Coinbase Vs PayPal: Best Exchange 2022
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Overview of Crypto Exchanges
Coinbase and PayPal are two of the biggest financial exchange platforms in the world. Coinbase is currently the leading platform and is well known for its cryptocurrency capabilities. PayPal has gained a reputation as a reliable fund exchange platform and is starting to become more involved in the crypto world. But when it comes down to Coinbase vs. PayPal, who comes out on top?
Both platforms accept a variety of cryptocurrencies and have similar interfaces for users, but there are a few key differences that make them stand apart from one another.
Each has its benefits and disadvantages that can help users decide which platform is right for them. On the more technical side, like transaction fees and minimum deposits, there are significant distinctions that separate each from the other. Nevertheless, both are highly respected and capable engines that are worthy of further analysis.
Coinbase Exchange and Crypto
Coinbase was founded in 2012 and is based in San Francisco, California. Currently, it is the most popular crypto trading platform and is compatible with various cryptocurrencies, including Bitcoin, Ethereum, and Bitcoin Cash. Coinbase is primarily fixated on the US financial landscape, but it operates in 31 different countries, and stores bitcoins in 190 different countries.
Coinbase is recognized as a global cryptocurrency exchange platform, meaning users from all over the world have access to it and its features. Its listed trading volume is 128,979,540 and has 78 trading pairs available. Coinbase is a centralized platform and has a few other features including:
Coinbase offers iOS and Android mobile app compatibility, so it’s easy to access on any device. There is a $2 account minimum you must maintain, however, there is no minimum deposit. You can start off purchasing Crypto as soon as you’re ready, and buy as much as you want. Just remember you must spend $2.
Features of Coinbase
Coinbase offers its users many features. Coinbase insures all crypto on its platform to make sure it is kept safe in case the website is hacked. Their advanced security measures make sure your user data, personal information, and money are protected.
They offer educational courses to teach users about trading and cryptocurrency in general. Users have access to these courses once they create an account. Depending on the course and what is offered, users may be able to earn free crypto by completing the class.
Coinbase supports P2P transactions, and their funding methods are specific to each country they work with. Coinbase is available in over 100 countries and is adding more regularly.
PayPal and Cryptocurrency
PayPal is a well-known and frequently used financial app and website that has a variety of functions. Many know it was solely a money transferring platform, but it has begun to dive into the world of cryptocurrency. Users can pay for or request payment for goods and services from anyone with a PayPal account.
PayPal’s crypto features are currently only open to the United Kingdom and the United States, excluding Hawaii. It has some limitations because it has only recently opened up to cryptocurrency.
Features of PayPal
PayPal offers numerous features to users. In addition to allowing people to send and receive money from friends and businesses alike, PayPal offers access to four major cryptocurrencies: Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. There are multiple payment methods available for you to cash out as well as purchase your crypto from.
PayPal accommodates both domestic and international payments. Creating a PayPal account is very easy, and they assign a personalized QR code to each user. This makes for easy scanning when you want to pay or get paid.
PayPal is available in over 200 countries.
Key Feature Comparison Between Coinbase and PayPal: Exchange Fees
PayPal uses a tier list to determine trading fees that correspond to the amount of crypto either being bought or sold. If users wish to top up their balance, there is an additional fee that can cost up to $3.95. PayPal adds the cost of transaction fees to the amount of crypto being purchased or sold, so instead of completing a transaction and paying a separate fee, users will either buy or receive a flat amount with the trade fee already factored in.
Coinbase charges a flat withdrawal fee of $.055, as well as an additional fee of up to 2% of the value of the transaction. This amount does not change based on the amount of your withdrawal. They also charge a 3.99% fee on credit card purchases. Similarly, they charge a 1.49% fee for transactions that are made either with the built-in Coinbase wallet or the user’s bank account.
The Coinbase fees are a bit more complex than PayPal and are generally higher per transaction. Both companies charge a spread of approximately 0.5%, which covers the difference between the price at which an asset was bought or sold.
