The Paysafe Group which owns and operates eWallets Skrill and Neteller have announced they are opening up cryptocurrency “interests” on both platforms. You can now buy an interest in Bitcoin, XRP, Ethereum, Bitcoin Cash (ABC), Ethereum Classic, Litecoin and 0x. Please be aware however that using these services you don’t physically own your own cryptos:
“You can only exchange between your NETELLER wallet currency and Crypto currencies. You will not be able to Send, Withdraw or Deposit Crypto currency directly into your NETELLER wallet”
How does the Skrill / Neteller crypto service work?
So how does it work? Well we did have to make sure there are physically settled crypto transactions which is at least a start. However that you cannot transfer your own coins when and where you wish is a problem, as is the fact that your cryptos are “pooled” into a PaySafe account.
“3. The Cryptocurrency Service
3.1 The Cryptocurrency Service enables you to:
3.1.1 buy interests in one or more Supported Cryptocurrencies using e-money in your NETELLER Account; and
3.1.2 sell your interests in one or more Supported Cryptocurrencies in exchange for e-money.
3.2 We may elect to treat additional cryptocurrencies as “Supported Currencies” from time to time. We will notify you by email when any additional cryptocurrencies are added to the service.
3.3 Upon receipt of each “buy” order, you authorise us (in accordance with your Order Instructions) to:
3.3.1 debit the Buy Price from the e-money balance in your NETELLER Account;
3.3.2 buy the Supported Cryptocurrency via our partner cryptocurrency exchange(s) (each a “Cryptocurrency Exchange”); and
3.3.3 assign to you our beneficial interest (including any rights, title and benefits arising therefrom) in the Supported Cryptocurrency which we have purchased for you under this section 3.3, which shall be held on your behalf in a pooled account with the Cryptocurrency Exchange.
3.4 Note. Following fulfilment of a buy order, the Cryptocurrency Exchange may continue to hold the Supported Cryptocurrency for you on an “omnibus” basis, which means that it may be held alongside cryptocurrency belonging to other Cryptocurrency Exchange customers (as well as cryptocurrency belonging to the Cryptocurrency Exchange itself).”
Other options for buying cryptocurrency via a broker rather than an exchange?
We do understand that for some people it is just not possible to buy cryptocurrency via the usual means, so using an eWallet or using a broker which accepts credit card transactions may be your only means of purchase. And there are a lot of these services around the world however many are like Skrill and Neteller in that you cannot physically own, use, transfer or store your own coins. Thankfully there are also services which do give you full control of your cryptos.
Changelly and Bitpanda are two such services who do at least allow you to physically settle and own your cryptocurrency purchases. In the case of Bitpanda, both Skrill and Neteller are offered as a means of payment so we can see little reason why you would choose to go through Skrill or Neteller themself.
Please be aware of the relatively high fees charged by all these services
Skrill, Neteller, Changelly and Bitpanda and other such brokers do charge you a relatively high percentage fee for using their services. You are also not interacting with a crypto exchange so there is no guarantee you will be getting the best price available at the time of your purchase.
If you have the option of using a reputable cryptocurrency exchange then we would always advise you to persue this avenue instead. You will have full control of your coins and tokens, you will be able to choose your target buy and sell price and the fees charged to you should be far lower than using a broker.