What a difference even a year makes in the cryptocurrency industry!
PayPal recently announced that it will allow U.S. users to buy, sell, hold, and checkout with digital currencies, including bitcoin, litecoin, bitcoin cash, and ethereum. Plus, Venmo, the mobile wallet owned by PayPal, has started letting customers buy and sell cryptocurrencies.
You can begin by acquiring as little as $1, and it does not require a special crypto PayPal account.
The one drawback is that the coins in your possession are not really yours. The company explained in its Crypto on PayPal FAQ that you have access to your public address, but the payments juggernaut maintains the private key. The website also notes that the crypto in your account cannot be transferred to other accounts on or off PayPal.
In other words, you are restricted from transferring your bitcoin to cold storage, and you are prohibited from transferring tokens to a wallet outside of the PayPal infrastructure.
At the same time, some experts think this can be beneficial for novice crypto investors or traders because not everyone is knowledgeable in keeping track of their public and private keys. If you lose these keys, you lose your coin.
Many people have lost millions of dollars in bitcoin because they forget or lost these keys. So, in the end, you may be better off with PayPal.
Ultimately, the choice is yours.
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