Editor’s opinion: PayPal has made it incredibly easy for people to buy and hold cryptocurrency, especially those who may have been intimidated by the process so far. If there ever was a time for a digital currency to take the next step, now it certainly would.
PayPal announced in mid-October that it will soon allow users in the United States to buy, hold and sell cryptocurrency directly from their PayPal accounts. On Thursday, the payment processor kept its promise.
Eligible users in the United States can now buy, hold and sell Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. To get started, log into your account and follow the onscreen instructions.
PayPal will charge a $ 0.50 fee on transactions up to $ 24.99, a 2.3% fee for transactions between $ 25 and $ 100, a 2% fee on transactions between $ 100.01 and $ 200, a 1.8% commission on transactions between $ 200.01 and $ 1,000 and a 1.5% commission on anything over $ 1,000.01.
In particular, there are no fees for holding cryptocurrencies in your account.
PayPal also noted that due to initial customer demand, it increased its weekly cryptocurrency purchase limit from $ 10,000 to $ 20,000.
Oddly, PayPal was pretty quiet about the announcement. The company has talked about it several times Twitter but did not publish a dedicated press release, opting instead to update last month’s press release with a little blurb.
Before diving head first into PayPal’s cryptographic waters, I recommend that you check out the company’s FAQ on the matter. Right now, there’s really not much you can do with encryption at PayPal. For example, you cannot use encryption to pay for things or send money to PayPal, and the encryption in your account “cannot be transferred to other accounts on or off PayPal”.
The payment processor is still planning to allow customers to use cryptography to fund purchases at its 26 million trading partners, although this feature is not expected to be ready until 2021.
Image courtesy of Marc Bruxelle