As of today, American users of PayPal can buy Bitcoin and three other cryptocurrencies through the platform. A significant step in the right direction, but there are some caveats. In fact, it is pertinent to wonder if one should even buy Bitcoin through this service altogether.
PayPal Isn’t Fully Sold on Bitcoin
Many people think they will be able to purchase the real Bitcoin through PayPal. After all, that is how this new integration appears to be advertised. In reality, things are not as cut-and-dried. Users will not own Bitcoin they buy through PayPal, as it cannot be transferred off the platform or sent to anyone else. This makes the entire service rather redundant.
That being said, PayPal can serve as a solid gateway into cryptocurrency. It is always possible that this service will be expanded upon in the future. For now, that seems rather unlikely, but one never knows what the future may hold. In its current form, however, the service is fairly limited first and foremost.
Earlier this week, the payment processing company upped weekly purchase limits to $15,000. Even with that limit, one cannot buy a full Bitcoin from the platform as of yet. Bitcoin has surpassed $16,000 earlier today. It is possible Bitcoin’s value will continue to rise for some time to come as well.
It is also worth mentioning PayPal provides exposure to three other cryptocurrencies. Litecoin. Bitcoin Cash, and Ethereum are all supported. All of these currencies suffer from the same limited functionality Bitcoin users have to contend with. No funds can be transferred out of one’s own account, which is rather bothersome.
Better Options to buy Bitcoin
Obtaining financial exposure to the world’s leading cryptocurrency is not all that difficult. Dozens of exchanges and brokers, as well as thousands of Bitcoin ATMs, can help in that regard. PayPal should not be one’s first choice, at least not in the current form. Once the company allows for more control by the user, that situation can change very quickly.
Getting BTC in one’s portfolio is only the first step along the way. Trading it against other assets – including gold here at Vaultoro – is where the real fun begins. It is crucial to diversify a portfolio whenever possible. Holding BTC is a good start, but there are a lot of other options worth looking into as well.