Bitcoin prices continue to crash and rally daily, making it a hot topic for investors looking to make their first investment.
However, Bitcoin does not guarantee a profit. It’s impossible to say if you’ll make money or even if your investment will be recouped. Despite Bitcoin’s 4,000% price rise since 2016, the price of a Bitcoin plummeted by almost £16,000 between 2017 and 2018. As a result of the turmoil in early May, the price collapsed further and reached almost $69,000, half the peak.
The UK’s financial watchdog, the Financial Conduct Authority (FCA), has repeatedly warned potential investors that they should be prepared to lose everything due to this volatility. The following information is for those who are aware of the risks and wish to invest via PayPal or another exchange that uses PayPal as a payment method.
What Is Bitcoin?
Bitcoin also called cryptocurrency or digital currency is a form of electronic money that uses cryptography to control its creation and management, rather than relying on central authorities. It was invented by an unidentified programmer, or group of programmers, under the name Satoshi Nakamoto in 2008 and released as open-source software.
Buying Bitcoin via PayPal
Bitcoin can be purchased through PayPal’s website or smartphone app. Start by selecting Crypto from the navigation bar once you’ve logged in or created an account.
The identity check requires sharing personal information after selecting Bitcoin from the list of cryptocurrencies. When you pass the check, you can type in the amount you want to invest or select a preset amount.
Buying Bitcoin from An Exchange Using PayPal
Bitcoin can be purchased using PayPal funds deposited into your account on some crypto exchanges. Some exchanges, e.g., Coinbase, only allows this feature in the US, while others like eToro allow UK users to deposit money from PayPal without fees.
Check if your chosen exchange includes a wallet for securely storing your Bitcoin once you’ve chosen an exchange that accepts PayPal. The exchange may accept Bitcoin, but if you prefer to store it in a separate wallet – either hot (online) or cold (offline) – make sure it allows transfers, and if you have to pay withdrawal fees.
Place An Order
You can invest your money in Bitcoin once you’ve deposited your PayPal funds into your exchange account. If you have deposited money from PayPal, the amount cannot exceed that amount.
As Bitcoin hovers around the £30,000 mark, you will probably be buying one Bitcoin share. Buying £1000 worth of Bitcoin would be equivalent to purchasing 3% of a Bitcoin at a price of £30,000 at the time of exchange.
Securely Store Your Bitcoin
Whether your exchange’s integrated wallet, a third-party provider, or an offline storage drive you own, Bitcoin should be kept in a secure wallet.
Hot (online) wallets are less secure since they’re hosted online and more vulnerable to hackers, but you can recover your assets if you forget your passcode.
If you lose your access codes, no one will help you retrieve them so you could lose access to your Bitcoins. Cold (offline) wallets are more secure since they are not connected to the web, but you can lose access to your Bitcoins if you lose your access codes.
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Ultimately, it’s really up to you to decide which wallet system works best for your needs. For beginners, Bitcoin is a great way to start investing in the future of money. Bitcoin’s Value: Bitcoins have been on a rollercoaster ride since their creation, and now that their popularity has started to grow, their value is at an all-time high. The value of Bitcoin at the time of writing was $11,000 per Bitcoin.
How To Buy Bitcoin with PayPal in 2023
Buying Bitcoin with PayPal can be done through various methods, such as using online platforms that support PayPal transactions or peer-to-peer trading platforms. Here’s a step-by-step guide on how to buy Bitcoin with PayPal:
- Choose a platform that supports PayPal transactions: Some popular platforms that allow you to buy Bitcoin with PayPal include eToro, LocalBitcoins, and Paxful.
- Create an account: Sign up for an account on the platform you’ve chosen. You may need to provide some personal information and verify your identity as part of the platform’s KYC (Know Your Customer) process.
- Link your PayPal account: Once your account is set up and verified, link your PayPal account to the platform. This typically involves adding your PayPal email address and granting the necessary permissions.
- Deposit funds: Deposit funds from your PayPal account to the platform. There may be deposit fees associated with this transaction, so make sure to check the platform’s fee structure.
- Buy Bitcoin: Once your funds are available in your account, use the platform’s trading interface to buy Bitcoin. On platforms like eToro, you can simply search for Bitcoin, click “Trade,” and enter the amount you’d like to purchase. On peer-to-peer platforms like LocalBitcoins or Paxful, you’ll need to find a seller who accepts PayPal, agree on the terms of the trade, and complete the transaction.
- Transfer Bitcoin to your wallet: It’s recommended to store your Bitcoin in a secure wallet, either a software or hardware wallet, rather than leaving it on the platform. Transfer your newly purchased Bitcoin to your wallet’s address.
Note that buying Bitcoin with PayPal may come with higher fees compared to other payment methods, and there may be limitations on the amount you can purchase. Additionally, not all platforms support PayPal transactions, so your options may be more limited.