Men and women the world over continue to express concern regarding the global economy and its future during and after the global pandemic. For this reason, many individuals now look to cryptocurrency as a way to protect themselves during uncertain times.
Cryptocurrencies remain under the control of a decentralized network of users and aren’t subject to national governments or central banking authorities. Bitcoin remains the most popular cryptocurrency and the one most individuals are familiar with today.
Individuals in possession of bitcoin find they can use the cryptocurrency to purchase products and services from merchants across the globe that now accept this virtual currency. Additional merchants continue to accept this currency every day, as they recognize how popular it is becoming. In addition, the currency may be exchanged with private users to settle debts or as payment for services performed.
Bitcoin users retain the option of swapping their virtual currency for other currencies, both virtual and traditional. The transactions occur on electronic exchanges similar to those used in Forex trading. While it isn’t considered a legitimate trading vehicle or investment today thanks to wild value fluctuations, this could change in the near future as more people opt to benefit from its use.
Security Concerns with Bitcoin
One drawback of virtual currencies involves security concerns. Bitcoin, as with any currency, remains susceptible to fraud and theft. Sophisticated hackers have already discovered ways to exploit the system and steal cryptocurrencies for their personal use. Sadly, the two biggest attractions of Bitcoin, its anonymity protections and its political independence, make it very appealing to those with nefarious purposes.
Local law enforcement entities fail to make theft protection a priority when it comes to cryptocurrencies. Furthermore, they find it difficult to prosecute those responsible for bitcoin heists, as they often originate in parts of the world that remain politically unstable or are unfriendly to the United States.
Bitcoin Theft Methods
Criminals find it harder to steal digital currencies than physical cash, but it remains possible. How do they accomplish this goal? Several methods are used to carry out this theft.
Individuals often choose to store their private keys in a digital repository that is publicly accessible, and this leaves the keys vulnerable to theft by hacking. When the criminal obtains the private keys, they gain the ability to access and transfer the corresponding digital currency without the knowledge or permission of the rightful owner.
Security flaws in some Bitcoin wallets leave them vulnerable to attack. Additionally, certain service providers store the private keys alongside the Bitcoin funds in the same virtual wallet. Hackers appreciate this, as they are able to steal the keys and funds simultaneously.
Fraudulent investment funds and exchanges draw in many cryptocurrency owners who believe they are actually legitimate companies. One such “provider” wiped out approximately $4.5 million in investor value almost a decade ago by establishing a Ponzi scheme that ultimately fell apart. Cryptocurrency owners must be aware of these scams and watch out for them.
Hackers have also been known to attack legitimate exchanges directly because the exchanges are extremely attractive. They access and steal the cryptocurrency from the exchanges’ own wallets, from the wallets of exchange users, and from exchanges and transactions themselves.
How can a person secure their cryptocurrency? What are some ways to keep the funds safe? Many men and women now opt to make their purchases through PayPal. What are the benefits of using PayPal for this purpose?
Numerous peer-to-peer marketplaces created to connect bitcoin buyers and sellers today accept PayPal. At this time, PayPal lacks the option to purchase bitcoin directly through the site, as transactions involving this digital currency remain irreversible. PayPal only allows purchases of bitcoin through the use of a trading marketplace or platform. However, this isn’t the drawback that many imagine when they first learn they cannot make their purchase directly through the site.
By only allowing purchases through peer-to-peer marketplaces and trading platforms, PayPal allows users to choose the marketplace they feel most comfortable with. Trading platforms offer buyers and sellers a place where they can connect to buy and sell digital cryptocurrencies. The key lies in finding a platform that accepts PayPal deposits.
Peer-to-peer marketplaces are platforms that directly connect buyers and sellers so they can trade with one another. As with trading platforms, buyers and sellers need to research which marketplaces allow PayPal as a payment method and have an escrow system in place. Finally, peer-to-peer trading platforms allow buyers to obtain bitcoin directly from a dealer. A single transaction handles both the purchase and sale of the cryptocurrency. When getting started with bitcoin, research the various options to learn which best meets your specific needs.
Access CFD Platforms
While more exchanges and marketplaces now accept PayPal as a form of payment, many individuals purchase bitcoin via PayPal using CFD platforms. Rather than physically purchasing the digital currency, investors take a position on whether the market price of bitcoin will rise or fall.
CFD stands for Contract for Difference. This trading product continues to increase in popularity with those who wish to expand their trading options and branch out from stocks, futures, indices, and forex. They find choosing this option allows them to begin trading without a great deal of technical know-how, and they can earn profits from upward and downward price movements. The security risks decrease when this option is chosen, and the investor won’t need to maintain a cryptocurrency wallet.
Investors appreciate being able to trade using margin, as this allows them to open a significantly larger position than their budget would suggest. Successful trades allow the investor to keep the gains made from the borrowed money with only the broker’s fees being deducted.
More importantly, investors benefit from bearish and bullish markets, something they cannot do when they purchase the physical cryptocurrency. With physical bitcoin, investors only generate a profit when the market is bullish. This allows for more profits in the long run.
PayPal One Touch
Imagine being able to deposit money into a Bitcoin exchange account with no need to log in first every time. PayPal makes this possible with its One Touch checkout option. Once this feature has been activated, users will automatically be logged in when they use the same device and browser. They skip this step when checking out, as they only need to review the details and pay the merchant.
Security concerns lead many to bypass this option, but there is no need to avoid using it. One Touch users find they remain covered by the provider’s fraud protection program, and all transactions are monitored around the clock to detect suspicious activity. Save time and money with the help of this feature, and sellers never receive access to the buyer’s full financial information. This remains secure in PayPal’s system.
To ensure the security and privacy of payment information, PayPal put certain measures into place. They strongly recommend One Touch only be activated on those devices used by an individual rather than those devices shared by multiple people. Additionally, the system only retains the One Touch login for a period of time. If the feature is not used during this time frame, the user must log in again.
Buyers using PayPal as their Bitcoin deposit method remain covered by the Buyer Protection offered by the site. When purchasing bitcoin through the provider, buyers find they receive reimbursement if the cryptocurrency isn’t received or the amount doesn’t correspond with the description provided on the exchange. The reimbursement equals the amount spent by the buyer in this situation, including the full purchase price and the original postage charges. How does a buyer qualify for this protection?
The cryptocurrency needs to be purchased using PayPal and the item must be paid for in only one payment. Buyers who choose to purchase using a multiple payment option don’t qualify for the protection. When the problem with the transaction is identified, the buyer opens a dispute in the website’s Resolution Center. This must be done within 180 days of making the payment. Finally, escalate the dispute to a claim within 20 days of opening this dispute and keep the PayPal account in good standing until the matter is resolved. Visit the PayPal site to review the complete list of eligibility requirements and exclusions.
Buyers find they feel more confident working with PayPal because it is a trusted brand, one that has worked hard to protect its users. The company makes use of state-of-the-art anti-fraud and encryption technology, and the monitoring takes place around the clock. This reduces the risk of identity theft and phishing attacks. Additionally, all transactions involving a cryptocurrency exchange are encrypted from the buyer’s PayPal account.
PayPal allows users to add an extra layer of security to their account as well. The user may opt to require a one-time security code to be used in conjunction with the password when the user logs in.
Many individuals feel cryptocurrency may be the wave of the future. When it was first introduced, quite a few considered it a novelty. Time has shown that this is not the case. However, cryptocurrency users need to take care to protect their funds. Keep this in mind when making purchases or selling your funds. Once they are hijacked by an unscrupulous person, they are gone forever. Nobody wants this to happen.