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Paypal and Crypto - Is this anything?

Posted: Wed Oct 28, 2020 2:50 pm
by dualstow
PayPal to Support Buying and Selling Select Cryptocurrencies
According to PayPal, users will also be able to 'instantly convert their selected cryptocurrency balance to fiat currency,' in order to use the virtual cash to buy real goods from PayPal merchants.
https://www.pcmag.com/news/paypal-to-su ... currencies

I saw this news when it came out, and may have put it in my sig line, but I don't see any threads on it.
This is interesting to me because I do use paypal. While I am not interested in holding bitcoin or any of that as speculative investing, it might be kind of fun to buy something in ethereum coins, and to do so within paypal's infrastructure.

(Second half of Subject line is an allusion to Seinfeld's new book)

Re: Paypal and Crypto - Is this anything?

Posted: Wed Oct 28, 2020 6:04 pm
by flyingpylon
They have competitors doing it, so they have to keep up.

Re: Paypal and Crypto - Is this anything?

Posted: Thu Oct 29, 2020 7:18 am
by Maddy
Is that a taxable transaction?

Re: Paypal and Crypto - Is this anything?

Posted: Thu Oct 29, 2020 1:43 pm
by dualstow
Maddy wrote:
Thu Oct 29, 2020 7:18 am
Is that a taxable transaction?
I don't know, but it's a fee-less transaction. There's a link to cryptocurrencies and taxes on that same page, below the article.

Re: Paypal and Crypto - Is this anything?

Posted: Sun Jan 03, 2021 5:35 pm
by Kriegsspiel
It's no longer fee-free. So is Paypal a wallet where you keep "your" bitcoin, or do they hold it for you (and do things with it until you cash it out)?

Re: Paypal and Crypto - Is this anything?

Posted: Mon Jan 04, 2021 6:54 am
by dualstow
Kriegsspiel wrote:
Sun Jan 03, 2021 5:35 pm
It's no longer fee-free.

ah, I see that. Changed with the new year. https://www.paypal.com/us/smarthelp/art ... toComplete

So is Paypal a wallet where you keep "your" bitcoin, or do they hold it for you (and do things with it until you cash it out)?
Good question. I would be surprised if they didn’t mess with it like Blockrock(?) and tlt

Re: Paypal and Crypto - Is this anything?

Posted: Mon Jan 04, 2021 8:52 am
by bitcoininthevp
Paypal uses a company called Paxos for crypto stuffs:

https://www.forbes.com/sites/ninabambys ... 5178eb422d

"In October, payment giant Paypal launched a cryptocurrency trading service in partnership with Paxos, letting customers buy and spend bitcoin."

And yes any time you buy then sell a crypto it is a taxable event (as my understanding, not financial advice, etc).