What is the legitimate and safe way to convert BTC (bitcoin) to PayPal?
DavidNot surprisingly, users with a PayPal account are considering buying bitcoin. Both, as payment systems, have been consolidating their respective positions in the world. There may be those who consider them rivals, but it is increasingly evident that there are many people who prefer to use, for their own benefit, the advantages that each one offers.
PayPal is a safe and reputable payment method. The North American payment processor is among the systems that dominate electronic commerce in Spain and is one of the most popular in Latin America.
Bitcoin, for its part, is a digital money system that allows to safeguard and send value to and from anywhere in the world without the need for intermediaries, that unique characteristic that has given it a space in the world of finance.
Each one has its utility: Do you need to pay someone for something you bought in an online store? PayPal will help you thanks to its wide adoption Do you want to transfer funds to your friend who is on the other side of the world? bitcoin will solve it quickly. But if what you are thinking about is a currency with which you can preserve value, then you can use PayPal to buy bitcoin. You acquire a currency that will only be under your dominance and that will probably appreciate over time
Is it safe to exchange bitcoin through PayPal?
PayPal is a company that takes extreme security measures to prevent its use for illegal purposes. However, there are some elements to consider when buying bitcoin through the payment processor.
To keep fraud at bay, the company pays special attention to customer complaints. This means that theoretically someone can trade bitcoin with PayPal, receive the BTC, and then issue a claim stating that they never received it. PayPal has no way of checking whether that is true or not. And since credit companies normally support the plaintiff, they are very likely to return the funds, which would leave the malicious party with the BTCs and the money they previously paid for them. Due to this loophole, most platforms do not allow the purchase of bitcoins with PayPal.
What must be taken into account to exchange bitcoin using PayPal?
When exchanging bitcoin with PayPal you must take into account the system commissions. It is necessary to add the commission corresponding to the transfer so that the seller receives the agreement. The percentage of PayPal fees is fixed and rarely varies. Generally, the fee is 5.4% of the total amount of the operation, plus a fixed fee of USD 0.30. That means that the amount to be paid in commissions will vary according to the amount of money that is transferred as part of the operation. Check out more about commissions here.
In addition to these commissions established by PayPal, you must also take into account the commissions of the platform you select to obtain bitcoin. It also considers the commissions of bitcoin transactions that, although they are not usually high, depend on network congestion.
Is it required to go through an identity verification process to buy bitcoin with PayPal?
Both PayPal and cryptocurrency exchanges require a registration and data verification process. Their systems require their users to be identified to respond to regulatory regulations. They ask for verification of accounts and procedures KYC (Know Your Customer), in Spanish know your client), which implies an identity document with a photo or proof of residence.
Most of the platforms that require identification will allow you to simply tie a PayPal account, as soon as you pass the verification services process.
Should I take into account the currency that my PayPal account is in?
Yes indeed, it is a key point when exchanging bitcoin with PayPal. Each payment processor account has a base currency, whether in dollars, euros, pesos, soles, or others. Most of the platforms reviewed by Cryptosystem for this article use US dollars (USD) for the purchase and sale of bitcoin, so you should make sure that you have dollars available to operate on them.