Venmo is a versatile financial application that allows users to handle transactions, including buying Bitcoin (BTC) and other cryptocurrencies. Venmo simplifies financial operations and helps users navigate the contemporary economic system.
What is Venmo?
Venmo is a mobile payment service that operates as a peer-to-peer (P2P) platform for money transfers within the United States. It also functions as a digital wallet, enabling users to accumulate funds for future expenses. Venmo is owned by PayPal and has integrated cryptocurrency transactions to allow users to buy, sell, and hold digital assets.
Buy Bitcoin with Venmo
To purchase Bitcoin with Venmo, users can use their Venmo balance, bank account, or debit card. However, credit cards and Venmo Credit Cards cannot be used for these transactions. There are weekly and yearly caps for crypto acquisitions on Venmo.
Here are the steps to buying Bitcoin through Venmo:
- Open the Venmo app and go to the “Crypto” tab.
- Select “Bitcoin (BTC)” from the list of cryptocurrencies.
- Click “Buy” and enter the dollar amount in BTC.
- Review the purchase details and confirm the transaction.
- Complete the Bitcoin purchase through Venmo.
After purchasing Bitcoin through Venmo, users can track its price fluctuations within the app and access historical price data for the selected cryptocurrency.
Venmo Fees for Purchasing Bitcoin
Acquiring cryptocurrencies on Venmo involves fees based on the purchase size. These fees include the spread between the market price and the USD-to-crypto exchange rate, along with a transaction fee. Venmo discloses these fees during crypto transactions.
Who Can Buy Bitcoin with Venmo?
To buy Bitcoin with Venmo, users must be at least 18 years old and physically present within the United States (excluding Hawaii). They need a Venmo balance, bank account, or debit card. Users also need a unique U.S. cell phone number not associated with another Venmo account.
Security and Safety Measures in Venmo
Venmo employs data encryption technology and offers security features such as logging out of lost or stolen phones, setting up PINs for mobile applications, and enabling two-factor authentication (2FA). However, users should still be cautious of potential risks and follow best security practices.
Drawbacks to Buying Bitcoin with Venmo
Buying Bitcoin through Venmo has certain drawbacks to consider. Venmo’s Purchase Protection does not extend to cryptocurrency purchases, and Bitcoin transactions on Venmo are irreversible. Additionally, funds held in Venmo are not protected by the FDIC or other insurance, and it is not possible to transfer crypto to other platforms or personal accounts.