Want to buy cryptocurrency? What you need to know first

April 2, 2021

By Kim Komando

PayPal added the option to purchase cryptocurrency last November in a public move that shocked the mainstream world. While Bitcoin was already rising in popularity as it continued to prove itself, PayPal’s addition gave it that much more legitimate.

Cryptocurrency used to feel like a tall tale that we heard rumors about from our friends. We’ve all heard that story of someone who invested in Bitcoin and suddenly became a millionaire. Most of us brushed it off in disbelief. Cryptocurrency was risky and seemed like it wouldn’t last. Tap or click here for a deep dive into Bitcoin.

Since it began, one Bitcoin has risen in value to more than $58,000. Yikes! Before you invest in cryptocurrency, let’s take a look at some things you need to know first.

Crypto goes mainstream

In the past several years, other cryptocurrencies have risen to join Bitcoin and have performed just as well. Now, the number of places that accept cryptocurrency as payment is rising. You can make purchases through Microsoft, Overstock, Twitch, Norwegian Air and even Tesla. All with Bitcoin. That’s right, you can buy a car through Tesla using Bitcoin.

To make things even crazier, PayPal has jumped into the mix. Now you can purchase items from PayPal’s approved vendors using cryptocurrency as a method of payment.

Why do people use it?

When cryptocurrency started, there were two types of people who used it. Those who were afraid of banks and those who thought it was a good investment.

Those afraid of banks loved the idea of investing in digital currency, putting their savings in the protection of the internet, rather than typical financial institutions that might go under. No matter how crazy the idea may have been at the time, it obviously paid off.

The latter group saw it as a solid investment plan. Many people invest in a diversified portfolio of cryptocurrencies instead of just stocks and mutual funds, and it continues to be successful.

It’s also been prevalent in online gambling casinos. Some give you double or triple the value of your buy-in if you fund your account with Bitcoin.

What does it mean for Paypal?

The big question is, what does it matter if PayPal added cryptocurrency? Well, there are plenty of benefits if you already use PayPal.

• Top-notch security – PayPal already has a world-class security system to prevent hackers from accessing your cash.
• Multiple options – You can invest in four different types of cryptocurrency with PayPal, not just Bitcoin. Your options are Bitcoin, Bitcoin Cash, Litecoin and Ethereum.
• Ease of use – Store crypto in your PayPal wallet, so there is no need to download additional apps or figure out new software to purchase cryptocurrency.
• Purchase quickly and easily – PayPal allows you to purchase cryptocurrency in under a minute.
• Works like other payment forms – You can use cryptocurrency as a payment option at the checkout with PayPal, just like your credit card.

The obvious advantage here is that cryptocurrency isn’t like regular money. It continues to grow and earn value after you purchase it. Or, in some cases, lose value.

So by purchasing a little every week in your PayPal wallet, you could see your money grow. You can then use those earnings to make purchases at thousands of places that accept PayPal, like Home Depot, eBay and even Uber.

If you’ve considered buying cryptocurrency or are even just curious about it, now might be the time to login into your PayPal account and give it a try. Enjoy shopping online? Save money with this online shopping-comparison tool.

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