Bitcoin was first developed back in 2009. Since its rise to popularity, plenty of other cryptocurrencies, often referred to as alt-coins, have entered the markets, but none can rival the original. Today, analysts are predicting an even higher demand for bitcoin, so many investors are beginning to dip their toes into crypto buying.
There are plenty of ways for consumers and investors alike to get their hands on some bitcoin in 2021, but buying with PayPal remains one of the easiest, safest, and most accessible methods. PayPal has been an unquestioned leader in the online payment services industry for more than a decade, so the platform is uniquely situated to handle transactions like bitcoin loans and exchanges. Read on to find out about four of the most compelling reasons so many investors get started buying bitcoins through PayPal.
1. It’s Easy to Use PayPal at Peer-to-Peer Networks of Bitcoin Sellers
PayPal is an accepted and popular payment method for peer-to-peer Bitcoin networks like xCoins.io, which makes it easy to connect with bitcoin sellers and lenders. Using a peer-to-peer secured lending platform allows investors to access their bitcoins immediately instead of having to undergo a waiting period, as they would when using a different payment method at a traditional Bitcoin exchange.
With peer-to-peer lending platforms, users can connect with individual lenders safely and securely online, then use PayPal to send money directly to their accounts. Since xCoins.io and similar platforms reserve bitcoin for borrowers as soon as they’ve selected a lender, the bitcoins will arrive in the borrower’s wallet as soon as the payment has gone through. This makes paying with PayPal a convenient way to access bitcoin almost instantly without having to worry about low trade limits or long waiting periods.
For borrowers, using PayPal is one option out of many. However, those who want to get more involved in bitcoin lending and trading need to have verified PayPal accounts to receive funds from borrowers. Without a verified PayPal account, users of peer-to-peer secured loan platforms will be limited to borrowing bitcoin without being able to lend it to others.
2. PayPal Makes it Quick and Easy to Make Payments
PayPal’s e-wallets work a lot like cryptocurrency wallets. They allow users to hold currency, in this case, the fiat currency of their home location, in an e-wallet on the site for easy access. Users can also link their accounts to their traditional bank accounts and credit or debit cards for easy transfer of funds. Many bitcoin buyers even hold fiat currency in their e-wallets with the explicit intent of making it faster and easier to purchase or borrow cryptocurrency when ideal market conditions arise.
PayPal now features One Touch checkout functionality, which makes it incredibly quick and easy to pay lenders or sellers for cryptocurrency. Users will have the option of skipping email and password log-ins without placing their financial information at risk. They can turn this feature on by selecting “Stay logged in for faster purchases” at the initial log-in screen.
Once users have activated One Touch, PayPal will take care of the rest. The platform will automatically log users in when they are accessing the platform through specific devices and browsers, including personal computers, smartphones, tablets, and other mobile devices. This eliminates the need for keeping track of passwords and simplifies the bitcoin buying process significantly, which is good news for those who plan to get serious about their bitcoin investing strategies.
Since the company has implemented new security protocols just for One Touch, there’s no need to worry about privacy and restricting access to financial information. One Touch functionality is limited for users’ protection. PayPal only allows users to make payments using this service. They can’t access settings, withdraw funds, add new shipping addresses, or add new payment types without being prompted to log in again an entering their passwords. This makes it easier to control who can gain access to sensitive information, although the company still recommends that users not activate One Touch if they share devices.
3. PayPal Is an Established, Reputable Brand
PayPal has been leading the online payment processing industry for over a decade. At this point, most consumers and online merchants already have PayPal accounts and those that don’t have at least heard of it. It’s easy to find information about PayPal’s history and verify its legitimacy as a payment processor.
The company has been Better Business Bureau accredited since 2001 and has an A- rating, which is quite impressive for a company that has spent 21 years in business. Complaints about PayPal’s services are few and far between given that millions of people across the world use it, and the platform’s free consumer accounts are more than adequate to meet the needs of just about any bitcoin buyer.
PayPal also leads the industry when it comes to transaction monitoring. They use anti-fraud technology to weed out phishing attacks and identity theft, and every transaction is encrypted, making it next to impossible for hackers to gain access to sensitive personal and financial information. All transactions performed using PayPal are monitored, and sellers or cryptocurrency lenders must verify their accounts before they can receive funds.
As an established brand, PayPal also offers a multitude of options for users who need to find help with managing their accounts. They can turn to the online community forum to ask questions of other members, resolve transaction issues through the resolution center, email the company’s representatives directly, or even call to get help with any problems that may arise over the phone.
When bitcoin buyers combine the helpful features and buyer protections offered by PayPal with an easy-to-use and well-secured peer-to-peer lending platform like xCoins.io, they can rest easy knowing that their financial information is in good hands. Users still need to take basic protective measures like choosing secure passwords and ensuring that they sign in only from private computers on secure networks, but as long as they take those basic precautions, they don’t have to worry about failures on PayPal’s end.
4. PayPal Offers Buyer Protections
PayPal isn’t just a secure platform with surprisingly good customer service for a company its size. It also offers users access to a free Buyer Protection program. The Buyer Protection program allows users to file claims for full reimbursement if a purchased item does not arrive or doesn’t match a seller’s description. In the context of cryptocurrency, that means a buyer can contact PayPal if the bitcoin seller does not deposit the correct amount into the seller’s wallet to get a reimbursement.
There are a few stipulations. All items eligible for Buyer Protection must be paid for in one payment. Buyers who never receive their items or receive items that don’t match the seller’s description must open a dispute within 180 days of making payment. This allows them to contact sellers and get the help they need to come to a mutual agreement. If this isn’t possible, buyers can escalate the dispute to a claim within 20 days of opening it.
Taking advantage of PayPal’s Buyer Protection program can be a hassle, so it makes far more sense for buyers to use a reputable bitcoin exchange or lending platform that takes its own precautions against seller fraud. With xCoins.io, buyers are fully protected against fraudulent lenders. That’s part of why the platform requires lenders to have verified PayPal accounts.
Verifying a PayPal account involves providing proof of identity and validating financial information, which helps to reduce instances of fraud. Users must provide either credit card or bank account information, including their tax ID numbers, to sell goods, including cryptocurrency. The ability to verify sellers’ identities makes it much easier to cut down on identity theft, fraud, and phishing scams on the platform.
Since xCoins.io requires lenders to have verified accounts, buyers can rest easy knowing that they are borrowing from real people who can be held accountable for potential malicious acts. The lending platform’s automated strategy for transferring bitcoin makes it next to impossible for lenders to even try to scam borrowers. However, many borrowers like to have the extra peace of mind of knowing that in the extremely unlikely event that something goes wrong, they’ll be able to turn to PayPal for help with getting a full refund.
The Bottom Line
Experts are forecasting that the price of bitcoin will continue to rise even in the face of today’s economic uncertainty. There really isn’t a bad time to get started buying, holding, spending, or investing bitcoin, but for those who want to diversify their investment portfolios as a means of hedging their bets against severe fluctuations in local economies, cryptocurrency is a great bet.
As long as they exercise caution when it comes to creating and accessing their PayPal accounts, bitcoin buyers should have no problems using the payment processor to buy bitcoin from private sellers or platforms that accept it as a payment method. The company takes all possible precautions against fraud, scams, identity theft, and data breaches, so buyers can trust that their sensitive information will be in good hands.