Bitcoin continues to gain traction in popularity and value in the international market. This is due to its trading potential as one of the best ways to make money online. But as Bitcoin trading involves buying and selling for maximum gains, you may need to know how to buy Bitcoin with Venmo.
Venmo is a social payment app facilitating peer-to-peer (P2P) money transfers and cryptocurrency transactions. It is a versatile tool that enables you to buy, track, and learn about crypto assets like Bitcoin, Ethereum, Litecoin, etc.
This is a payment service under the ownership of PayPal, allowing transfers for individuals and businesses. It also serves as a digital wallet for individuals to store their funds in their Venmo account for future purposes.
How To Buy Bitcoin With Venmo
Here are the steps to buying your Bitcoin:
- Open the Venmo app and go to “Crypto.”
- Choose “Bitcoin (BTC)” on the cryptocurrency list. You will see the current exchange value of Bitcoin on this page.
- Click “Buy” at the bottom of the page.
- Enter the dollar value of the Bitcoin you want to buy and click “Review.” Then, you can confirm your transaction details, including bank account, transaction fee, and exchange rate.
- Venmo will provide you with the breakdown of the amount of Bitcoin you want to buy, including other associated fees.
- Click “Buy” to complete your Bitcoin purchase with Venmo.
It should be noted that Venmo users can buy Bitcoin using their Venmo balance, debit card, bank account, or other related payment methods. It simply works similarly as you can buy Bitcoin with PayPal.
However, you can not use Venmo Credit Cards and other credit cards to buy Bitcoin with Venmo.
Bitcoin purchase on this payment app also has certain restrictions, as Venmo users have a weekly transaction cap of $20,000 and a yearly cap of $50,000. This applies to the purchase of all crypto assets with the service.
You must complete the know-your-customer (KYC) process on Venmo before you can buy Bitcoin. So, you will receive the prompt to do so if you have not completed the identity verification process.
While Bitcoin purchase is irreversible on Venmo, you can easily track price fluctuations on the app. This is because it provides historical price data for Bitcoin and past transactions involving your Bitcoin.
Challenges Of Buying Bitcoin With Venmo
1. Lack Of Purchase Protection For Bitcoin
While Venmo does not extend purchase protection to crypto assets like Bitcoin and Ethereum, its users are vulnerable to the price fluctuations associated with crypto trading.
Bitcoin purchase is also irreversible on the payment app. Hence, there is a need to be cautious with your buying decision.
2. Bitcoin Transfers Are Limited To Venmo
You can not move your Bitcoin and other assets from Venmo to non-custodial wallets, personal accounts, or other platforms.
This is a limitation for people who prefer to store their Bitcoin in digital wallets or explore other digital trading platforms.
Frequently Asked Questions (FAQs)
Can I Buy Bitcoin On Venmo?
Yes, you can buy Bitcoin on Venmo. However, you can also buy Ethereum, Litecoin, and Bitcoin Cash on the platform.
Is It Safe To Buy Bitcoin With Venmo?
Yes, it is safe to use Venmo. It uses data encryption to protect your information.
You can turn off sharing your Bitcoin purchases publicly via the payment app’s social feature that reveals your transactions to your friends on the platform.
Do I Need A Bitcoin Wallet On Venmo?
Venmo provides you with a Bitcoin wallet to store your BTC after purchase. So you do not need to transfer your asset to another wallet outside the platform.
Can I Use Venmo To Buy Bitcoin On Coinbase?
No, Coinbase does not accept Venmo deposits. You can only use a bank account or debit card to buy Bitcoin on the exchange.
Can I Transfer Bitcoin From Venmo To Other Wallets?
You can only send Bitcoin from your Venmo account to another Venmo user’s wallet. But you can not transfer Bitcoin to another account or wallet outside Venmo.
What Are The Fees Of Buying Bitcoin On Venmo?
The fees of purchasing Bitcoin depend on the amount of BTC and other fees during the transaction.
These fees are the spread between the market price from Venmo’s trading service provider, US dollars to the crypto exchange rate, and other transaction fees associated with Bitcoin purchase.
You can view these rates during your transaction on Venmo. Its spread is about 0.5%, which varies with market conditions. However, the overall fee of buying Bitcoin and other crypto assets on Venmo is about 2% – making the platform expensive.
Conclusion
Venmo provides a fast and convenient way to buy Bitcoin, an alternative to popular exchanges. However, its high fees and lack of purchase protection for Bitcoin and other crypto assets are significant concerns in considering this platform.
Therefore, it is important to do more research before using this platform.
