In 2021, PayPal, a leading global payment provider, became one of the first in the sector to offer the ability to purchase and store cryptocurrencies. Users can now store and hold digital assets thanks to a partnership with Paxos Crypto Brokerage. Litecoin was chosen as one of four cryptocurrencies selected for the application.
How to buy Litecoin with PayPal
When using PayPal, the purchase of cryptocurrencies can be accessed via both the website and mobile application. Only $1 is needed to make your first cryptocurrency purchase.
How to buy Litecoin:
Step 1. Home dashboard. Once logged in to PayPal, you will need to find the cryptocurrency section of your dashboard. This can usually be found on the home screen. Alternatively, access it via paypal.com/myaccount/crypto/.
Step 2. Select the cryptocurrency. PayPal currently offers access to Bitcoin, Ethereum, Bitcoin Cash and Litecoin. Select Litecoin from the list.
Step 3. Verify account. When purchasing cryptocurrencies for the first time, you may need to verify your account. Follow the procedures listed within the application or website.
Step 4. Choose the amount and payment method. Determine the amount of Litecoin you would like to buy and enter the amount. Next, you need to select your payment method. This can either be a bank account, debit or credit card or any outstanding PayPal balance.
Step 5. Review and buy. It is important to check over the details of your transaction. Once checked, click “Buy Now” to confirm.
It may take a few moments for the transaction to complete. Once complete, your Litecoin holdings should appear within the wallet feature of the PayPal website or mobile application.
Holdings are within PayPal only
Unfortunately, PayPal does not currently offer a way to transfer cryptocurrencies out of the platform. This means Litecoin must remain on the platform or be converted back into US dollars. If you would like to control the private keys to your Litecoin or you wish to utilize your Litecoin within other cryptocurrency applications, another purchase method may be required. In May 2021, PayPal announced that it would be offering the ability to transfer Bitcoin from the platform in the near future. However, it is unclear when this will happen and whether this will extend to Litecoin.
Pros and cons of buying LTC with PayPal
Pros
Quick purchases. Once payment options have been set up, cryptocurrencies can be purchased in just a few clicks on the PayPal platform.
Payment options. PayPal offers flexibility for crypto purchases. Users can buy cryptos using bank transfers, credit or debit cards and outstanding PayPal balances.
User-friendly. The PayPal platform is widely used by millions worldwide – it is both efficient and easy to use.
Mobile app. Alongside the PayPal website, the mobile application is available for access on the go.
Live tracking. Cryptocurrencies within PayPal track live prices, which means a user can keep track of a portfolio’s performance.
Cons
No transfers. Cryptocurrencies cannot yet be moved from the platform. This means they cannot be used within other third-party apps or stored within a personal cryptocurrency wallet.
Non-custodial. The inability to transfer means that crypto investors do not have full control over private keys. This ultimately means they do not have full control of their digital assets.
High fees. Transaction fees within the PayPal platform are higher than most dedicated cryptocurrency exchanges.
Variety. There are currently only 4 cryptocurrencies to choose from on the platform. Other exchanges offer access to tens to hundreds of different cryptocurrencies.
PayPal Litecoin fees
Transaction fees are applied to your purchase when you buy or sell LTC. Fees are accurate as of 06 September 2021.
Buy or Sell amount
Fee
Fee estimates
$1 – $24.99
$0.50
$0.50
$25 – $100
2.30%
$0.575 – $2.30
$100.01 – $200
2%
$2 – $4
$200.01 – $1,000
1.80%
$3.60 – $18
$1000.01+
1.50%
$15+
Note: Sometimes you can save on fees by buying more cryptocurrency. For instance, you’ll pay less in fees to buy $200 in crypto than you would to buy $199. Consider making one larger purchase to save on fees instead of many smaller purchases, if possible.
The exchange rate shown when purchasing will include a market spread. This is the difference between the exchange rate offered and the true market price. When buying Litecoin, a slightly higher market price will be offered. When selling Litecoin, a slightly lower market price will be offered. The difference is then split between the background market maker and PayPal.
How to sell Litecoin on PayPal
PayPal does not currently allow users to transfer Litecoin out of the platform. To access funds, a user will need to sell Litecoin for a chosen fiat currency and then subsequently withdraw funds to their bank account.
How to sell Litecoin:
Step 1. Cryptocurrency section of PayPal. Once logged in to your PayPal account, click on the cryptocurrency section of the PayPal dashboard. This can usually be found on the home screen. Alternatively, access it via paypal.com/myaccount/crypto/.
Step 2. Select the cryptocurrency. PayPal currently offers access to Bitcoin, Ethereum, Bitcoin Cash and Litecoin. Select Litecoin from the list.
Step 3. Click sell. When selling cryptocurrencies for the first time, PayPal may ask you to provide some tax information for the account.
Step 4. Choose sale amount. Enter the amount of Litecoin you wish to sell.
Step 5. Review and sell. It is important to review a transaction before completing it. Check the details of your transaction and click “Sell Now” to confirm your sale.
Compare other ways to buy and sell Litecoin
PayPal users have undoubtedly benefited from access to cryptocurrency assets; however, the payment provider is certainly not the only option for those looking to purchase Litecoin. Dedicated cryptocurrency exchanges can often offer access to a wider range of cryptocurrencies with transaction fees that are a fraction of the cost. If you are thinking of purchasing significant amounts of Litecoin, remember to compare the fees and exchange rates of alternative platforms below.
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Bottom line
PayPal is one of the leaders when it comes to cryptocurrency adoption among global payment providers. The option to purchase, store and sell 4 different cryptocurrencies has been warmly welcomed by many PayPal users.
However, the inability to transfer digital assets off the platform is a stumbling block for most. Many users purchase cryptocurrencies with the intention of storing them within personal cryptocurrency wallets to remain fully in control of their assets. Combined with higher than average transaction fees, many crypto investors may find other platforms more suitable.
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James Hendy was a writer for Finder. After developing a keen interest in traditional financial investing, James transitioned across to the cryptocurrency markets in 2018. Writing for cryptocurrency exchanges, he has documented some of the key blockchain technological advancements. James has a Masters of Science from the University of Leeds and when he isn't writing, you will either find him down at the beach, reading (coffee in hand) or at the nearest live music event. See full bio
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