How to transfer crypto from Coinbase to PayPal and vice versa: a step-by-step guide

Various users want to transfer crypto from Coinbase to PayPal and vice versa, as these are two of the largest financial institutions that offer buying and selling of cryptocurrencies to a wide audience. Whether you want to consolidate your holdings on one platform or grow your HODLing setup, transferring between both platforms can be very useful.

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

This article will guide you step-by-step on how to transfer crypto from PayPal to Coinbase and vice versa.

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

How to transfer crypto from Coinbase to PayPal

Transferring from Coinbase to PayPal is a simple process, as described in the steps below:

1. After logging into your PayPal account, go to the crypto section of your dashboard.
2. Select the cryptocurrency you want to receive.
3. Click the Transfers button — the little icon with two arrows — and then “Receive.”
4. Complete the ID verification process (which is only required if you are using the Service for the first time).
5. You will be given a crypto address that you will use for the particular asset you wish to receive.
6. Now you need to access your Coinbase account and click on Send/Receive, select Send and select the crypto you want to transfer.

7. Paste the crypto address from PayPal into Coinbase’s “to” section and click “Continue” to confirm the transaction.

That’s really what you have to do. As a side note: always double and triple check that the address of each coin is correct and that the network corresponds to each crypto. Using a mistyped address or the wrong network (for example: sending an ERC-20 (Ethereum) token to a TRC-20 (TRON) network) will result in the loss of your funds.

It’s worth pointing out that PayPal doesn’t support every crypto asset Coinbase does, and as a result, options are limited when it comes to transferring crypto from Coinbase to PayPal. Nevertheless, it is possible to transfer large assets such as Bitcoin and Ethereum.

How to transfer from PayPal to Coinbase

The process is largely the same if users want to transfer from PayPal to Coinbase. Briefly summarized:

1. Once you’ve logged into your Coinbase account, click the Send/Receive tab at the top, then click Receive.

1. Copy the address, in this case Ethereum.
2. Head over to PayPal’s crypto section and select the asset you want to receive.
3. Paste the address from Coinbase and click Continue.

Your funds should be available depending on the currency’s network load.

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

Although PayPal does not charge fees 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 use – Bitcoin network, Ethereum network, etc. – and are used to reward miners and validators.

FAQ

Can I use the same address for each crypto deposit?

It is not recommended to reuse the same crypto address to move your funds due to security and privacy reasons. PayPal will give you a different address for each coin every time you want to move your money.

Can I send crypto from PayPal to any exchange?

You can transfer crypto from PayPal to a valid wallet address, be it a personal hot 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’ll have to wait and see if PayPal decides to add support for more cryptoassets, with the decision likely to be based on a number of factors, including user demand.

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

It is strongly recommended that users « always triple check the address and correct network for each coin. Note that PayPal supports every crypto on their native network, while cryptocurrency exchanges such as Coinbase and Binance may support tokenized versions of a coin on another blockchain—for example, packaged Bitcoin (WBTC) on the Ethereum network.

Image credit

Featured image via Pexels.