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What is Better for Bitcoin? Cash App or PayPal?

By Jinia02/14/2024


PayPal and Cash App offer pretty much the same features for anyone looking for a peer-to-peer mobile payment solution. However, when you are considering which to use for Bitcoin, the answer gets a bit more detailed.

According to some users on Reddit, making Bitcoin purchases on PayPal is more accessible, although they impose a three-day waiting period before you can spend your Bitcoin. Cash App gives you access to your purchased Bitcoin as soon as the transaction completes. 

PayPal claims that the three-day holding period is to confirm the bank transfer, so the funds will take some time before they are cleared for the original purchasing transaction. While Cash App’s user interface is not as intuitive to use as PayPal’s, you get immediate access to your Bitcoin, and you can even save some public addresses to your device for later when you need to make a transaction. 

Here is a detailed look at what to expect when using PayPal and Cash App.

PayPal: Easy to Use But Comes with a Delay

PayPal was founded in 1998, so compared to Cash App, which was founded in 2013, it boasts a significantly longer history in online payments. Both platforms have carved out niches in the digital finance landscape, but in recent years, they’ve also delved into cryptocurrency, particularly Bitcoin. As digital currencies gain mainstream acceptance, consumers are increasingly interested in platforms that offer easy access to buying, selling, and holding Bitcoin.

Fortunately, buying Bitcoin on PayPal is as easy as it gets, especially if you are already a user. You can easily log in and complete your transaction instantly without having to install another financial services app on your phone or computer. This degree of simplicity and accessibility is attractive, especially for users who are new to crypto.

PayPal also offers superior regulatory protection when compared to rival apps. Provided you follow their due diligence during the purchasing process, you can benefit from a layer of security that is hard to find on most crypto exchanges. 

If you encounter any unauthorized activity, PayPal has your back, offering full coverage for the entire amount. However, there’s a catch – you need to play ball by cooperating and sticking to the rules outlined in the PayPal User Agreement. If you suspect any fishy business in your cryptocurrency account, don’t hesitate to reach out to PayPal. Quick action is key to resolving issues swiftly and keeping your assets safe and sound.

Another advantage to PayPal is that you can withdraw your Bitcoin to an external crypto address if you need to. You can do this by either scanning the external wallet with a QR code or copy-pasting manually.

However, one of the dealbreakers for using PayPal for your Bitcoin purchases is that US citizens may be required to submit additional paperwork such as IRS forms. Plus, a PayPal account is not the best for making frequent Bitcoin transactions due to higher fees. As mentioned, there is a 3-day delay for the transaction to clear. 

Cash App: Not as Intuitive But Offers Speed

While PayPal might boast a longer history in the online payment arena, Cash App is swiftly gaining ground, especially with an increasing number of vendors embracing its services daily.

Unlike PayPal’s seamless integration, Cash App’s interface might not be as intuitive, but it is easy to adjust to and compensates with speed and convenience. Although founded much later in 2013, Cash App has quickly become a favorite among users for its straightforward approach to digital transactions.

One of Cash App’s standout features is its growing acceptance among vendors. More businesses are hopping on the Cash App bandwagon, making it an increasingly viable option for everyday transactions. This expansion in vendor acceptance positions Cash App as a versatile tool for both personal and commercial use.

Cash App also comes with Bitcoin trading capabilities, which means you can use it to make frequent Bitcoin transactions where PayPal doesn’t support a similar feature. You also get to withdraw your Bitcoin holdings to an external wallet with a few simple steps. Simply choose the amount you want to withdraw, select the wallet address and confirm to receive your Bitcoin momentarily.

Plus, while Cash App’s international money transfer service is limited to its US and UK users, it does not charge a fixed service fee; therefore, live exchange rates apply, meaning you can easily send Bitcoin to friends and family at the best rates. What’s more, you get to see how much each transaction will cost before you confirm the transaction, which is a nice addition, especially for those who are new to crypto. 

When it comes to storage of your Bitcoin, Cash App claims that a “vast majority of all Bitcoin” in its holdings is kept in cold storage. This is a plus for Cash App as it enhances security and minimizes the risk of unauthorized access to your cryptocurrency holdings.

Cash App’s emphasis on security is further underscored by its approach to Bitcoin trading. With its focus on user convenience and safety, Cash App ensures that your Bitcoin transactions are executed swiftly and securely, providing peace of mind in an increasingly digital world.

Moreover, Cash App’s international money transfer service, although limited to its US and UK users, offers a compelling advantage: no fixed service fees. Instead, live exchange rates apply, enabling users to send Bitcoin to friends and family at the most favorable rates. This transparent fee structure, coupled with the ability to preview transaction costs before confirming, is particularly appealing to newcomers to the world of cryptocurrency.

Why You Should Pick Cash App for Bitcoin

As you can see, the best option to pick is Cash App for several compelling reasons. While PayPal undoubtedly boasts a longer history in the online payment landscape, Cash App emerges as a dynamic and user-friendly platform for those venturing into the world of Bitcoin transactions.

The straightforward nature of Cash App’s interface, though initially less intuitive than PayPal’s, becomes easy to navigate with a bit of adjustment. The platform’s commitment to speed and convenience compensates for any initial learning curve. Cash App’s growing acceptance among vendors further positions it as a versatile tool for both personal and commercial use, catering to a wide range of transaction needs.

Unlike PayPal, Cash App allows users to engage in frequent Bitcoin transactions, providing a valuable feature for those actively involved in the cryptocurrency market. The platform’s commitment to security is evident in its use of cold storage for the majority of its Bitcoin holdings, minimizing the risk of unauthorized access and ensuring the safety of your assets.

Cash App’s international money transfer service, although limited to its US and UK users, offers a significant advantage with the absence of fixed service fees. This means you can send Bitcoin to friends and family without incurring additional charges and with live exchange rates, ensuring you get the best value for your transactions. The ability to preview transaction costs before confirming adds an extra layer of transparency, making it particularly user-friendly, especially for those new to the crypto space.

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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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