How to buy Bitcoin with Venmo

Venmo, a versatile financial application, provides a range of features, including peer-to-peer (P2P) money transfers and cryptocurrency transactions. Serving as a comprehensive financial tool, Venmo enables users to seamlessly handle transactions, including the option to participate in digital currencies like Bitcoin (BTC). The app is designed to simplify financial operations and assist users in navigating contemporary economic systems.

What is Venmo?

Venmo, a mobile payment service established in 2009, has been under PayPal’s ownership since 2013. It operates as a P2P platform for money transfers within the United States. The social payment app facilitates money exchanges between users and businesses. Additionally, it functions as a digital wallet that enables individuals to accumulate funds within their Venmo accounts for future expenses.

Venmo also extends its capabilities by integrating cryptocurrency transactions, enabling users to buy, sell and hold digital assets within the app. Following a similar initiative by its parent company, PayPal, this feature was introduced in April 2021. Venmo users in the U.S., excluding Hawaii, can engage with four cryptocurrencies: BTC, Ether (ETH), Litecoin (LTC) and Bitcoin Cash (BCH). In the future, Venmo has plans to incorporate the PayPal USD stablecoin (PYUSD).

Buy Bitcoin with Venmo

To purchase Bitcoin with Venmo, users can use their Venmo balance, bank account or debit card, among other payment methods. However, it’s important to recall that credit cards and Venmo Credit Cards cannot be used to complete these transactions. Moreover, users are restricted from making crypto purchases through Venmo. Users are limited to a weekly cap of $20,000 and a yearly cap of $50,000 in crypto acquisitions.

Since cryptocurrencies are digital currencies, buying them involves exchanging one currency for another. The exchange rate determines the amount of Bitcoin users receive in exchange for U.S. dollars. Keep in mind that cryptocurrency values are highly volatile and change frequently.

Steps to buying Bitcoin through Venmo

• Open the Venmo app and navigate to the “Crypto” tab at the bottom of the menu.
• Select “Bitcoin (BTC)” from the list of cryptocurrencies. The current exchange price of Bitcoin is also available on the page.
• Click “Buy” at the bottom of the page.
• Enter the dollar amount to buy in BTC and tap the “Review” button. This step confirms purchase details, such as bank account, exchange rate and transaction fee, before finalizing the transaction.
• The app will provide a breakdown of the amount of Bitcoin to be purchased, along with any associated fees.
• Once satisfied with the details, tap the “Buy” button to complete the Bitcoin purchase through Venmo.

After completing a purchase, crypto acquired through Venmo becomes irreversible. This implies that users have to sell their digital currencies to regain U.S. dollars. It’s also important to note that Venmo does not provide compensation to users for any losses caused by price fluctuations.

After successfully purchasing Bitcoin through the Venmo app, users can conveniently track its price fluctuations within the app itself. The app also provides historical price data for the selected cryptocurrency, including past transactions involving that digital asset.

Steps to track the current market price of Bitcoin in Venmo

In Venmo, the current price of Bitcoin can be tracked using following steps:

Venmo’s app is equipped to monitor cryptocurrency prices in real-time, with updates occurring every few seconds. By default, it uses a line graph to show price movements over a 24-hour period. The time frame for price changes can be switched to one week, one month, six months, a year or the entire lifespan of the cryptocurrency selected. Tapping on the timeline graph provides more specific values over time.

Venmo fees for purchasing Bitcoin

Acquiring cryptocurrencies through Venmo involves fees based on the purchase’s size, with transparent fee disclosure during transactions. These fees consist of the spread between the market price from Venmo’s trading service provider, Paxos, and the USD-to-crypto exchange rate, along with a transaction fee associated with buying crypto assets. Venmo discloses both rates during crypto transactions, with an estimated 0.50% spread, subject to market conditions.

It’s crucial to note that Venmo doesn’t detail the specific spread earned on each transaction. By utilizing Venmo’s crypto services, users agree to cover all relevant exchange rates, including the spread and the associated fees.

Additionally, if a linked bank account or debit card is used as the funding source for purchasing crypto assets, additional bank fees, such as overdraft charges, may be imposed. Venmo doesn’t bear responsibility for bank-imposed fees, so it’s important to understand a bank’s fee policies when using these funding sources for crypto transactions.

Who can buy Bitcoin with Venmo?

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