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Is PayPal Worth it for Crypto?

By Jinia04/05/2023


PayPal is an incredibly popular payment system that allows users to move money back and forth with relative ease. Since its establishment in 1998, it has changed how people move money across borders online. Boasting millions of users globally, PayPal has become a reputable name in FinTech.

In October 2020, PayPal made a crucial update to its platform, allowing customers to trade popular cryptocurrencies such as  Bitcoin, Ethereum, and Litecoin. This was a momentous achievement in the adoption of digital currencies, given PayPal’s millions of users who now had access to crypto. 

This move was considered a game-changer for the crypto sector, as it broadened the possibility of investment in cryptocurrencies and helped to legitimize the market. In addition, PayPal’s cryptocurrency trading platform has continued to evolve and enhance since its debut, presenting users with a smooth and secure method for buying and selling digital assets.

In this article, we will look at what PayPal’s crypto platform has to offer.


  • Convenient

  • User-friendly platform

  • Supports the most popular cryptocurrencies

  • Ideal for beginners

  • Secured with high-quality encryption


  • Limited selection of coins

  • Higher fees

  • Highly centralized

The Basics of PayPal Crypto

Launched on October 21, 2020, PayPal’s decision to offer crypto services was driven by the increasing demand for cryptocurrencies among its users and the growing acceptance of digital currencies as a legitimate investment asset class by other payment processors. 

By offering a user-friendly and secure way to buy, hold, and sell cryptocurrencies, PayPal aimed to make it easier for its users to participate in the cryptocurrency market and potentially benefit from its growth.

Since its launch, PayPal’s crypto services have been met with mixed reactions from the cryptocurrency community. Some have welcomed the move as a positive step towards wider adoption of cryptocurrencies. In contrast, others have criticized it as a centralized and restrictive approach that goes against the principles of decentralization and anonymity that cryptocurrencies are built upon.

Regardless of the opinions, PayPal’s entry into the cryptocurrency market has undoubtedly impacted the industry significantly. 

When the service was launched, users could not deposit or withdraw crypto directly into their accounts. Several updates later, the platform was updated to allow users to deposit and withdraw supported coins.

What Are PayPal’s Main Crypto Features?

With PayPal’s cryptocurrency capability, users can conveniently buy or sell Bitcoin, Bitcoin Cash, Ethereum, or Litecoin starting from as little as $1 and keep tabs on crypto market rates. Furthermore, the service allows users to acquire, hold, and liquidate some cryptocurrencies, initially incorporating Bitcoin, Ethereum, Bitcoin Cash, and Litecoin, directly from within the PayPal digital wallet2.

All crypto assets custody and trading are handled for PayPal by its licensed service provider, Paxos Trust Company, LLC3. In addition, educational resources about the crypto market are also available for users.

Is it Safe?

PayPal’s vigilant efforts can thwart any illicit crypto transfers, and you may qualify for reimbursement of up to $50,000 for any such unauthorized transactions. Furthermore, authorized Checkout with Crypto transactions comes bundled with the assurance of PayPal’s safety, security, and other perks, like 24/7 protection against fraud, shipping for returns, and protection for qualifying purchases.

This makes PayPal a decent on-ramp platform, especially for absolute beginners in the crypto world who have yet to understand the nuances that make up the entire space. For example, with crypto, one wrong transaction can have you lose the entire amount of money you want to send. With PayPal, however, users don’t have to worry as the platform enables refunds to an extent.


PayPal’s stability as a company is one of the key factors that make its cryptocurrency trading platform attractive to modern investors. With over 300 million active users and a reputation as a trusted online payment processor, PayPal is a household name that inspires confidence in its customers.

The fact that PayPal has ventured into the cryptocurrency market indicates a growing acceptance of digital currencies as a legitimate investment asset class. Moreover, PayPal’s backing of cryptocurrencies provides a level of assurance to investors that their investments are safe and secure.

Unlike some cryptocurrency exchanges that have experienced security breaches and hacks, PayPal’s crypto trading platform benefits from the company’s reputation for robust security measures.

Like most crypto platforms, PayPal uses advanced encryption technology and two-factor authentication to protect user accounts and transactions, which can be reassuring for investors concerned about the safety of their assets.


With PayPal, there are different fees based on the type of transaction you are making. For instance, making a purchase using the PayPal app comes with a $0.50 fee for any investment under $25. The most fee you can expect to pay with PayPal is the 2.3% fee for purchases above $25.

Even though PayPal’s transaction fees are much higher than traditional crypto platforms, beginners are still better off with PayPal, given the level of protection it offers inexperienced crypto users. 

Customer Support

PayPal has a range of customer support options available to users, depending on their specific needs and whether they are logged in or not. Users can message PayPal, call them, use the PayPal chatbot, or ask the community for help1. The PayPal app also offers a user-friendly option to contact customer support by tapping on the profile photo, choosing Help, and selecting the relevant issue1. Alternatively, users can call PayPal at 1-888-221-1161 using the phone number associated with their PayPal account for assistance.

Conclusion: PayPal is Great for New Crypto Users

To wrap up, PayPal’s cryptocurrency trading platform has fundamentally transformed the digital currency arena by providing a user-friendly and secure way to buy, hold, and sell cryptocurrencies. Its convenience, accessibility, and security measures make it an alluring alternative for contemporary investors who desire to participate in the cryptocurrency market.

PayPal’s reliability as a company and its reputation for security are some of the key factors that make its cryptocurrency trading platform a trusted option for investors. Although the platform has some limitations, such as higher fees and limited coins to invest in, and an overall centralized structure,  it continues to gather the confidence of newer crypto users.

However, considering the availability of several alternatives in the market, experienced crypto users will likely be turned off by PayPal’s multiple restrictions. 

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Jinia is a fintech writer focused on the cryptocurrency market and passionate about blockchain technology. With years of experience, she contributes to some of the most renowned crypto publications such as Cointelegraph, Coinmarketcap and others. She also has experience writing about the iGaming industry.

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