Cash App, a peer-to-peer money transfer app that is comparable to Venmo or PayPal, allows users to buy Bitcoin. Its platform is a straightforward alternative to using a crypto exchange, but limited in that it only allows you to buy and sell Bitcoin. Investors looking to purchase other digital assets will have to look elsewhere.
If you are interested in purchasing Bitcoin using Cash App, you’ll need to do the following.
Create a Cash App account
If you don’t already have Cash App, you’ll need to download the application and create an account. The app will walk you through the enrollment process, where you’ll need to set up a username and password. Then, you’ll link your Cash App account to your checking or savings account. Once your bank account is linked to the app, you’ll be able to make purchases.
Go to the ‘Buy Bitcoin’ screen
To purchase Bitcoin, tap “USD” on the Cash App home screen. A menu will pop up at the bottom. Select the option “Buy Bitcoin.”
Add purchase details and finalize
Enter the dollar amount you’d like to purchase, then enter your PIN and confirm the transaction. At the final confirmation screen, you’ll see how much of your purchase will go to fees.
Cash App fees vary based on transaction size and are built into your purchase price. For example, if you enter that you want to purchase $200 in Bitcoin, you’ll get about $196 worth of Bitcoin and pay roughly $4 in fees.
The app also includes a spread, meaning you’ll pay slightly more than market value for the Bitcoin, and you’ll sell for slightly below market value. Additional fees also apply for withdrawals with expedited settlements.
With Cash App, you can instantly send or receive Bitcoin when transacting with other Cash App users. To send Bitcoin, you’ll first need the recipient’s username on the app, which Cash App refers to as a $Cashtag. Once you have the recipient’s user name, toggle to the Bitcoin screen on the app, enter the amount you want to send and the recipient’s $Cashtag and press “Pay.”
If you’re looking to store your Bitcoin, you can also transfer your digital assets to a cryptocurrency wallet. To do this, you’ll need to:
Go to the Bitcoin tab on the application.
Tap the airplane icon, and select “Send Bitcoin.”
Tap the top left corner to access a QR code, or press the “Send” button to enter your unique wallet address manually.
Tap next and select a withdrawal speed, and then you’ll need to press “Confirm and send” to complete your transaction.
You can also send Bitcoin from a wallet to your Cash App account by selecting “deposit Bitcoin” from the Bitcoin tab on the application.
Store your Bitcoin on Cash App
Cash App functions as a custodial wallet for any BTC that you purchase on the app. This means that you can keep your Bitcoin stored within the application itself. Unlike Venmo, Cash App also allows you to transfer Bitcoin to any crypto wallet.
Storing your Bitcoin in a separate wallet is generally a more secure option. Institutions that handle transactions or store cryptocurrency for their users can be a common target for hackers, because all of the user data is stored in one centralized location.
In 2022, Cash App had a data breach that affected many of its users, and hackers were able to gain access to accounts and siphon funds out. The data breach wasn’t specific to Bitcoin, but it demonstrates the risks of storing money on such apps long-term.
To Sell Bitcoin using the app, you’ll need to go to the Bitcoin tab on the application. Then select “Sell,” and enter the amount you wish to sell. You’ll need to enter your PIN or touch ID to confirm the transaction.
Neither the author nor editor held positions in the aforementioned investments at the time of publication.