PayPal is a global giant in the digital payment sphere. The platform boasts more than 360 million users globally in more than 210 countries. In fact, the platform facilitates more than billions of transactions monthly.
Since its creation in 1998, PayPal has been an important part of the everyday financial activities of people, especially businesses and merchants globally.
The platform has provided a seamless, reliable, and easy way to make safe purchases and send or receive money to and from any part of the world.
PayPal lets users complete payments using their email addresses instead of exposing their bank or credit card information.
With PayPal, you can enjoy free, anonymous, and safe transactions with anyone, cutting off the need for expensive wire transfers and bank fees.
PayPal has been on top of its game regarding innovative payment services and solutions for decades. It strives to provide up-to-date technology to promote and improve its users’ experience.
In 2020, PayPal started allowing cryptocurrency trading for its users to hold, trade, and transfer cryptocurrencies via the platform. Therefore, you can trade and exchange many cryptocurrencies with PayPal.
If you’re a crypto trader on PayPal and you’re finding it difficult to withdraw your Bitcoin to an external wallet, this article will guide you through detailed steps on how to do that.
How PayPal Works?
PayPal is a popular online electronic payment system that makes money transfers easier and better. With PayPal, users can seamlessly receive or send cash or crypto payments online.
PayPal works like a gateway or intermediary between the banking system and merchants. Users can link their bank accounts or credit card to complete payments right from their fingertips.
The platform’s strong encryptions make storing and transferring assets even more secure.
Another advantage of PayPal, especially for crypto trading, is its low transfer and trading fees. Buying or selling crypto assets on the platform incurs zero fees.
Although the platform has a few crypto listings, available cryptocurrencies are enough to serve regular traders.
Why use PayPal?
PayPal is a reputable name in online payment solutions and payment services. While there are several other popular payment platforms, PayPal is widely known for its ease of accessibility across the globe.
Meanwhile, PayPal is a widely respected and reliable platform used by small, medium, and large businesses, retailers, consumers, and non-commercial users.
Understandably, PayPal’s top-notch services put it ahead of many other competitors. It provides a buyer protection service that safeguards its users from bad actors and scams.
The platform also provides an additional layer of security while protecting your financial information when completing payments. When you input your credit card info on PayPal, your details are secured with end-to-end encryptions and two-factor authentications.
Therefore, you can simply provide your PayPal email address instead of inputting your credit card number, pin, and CCV on every purchase site. This keeps users and their sensitive data safe from the risk of compromise or exposure.
Apart from this, PayPal is generally easy to use. The intuitive, easy-to-use, and beautiful blue-colored user interface makes it more acceptable and attractive. All you need is your email address.
Steps to Withdraw Bitcoin on PayPal
Trading cryptocurrencies on PayPal has seen enough revolutionary changes over the years. When PayPal started supporting crypto trading, sending and receiving assets was not supported.
Due to this, it was easy to find crypto trading on PayPal pointless since storing cryptocurrencies in non-custodial wallets is better.
Fortunately, PayPal rolled out support for crypto traders to send or receive cryptocurrencies with the platform in July 2022. Therefore, users can easily withdraw their assets to other CEXes for sale or store them in a non-custodial wallet.
To withdraw Bitcoin from PayPal, copy your Bitcoin deposit address from a third-party wallet. Then use it to send Bitcoin from your available crypto assets in PayPal.
Ensure you review the associated fees and confirm the transaction if you’re okay with everything.
Here’s a step-by-step guide on how to withdraw Bitcoin from PayPal:
- Copy Bitcoin wallet deposit address
- Log in to PayPal
- Go to the Crypto section and select ‘Bitcoin’
- Click ‘SEND’ and paste the deposit address
- Review the transaction details and click ‘Send Now’
1. Copy Bitcoin wallet deposit address
To transfer Bitcoin from PayPal to an external wallet, you need to copy your wallet’s Bitcoin deposit address.
The wallet can be a crypto exchange or a non-custodial wallet supporting Bitcoin (e.g., Trust Wallet).
Open your wallet app and click on BITCOIN.
In your Bitcoin dashboard, click on RECEIVE and copy the deposit address. You can also screenshot the attached QR code to make things easier.
2. Log in to PayPal
Once you’ve copied your Bitcoin deposit address, navigate to PayPal at paypal.com.
Click on LOG IN at the top right corner of the homepage.
On the login page, input your email address and password. Then complete 2FA verifications to approve signing in.
3. Go to Crypto section and select ‘Bitcoin’
After logging in to your PayPal account, go to the CRYPTO section of your account. Here, select BITCOIN.
4. Click ‘SEND’ and paste deposit address
Continue by clicking the transfer icon represented by two arrows, then select SEND.
On the next page, specify recipient details by pasting the deposit address in the field provided. You can also send Bitcoin to another PayPal user.
Proceed by confirming the recipient’s Bitcoin wallet address.
5. Review the transaction details and click ‘Send Now’
On the next page, input the transaction amount and tap NEXT. Review the transaction and transaction details in the window that pops up.
Finalize your transaction by tapping SEND NOW. Once your transaction is completed, you will receive the Bitcoin in your wallet.
Creating and using PayPal is free for almost all online purchases and transfers to family and friends transactions. However, for business transactions, PayPal deducts at least 2% of the total transaction amount as charges.
Here is a breakdown of PayPal fees:
Fees on Goods and Services (GnS):
Sending money for any commercial or business purposes incurs a transfer fee. These fees are deducted as protection fees to save consumers from scammers and fraudsters online.
Users can easily specify that their transaction is for commercial purposes to enjoy PayPal’s buyer protection. With this, the buyer can complain to PayPal to resolve the issue if there is any issue with the seller’s deliverables.
In cases of fraudulent activities, PayPal can easily reverse the transfer and the fees back to the sender. GnS fees vary depending on the transaction amount and the receiver’s location.
Goods and services fees can result in almost 5 to 9% cut. However, you’ll enjoy buyer protection on your money.
Fees on Personal Transfers (Friends and Family)
Sending money for personal reasons, especially to friends and families, does not incur any fee on PayPal. This type of transfer does not feature buyer protection since there is no sort of commercial reason for sending the money.
Therefore, if there is any issue regarding the transaction, PayPal cannot step in for resolution. Apart from this, other domestic transfers, including PayPal to Bank transfers, are free.
Fee on Crypto Transaction
Buying and selling crypto on Binance is free. However, the rates are usually slightly lower than the normal rate. Still, PayPal provides an easy way for anyone to trade cryptocurrencies.
Withdrawing cryptocurrencies from PayPal attracts a meager network fee. The network fee is an important part of crypto asset transfer as it rewards validators.
However, PayPal’s network fee is ridiculously lower when compared to the standard network fee, making the platform even more attractive to use.
The choice of a crypto trading platform is subjective to crypto traders. However, in the age where Centralized Exchanges are almost vulnerable to attacks, PayPal’s track record as a secure platform can make it a good option.
Apart from this, PayPal has many exciting features usually present in many Centralized Exchanges.
For instance, crypto transfer from PayPal to PayPal users is free. You can also hold fiat and crypto assets without incurring any charges.
However, it is important to note that PayPal is not a DeFi platform. Therefore, it doesn’t support many DeFi products or opportunities, which makes the platform less of a crypto exchange.
The limited crypto listing also makes PayPal less suitable for avid and experienced traders looking to spread their investment over many crypto assets.
However, if you’re looking for a decent platform to trade some popular cryptocurrencies, you can try out PayPal.