How to Transfer Crypto from Coinbase to PayPal and Vice Versa: A Step-by-Step Guide

How to Transfer Crypto from Coinbase to PayPal and Vice Versa: A Step-by-Step Guide


Many users are looking forward to transferring cryptocurrency from Coinbase to PayPal and vice versa because these two institutions are among the largest financial institutions that offer cryptocurrency buying and selling options to a wide audience. Whether you are looking to consolidate your holdings on a single platform or to enhance your HODLing setup, transferring between both platforms can be very beneficial.

In July 2022, PayPal finally released a long-awaited feature: allowing users to send crypto to external wallets. However, this feature was not allowed a few months ago. When PayPal decided to add support for cryptocurrency in 2020, you could only buy and sell cryptocurrencies within PayPal but not send them to external wallets.

This article will guide step by step on how to transfer crypto from PayPal to Coinbase and back.

If you use Binance, please read: How to Transfer Crypto from Binance to PayPal: Step by Step

How to Transfer Cryptocurrency from Coinbase to PayPal

Transferring from Coinbase to PayPal is a straightforward process, as shown in the steps below:

  1. After logging into your PayPal account, head over to the Encryption section on the dashboard.
  2. Select the cryptocurrency you want to receive.
  3. Click the Transfers button – the little icon with two arrows – then click the “Receive” button.
  4. Complete the identity verification process (which is only necessary if you are using the service for the first time).
  5. You will be given a cipher address that you will use for the particular origin you want to receive.
  6. Now you have to access your Coinbase account and click send/receive, choose send and select the crypto you want to transfer.
  1. Paste the crypto address from PayPal into the “to” section of Coinbase and click “Continue” to confirm the transaction.

This is basically what you have to do. As a side note: Always double and triple check That the address of each particular currency is correct and that the network corresponds to each cryptocurrency. Using a wrongly typed address or network (eg: sending an ERC-20 (Ethereum) token to the TRC-20 (TRON)) will result in you losing your money.

It should be noted that PayPal does not support every cryptocurrency that Coinbase supports, and as a result, the options are limited when it comes to transferring crypto from Coinbase to PayPal. However, it is possible to transfer major assets such as Bitcoin and Ethereum.

How to Transfer from PayPal to Coinbase

The process is quite similar if users want to transfer from PayPal to Coinbase. In short:

  1. Once logged into your Coinbase account, click on the Send/Receive tab in the header, then click Receive.
  1. Copy the address, in this case, Ethereum.
  2. Head to the PayPal Encryption section and choose the asset you want to receive.
  3. Paste the address from Coinbase and click Continue.




Your funds should be available depending on the traffic of the currency network.

Basically, you can send crypto from any personal crypto wallet to PayPal (as long as PayPal supports the coin). You just need the PayPal address and paste it into the sender’s wallet, or vice versa.

Although PayPal does not charge a fee for sending crypto to external wallets, you will have to pay a network fee, which PayPal will show you on the confirmation screen. Network fees depend on the network you are using – the Bitcoin network, the Ethereum network, etc. – and are used to reward miners and validators.

Instructions

Can I use the same address for every crypto deposit?

Reusing the same crypto address to transfer your money is not recommended for security and privacy reasons. PayPal will provide you with a different address for each coin each time you want to transfer your money.

Can I send crypto from PayPal to any exchange?

You can transfer cryptocurrency from PayPal to a valid wallet address, whether it is a hot personal storage wallet or an exchange.

What currencies does PayPal support?

PayPal supports four cryptocurrencies: Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), and Litecoin (LTC). We will have to wait and see if PayPal decides to add support for more cryptocurrency groups, and its decision will likely be based on a number of factors, including demand from users.

Can I get my money back if I send it to the wrong address?

Users are strongly advised to “always triple check the correct address and network for each coin. Note that PayPal supports every cryptocurrency on their native networks, while crypto exchanges such as Coinbase and Binance can support token versions of a currency on another blockchain – for example, a Bitcoin (WBTC) file on the Ethereum network.

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Featured Image via Pixels.



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