Coinbase as a cryptocurrency exchange platform has evolved drastically over the past few years. This change has plummeted the company as one of the leading crypto platforms in our current crypto climate.
With frequent changes and improvements made here and there, the company has further accelerated its platform by offering Coinbase PayPal. But what exactly is Coinbase PayPal, and how does it work? We will be uncovering this very topic in today’s blog post that springs from our official Coinbase review.
Coinbase PayPal can simply be seen as a mode of payment to purchase crypto. The company now offers millions of United States customers a quick & straightforward way to purchase digital currencies such as Bitcoin through its exchange platform via debit card & bank account connected to the customer’s PayPal account – this is precisely what Coinbase PayPal is at its core.
According to the company, purchasing crypto should be easy & simple. However, moving money around in the traditional financial sense is anything but easy. Online money transfers such as ACH & wire transfers tend to require lots of time & effort, which does not go hand-in-hand with the need for a fast and seamless way to avail crypto purchases. Hence, came into the picture Coinbase PayPal.
By working with the payment ecosystem, PayPal has over the years garnered vast knowledge and implemented all proper tools to ensure performance, security, and transparency to its users in all services. Hence, this collaboration pushes the companies a step further into bringing users an easy & secure way of accessing the crypto economy.
How Does Coinbase PayPal Work?
Coinbase users can buy digital currency through their US PayPal accounts. The feature aims to offer users a “familiar & trusted” experience of purchasing numerous cryptocurrencies that exchange platforms currently support.
The Coinbase to PayPal relation also means that users don’t necessarily have to provide information on bank accounts or debit cards. This is because PayPal acts as an intermediary between the cryptocurrency exchange and the user.
To enable the Coinbase PayPal method, you can add any PayPal account through the Add a payment method tab, which will link you to PayPal’s login screen.
Here’s what you should know about Coinbase PayPal:
- Users can either register on the PayPal site or download the PayPal app.
- To ensure the PayPal account is linked to Coinbase, customers must first complete the entire Coinbase document verification steps and the residence address.
- After document verification is over, users can easily link any new account and add PayPal as the payment method.
- The email account of PayPal and Coinbase should match.
- Users are allowed to use only a single PayPal account at once.
That said, the maximum amount of purchase via PayPal currently stands at $25,000 per day. Both Debit cards & bank accounts that are linked to PayPal can be utilized to purchase cryptocurrencies. However, the Coinbase PayPal feature does not support other payment methods such as credit cards or prepaid cards.
Now, purchasing crypto via PayPal ranks as one of the priciest payment options from Coinbase. Despite having a higher limit, its 3.99% fee comes at a similar level as debit card purchases. Depositing USD to Coinbase from PayPal also triggers a 2.5% levy, but ACH transfers are free.
Although the PayPal crypto fees vs. Coinbase seem to be on the higher end, it is challenging to compare the fees as crypto platforms do not provide much transparency on the charges. You may also be trading, depositing money, or withdrawing funds, which contain very little consistency regarding charges across different platforms.
Are there any advantages to Coinbase PayPal?
As mentioned by the company, purchasing cryptocurrencies should be easy & simple, which is what the Coinbase PayPal feature works towards. Now, this fast & seamless way of making crypto purchases does provide users with some heavy advantages, including:
- Familiar & trusted experience: Through PayPal, customers are able to gain that familiar and reliable experience as they freshly navigate the crypto world. Thus, enabling users to carry out transparent transactions with maximum security.
- Instant transaction: Customers with an existing PayPal account & Coinbase account can make transactions instantly without the need to include their banking or card credentials in Coinbase.
- Flexibility & Two-factor authentication: Users can select the crypto of their liking, move on to the payment section, and add PayPal. Customers with different PayPal and Coinbase emails are then required to go through two-factor authentication.
- Versatile transaction: In addition to the PayPal option, US customers are able to purchase crypto with any connected bank account via wire transfer or ACH, debit card, or funds remaining in their Coinbase wallet.
How To Buy Bitcoin with PayPal on Coinbase?
For those with an existing PayPal account, users can instantly buy Bitcoin with PayPal Coinbase. The PayPal transaction can be carried out securely without even the need for disclosing banking or card details directly to Coinbase.
If you haven’t linked your PayPal account yet, then here are some easy steps you can follow:
- First, make sure to complete all the ID document verification and select the correct country of residence.
- Go to the settings tab through your Coinbase account, click on Payment Methods and then link the new account (from PC) or simply select the Add a Payment Method option from the Coinbase mobile app.
- Lastly, go for the PayPal option, which will then redirect you to the login page of PayPal.
For the US audience, users must provide a valid & legitimate payment method such as a debit card or a bank account linked to the PayPal account to purchase cryptocurrency or even add cash via the PayPal account.
Once the PayPal account is linked and set, you can start funding crypto purchases via PayPal by selecting the digital currency or crypto you want to buy – which in this case, is Bitcoin. Once you choose the payment method and choose PayPal, users will be directed to the PayPal login screen.
Make sure you’re using the same email for both Coinbase and PayPal, as different emails will require the user to go through two-factor authentication.
After logging into the PayPal account, you can either select the bank account or debit card linked to the PayPal account. Customers can make up to $25,000 worth of purchases in a day.
As mentioned earlier, US customers can purchase crypto with any connected bank account through wire transfer or ACH, their debit card, and even funds from their Coinbase wallet (USD).
How To Withdraw From Coinbase to PayPal?
Through the partnership of Coinbase with PayPal, the platform enables its users to withdraw cryptocurrencies from their Coinbase account to PayPal. This acts as a faster and smarter alternative to traditional federal wire accounts or ACH needed to withdraw the funds – which can often take up to 2 business days.
To get started with the withdrawal, customers can simply sign in to their Coinbase account and then select the PayPal account as an option for withdrawing the cash to your PayPal account. The money withdrawn instantly reflects into the user’s PayPal account. Also, there is no Coinbase PayPal withdrawal fee. Coinbase to PayPal cash withdrawals is already available in several countries, including the US, EU, UK, and Canada.
As a platform that’s always looking to raise the bar set by the traditional finance system, Coinbase ensures that users benefit from a speedy and reliable withdrawal through PayPal.
Coinbase PayPal FAQs
Users can add PayPal to their Coinbase account only through the official Coinbase website via any mobile or computer browser. Once you successfully log in to the Coinbase account, go over to settings, select the linked accounts section, and hit the Link a New Account option. You can now choose PayPal, log in to your PayPal account and merge the two accounts together.
When prepared to fund crypto purchases using PayPal, pick the crypto the customer wishes to purchase, click on the mode of payment, and select PayPal from the “Add a payment method” menu. The customer will be rerouted to the PayPal sign-in site. Once the log-in procedure is done, choose or add a PayPal-linked bank card or bank account.
US customers with their PayPal linked to the Coinbase account can make instant cashouts/withdrawals from their Coinbase balance to PayPal. Thus, enabling fast access to funds via one of the most accessible and most popular payment platforms. Additionally, Coinbase does not charge any transaction fees, and your funds should appear within your PayPal account in just a few seconds.
If users are unable to sell/withdraw funds from Coinbase, it can be due to various reasons, including:
– New account holder
– Restriction in a specific region
– ID document verification is incomplete
– Your Coinbase account is flagged for fraud
– Recent purchase made via a credit card
Depending on any of the above reasons, you may be unable to withdraw funds, and according to the reason, the solution may also vary.