Should I Buy Ethereum Using PayPal?
Ethereum is one of the most popular cryptocurrencies in the world. In less than a decade, the price of a single Ether has jumped from less than $5 to more than $2,500. At its peak, it was close to $5,000, and its total market capitalization was over $500 billion. In this article, we will explain what Ethereum is and explain whether it makes sense to use PayPal to buy it. You can read an in-depth review of PayPal in cryptocurrencies at Bankless Times.
What is Ethereum?
Ethereum is a second-generation blockchain platform that enables developers to build all types of decentralized applications. It achieves this through its smart contract technology that helps to facilitate the security of all transactions.
Today, Ethereum has a broad use case. For example, it is the leading player in the metaverse industry. For example, Axie Infinity and Decentraland are all created using its technology. It is also widely used in decentralized finance (DeFi) where top applications like Aave, Uniswap, and Curve Finance were all built using Ethereum’s technology.
The same applies to the non-fungible token (NFT) industry. For NFTs to work well and to prevent scams, the role of smart contracts is critical. This is why some of the biggest NFT projects like NFTs were built using Ethereum’s technology. Other areas where Ethereum has been used well are in gaming and stablecoins.
While Ethereum is a crucial project, it also has its limitations. For one, since it is a second-generation project, it can only process a few transactions per second. In most cases, the average TPS is less than 15. Other newer projects like Avalanche and Kadena can handle thousands of transactions per minute.
Another challenge is that Ethereum consumes a lot of energy to handle transactions. According to Ethereum, on average, it consumes 0.667 kwh, which is substantially high.
How to buy Ethereum with PayPal
A common question among investors is whether it is possible to buy Ethereum using PayPal. This question is common because PayPal is one of the most popular fintech companies in the world. It has over 426 million customers from around the world. PayPal also owns Venmo, a popular peer-to-peer money transfer company.
There are several methods of buying Ethereum and other cryptocurrencies using PayPal. First, you can identify a broker that accepts PayPal as an option. While PayPal is a popular option, many exchanges don’t offer it as an option. They cite its complex working structure, high fees, and limitations.
For example, while an exchange like Coinbase accepts PayPal, there are limits on the amount of money you can transact on a daily basis. Other companies that accept PayPal are Binance and eToro.
Second, you can buy Ethereum using PayPal via a peer-to-peer payment platform like PaxFul. These are companies that provide a safe environment for people to trade cryptocurrencies with one another. The process of doing this is simple.
Visit the website and create an account and verify it. After this, visit the marketplace and see Ethereum sellers who accept PayPal and select your preferred one. The seller will provide you with their PayPal address, which you will need to send them money. After doing that, they will release the agreed Ether into your account.
Third, depending on your country, you can buy Ethereum directly in the platform’s app. This service is offered in limited countries like the US and the UK. The process is simple. You first need to load funds into your PayPal account and then go to the crypto tab and identify the amount that you want to spend. After doing this, PayPal will deduct the funds from your balance. Alternatively, it will deduct the cash from your card.
Finally, you can buy Ethereum using your PayPal card. To do this, you just need to find an exchange that accepts cards, create an account, and then enter your PayPal card details.
Is PayPal a good option?
PayPal has a number of pros and cons when you use it to buy and sell Ethereum. One of the toughest challenges especially when using p2p markets is that of chargeback. A person who you sold coins to can initiate a chargeback with PayPal, which will lead to a loss.
Second, when using centralized exchanges, transactions have a cap that makes it difficult for you if you are buying a lot of coins. Third, if you are using a different currency, PayPal will charge you a conversion fee that is usually a bit high. Finally, many of the popular exchanges like Huobi and Kraken do not offer PayPal as an option.
On the other hand, there are some pros to using PayPal. First, buying Ethereum using its mobile wallet is an easy process that takes a few seconds. Second, the process is simple especially if you have an active PayPal account.
