Cryptocurrencies and PayPal: this is how Ukraine collects international donations
Cryptocurrencies and PayPal
Three weeks after the Russian invasion began, the conflict in Ukraine is turning into a war of attrition for the local population and their army. In this increasingly complicated situation, external financing plays a central role. For this reason, PayPal has allowed Ukrainian residents and refugees to receive payments from abroad. Before this decision, users in Ukraine could instead only use PayPal to send money out of the country.The expansion allows Ukrainian PayPal account holders to send and receive payments from friends and family around the world. in dollars, Canadian dollars, British pounds and euros. Ukrainian customers who receive money in their PayPal wallet can then transfer the funds to their bank account by linking a Mastercard or Visa debit or credit card.
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PayPal also announced that it will temporarily waive fees for customers who send funds to Ukrainian PayPal accounts or who receive funds on their Ukrainian accounts until June 30th. In early March, by joining several other financial and tech firms, the company instead shut down its services in Russia.
Cryptocurrencies are also playing a significant role in bolstering the Ukrainian resistance as well as the people. normal. In late February, just days after Russia invaded Ukraine, Ukraine's official Twitter account asked for cryptocurrency donations to fund the resistance. The response was so surprising that the government decided to legalize the use of bitcoin and other digital currencies.
Ukrainian President Volodymyr Zelensky signed a bill approved by parliament in February that creates a legal framework for the exchange of cryptocurrencies. In a message published on Telegram, the Ukrainian Deputy Prime Minister and Minister of Digital Transformation, Mykhailo Fedorov, said that thanks to this law, the cryptocurrency market can come out of the shadows.
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"With the start of the war, cryptocurrencies have become a powerful tool for attracting additional funding to support the Ukrainian armed forces - Fedorov explained -. In more than three weeks of war, the Crypto Fund of Ukraine has raised over 54 million dollars in cryptocurrencies. "The total proceeds according to the ministry would even double, exceeding 100 million dollars.
Now the law allows Ukrainian banks to open accounts for cryptocurrency companies. Foreign cryptocurrency exchanges and companies that manage other virtual assets will have to register with the government, the National Bank of Ukraine and the he National Securities and Stock Market Commission called to oversee the sector.
The state also says it will protect citizens' cryptocurrencies with the same legal strength as its fiat currency. Despite an already mature interest in digital assets in the country, ordinary people have increasingly taken refuge in cryptocurrencies following the Russian invasion of the country. Trading on the national cryptocurrency exchange Kuna has indeed increased by 200%.
How to buy Bitcoin and other cryptocurrencies with PayPal
Edgar Cervantes / Android Authority
Bitcoin and other cryptocurrencies have seen a substantial rise in popularity in recent years. While trading these assets used to be a convoluted and insecure process that involved sending money to strangers online, buying and selling crypto has become much more official and streamlined. There are plenty of renowned exchanges and legit financial services that offer trading Bitcoin and a variety of other cryptocurrencies. PayPal is one of them, and today we’ll show you how to buy Bitcoin with Paypal.
Related: Everything you need to know about PayPal
Are there restrictions on buying Bitcoin with PayPal?Let’s start by telling you one of the most critical factors. Buying Bitcoin with PayPal isn’t a widely available feature you can use in any country. In fact, it’s only available in one country — the USA — but that doesn’t include Hawaii. Additionally, you’ll need a personal account, so PayPal users with a business account still can’t buy crypto through PayPal.
More: How to set up a PayPal account
Are there fees for buying and selling crypto with PayPal?
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No crypto exchange is truly free, and neither is PayPal. The company will take its cut whether you’re buying or selling one of its available cryptocurrencies. How much PayPal charges depends on the amount of crypto you’re trading.
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The problem with using PayPal for crypto
Edgar Cervantes / Android Authority
Before using PayPal to buy or sell crypto, you should know a critical factor. PayPal doesn’t operate as a true cryptocurrency exchange or wallet. Instead, PayPal will keep custody of the Bitcoin you buy through its platform. You can’t transfer your Bitcoin to other wallets or exchanges. You can only buy, sell, or hold through PayPal, so only go with it if you’re sure you don’t want to move that crypto around.
This will likely be a problem for the security-conscious who like to keep their coins in a cold or hardware wallet. Additionally, some people like moving their coins around for generating interest through staking, taking loans with crypto as collateral, and more.
Alternatives: The best crypto wallets available
Of course, there’s the argument that you could always sell the crypto on PayPal, take the money, and buy it elsewhere. Remember, this constitutes a taxable event, though. Simply moving your crypto from wallet to wallet doesn’t.
Which cryptocurrencies does PayPal support?
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As mentioned above, PayPal isn’t a crypto exchange, so the number of available assets you can buy and sell is limited. Currently, the service offers four cryptocurrencies.
Also: The best cryptocurrencies we saw in 2021
How to buy Bitcoin and other cryptocurrencies with PayPal
Edgar Cervantes / Android Authority
Now that you know the essential parts of the small print, it’s time to finally show you how, exactly, you can buy Bitcoin with PayPal, as well as other cryptos.
Where else can you buy crypto with PayPal?
Edgar Cervantes / Android Authority
Buying Bitcoin or any other crypto through PayPal is quick and easy. You likely already have a PayPal account, so it’s convenient that you likely won’t have to open a whole new account to buy Bitcoin. All that said, it’s a very limited platform for crypto management. More advanced crypto traders, holders, and investors will want to go with another exchange.
Thankfully, you can still use PayPal to purchase crypto through other exchanges. Here’s a list of crypto exchanges that accept PayPal as a payment method (in the USA).
You can also buy Bitcoin using PayPal if you have either the PayPal Cash Card or the PayPal Business Debit Mastercard. Of course, this is assuming that the exchange accepts debit card purchases.
Now that you know how to buy Bitcoin with PayPal, it’s time you start getting more versed in the world of cryptocurrencies. You should start with our cryptocurrency glossary, which will give you a deeper look into important crypto terms. We also have guides on investing and blockchain technology.
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