Coinbase is a leading cryptocurrency exchange which has enabled its users to make transactions in digital currencies such as Bitcoin. Recently, the exchange’s users in UK and Canada experienced a hiccup where they were not able to trade or withdraw their funds to their PayPal accounts. Although the reason behind the incident is not yet known, Coinbase assured their customers that their funds were secure and a fix was underway.

The exchange has been striving to make digital currency exchanging as easy as possible, which made them integrate PayPal (to sell bitcoins) and credit cards (to buy bitcoins) in 2016. Since then, thousands of Coinbase users in different parts of the world started making use of PayPal to make fiat currency transactions. This integration enabled Coinbase users to sell their BTCs and deposit their US coins into their PayPal accounts.

In regard to payment options, PayPal integration is the third most used choice besides the bank payment through automated clearinghouses (ACH) with a $25,000 daily limit and wire transfers with no limits imposed. Thanks to PayPal users can make use of an alternative to Coinbase’s linking process for credit and debit cards (up to $5,000 weekly) and bank accounts as they just need a PayPal login.

A downside of using PayPal for buying cryptocurrencies is the fact that it is one of Coinbase’s most expensive payment options, with a 3.99% fee. This is almost as expensive as buying a debit card but with a much higher limit. Furthermore, the fee is notably higher than the 1.49% fee in bank purchases. Moreover, sending US dollars from PayPal to Coinbase will trigger a 2.5% fee, while ACH transfers have no fee imposed.



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