The Send button allows you to enter or scan a wallet address. You can view the amount of crypto you hold, and its market value, in the same tab you used to purchase. But for casual users who are familiar with PayPal, the service can be a convenient way to buy and sell crypto, and to use your coins to make purchases from participating businesses. We believe everyone should be able to make financial decisions with confidence.
However, in June 2022, the company announced that users can now transfer their cryptocurrencies purchased on PayPal to other digital wallets—including their own non-PayPal Wallets. Online payments provider PayPal has begun allowing users to transfer their cryptocurrency balances to other wallets and exchanges. The cryptocurrency transfers feature may be disabled on your account due to a variety of factors. Users with a negative balance will not be able to transfer crypto.
How to Buy and Sell Crypto With PayPal
Customers who transfer their crypto into PayPal can extend the utility of their crypto by spending using our Checkout with Crypto product at millions of merchants. Also, keep in mind that PayPal doesn’t support crypto transactions in Hawaii, and business accounts can’t participate. In order to buy Bitcoin with PayPal — or any of the other cryptocurrencies offered by the service — you’ll need a verified account known as a PayPal Balance account. NerdWallet, Inc. is an independent publisher and comparison service, not an investment advisor. Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only.
This margin is around 0.5% and depends on market conditions. Adding the ability to transfer, send, and receive cryptocurrencies is another step in our journey to building a more inclusive and effective financial system. The release announcing that you can now transfer cryptocurrencies on PayPal didn’t say anything about giving up keys.
An Interesting Move from PayPal
That means that PayPal is (at least for now) what’s called a “custodial wallet.” Custodial wallets hold onto your keys which means that the custodian has more control over your account but also that you can’t lock yourself out. Each cryptocurrency that PayPal supports has its own button. Tap the button for the cryptocurrency you want to interact with to open a new screen with information on that cryptocurrency, including the recent market price and a graph of recent activity. PayPal Buyer Protection also doesn’t apply to cryptocurrency purchases, though PayPal says crypto purchases will be protected from unauthorized activity. In the event of an unauthorized transfer, you may be eligible for reimbursement up to the equivalent of $50,000. Sending crypto to another PayPal user is easier than transferring it in or out of the platform, and there are no fees, including the blockchain network fee.
PayPal accepts bitcoin, ethereum, bitcoin cash and litecoin. If you’re on the desktop mode, there’s a small Crypto icon below the Send icon on the main page after logging in. You can also select the Finances tab from the toolbar at the top of the screen.
PayPal is venturing deeper into the world of cryptocurrency payments with the launch of a new “stablecoin” whose value is designed to track the U.S. dollar. The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments. Because PayPal is easier to use than a lot of other exchanges. And, bringing crypto onto PayPal may get more people interested in it though they may now want to keep their crypto elsewhere. In the original PayPal crypto interface launched in 2021, the only buttons were Buy and Sell.
Sending and receiving crypto with other PayPal users
Here’s what to know about buying, selling and transferring cryptocurrency with PayPal. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Below is a step-by-step by step guide on using our crypto transfer feature. To help ensure that transfers aren’t made without authorization, PayPal has also implemented an additional identity verification process, which is also described below. Transferring crypto to another PayPal user doesn’t have any fees.
- Our estimates are based on past market performance, and past performance is not a guarantee of future performance.
- Also, keep in mind that PayPal doesn’t support crypto transactions in Hawaii, and business accounts can’t participate.
- It’s been “one of the most requested” features since launching crypto on PayPal in March last year, PayPal’s general manager of blockchain, crypto and digital currencies, Jose Fernandez da Ponte, said in a press release Tuesday.
- This influences which products we write about and where and how the product appears on a page.
So, you could invest in crypto, but you didn’t actually own it. Now that you can actually use the crypto you buy on PayPal to pay for things, it’s starting to act a lot more like a real crypto wallet. If you’re on the mobile app, the crypto portion of your account gets a large button at the top of the screen next to your balance. First, navigate to your crypto page within your PayPal account.
Depending on whether you’re using the desktop interface or the mobile app, this can look a little different. Once you’ve found the PayPal portion of your account, the rest of the process is the same no matter how you’re accessing the platform. If you need help, this support page outlines the steps. The platform’s crypto functionality still does not have all of the features of dedicated crypto marketplaces, which offer wider selections of cryptocurrency and often offer more advanced types of transactions. The Receive button generates a QR code to the wallet for that cryptocurrency within PayPal.
PayPal’s initial crypto approach was more like a cryptocurrency exchange than a cryptocurrency wallet. Like with other exchanges, your crypto funds on PayPal aren’t eligible for Federal Deposit Insurance Corp. coverage, which would normally protect up to the first $250,000 in deposits. Yes, PayPal will provide users with any necessary 1099 forms and report the same information to the IRS. PayPal updates the market value of all four currencies every few seconds, so the value you see right when you choose “Buy” is the amount you’ll receive. You can use a debit card, linked bank account or any funds in your PayPal balance.
