bitcoin in Paypal, that is a different story. Paypal not allow you to transfer your bitcoin, so it does not make sense if you bought it for holding.

I'm most interested in this feature. I have no reason to buy Bitcoin with PayPal or store it with PayPal because I've been doing perfectly fine without PayPal intervening and because being independent of it is safer. However, I was excited when PayPal announced Bitcoin adoption because there are so many online places where PayPal payments are accepted, but Bitcoin is not an option, so I was hoping that this Bitcoin adoption would allow paying with BTC wherever PayPal is an accepted payment method. And I would certainly like to actually pay with BTC instead of selling it for fiat first.

[Terrell]

First, you can't actually use the cryptocurrency to buy and sell things, though Paypal hints that paying for goods and services with cryptocurrencies could be possible in the future. The problem is, every crypto exchange in the world already lets you pay for things with cryptocurrencies.