Key Feature Comparison: Security
PayPal does not provide much information on its security measures. Their website displays a message that says, “There’s no digital key to lose and we’ll replace your crypto in whole if your account gets hacked.” Other than that, there is no further explanation of account verification or identity protection. PayPal does, however, state that it does not share financial data when competing transactions and its policies protect both buying and selling.
Coinbase uses a two-factor authentication system to ensure account security. Two-factor authentication is required to follow through with a variety of tasks on each platform to ensure that the user is the one in control of their account. The two-factor authentication used by Coinbase is verified, which should prompt users to feel secure that their accounts are safe.
Coinbase has a mandatory KYC requirement for withdrawals, and stores funds in cold storage wallet systems that are only available by manual user authorization. PayPal does not store funds in outside sources; everything is kept on their platform. With Coinbase, users can transfer funds from other wallets, whereas PayPal requires in-house transactions.
Key Feature Comparison: Interface and Ease of Use
Coinbase offers two versions of their crypto trading platform. One is more basic and is geared towards beginners who are not as familiar with the world of cryptocurrency. In the basic version, users can check the prices of cryptos and can buy and sell as they please. Coinbase Pro has extra features users can use to stay on top of the crypto exchange.
Coinbase offers trade charts powered by TradingView, so you always know what’s going on in the crypto market. They provide time frames for long-term and short-term analysis of crypto pricing, gains, and losses. They offer indicators for technical analysis and give users tools for level marking and identifying trends.
PayPal offers a much more surface-level crypto experience. Its easy-to-use interface makes learning about crypto less challenging and allows users to get hands-on experience immediately. Many people are familiar with PayPal’s interface through using it for other types of financial moves, which gives PayPal an advantage. Users may deem PayPal easier to use just because they have engaged with it more often.
We personally recommend a few of our favorite trading platforms. You can sign up for them or see our other articles here:
Blockchain.com – This exchange has been around for some time. We have holdings on this exchange as well. Here is a free sign up link to help you get started. It is quick and easy. Get deeper insight with your Blockchain.com Review article.
Conclusion: Coinbase vs PayPal
It depends on what the user’s intention is, but Coinbase seems to be the better platform because it offers more opportunities and information for users. Unlike PayPal, it offers users the chance to learn more about what crypto is, how it works, and how they can get more involved in the cryptocurrency market.
Coinbase also offers staking rewards if users choose to stake their crypto. While Coinbase does not offer tools for crypto mining, they do offer resources and guidance on how users can begin to mine their own coins.
In addition to all of these features, Coinbase also sends its users important news updates about what’s going on in the cryptocurrency world. This includes market updates, information about coin inventors, spotlights on coins, and even updates on the traditional stock market. By providing users with a plethora of real-time information, Coinbase makes sure they are well informed about how their cryptocurrency will move and change.
Both PayPal and Coinbase have great benefits that set them apart from each other. They also share a lot of similarities. Coinbase is the better option for people who are looking to begin their exploration of the world of cryptocurrency. Coinbase is more appealing to potential users because it provides access to a wide variety of cryptocurrencies, along with more opportunities to learn and grow as a crypto investor.
FAQ For Coinbase and PayPal
Is Coinbase better than PayPal?
For the more learned crypto trader, Coinbase is a better option because it provides a broader and more in-depth crypto experience.
Is Coinbase cheaper than PayPal?
No, Coinbase is not cheaper than PayPal. There is a price difference between PayPal and Coinbase because Coinbase has extra charges for various exchanges.
Is buying Bitcoin on PayPal a good idea?
Yes, but purchasing Bitcoin on PayPal does not provide you with as many features as Coinbase would.
Is it safe to use Paypal on Coinbase?
Yes, it’s safe to use PayPal as your payment method on Coinbase. Coinbase ensures all transactions and protects your crypto purchases.