PayPal will ask you to verify your identity. This security measure prevents people from buying a volatile currency like Bitcoin without your permission After verifying your identity, you can tell PayPal how much virtual currency you want to purchase. PayPal breaks down how much a dollar amount translates to in Bitcoin. It also warns users that the price of Bitcoin fluctuates from second to second The exchange rate for Bitcoin varies due to the cryptocurrency industry.
When this happens, PayPal quickly sells your Bitcoin to convert it into fiat currency i. US dollars. Then you pay the retail or online store with that cash. Lots of businesses are accepting online payments these days to offer more convenience to their customers. You never technically make a transaction with Bitcoin or any other cryptocurrency through PayPal. Rather, your cryptocurrency is translated into cash instantly to facilitate the transaction.
For many people, this goes against the very point of cryptocurrencies like Bitcoin. For now, any Bitcoin you purchase through the PayPal crypto marketplace is locked to your PayPal wallet. PayPal does this to ensure adequate security for its users. But it's certainly frustrating for many.
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