Back in August 2021, PayPal announced the use of Crypto at Checkout for U.S customers. Crypto was being added to credit cards and other payment methods are possible payment options.
The crypto payment launch by PayPal was embraced with excitement among its numerous users who own crypto globally.
The ability to hold crypto on your PayPal wallet comes with some questions on the type of coins that are supported and the limits to which your wallet can be funded.
In the article, I’ll provide answers to these questions.
Key Takeaways
• You can purchase crypto speedily within seconds on PayPal with as little as $1 from your PayPal balance.
• There is a need to safeguard your private keys, cause there is none. PayPal is responsible for the safety and holding of crypto Purchased on the platform.
• In event of an account hack, Get a full replacement of all your crypto assets on PayPal.
• PayPal Purchase Protection also extends to payments with crypto when you pay at stores accepting PayPal.
SEE ALSO: How to Get Your Crypto Off PayPal
Maximum Bitcoin On Paypal Cryptocurrency Hub
PayPal manages your crypto assets in your cryptocurrency hub through a partnership with Paxos, a Crypto Brokerage platform that buys, holds, and selling of cryptocurrency possible within a company app. and depending on location, other service providers too.
Your cryptocurrency is being held for you under the name of PayPal on such service provider platforms. Hence the absence of a private and public key for your account.
The amount of crypto assets you see in your cryptocurrency hub account represents your part of the crypto assets held by PayPal.
There is absolutely no limit to the amount of Bitcoin that can be received in a crypto wallet.
Cryptocurrency wallets are decentralized and therefore have no imposed limit. A billion worth of Bitcoin can be received in a single wallet and you can keep adding more.
There is also no minimum amount that can be held in a crypto wallet.
Limits on PayPal, just like any other financial service platform, are only applied to the transactions you can make per time. The cumulative value is not restricted to any amount.
PayPal only limits purchases of Bitcoin and other supported cryptos to a weekly purchase limit of $100,000. There is no specific limit to the amount of Bitcoin you can hold on PayPal.
PayPal Transaction limits
From when PayPal introduced and started allowing users to buy cryptocurrencies on the platform, there have been timely changes to the limits a user is entitled to purchase on the platform.
Currently, a user can only purchase $100,000 worth of digital assets on PayPal in a week.
Before now, the maximum amount of Bitcoin or digital assets a user can buy within a week was limited to $20,000. Better than the annual purchase limit of $50,000, which has been scrapped by PayPal.
These transaction limits on PayPal are not permanent and they have the right to change them at any time.
Aside from the standard transaction limit, limits for a particular account might be changed for various reasons. So the actual transaction limit of an account can be seen in the account after logging in.
Frequently Asked Questions (FAQs)
Q1. Can you hold bitcoin in PayPal?
Yes, you can hold Bitcoin in your PayPal cryptocurrency hub. PayPal cryptocurrency hub currently features the following for US-based users.
- Buying of cryptocurrency
- Holding cryptocurrency
- Selling cryptocurrency
- Using cryptocurrency for payment at checkout.
The PayPal cryptocurrency hub is fully custodial, so PayPal is responsible for holding assets with its crypto service provider partners.
Q2. How much does Paypal charge for holding Bitcoin?
PayPal does not charge any fees for holding Bitcoin or other supported digital assets in your account. PayPal, however, charges fees on buying and selling cryptocurrencies. The fee amount depends on the amount involved in the transaction.
- $0.5 for 1.00 – $24.99
- 2.30% for 25.00 – $100
- 2.00% for 100.01 – $200
- 1.80% for 200.01 – $1000
- 1.50% for above $1000
It is also worthy to note that PayPal also does not charge any fee for converting crypto to fiat during checkout.
Q3. Is PayPal better than Coinbase?
You can buy Bitcoin from Coinbase just as you can buy on PayPal. Coinbase is a crypto exchange platform and offers more variety of cryptocurrencies than the four offered by PayPal.
Both Coinbase and PayPal are custodial wallets but you can transfer from Coinbase to external wallets, while PayPal only offers sale and checkout payment options for digital assets.
Between Coinbase and PayPal, if you are looking for a platform to trade on, Coinbase will be a good choice. However, PayPal offers a good environment for buying and securely holding your assets.
Both have their good specifications, so it is all up to you to know what you want to invest in and how you want to do it.
You can hold as much Bitcoin as you want one PayPal, but you cannot transfer them to another account or wallet on or off the PayPal platform.
That being said, if you are someone that moves digital assets frequently between wallet and platforms, you should consider holding your Bitcoin somewhere else.
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