• About
  • FAQ
  • Landing Page
  • Buy JNews
Newsletter
Crypto News
Advertisement
  • Home
    • Home – Layout 1
    • Home – Layout 2
    • Home – Layout 3
  • Bitcoin
  • Ethereum
  • Regulation
  • Market
  • Blockchain
  • Business
  • Guide
  • Contact Us
No Result
View All Result
  • Home
    • Home – Layout 1
    • Home – Layout 2
    • Home – Layout 3
  • Bitcoin
  • Ethereum
  • Regulation
  • Market
  • Blockchain
  • Business
  • Guide
  • Contact Us
No Result
View All Result
Crypto News
No Result
View All Result

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

by
December 5, 2020
in Uncategorized
0
Why You Should Choose PlasmaPay over Paypal for Purchasing, Storing and Paying with Crypto
189
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter

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.

Related articles

Civil Lawsuit Against Craig Wright Wants High Court to Rule Against His Bitcoin White Paper Claims

April 14, 2021

ParaState Completes $5 Million Fundraising Event

April 14, 2021

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.

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.

 

 

Share76Tweet47

Related Posts

Civil Lawsuit Against Craig Wright Wants High Court to Rule Against His Bitcoin White Paper Claims

by
April 14, 2021
0

The Crypto Open Patent Alliance (COPA), a bitcoin industry working group focused on patent laws, has filed a civil lawsuit...

ParaState Completes $5 Million Fundraising Event

by
April 14, 2021
0

ParaState is popularly known as a multi-chain smart contract platform focused on ensuring substrate-based blockchains are compatible with the Ethereum...

The Bearish Bitcoin Chart Bulls Definitely Don’t Want To See

by
April 14, 2021
0

Bitcoin price today set a new all-time high, and tomorrow Coinbase goes public putting an even bigger spotlight on the...

Bitcoin futures open interest soars to new heights ahead of Coinbase listing

by
April 14, 2021
0

Open interest in Bitcoin futures is soaring but volumes are falling. Open interest in Bitcoin futures has surged to new...

SEC Commissioner: Banning Bitcoin Is Like Shutting Down Internet — Government Would Be ‘Foolish’ to Try

SEC Commissioner: Banning Bitcoin Is Like Shutting Down Internet — Government Would Be ‘Foolish’ to Try

by
April 14, 2021
0

SEC Commissioner Hester Peirce compares banning bitcoin to shutting down the internet, stating that governments would be foolish to try....

Load More
  • Trending
  • Comments
  • Latest
Grayscale’s Crypto Assets Under Management Soar Past $30 Billion — ‘Institutions Are Here’

Grayscale’s Crypto Assets Under Management Soar Past $30 Billion — ‘Institutions Are Here’

February 6, 2021
Grayscale Investments Buys more ETH as Ethereum Price Shoots to New All-Time High of over $1550

Grayscale Investments Buys more ETH as Ethereum Price Shoots to New All-Time High of over $1550

February 3, 2021

Mark Cuban Invests in Mintable

March 6, 2021
Only 5% of Financial Executives Want to Invest in Bitcoin in 2021, According to Survey

Only 5% of Financial Executives Want to Invest in Bitcoin in 2021, According to Survey

February 17, 2021

Civil Lawsuit Against Craig Wright Wants High Court to Rule Against His Bitcoin White Paper Claims

0

China Is Reportedly Moving To Clamp Down On Bitcoin Miners

0

Inside the Chinese Bitcoin Mine That’s Grossing $1.5M a Month

0

All You Need to Know About This Whole SegWit vs. SegWit2x Thing

0

Civil Lawsuit Against Craig Wright Wants High Court to Rule Against His Bitcoin White Paper Claims

April 14, 2021

ParaState Completes $5 Million Fundraising Event

April 14, 2021

The Bearish Bitcoin Chart Bulls Definitely Don’t Want To See

April 14, 2021

Bitcoin futures open interest soars to new heights ahead of Coinbase listing

April 14, 2021
Crypto News

We bring you the best Premium WordPress Themes that perfect for news, magazine, personal blog, etc. Check our landing page for details.

