Great news! Paypal recently increased its bitcoin buy limit from $10,000 to $15,000. Isn't that wonderful? Your middleman will allow you to spend $15,000 of your own money at once rather than just $10,000!
You know, there was actually a time when people had no choice and this nonsensical nonsense was actually worth celebrating.
That time is supposed to be over.
Why in the world would you accept this kind of limitation in the crypto space? It's really time to tell services like Paypal their limitations are no longer welcome.
On top of that, pseudonymous transactions, which bitcoin transactions happen to be, are just begging for a chargeback. If you know anything about Paypal, you know their chargeback process is hopelessly broken. Do you really want this company as arbiter in your financial affairs? (BIG hint if you're not a digital small business owner: The answer is objectively no.) Don't ever use Paypal if you are buying crypto through a P2P service. You might as well go burn cash.
Another reason to tell Paypal to shove it — fees. You think Ethereum fees are bad. Imagine buying bitcoin through Paypal and getting charged Paypal's outrageous fees on top of whatever premium you are paying to onboard from fiat. It will be at least 3.5% and likely more. They might even get smart like Ethereum and make the fee variable based on network congestion. Ridiculous. And people will pay it.
This is crazy. Really, seriously, I'm trying to communicate to you how crazy and useless using Paypal for crypto is. There's no smart way to say it. Paypal was a revolutionary service for a time. It's not anymore. Understand that this is just a company that is trying to insert itself into your financial life, and you don't need it.
Legendary Customer Service
I'll take you through a personal experience with Paypal's legendary customer service to show you what you'll be inviting into your life if you buy crypto with these clowns. This story actually doesn't involve crypto, which should tell you how efficient this company will be when crypto is involved.
Once upon a time there was a small business owner who had a really good month. Accounts receivable was receiving like it was Christmas. Boy, was that small business owner happy. He was finally going to be able to get his car fixed, go to the dentist, and get some other various expensive necessities done.
So he waits and waits for the payments, which were all routed through Paypal, to show up. That took a week, and after all that waiting, he hits the withdraw button. Finally! The rewards of a job well done.
Wait a minute...there's a message saying the money is being held until I...er...the business owner calls to verify some things. So after some research, he finds the right customer service number and calls.
A sour person answers the phone. "Paypal, may I help you."
"Yes, I'm wondering why I can't get to my hard earned money."
"Well, sir, these transactions are weird coming from your account, and we're going to need to hold them for a week so they can clear."
"How are they weird? Half of them are people I've received money from before. The other half are legitimate businesses. I have references. Let's get on a three way or something so I can speed this along. I have a toothache."
"I'm sorry, sir, there is no way to speed this up. Our systems will not allow me to do anything."
"Get your manager on the phone. I need someone with some authority."
"Good day sir, I'm the manager. I'm here to tell you that no matter how much sense you make in your rebuttals of our process, I have no more discretion over this process than our front line operators."
"What? Then why the hell are you a manager?"
"Well, sir, I've been working here longer."
I had this conversation 6 or 7 times over a 2 week period. Some managers and front line agents fought with me. Others said that they would expedite the process, and I had nothing to worry about. I thanked them and waited. Nothing.
To get a serious investigation, I had to report Paypal on the Better Business Bureau website multiple times and wait 3 months before someone got back to me. When he did, he solved the problem by doing exactly what the front line manager said no one could do. He simply released the funds and dumped them in my bank account. He told me that he could do this easily, and he would be happy to also close my account as I requested.
My money showed up in my account in 2 days.
This is what awaits you if you buy bitcoin with Paypal.
A Needless Middleman
Paypal is just the latest in a line of companies that are trying to take advantage of the lack of mainstream information about bitcoin. That's a lie. There's plenty of information about bitcoin. It's just you have to be interested in it to look it up, and most people aren't.
Financial sovereignty isn't even in most people's vocabulary. We are the latest in generations of people who are raised to believe that money belongs to the custodial agents we must allow to hold it for us. This is never stated outright. It's a cultural thing that everybody just kind of ends up going along with.
It's perhaps not surprising that people don't understand that bitcoin is an entirely new ballgame. You no longer need a bank — you ARE your own bank with crypto. You can do fractional reserve shit, you can leverage your money in exponentials, and you can stretch out your payback schedule on loans to actually fit your schedule. I know, right, insane. Only elite bankers get to do that stuff. Everyone else has to beg for permission and put up the house to get a $500 loan for a living room couch.
Take the time to educate yourself on what bitcoin really offers you. Paypal is a needless, antiquated middleman that is literally robbing you if you put them in the middle of your transactions. Don't do it.
