Hello crypto fans,
Crypto payments are slowly making their way into mainstream use thanks to major companies adopting digital coins into their transactions. At the forefront of this trend is PayPal, an American-based payment service app used by millions of people worldwide.
Right after PayPal, companies like Visa, and Mastercard followed along, allowing their users to transact using popular cryptocurrencies like Bitcoin and Ether. This solidifies PayPal’s position in the crypto world as an industry titan that can help usher digital coin transactions into mainstream use.
With this in mind, how does PayPal fare in comparison with crypto exchanges that specialise in digital transactions?
Can PayPal rival Coinbase, the biggest and most popular crypto platform in the market? Let’s find out below.
What you need to know about the platforms
Coinbase
Crypto exchanges are a platform where users can transact and invest in digital coins. Since 2012, Coinbase has been offering its services to US crypto investors, fine-tuning its features throughout the years to suit the needs of its users.
The platform is mainly geared towards beginners with an easy-to-navigate interface. Moreover, Coinbase offers a wide range of features and services that focus on crypto investments, advanced trading, custodial accounts, and wallet storage.
Aside from that, the exchange offers a secure network where you can safely trade and transact with digital currencies.
PayPal
On the other side of the coin is PayPal. Although the payment solutions platform has served its customers for years through online payment and transfers, its PayPal crypto services is still in its infancy.
Through the Venmo app, PayPal users are now allowed to trade and purchase crypto assets through the account’s funds. Since accounts can be linked to debit and credit cards, you can seamlessly use fiat money to buy digital coins through the PayPal app.
Once you’ve topped up on your selected cryptocurrency, you can now purchase goods and services using crypto through your PayPal accounts. Moreover, PayPal can also act as a custodian of your crypto investments. You can use your account as a wallet to store your digital coins, similar to one of the key features of Coinbase.
Coinbase vs PayPal: Pros and cons
To take the PayPal crypto vs Coinbase discourse further, you need to understand the advantages and disadvantages of using each service provider. Here are some of the pros and cons you need to consider when choosing which platform to use for your crypto transactions:
Coinbase advantages
The main appeal of Coinbase is its easy and user-friendly interface. You can check your transactions and crypto balance just by simply going to your account and visiting the dashboard. Here, you’ll find data on crypto transactions and investment plans including market updates on the prices of each digital coin.
Moreover, Coinbase is a great platform for crypto trading and investments, especially if you're interested in various altcoins. There are 46 digital coin offerings in the platform including Bitcoin, Ether, Litecoin, XRP, and LINK. You can purchase multiple digital coins as long as it's available on the platform.
There’s also a price alert feature that helps you monitor your investment if the digital currency goes above your target price or dips below it. Moreover, coins stored in the exchange’s wallet are also insured in case of security breaches, so you will never have to worry about losing your funds.
Coinbase disadvantages
The most pressing disadvantage with the Coinbase platform is its high transaction fees since it also offers more convenience for traders. However, you can lessen these fees simply by switching to Coinbase Pro, a version of the exchange with specialized features catered to more advanced crypto traders.
Another thing to consider with Coinbase is that it is only accessible through a browser. Currently, there are no Coinbase apps available for mobile devices. You can still access it using your Android or iOS compatible phones through a web browser app.
PayPal advantages
When it comes to payment services, PayPal outweighs Coinbase since the platform allows account holders to seamlessly use crypto as means of payment in the app. Additionally, the app can also act as a crypto wallet where you can hold digital coins supported by the platform.
With the app's recent crypto adoption, PayPal has an edge over Coinbase since users can now manage their digital assets as well as their fiat money all in one platform. This offers more flexibility in the various payment methods users can access at any given time.
Moreover, the platform has state-of-the-art network security that protects your data from third parties. What solidifies its edge over Coinbase is its mobile-friendly app that is compatible with both Android and iOS devices.
PayPal disadvantages
Unlike Coinbase and other crypto exchanges, PayPal can only accept 4 cryptocurrencies which are Bitcoin, Ether, Litecoin, and Bitcoin Cash. Moreover, you can only access purchased coins using your PayPal account. There’s also a US$20,000 weekly limit for crypto purchase using your account. This makes it hard for advanced traders to invest large amounts of money in digital currencies.
Final verdict on the PayPal vs Coinbase battle
Since PayPal is still a newcomer in the world of crypto transactions and services, Coinbase still holds an advantage when it comes to large digital coin investments. Its platform is easy to navigate and specifically catered to traders with investment data accessible through the dashboard.
On the other hand, Coinbase also has its limitations, especially with day-to-day crypto transactions. This is where PayPal comes in handy since its platform allows you to buy goods and services with digital coins you acquire through the app. In the end, while Coinbase has more features when it comes to trading, there’s still a lot of room in the industry for PayPal to become its worthy rival in the near future.
Please share your thoughts on which platform is better for you?
Thanks,
Karl
Source: Bitcasino blog
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Topic: PayPal vs Coinbase: Which one is better crypto platform? (Read 2195 times)