Thanks to prominent corporations embracing digital currency into their transactions, crypto payments are progressively becoming mainstream. PayPal, an American-based payment service app used by millions of individuals worldwide, is at the forefront of this movement.
Companies such as Visa and Mastercard quickly followed suit, allowing their customers to transact using popular cryptocurrencies such as Bitcoin and Ether. This cements PayPal’s status as a crypto industry behemoth capable of ushering digital coin transactions into widespread use.
In light of this, how does PayPal stack up against cryptocurrency exchanges that specialize in digital transactions? Can PayPal compete with Coinbase, the largest and most popular cryptocurrency exchange? Let’s have a look.
What you should know about the various platforms
Crypto exchanges provide a venue for consumers to buy, sell, and trade digital currency. Coinbase has been providing services to US crypto investors since 2012, fine-tuning its features overtime to meet the needs of its users.
The platform is primarily designed for beginners with an easy-to-use interface. Coinbase also offers a variety of products and services centered on cryptocurrency investments, advanced trading, custodial accounts, and wallet storage.
Aside from that, the exchange provides a secure network via which you may trade and transact in digital currencies with confidence.
PayPal, on the other hand, is the inverse. PayPal’s crypto services are still in their infancy, even though the payment solutions platform has been serving its consumers for years through online payments and transfers.
PayPal users can now trade and purchase crypto assets with their account funds via the Venmo app. You may use fiat money to acquire digital coins through the PayPal app because accounts can be linked to debit and credit cards.
You can now use crypto to buy goods and services through your PayPal accounts once you’ve topped up on your chosen coin. PayPal can also act as a custodian for your cryptocurrency holdings. Similar to one of Coinbase’s primary features, you may use your account as a wallet to store your digital coins.
Pros and Cons of Coinbase vs. PayPal
To continue the PayPal crypto vs. Coinbase debate, you must first comprehend the benefits and drawbacks of each service provider. In picking a platform for your cryptocurrency transactions, consider the following pros and downsides.
Advantages of Coinbase
Coinbase’s key selling point is its simple and user-friendly interface. Log into your account and browse the dashboard to verify your transactions and crypto balance. Here you’ll find information about cryptocurrency transactions and investment strategies, as well as market updates on each digital coin’s price.
Coinbase is also a fantastic site for crypto trading and investing, particularly if you’re interested in various altcoins. Bitcoin, Ether, Litecoin, XRP, and LINK are among the 46 digital coin options available on the site. You can buy as many digital coins as you want as long as they’re available on the platform.
A price alert tool helps you keep track of your investment if the digital currency rises above or falls below your target price. Furthermore, coins saved in the exchange’s wallet are guaranteed in the event of a security breach, so you’ll never lose your money.
Disadvantages of Coinbase
The most significant downside of the Coinbase platform is its high transaction costs, even though it also provides traders with more convenience. However, you may reduce these fees by upgrading to Coinbase Pro, a version of the exchange with specialized features for more skilled crypto traders.
Also, take in mind that Coinbase is only accessible via browser. For the time being, there are no Coinbase apps for mobile devices. You can still access it using a web browser app on your Android or iOS phone.
Benefits of PayPal
When it comes to payment services, PayPal beats Coinbase since the platform allows account holders to use cryptocurrency as a payment method without leaving the app. The app can also be used as a crypto wallet, allowing you to store digital money supported by the platform.
PayPal has an advantage over Coinbase because customers can now handle their digital assets and their fiat money in one place, thanks to the app’s recent crypto adoption. This increases the number of payment options available to users at any given time.
Furthermore, the platform uses cutting-edge network security to keep your data safe from outsiders. Its mobile-friendly app, compatible with both Android and iOS devices, gives it an advantage over Coinbase.
Unlike Coinbase and other cryptocurrency exchanges, PayPal can only accept Bitcoin, Ether, Litecoin, and Bitcoin Cash.
Furthermore, you can only use your PayPal account to access purchased coins. There’s also a weekly limit of US$20,000 for crypto purchases made with your account. Advanced traders will find it difficult to invest huge sums of money in digital currencies due to this.
The struggle between PayPal and Coinbase has concluded.
Because PayPal is still a relative newbie to the realm of cryptocurrency transactions and services, Coinbase retains an advantage when it comes to substantial digital coin investments. Its platform is user-friendly and tailored to traders, with investment data accessible via the dashboard.
Coinbase, on the other hand, has its restrictions, particularly when it comes to day-to-day crypto transactions. This is where PayPal’s platform comes in handy since it allows you to purchase products and services using digital currency earned through the program.
Finally, while Coinbase offers more trading features, there is still enough room in the sector for PayPal to become a serious competitor shortly.