• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news today, price & technical analysis
Price & Market
Cap Data from
Nomics Logo
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • What is Bitcoin?
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Gamble +Try
  • Play GamesTry
  • BUY BITCOINTry
No Result
View All Result
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • What is Bitcoin?
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Gamble +Try
  • Play GamesTry
  • BUY BITCOINTry
No Result
View All Result
NewsBTC
No Result
View All Result
Price & Market
Cap Data from
Nomics Logo
Home Cryptocurrency news Company News

Why You Should Choose PlasmaPay over Paypal for Purchasing, Storing and Paying with Crypto

Thomas Delahunty by Thomas Delahunty
1 month ago
in Company News
Reading Time: 4min read
PlasmaPay
Advertisement
Nexo Logo
Listen to Article

In a symbolic move that highlighted the progress cryptoassets have made in recent years, PayPal announced last week that it would make cryptoassets such as Bitcoin and Ethereum available to its 346 million users. This is an important step for the space, and will both increase awareness and further, it’s legitimacy. However for those in the know, the service proposed by PayPal is less robust than players already operating in the space. The DeFi first firm which aims to build the financial services infrastructure for the global digital economy of Web 3.0, provides a service through which users can purchase, store, and trade their cryptoassets. Here we examine the differences between PayPal’s emergent offering and crypto native operations such as PlasmaPay.

Not your keys, not your funds

PayPal’s service is very clear that users “will not be provided with a private key”. This was backed up by recent reports from both Sign Key and Satoshi Labs which discourage PayPal for transacting BTC. This is because you never truly own any cryptoassets held on PayPal. This has a number of important ramifications of which users should be aware.

Firstly, it means that users are forced to trust that PayPal actually has the cryptoassets stated, and that the company will continue to operate. While PayPal is of course a large institution with a lengthy track record, this does not make it invulnerable. There is a long history of financial services companies going out of business and being unable to provide full restitution to their account holders.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

PlasmaPay, meanwhile, is a non-custodial service. This means that users hold their own keys at all times. If PlasmaPay goes out of business, then user funds are still safe, because each user holds their funds at all times.

Secondly, because users don’t control their private keys, they have to abide by all PayPal rules and restrictions. The most pressing for most people is that the cryptoassets held in your account “cannot be transferred to other accounts on or off PayPal”. As such, users cannot spend their cryptoassets as they wish, but can instead only use it to complete transactions to PayPal merchants. Users can’t send to friends or families (not even through PayPal), or complete any non-PayPal merchant transaction. This would be akin to your bank dictating that the money in your account could only be spent at places in which the bank had a partnership with the shop; that you could not withdraw cash, send it to your friends or family, or otherwise do anything else you wish with it.

Users of PlasmaPay, however, can use their cryptoassets in any way they choose fit. They can send any amount of their funds to whomever they choose, withdraw it, use it to make purchases, send to exchanges, or transfer to a different account of their own choosing. This is because they own their own private key, and as such are free to do whatever they want with their funds.

Limited access

As well as limiting how users can spend their cryptoassets, PayPal is also limited in who can access the service. Only US based customers (excluding Hawaii) are able to buy cryptoassets. Furthermore, these customers have to use PayPal Cash to complete their purchase.

PlasmaPay, on the other hand, is available to users in 165 countries and offers a wide range of options through which users can purchase cryptoassets. This includes debit and credit cards, e-wallets, bank transfers, and PlasmaPay Cash.

Because of this walled garden and market size, PayPal is also able to charge significant fees. For example, from 2021 a purchase of $100 on PayPal would incur a 2.3% fee, as well as a spread estimated at 0.5% to the market price provided by Paxos (PayPal’s trading service provider). PlasmaPay, conversely, only charges a flat 1% fee on purchases made through bank transfers. Furthermore, instead of being reliant on one trading provider, PlasmaPay is partnered with five leading crypto exchanges including Binance and Kraken to source the best price possible for users.

