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

Various users try to transfer cryptocurrencies from Coinbase to PayPal and vice versa as these are two of the largest financial institutions offering options to buy and sell cryptocurrencies to a large audience. Whether you are looking to consolidate your holdings on a single platform or grow your HODLing setup, moving between both platforms can be extremely beneficial.

In July 2022, PayPal finally released a long-awaited feature: allowing users to send cryptocurrencies to external wallets. This feature wasn’t allowed a few months ago, however. When PayPal decided to add support for cryptocurrencies in 2020, you can only buy and sell cryptocurrencies within PayPal but not send them to external wallets.

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

If you are using Binance, read: How to Transfer Crypto from Binance to PayPal: Step by Step

How to transfer cryptocurrencies 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 cryptographic section on the dashboard.
  2. Select the cryptocurrency you wish to receive.
  3. Click the Transfers button, the small icon with two arrows, then click “Receive”.
  4. Complete the ID verification process (only required if you are using the service for the first time).
  5. You will receive a cryptographic address which you will use for the particular resource you wish to receive.
  6. Now you need to log into your Coinbase account and click Send / Receive, choose Send and select the cryptocurrency you want to transfer.
  1. Paste the cryptographic address from PayPal into the “a” section of Coinbase and click “Continue” to confirm the transaction.

This is essentially what you need to do. As a side note: always double and triple control that the address of each particular coin is correct and that the network matches each cryptocurrency. Using an incorrectly spelled 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 funds.

It is worth pointing out that PayPal does not support all Coinbase cryptocurrencies, and as a result, your options are limited when it comes to transferring cryptocurrencies from Coinbase to PayPal. However, it is possible to transfer important assets such as Bitcoin and Ethereum.

How to transfer from PayPal to Coinbase

The process is pretty much the same 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 above and then click on Receive.
  1. Copy the address, in this case Ethereum.
  2. Go to the cryptographic section of PayPal 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 congestion of the currency network.

Basically, you can send cryptocurrencies 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.

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

FAQ

Can I use the same address for each cryptocurrency deposit?

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

Can I send cryptocurrencies from PayPal to any exchange?

You can transfer cryptocurrencies from PayPal to a valid wallet address, whether it’s a 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’ll have to wait and see if PayPal decides to add support for more cryptocurrencies, with its decision likely based on a number of factors, including the demand from its users.

Can I recover my funds if I send them to the wrong address?

It is highly recommended that users “always check the correct address and network three times for each coin. Note that PayPal supports every cryptocurrency on their native networks, while cryptocurrency exchanges like Coinbase and Binance can support tokenized versions of a coin on another blockchain, for example, Wrapped Bitcoin (WBTC) on the Ethereum network.

Image credit

Featured image via Pexels.

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