The news of traditional financial services embracing cryptocurrency has been taking the space by storm lately. PayPal, for instance, has announced that their customers will be able to buy and sell Bitcoin and other crypto coins and tokens. Digital currencies, PayPal representatives say, will be there for millions of users to spend with all the merchants accepting PayPal as a payment method. It is true that news like this drives wider adoption of crypto overall, but are there some drawbacks in the addition of crypto into PayPal? What does this actually mean?
What are the pros of PayPal adopting crypto?
Cryptocurrency has been on the outskirts of payment methods for quite a while. Logically, the niche status is explained by high volatility of crypto assets, lack of services taking care of cryptocurrency payment processing, and overall novelty of the notion of cryptocurrency payments. To be fair, some of these points have already been solved by the space itself. With the addition of stablecoins, the issue of volatility and someone ending up in a loss at all times has been worked out. As for the services — well, we see PayPal joining the play. Can’t complain.
The position of PayPal is very balanced and pro-crypto. The company issued a statement where the importance of wider adoption and understanding of the cryptocurrency space is highlighted. The crypto space has acted accordingly – Bitcoin jumped to the mark of $12000.
Surely, the fact that traditional FinTech companies are interested in cryptocurrency and even making gigantic leaps like this is fantastic for the field. However, are there some downsides?
Is PayPal cryptocurrency-oriented?
Just like in any other piece of news, there are two sides to this coin. Adoption is already here, but is there enough facilitation? PayPal is offering payments in popular cryptocurrencies, starting with Bitcoin. Later, the company is planning to add payments in Ethereum, Litecoin and Bitcoin Cash. Even though these currencies are here with the market cap, are they the best option to pay in? Bitcoin is expensive and volatile, Ethereum fees are growing exponentially, Litecoin has been losing its popularity…
The crypto space just has more to offer. We have already mentioned stablecoins that are a great pick when it comes to payments and ensuring the fair distribution of funds. Besides, some currencies are faster and cheaper to transact. PayPal has opened the door of introducing crypto to the giants, but it still needs to come a long way to make it convenient.
How do we make crypto payments easy?
There are several options. You can, of course, use PayPal to purchase goods in places not available before, but one should be aware of the limitations of the system. The users cannot, for instance, send cryptocurrency to each other due to the lack of key signing transactions between the accounts. Using PayPal means fully relying on the system, which goes against the basic principles of decentralized finance.
The most convenient way around it is accepting PayPal adoption as a driving power for the crypto space. The real usage, though, can be performed through other cryptocurrency-oriented services, storing coins and tokens in custody-free wallets to increase security, and using exchange platforms to swap the assets if it is needed to make a deal.
Here are some thoughts on how to make cryptocurrency payments handier:
- Pick a wallet that suits your needs. Having a wallet of your own and not storing the assets on payment platforms gives an opportunity not only to transact to any other crypto users but also to choose the blockchains of one’s liking. If a payment system is only supporting 4-10 currencies, multi-currency wallets hold up to 40 chains. Single-currency storages, too, are a great pick for lesser-known currencies.
- Choose the payment provider. Although cryptocurrency payments are not as well-adopted as, for instance, exchanges, there are great choices out there. Now, there are possibilities to pay for tickets, hotels, clothes, groceries and other necessary goods with cryptocurrency – all you need to do is find a merchant in your area (or a platform with convenient shipping).
- Payment providers born in the crypto space usually give wider opportunities of coins to choose from to make your transaction. In case you do not have the asset needed to buy goods, you can always turn to exchange services. This step just requires choosing the best offer and making a swap.
- Cryptocurrency has grown and become more convenient during all these years of development. In case there is a need to exchange crypto and do it faster, more profitable, or with the best service, exchange deal aggregators like Swapzone are here to help.
Exchanging crypto assets on Swapzone is as simple as that:
- Go to Swapzone.
- Select the currency and the amount you want to exchange in the Deposit list and the currency you would like to get in the Receive list.
- You will see the rates of our partners available for you; choose the most profitable one.
- Click the Exchange button to proceed.
- Enter the recipient’s wallet address and push Proceed to Exchange button.
- After that, you will see the deposit address in the top-up field. You need to send the necessary amount of currency you want to exchange to this address.
- Give the transaction some time to proceed, and the coins you need will be transferred to you!
After you have performed an exchange, all you need to do is use received coins to pay for the goods!