Crypto users are faced with many difficulties when it comes to payment options on broker or exchange platforms.
While many platforms and services accept direct fiat deposits, most are not so keen on fiat withdrawals, especially those to PayPal accounts. Through its partnership with PayPal, Coinbase has enabled its customers to withdraw cryptocurrency to PayPal.
Coinbase is a popular US-based cryptocurrency exchange and broker, which is widely regarded as a safe and reliable service for buying and selling digital assets. In terms of daily trading volumes, Coinbase is among the top exchanges.
It was established in 2013 by Brian Armstrong and Fred Ehrsam. The platform’s interface was developed to be easily accessible by novice traders. Coinbase is a fully regulated exchange and requires ID verification when registering for an account. The exchange charges fees that are more expensive than the market average.
The platform does not currently support account deposits using PayPal accounts. The only available option now is to withdraw funds.
How to Withdraw from Coinbase to PayPal: Step-by-Step Guide
Step 1: Log in to your Coinbase account
You will have to first log into your Coinbase account with your username and password. Both computer and smartphone users are able to access their accounts via any browser. If you do not have a Coinbase account, you will be required to create one and comply with the company’s ID requirements.
Ensure that you have completed all identity verification steps needed and that your listed country has been correctly selected.
Step 2: Integrate your PayPal account with Coinbase
- Now that you are logged in click on “Settings” in your Coinbase account to start integrating your account with PayPal.
- Next, you will have to click on the “Linked Accounts” section, which is above the overview tab.
- Click on the “Link a New Account” button.
- Select PayPal from the list of provided services.
- You will then be redirected to the PayPal website. You will have to log into your PayPal account with your credentials.
- Now click on the “Agree” button to give Coinbase authority to your PayPal account.
Mobile users will have to click on “Settings” and then on the “Add a Payment Method” button. The next steps are the same as those featured in the desktop version.
Congratulations, you have linked your PayPal to your Coinbase account. Keep in mind that you are able to link your PayPal account to only one Coinbase account.
If the option to add PayPal as a payment method does not appear in your account, it is because this feature is not supported in your region.
Step 3: Withdrawing funds to PayPal
- As you can only deposit fiat into your PayPal account, you will have to exchange currencies.
- Click on the “Buy/Sell” button on the Coinbase toolbar from your Dashboard.
- Click on the “Sell From” button.
- Select the crypto wallet from which you will be sending the funds.
- Go to the “Deposit To” section and select your PayPal wallet.
- Select your desired crypto and send it to one of your EUR or USD wallet on Coinbase. Keep in mind that you will be charged a fee for this conversion.
- Next, verify your transaction details and click on the “Confirm Sell” button.
- Wait for your transfer to be confirmed.
- Now go to your EUR/USD wallet and click on “Withdraw.”
- Select the option to withdraw to PayPal and enter the desired amount for your withdrawal.
- Click “Continue.”
- Confirm your withdrawal after you have received the message from Coinbase that the process has been completed.
Step 4: Remove your PayPal account From Coinbase
If you want to remove your PayPal account from Coinbase, know that it is easier than linking it.
- From your Coinbase account, go to “Settings” and then click on the “Linked Account” button.
- Now just click on the “Remove” button featured next to your PayPal account.
- A pop up will appear to confirm the process, and you will have to click again on “Remove”.
Fees and other Issues
Coinbase users that are based in the United States have the option of accessing PayPal’s Instant Transfer. This means that users will have their funds credited into their PayPal accounts instantly, but they will be charged a fee of 3.75% form the total amount of the transaction.
Another downside is that Coinbase has some of the foreign exchange fees in its industry. The platform applies a conversion fee of 5%. This would mean $500 for converting $100.00 worth of crypto. This is one of the biggest disadvantages of using Coinbase to withdraw to PayPal, as the fees are not only high on their own, but they also add up and take away a large portion out of your funds.
You have to take into account the fee applied to the spread of the transaction:
“We also charge a Coinbase Fee (in addition to the Spread), which is the greater of (a) a flat fee or (b) a variable percentage fee determined by region, product feature and payment type. The flat fees are set forth below:
- If the total transaction amount is less than or equal to $10, the fee is $0.99.
- If the total transaction amount is more than $10 but less than or equal to $25, the fee is $1.49.
- If the total transaction amount is more than $25 but less than or equal to $50, the fee is $1.99.
- If the total transaction amount is more than $50 but less than or equal to $200, the fee is $2.99.”
There is the problem of waiting for weeks to migrate your funds from PayPal into your bank account. PayPal has also increased its fees, which in most cases exceed those charged by most big banks.
It is worth to know that there have also been many complaints regarding PayPal’s freezing of user accounts without providing a reasonable explanation and not complying with regulations set by banking authorities.
This has been our guide on how to Withdraw cryptocurrency to PayPal, and we hope that the information provided will be of help to you in your trading endeavors.
Featured image: DFID.org