Additionally, pending crypto purchases, such as those purchased via a bank transfer may take multiple days to clear. Crypto purchased with a debit card will be instantly available to transfer. You can find our Terms and Conditions and Acceptable Use Policy by clicking Legal at the bottom of any PayPal page.
Does PayPal offer tax forms?
Proceeds from the sale will go to your PayPal account, where you can use the funds to make purchases or transfer them to your bank account. The maximum limit for crypto purchases is $100,000 per week. You can buy as little as 0.01 BCH, ETH and LTC and as little as 0.001 of BTC. Enter your desired dollar amount and select “Next.” You’ll get the chance to double-check how much crypto you’re purchasing, plus any fees that will be added.
The release, dated June 7, 2022, said the feature was available starting that day. As of this writing, buttons described in the release and in video tutorials created by PayPal have yet to materialize on the desktop interface and mobile app. It’s likely that the feature is still rolling out and will be available soon if you don’t have it already. On the Crypto page, you can view the market prices of assets including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH). You can select your desired currency to view a price graph and the “Buy” button.
In the US, the maximum amount for weekly cryptocurrency transfers is $10,000 per week. This total maximum applies if you send internal transfers (to other PayPal accounts) or external transfers, or a combination of internal and external transfers. Here’s how to keep your crypto safe, the best bitcoin and crypto wallets and what you should know if you’re investing in crypto. It’s been “one of the most requested” features since launching crypto on PayPal in March last year, PayPal’s general manager of blockchain, crypto and digital currencies, Jose Fernandez da Ponte, said in a press release Tuesday. You can also transfer crypto from your other wallets into PayPal, and transfer crypto to other PayPal users. A cryptocurrency wallet allows you to hold a cryptocurrency, where once you bought crypto on PayPal, PayPal held onto it for you until you sold it.
How to transfer crypto from another wallet or exchange to PayPal
The new interface has a Transfer button with arrows on it. Tap this button to open up the Send and Receive options. The address generated will work for only this specific transfer; this is not a private key. If you’re looking to hold a significant amount of crypto, a wallet is a more secure option. Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page.
It’s the latest move by PayPal to beef up its crypto offerings. A year ago, the service began allowing users to transfer cryptocurrencies in and out of their accounts from other users or crypto wallets — a core feature of many popular crypto exchanges. We are thrilled to announce that starting today, PayPal supports the native transfer of cryptocurrencies between PayPal and other wallets and exchanges. This feature has been consistently ranked by users as one of the most requested enhancements since we began offering the purchase of crypto on our platform. “PayPal supports the native transfer of cryptocurrencies between PayPal and other wallets and exchanges,” PayPal’s SVP and GM of crypto and blockchain Jose Fernandez da Ponte said, announcing the update.
To send crypto outside of PayPal, you’ll need to provide the wallet address where you want to send the crypto. Cryptocurrency sent to the wrong address type (for example, Bitcoin Cash sent to a Bitcoin address) will be lost. For PayPal USD, first check with your external wallet to confirm they will accept your PYUSD. The really interesting thing about this is that it works with non-PayPal wallets. This opens up the network and allows users to use PayPal to buy cryptocurrency and then send their crypto to another account they use.
“This feature has been consistently ranked by users as one of the most requested enhancements since we began offering the purchase of crypto.” The wallet address is created only for the coin you selected, not your PayPal account. To help protect your privacy, we generate a new “Receive” address each time you want to send crypto to your account. PayPal does not charge fees to transfer crypto into PayPal, but network and sender fees may apply. For a while now, PayPal has allowed users to “buy and sell” select cryptocurrencies within the online payment platform.
We’re excited to connect PayPal’s customers to other wallets, exchanges, and applications, and we will continue to roll out additional crypto features, products, and services in the months ahead. We look forward to hearing more customer and community feedback as we enhance our digital currency capabilities. PayPal supports the transfer of cryptocurrencies between PayPal, Venmo, and other wallets and exchanges. PYUSD can be transferred between PayPal and exchanges that support it. PYUSD can also be sent to most Ethereum addresses in wallets that support ERC-20 tokens. PayPal cryptocurrency purchases include a “spread,” meaning you’ll pay slightly more than the market price when buying and get slightly less than the market price when selling.
Here is a list of our partners and here’s how we make money. If you suspect fraudulent activity on your account, PayPal says you should file a claim through the customer resolution center.
They are not intended to provide investment advice. NerdWallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances. Examples are hypothetical, and we encourage you to seek personalized advice from qualified professionals regarding specific investment issues. Our estimates are based on past market performance, and past performance is not a guarantee of future performance. PayPal says there will be a blockchain network fee, not charged by PayPal, involved in any transfers.