The difference between holding and participating

PayPal offers a route for those new to the space to buy and sell cryptoassets. But, as with Revolut’s similar offering, it only offers users limited exposure and interaction. This is a shame, since it denies people the opportunity to fully participate in the likes of DeFi and other crypto protocols. It only allows users to buy four cryptoassets (Bitcoin, Bitcoin Cash, Ethereum and Litecoin), and, as discussed, it does not really allow users to do anything with them once purchased. It is very much a ‘light’ experience.

Services such as PlasmaPay, on the other hand, are geared towards enabling users to participate in crypto as much as possible. Users can use their funds as they choose to, not as is prescribed for them. Future developments include the likes of a DeFi dashboard, which will let users stake, farm, and borrow/loan assets. PlasmaPay will also shortly launch the ability to buy and sell any token, providing unrestricted access to the full range of DeFi and crypto. This will provide all the convenience of a centralized service that is easy to use, with all the benefits of decentralization.

Legitimacy, but with potential risks

PayPal’s introduction to the crypto space is certainly something to be welcomed. It brings with it a mass of users and the accompanying awareness and media attention that should benefit all of crypto. The legitimacy PayPal brings, however, also needs to be kept in check. Bitcoin and other cryptoassets are built on the foundation of decentralization, something that could be endangered by centralized firms dictating too much of what people can and can’t do with their cryptoassets. As such, users should be educated on the benefits of decentralized services wherever possible, to better secure their own holdings and the safety of networks moving forward.

 

 

TweetShare
BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner? Win up to $1,000,000 in One Spin at CryptoSlots
Thomas Delahunty

Thomas Delahunty

I’m Thomas J. Delahunty, born in Lancashire, England, but raised and currently residing in Columbus, Ohio where I attended The Ohio State University studying English and History. After writing in the Fintech and Forex spaces, I began to focus on blockchain and cryptocurrencies — Bitcoin in particular — in 2016. Aside from being part of NewsBTC’s journalism team, I am a writer and analyst for Ohio State’s Risk Institute at the Fisher College of Business, and run operations for two local, independent online businesses.

Related Posts

huobi, ruble

Huobi Now Supports RUB Deposits and Withdrawals, Announces Crypto Purchase Campaign

4 days ago
launch, dex

An Upcoming Public Sale on Polkastarter Follows e-Money’s Successful DEX Launch

4 days ago
stacks 2.0

Stacks 2.0 Blockchain Set to Go Live on Mainnet

5 days ago
ilcoin

Conversation with Norbert Goffa – Co-Founder of ILCOIN – About the Cryptocurrency Market, Trends and Vision

5 days ago
monetisation

Digital Monetisation in a COVID-19 Era: A Fresh Approach

6 days ago
transferwise, blockchain

Why Transferwise’s Co-Founder Backed This Blockchain Company

1 week ago

Premium Partners

Top Brokers

eToro

eToro

Review · Visit
Changelly

Changelly

Review · Visit
Evolve Markets

Evolve Markets

Review · Visit
ArbiSmart

ArbiSmart

Review · Visit
PrimeXBT

PrimeXBT

Review · Visit
Moneta Markets

Moneta Markets

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
CryptoSlots

CryptoSlots

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bonusfinder DE

Bonusfinder DE

Review · Visit
Bspin

Bspin

Review · Visit
Wolf Bet

Wolf Bet

Review · Visit

Top Sportsbooks

1xBit

1xBit

Review · Visit

Press Releases

SV-based Taraxa Revolutionizes Legacy Data Auditing With Mathematically Provable Audit Trails

January 15, 2021

Kickoff Your DeFi Journey With YOYO FINANCE – Their Token Sale Is Live

January 14, 2021

RAI Finance Pre-sale Finishes in 1 Minute

January 13, 2021

Newsletter Signup


ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Auto Trading Software ▸

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2020 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • What is Bitcoin?
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Trade
  • Gamble +
  • Play Games
  • BUY BITCOIN

© 2020 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.