How to Buy Ripple With Paypal
This guide will help you understand the underlying reasons why an ever-increasing number of people are expressing a strong interest in Ripple. It will also explain to you the basic steps that you must understand if you plan on buying Ripple with PayPal.
1. Understanding What Fuels the Market Value of Ripple
Ripple is not your run of the mill cryptocurrency. Some financial experts place it at a level of importance and potential that supersedes even that of Bitcoin.
There are multiple reasons for this. The most convincing is the fact that Ripple incorporates the power and flexibility of blockchain technology while also being accepted and used by established financial institutions.
On a more practical level, this means that Ripple can have immediate value for you if you are considering engaging in frequent money remittances to family or for business and commercial purposes.
Even if you do not have an immediate personal use for Ripple, you might be attracted to it from an investment perspective due to its versatility and expanding level of acceptance. The bottom line is that there are plenty of valid reasons for you to acquire Ripple.
2. Why You Should Use PayPal to Purchase Ripple
In choosing to buy Ripple with PayPal you are immediately limiting yourself to the few platforms that accept Paypal as a form of payment for this type of transaction. While applying any sort of limitation on your purchasing options might seem like a liability, the fact is that there is plenty of merit in choosing PayPal for payment.
This can best be appreciated when you consider the other payment options that are available — these being credit cards, debit cards, and cash. While there is nothing intrinsically negative about those payment options, each of them brings certain aspects to the table that some people might want to avoid when purchasing Ripple. For example, the issuing banks of some credit and debit cards limit their direct use for the purpose of purchasing cryptocurrency. However, if you use those credit or debit cards through PayPal, in the majority of cases you would bypass those limitations.
To a similar extent, the same can be said about bank transfers. Sometimes PayPal becomes your best payment option for purchasing Ripple simply because you can use it as a hub to centralize funds from credit cards, debit cards or bank transfers, and then submit them to the seller of Ripple via PayPal.
PayPal spares you from the headaches of institutional and governmental restrictions while at the same time providing you with a payment processing platform that you trust.
3. Fees
When using your PayPal account to purchase Ripple through a cryptocurrency exchange, as a buyer, you will normally not incur fees from PayPal when using the funds in your account. There are, however, some exceptions to this. If you purchase Ripple directly from an independent seller on a peer-to-peer marketplace, some of these independent sellers will only accept PayPal if you remit payment to them as a PayPal “transfer” instead of as a “purchase.” They do this because it transfers the burden of paying the small PayPal fee that is involved to the sender as opposed to the person receiving the funds.
You should also be aware that PayPal fees aside, the platform that you use to purchase your Ripple will also have a transaction fee or premium attached to the sale. While none of these costs in the aggregate should represent a large percentage of the price that you are paying for Ripple, it is still important to be aware of them in order to properly evaluate all of your purchasing options.
4. Need for a Ripple Wallet
One thing that you will need in order to purchase Ripple with PayPal is a Ripple wallet. This is not where your Ripple is actually stored. It consists solely of a public key and a private key. The public key is an alphanumeric sequence that you can safely give out to other parties so that they may send Ripple to you. Your private key is another alphanumeric sequence that you use to authenticate outgoing transactions. When you purchase Ripple it is normal for the seller to request your public key. However, there is never any reason why you should ever have to give out your private key.
To gain further insight as to how cryptocurrency wallets function and the different options that are available to you, take a moment to read some of the guides and articles that we have written on that subject.
5. Cointal
Cointal is a peer-to-peer marketplace where you can find sellers of Ripple. Of the many forms of payments that they accept is PayPal. They also have the benefit of offering another third-party payment processor, Skrill, as an option.
Being a peer-to-peer marketplace means that Cointal is not directly selling the Ripple to you. Instead, they help you find sellers for the amount of Ripple that you are seeking.
Cointal will not charge you a fee when you purchase Ripple through their platform. However, when you withdraw your Ripple to your wallet, they charge you a one percent fee.
Visit Cointal Now6. BitPanda
BitPanda is a cryptocurrency exchange that allows you to use your choice of two third-party payment processors that are very similar to PayPal. Your two options are Skrill and Neteller. Although BitPanda does not directly accept PayPal, the option of Skrill and NetTeller can fill the void for the majority of people.
BitPanda offers one of the easiest user interfaces for purchasing Ripple. You simply input the amount that you wish to purchase in either US dollars or Euro and it will automatically show you how much Ripple you can purchase for that amount. It is then simply a matter of following the steps on the screen and indicating whether you want Skrill or Neteller as your method of payment.
7. eToro
There is also a somewhat indirect method that can be used to purchase Ripple with PayPal. This would involve using the service of eToro, an online trading platform.
eToro accepts PayPal as a method of funding your account with them. Once your account is funded you can use it to purchase a wide variety of trading instruments. Among these is Ripple.
It is important to note that purchasing Ripple in this manner is different in that you are technically not assuming any ownership of Ripple. Instead, you are purchasing derivative investment instruments that are based on Ripple and that mirror its market value.
There are downsides and upsides to this. The downside is that if you need Ripple to use as a form of currency to conduct business with another party, you would not be able to use it in that way. The upside is that if you were only looking for an investment or speculative exposure to Ripple, purchasing it on a trading platform such as eToro makes the process faster and more efficient. You can enter and exit positions almost instantly.
If you were looking to Ripple solely as an investment prospect, using PayPal on eToro can be an effective option.
8. Conclusion
Purchasing Ripple with PayPal offers certain advantages if you already have a PayPal account or if institutional or governmental regulations stifle your access to other forms of payment.
If you are interested in the other payment options that are commonly used to purchase Ripple, we have guides written on those subjects that provide you with the information you need.