Image by Raphael Silva from Pixabay
(Photo : Raphael Silva from Pixabay)

PayPal users who have Bitcoin or Ethereum on their accounts can now withdraw their funds to external wallets. And this means PayPal users can now self-custody their coins, a critical feature for cryptocurrencies.

The external transfers feature has been rolled out to new users and is now available across the United States. PayPal started allowing users to purchase, sell, and hold Bitcoin on its platform in 2020, and these services are now available in the United Kingdom. Start your trading journey by using the new tool in trading at BitIQ

According to the update of PayPal's Terms and Conditions, external transfers require only the external wallet's public address. The company says that identifying information, such as that necessary in Europe when withdrawing funds from self-custodial wallets, will not be needed.

Remarkably, PayPal does not incur its customers for cryptocurrency transactions, which sets it apart from most exchanges' business models.

PayPal Enables Bitcoin Withdrawals and Deposits

PayPal announced that it would support the transfer of cryptocurrencies between PayPal and other wallets and exchanges. According to the company, most of their users requested this particular enhancement. 

Users can now withdraw cryptocurrency to crypto addresses, third-party exchanges, and hardware wallets using the new option. 

Baby Steps towards Complete Crypto Support

PayPal launched a crypto trading function in October 2020, but users initially had few options other than exchanging different coins. These constraints drew widespread criticism.

Beginning in March 2021, users will be able to spend their cryptocurrency with PayPal-accepting merchants. However, when commercial payments initially emerged, there was no way for clients to withdraw assets to a personal wallet.

People expected personal cryptocurrency withdrawals to occur at some point. Experts have worked on the feature for at least a year, with PayPal executives discussing its inclusion since May 2021.

Transferring cryptocurrency from an external wallet or exchange to PayPal:

  • Once logged in to PayPal, navigate to the crypto section of your app and select the coin you want to transfer.

  • Select "Receive" after clicking or tapping the transfers button

  • Complete any additional ID verification steps if necessary. This procedure is usually only needed once per user.

  • Share the unique address with the sender or enter it into the third-party cryptocurrency app from which you are sending. Experts recommend using the QR code or cutting and pasting the wallet address directly to avoid errors. If you manually enter the address, double-check that it is correct. You cannot recover your assets if you have a typographically incorrect address.

The wallet address is generated only for the selected coin, not your PayPal account. PayPal generates a new "Receive" address whenever you want to send crypto to your account to help protect your privacy. Transferring cryptocurrency into PayPal is free of charge, but network and sender fees may apply, and processing times may vary.

Transferring and receiving cryptocurrency with other PayPal users

  • Once logged in to PayPal, navigate to the crypto section of your app and select the coin you want to send. Select "Send" after clicking or tapping the transfers button.

  • Choose the PayPal contact to which you wish to send cryptocurrency and confirm your fee-free transfer.

With the new features that PayPal has introduced, you can quickly transfer Bitcoins to another PayPal. In the same way, you can also receive Bitcoin to your PayPal account. With such features, investing and trading Bitcoin has become more accessible because it makes transfers faster. When you receive your Bitcoins, you can maximize your profits through trading. 

Take Away

PayPal has introduced transfer and receiving Bitcoin on their platform. And this has made it easy to invest and trade Bitcoin and other cryptocurrencies. Of importance is being keen when conducting these transactions to avoid losing Bitcoin by sending to the wrong address and any other way.

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