Last year, PayPal allowed its users to buy and hold four cryptocurrencies on its platform. This included Bitcoin, Ethereum, Litecoin and Bitcoin Cash. Now, the PayPal has announced that it will allow users to withdraw these supported cryptocurrencies to external crypto wallets like Trust wallet, Coinbase wallet, imToken and so on.
Users will also be able to send money from one PayPal account to another and that will incur no fees. This is because in this, PayPal user to user transfer, Blockchain is not even involved and is more like a change in PayPal’s database.
If you are holding Litecoin, Ethereum, Bitcoin or BCH on PayPal, we suggest moving your funds out to a cryptocurrency wallet where you hold access to funds. For instance, if you have Litecoin in your PayPal account, you can send them to Litecoin Foundation’s LiteWallet where you have full control over your funds. Full access means no one, except you, can seize your funds.
Transfer fees depend on the cryptocurrency you want to transfer. Bitcoin Cash and Litecoin have the lowest fees out of these four. Bitcoin and especially Ethereum have high transfer fees, but transfer from one PayPal account to another is free, irrespective of blockchain you use.
T lives in San Diego and is editor in chief of CryptoCoinDaddy.com. He got into cryptocurrency four years ago and has never looked back. He is 90% crypto,