What is cryptocurrency?

The following information is for educational purposes only and does not constitute an endorsement of cryptocurrency. Visit Discover Crypto for more information.

Information provided by PayPal is not intended to be and should not be construed as tax advice. For questions about your specific tax situation, please consult a tax professional.

It’s digital

Cryptocurrency is a computer-generated file designed to be a completely digital store of value that isn’t connected to anything tangible in the real world.

It’s like currency

Short for cryptocurrency, many believe crypto could one day be as commonly used as cash and credit. Rather than paper bills, cryptocurrency is counted in digital units or “tokens” that can be purchased and sold in fractions.

It's not regulated

For the time being, cryptocurrencies aren’t regulated by governments or central authorities like federal regulatory agencies because they don’t belong to any nations, organizations, or private. However, to make buying and selling crypto possible on PayPal, we also provide electronic money and payment services, which are regulated. You can learn more about these in the PayPal User Agreement.

It’s a technology

Most cryptocurrencies work on an ecosystem of computer programs running on thousands of devices around the world, known as Blockchain technology. Since many of the most prominent Blockchains are public, the information in these networks is protected using cryptography, or complex computer-generated code. This is what puts the “crypto” in cryptocurrency.

It’s growing

Bitcoin launched in 2009 as the first crypto in the world. Today, there are thousands of cryptos – each 1 offering new possibilities and pathways to wider adoption. The cryptocurrencies available on PayPal are PayPal USD, Bitcoin, Bitcoin Cash, Ethereum, Litecoin, Solana (SOL), and Chainlink (LINK).