Paypal: a great cryptocurrency hunting trap.

Clearly the institutions are assuming the fact that cryptocurrencies are here to stay, in this sense they offer alternatives to generate exchanges, businesses or any type of financial activity where users have the opportunity to entrust their virtual funds to individuals, who are responsible for managing and often profit with high commissions for transactions or account maintenance thanks to the effort of your work.

On the other hand it is clear that the important thing for large institutions is to keep under their control the population, for that reason they not only seize our funds but also our identity, therefore they keep under their control our financial records. That is why when Paypal announced its intention to include cryptocurrencies in its payment system the first thing I thought was, like the squid-faced man in Stars Wars: "it's a trap".

I remember 10 years ago I was using this platform as a method of commercial exchange, so that some customers made their payments through this exchange instrument. At the beginning everything was fine until Paypal arbitrarily changed my account to premium, considering the fact that most of the money I was receiving was of a commercial nature. Under this scheme the exchange rate between currencies is higher, in addition to the costs for other services. Faced with this abusive decision I opted to stop using Paypal, on the other hand, when I took on the world of cryptocurrencies I realized that this type of trade is much better and cheaper than any other initiative in fiat.

Now that among their services they have cryptocurrency exchanges (Bitcoin, Bitcoin Cash, Ethereum) where customers will have access to wallets to place there their funds in the aforementioned digital currencies, however when we look at the criteria for using this new method we find the surprises. Paypal tells you that your cryptos are yours, however they keep under their power the keys of the wallets, in that sense, we all know that who has the keys is the real owner of what they keep.

Also Paypal does not allow customers using its platform to enter the cryptocurrency wallets from abroad, therefore forcing its users to buy digital currencies offered by the company itself. Likewise, Paypal does not allow cryptocurrencies to be withdrawn from the wallets (and as they keep the keys, they ensure that they remain under the custody of the company). To withdraw money from the accounts the clients must transform the cryptos into fiat money, this way they will always keep the cryptos while you lose money, they keep the most valuable.

In conclusion, Paypal created this methodology of payment and cryptocurrency exchanges to take control of something that belongs to you, so before placing your cryptos in this system you should consider whether it is valid for you to introduce funds that you can not withdraw. It is your decision.

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