Categories tes

  • Aave (AAVE)
  • Abra
  • Alt Season
  • altcoin
  • Altcoin Market Cap
  • Altcoin News
  • altcoin prices
  • altcoins
  • Altseason
  • Barstool Sports
  • Basic Attention Token (BAT)
  • Binance
  • Binance (BNB) News
  • Binance Coin (BNB)
  • Binance Ecosystem
  • Binance Smart Chain
  • Binance Smart Chain (BSC)
  • bitcoin
  • Bitcoin
  • Bitcoin (BTC) Adoption
  • Bitcoin (BTC) General News
  • Bitcoin (BTC) News
  • Bitcoin (BTC) Predictions
  • Bitcoin Cash (BCH)
  • Bitcoin Cash (BCH) General News
  • Bitcoin dominance
  • Bitcoin ETF
  • Bitcoin Futures
  • Bitcoin Miners
  • bitcoin network
  • Bitcoin Options
  • Bitcoin price
  • Bitcoin SV (BSV)
  • Bitfinex
  • BitGo
  • Bitstamp
  • Bittrex
  • Blockchain
  • Blockchain News
  • bloomberg
  • Brad Garlinghouse
  • Business
  • Cameron Winklevoss
  • Cardano (ADA)
  • Cardano Upgrade
  • Cash app
  • CFTC
  • ChainLink
  • ChainLink (LINK)
  • Chainlink (LINK) News
  • Chainlink Community
  • Chainlink Oracles
  • Chainlink Price Prediction
  • Changpeng Zhao
  • Charles Hoskinson
  • charlie lee
  • CME Ethereum Futures
  • CME Group
  • coinbase
  • Coinbase (COIN)
  • Coinmarketcap
  • Commodity Futures Trading Commission
  • Consensys
  • Craig Wright
  • Crypto Exchanges
  • cryptocurrency
  • Dash (DASH)
  • Dave Portnoy
  • Decentraland (MANA)
  • DeFi
  • DeFi Pulse
  • Deribit
  • Dogecoin (DOGE)
  • Electric Coin Company
  • Elon Musk
  • ETH 2.0
  • ETH2.0
  • Ethereum
  • Ethereum (ETH)
  • Ethereum (ETH) News
  • Ethereum 2.0
  • Ethereum Classic (ETC)
  • Ethereum Fees
  • Ethereum Futures
  • Ethereum Miners
  • Ethereum Network
  • ethereum price
  • Ethereum price analysis
  • Ethereum Staking
  • Ethereum Upgrade
  • Ethereum Upgrades
  • Filecoin (FIL)
  • Flare Networks
  • Flare Networks Snapshot
  • Gemini
  • google
  • Grayscale
  • Grayscale Bitcoin Trust (GBTC)
  • Grayscale Ethereum Trust (ETHE)
  • Grayscale Investments
  • Guide
  • Guides
  • Huobi
  • Institutional Investors
  • jack dorsey
  • Jay Z
  • justin sun
  • JustSwap
  • LINK Marines
  • Litecoin
  • Litecoin (LINK)
  • Litecoin (LTC)
  • Litecoin (LTC) News
  • Litecoin Development
  • litecoin foundation
  • Litecoin MimbleWimble
  • Maker (MKR)
  • Market
  • Michael Saylor
  • MicroStrategy
  • MimbleWimble
  • Mining
  • Monero (XMR)
  • Moneygram
  • Nasdaq
  • News
  • NFT
  • NFTs
  • Non-Fungible Tokens
  • OKECoin
  • Other
  • Pantera Capital
  • Polkadot (DOT)
  • Polkadot Price Analysis
  • Poloniex
  • Prices
  • Regulation
  • ripple
  • Ripple
  • Scams and Hacks
  • sec
  • Securities and Exchange Commission
  • Signal
  • Spark Token (FLR)
  • Spark Token Airdrop
  • Spark Tokens (FLR)
  • Square
  • Stimulus Bill
  • Stimulus Check
  • SushiSwap (SUSHI)
  • Tesla
  • Tether (USDT)
  • tether bitfinex lawsuit
  • Theta Network (THETA)
  • Theta Token
  • Tron (TRX)
  • TRON (TRX) News
  • Tron Foundation
  • Twitter
  • Tyler Winklevoss
  • Uniswap
  • UniSwap (UNI)
  • Wallets and Exchanges
  • WallStreetBets
  • Weiss Ratings
  • WhatsApp
  • World
  • Wrapped Bitcoin (WBTC)
  • XRP
  • XRP Army
  • XRP News
  • XRP Price Prediction
  • Yearn Finance (YFI)
  • Youtube
  • Zcash (ZEC)
  • ZCash Halving
  • Zeus Capital
  • Zilliqa (ZIL)
  • Zilliqa (ZIL) News
  • Zilliqa Staking

Tags

Altcoin Bitcoin drops Bitcoin Wallet Cointelegraph Cryptocurrency ICO Investment Lending Market Stories Mining Bitcoin

Newsletter

[mc4wp_form]

  • About
  • FAQ
  • Support Forum
  • Landing Page
  • Buy JNews
  • Contact Us

© 2017 JNews - Crafted with love by Jegtheme.

No Result
View All Result
  • Contact Us
  • Homepages
  • Business
  • Guide

© 2018 JNews by Jegtheme.