When you buy cryptocurrencies through PayPal, they reside in the company’s wallet and are backed by the company’s assets. This means that you don’t have access to the private keys for your coins — you only own a public key that points to the funds in the PayPal wallet and a matching private key that can be used to unlock those funds. That’s a big distinction from other exchanges and wallets, where you hold the private keys yourself.
That distinction is why some crypto users have been avoiding the PayPal platform, but the company announced on Tuesday that you can now transfer crypto between your PayPal wallet and other external crypto wallets or exchanges. The feature is rolling out today with select U.S. customers and will be available to all eligible U.S. PayPal accounts in the next week or so.
To conduct a transfer, visit the cryptocurrency section of your account and choose the coin you want to send. Enter the external crypto address (you can manually enter it, copy and paste it, or scan a QR code) and tap Send. Each transaction includes a blockchain-based transaction hash that can be viewed in a compatible blockchain explorer. A transfer is complete only when it’s confirmed by the external network and it can be reversed only if the recipient provides a valid proof of ownership that matches the address you sent the crypto to.
Transferring from PayPal to an external wallet will incur a network fee in addition to any PayPal fees that may apply, and the amount you send will depend on the currency you’re sending. You can view a estimate of the network fee on your confirmation screen before you send your crypto. transfer bitcoin to paypal