In addition to PayPal, which other giants support users to buy Bitcoin directly?
Original title: "PayPal, Square, Revolut, and Robinhood: A Crypto Comparison"
Original source: cryptonews
Original compilation: 0x26
With the recent big news that PayPal officially entered the crypto market to provide services, let's quickly review other large payment companies that have entered this space before Its products: Revolut and Square, as well as the investment platform Robinhood. Take a closer look at what these four cryptocurrency-friendly software have to offer their users.
The issues discussed include whether service providers allow users to hold private keys, as the famous saying in the industry says "not your key, not your money/coin (not your private key, not your coin/coin)". And whether it is possible to use these assets outside the service network, such as sending them to other people, interacting with other applications, especially those based on blockchain, etc.
One thing that seems obvious is that these companies are far more alike than different when it comes to their products Although offering a wide variety of features and services, only one allows (limited) withdrawals and transfers to external wallets, and all four employ the " your coin but no private keys for you (yes your coins but no private key)" rule.
Let’s look at the similarities and differences between these companies. All materials were obtained from their respective websites unless otherwise stated.
PayPal
< img src="https://image.theblockbeats.com/upload/2020-10-23/7101da0493e0639a2fc67490e8a01605270bc76e.png?x-oss-process=image/quality,q_90/watermark,image_d2F0ZXJtYXJrbmV3Ln BuZw==,g_center,p_10">< br>
Payment giant PayPal, the youngest cryptocurrency player on this list, has just officially announced that it will allow US users buy, sell and hold BTC, ETH, BCH and LTC through cash accounts.
· The user owns the cryptocurrency purchased on PayPal, but does not own the private key. PayPal explained that there is a considerable risk in giving users a private key, because the private key may be lost, stolen or forgotten;
Currently, users can only Hold the cryptocurrency they purchased on PayPal;
Cannot transfer to another PayPal account;
Currently, PayPal cannot For these cryptocurrency payments or transfers;
· Although there are related plans, at present, cryptocurrency balances cannot be used as a source of funds for merchants or to complete peer-to-peer (P2P) transactions;, all Crypto held by PayPal must be sold and converted into U.S. dollars;
The maximum amount of cryptocurrency purchases for a single account is $10,000 per week and $50,000 per year;
· Finally, while cryptocurrencies cannot be canceled or reversed, cryptocurrency purchases will be protected in the event of unauthorized activity.
Revolut
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Earlier this year, Revolut, an online payment service provider headquartered in London, England, due to certain clauses and Changes to the protocol to make it more crypto-friendly. However, as we can see below, the platform still has some work to do in order to gain more trust from the "cryptosphere".
The major and most important change is that under the new terms, customers can legally own their cryptocurrencies, And Revolut acts as an escrow agent, holding and trading these assets on behalf of clients. Ed Cooper, Revolut’s head of Crypto, told us that the upgrade is due to repeated inquiries from Revolut Crypto users as to whether Revolut was actually buying cryptocurrency when their balance was credited, rather than a fake transaction on paper.
· Revolut appoints a third-party regulator for users, and the company claims that these people protect all users' private private keys;< /p>
· Users have the right and full control over the financial value of any cryptocurrency they buy, and Revolut will act according to the given instructions. "Users will not be able to conduct transactions themselves.";
However, if the agreement with the user is terminated due to, for example, suspected fraud, they will sell the cryptocurrency on the user's behalf and send an equal amount of Cryptocurrency is deposited into his account;
· Cryptocurrency is deposited in a "virtual account" that also holds cryptocurrency for other "Revolut" users; there is no separate Cryptocurrency account. Revolut's app displays the amount of cryptocurrency held by a particular user himself;
Its secure storage methods include multi-signature wallets and cold storage;
·Users can buy and sell BTC, BCH, ETH, LTC,XRP and XLM;
·In this application, cryptocurrencies can be transferred to other Revolut accounts, but not Transfer to other non-Revolut addresses, such as external wallets;
Revolut may limit the amount of cryptocurrencies you can buy;
Will Only responsible for "foreseeable losses", and the user may also be responsible for some losses;
It supports Europe (EEA), Australia, Canada, Singapore, Switzerland, Japan and legal residents of the United States, and says it will expand support soon.
Square
< img src="https://image.theblockbeats.com/upload/2020-10-23/b24a2eef21fb3818a75f9fa5ea1d43c24548b58c.png?x-oss-process=image/quality,q_90/watermark,image_d2F0ZXJtYXJrbmV3LnBuZ w==,g_center,p_10">< br>
U.S.-based payments company Square was founded by well-known Bitcoin fanatic and Twitter CEO Jack Dorsey Create and manage. It has been an openly pro-BTC company since its inception. Just earlier this month, the company announced that it had acquired 4,709 BTC for a total purchase price of $50 million.
·Square is the custodian of BTC, the risk is borne by the user;
·Bitcoin is stored in Square's cold/hot wallet system;
·Its Cash service allows the purchase of Bitcoin from a mobile app. Also deposit $10,000 worth of Bitcoin within 7 days;
· Withdrawals are allowed on the platform but are not always supported as a security safeguard;
· Using an external wallet is also possible, but "requires internal review and accurate and timely identity verification information.";
· Users must have a minimum of BTC 0.0001( currently $1.29) balance; transfers to external wallets typically take 30-40 minutes, but may take longer;
Meanwhile, the company In the second quarter of 2020, BTC generated $875 million in revenue through its cash application service, a 600% year-over-year increase, the report said. During this period, the Cash app generated $17 million in gross profit on Bitcoin, a 711% year-over-year increase.
Robinhood
Securities and cryptocurrency trading platform Robinhood has become quite popular during the COVID-19 pandemic, and because of the skyrocketing business volume And often mentioned by the media. Users can trade cryptocurrencies through this platform that gathers new-age speculators, thereby driving the development of the crypto market.
·Robinhood means that users own the cryptocurrency assets in their accounts and can buy and sell them at any time;
However, the website states: "We do not currently provide you with access to wallets or wallet addresses.";
Purchased on Robinhood Crypto Cryptocurrencies are stored in a mix of hot and cold wallets (mostly in cold wallets);
Since cryptocurrency transfers require authorization from certain individuals, the company stated , it will rotate this list and will not disclose it internally or externally;
Although they plan to do so in the future, currently, they do not support withdrawals;
p line="1GkK"> · Transferring existing crypto assets into Robinhood crypto accounts is not supported;
· The company stated that they are evaluating whether it is safe to transfer assets into and the function of transferring out of Robinhood;
·Available assets include BTC, BCH, ETH, LTC, BSV, ETC, DOGE , and provide real-time market data for other 10 coins;< /p>
· This service is also available to residents of certain US states.
While it may only be the beginning, all these signs point to a mix of companies offering cryptocurrency services before and just starting to offer Companies that serve cryptocurrencies are becoming friendlier and are offering more choices to crypto users in an effort to earn their trust — but there still seems to be a long way to go. This manifests itself in two main problems, the first being that these companies do not give users their own private keys (at least the option to those who want to be the sole custodian of their private keys). The second is to allow users to transfer funds outside their platform, allowing more interaction with other blockchain applications.
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