2 days ago, Coinbase officially announced that it has enabled the ability to use PayPal to pay for cryptocurrency purchases.
Actually, it was already possible to connect a PayPal account to Coinbase for a long time, but it could only be used for withdraw fiat currency from the exchange.
However, since PayPal itself began offering the cryptocurrency buying and selling service directly within its platform in November of last year, it became clear that sooner or later it would also agree to use the funds in its accounts to buy cryptocurrencies from third-party exchanges. .
Therefore, yesterday's announcement from Coinbase is not at all unexpected and it is possible that literally millions of people are interested in it.
In fact, PayPal account holders who wanted to buy cryptocurrencies have long been looking for an easy and secure way to do so, and the connection to Coinbase has always seemed the most obvious.
How does PayPal linked to Coinbase work?
Coinbase said that the new service to buy cryptocurrencies using debit cards and bank accounts linked to PayPal only active in the US for now, but it will be rolled out to other countries in the coming months. Withdrawals to PayPal accounts, on the other hand, are already available in Canada, the EU, and the UK, in addition to the US.
Funding cryptocurrency purchases on the exchange with PayPal is instant and just a few clicks away. All that is required is to link a PayPal account to a Coinbase account to use the bank accounts or cards previously linked to the PayPal account, as well as the funds that are held directly in the PayPal account.
If the email address of the PayPal account you want to use is the same as the email address of your Coinbase account, the connection is immediate; otherwise, you must go through a two-factor authentication process.
With this payment method, you can buy up to a maximum of $ 25,000 per day on Coinbase.
What was not specified in yesterday's announcement is whether this new payment method will incur additional costs in addition to those charged by the exchange on purchases made with other payment methods, but in general, the fees for PayPal payments will never they are charged to the person making the payment.