In this article, I will discuss how to buy crypto and Bitcoin on Venmo in 2024. With the growing interest in digital currencies, Venmo has made it easier for users to engage in cryptocurrency transactions.
I will cover the steps to purchase crypto, the benefits of using Venmo, and essential considerations to remember while investing.
What Is Venmo?
Venmo has changed from a bill-splitting app to an app that allows users to trade cryptocurrencies. It was founded in 2009 and acquired by PayPal in 2013. Grand is a P2P payment service in the US.
Since April 9, 2021, users have been able to buy, sell, or hold trade in four Cryptocurrencies: Bitcoin(BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH).
Also, the PayPal USD stablecoin (PYUSD) is projected to be in circulation very soon, advancing the reach of its cryptocurrency solutions even further.
How To Buy Crypto and Bitcoin on Venmo In 2024
Here’s a detailed guide on how to buy crypto and Bitcoin on Venmo in 2024:
Step-by-Step Guide
Sign Up or Log In to Venmo
- Download the Venmo App: If you don’t already have the Venmo app, download it from the App Store (iOS) or Google Play Store (Android).
- Create an Account: Open the app and sign up by providing your personal information, such as your name, email address, and phone number. If you already have an account, log in using your existing credentials.
Access the Crypto Section
Navigate to the Crypto Tab: Once logged in, locate the “Crypto” tab at the bottom of the main screen. Tap on it to access Venmo’s cryptocurrency trading and storage features.
Select the Cryptocurrency
Choose Your Coin: In the Crypto section, you’ll see a list of available cryptocurrencies. Currently, Venmo supports Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH). Select the cryptocurrency you want to buy.
Set the Amount to Buy
Enter the Purchase Amount: On the purchase screen, enter the dollar amount you wish to spend. Venmo will show you a breakdown of how much cryptocurrency you will receive, including any transaction fees.
Review the Details: Check the current market price, the amount of crypto you will get, and the transaction fee.
Select Payment Method
Choose Your Payment Source: You can fund the purchase using your Venmo balance, linked bank account, or debit card. Credit cards and Venmo Credit Cards are not supported for crypto purchases.
Complete the Purchase
Confirm the Transaction: After reviewing all the details, tap “Buy” to complete the purchase. The cryptocurrency will be added to your Venmo account.
Important Considerations
- Transaction Fees: Venmo charges a fee for buying and selling cryptocurrency. The cost is higher for smaller transactions and lower for larger ones.
- Limits: You can buy up to $20,000 worth of crypto per week and up to $50,000 per year.
- Storage: While you can buy, hold, and sell crypto on Venmo, you cannot transfer it to another wallet or platform.
Tips for Using Venmo for Crypto
- Stay Informed: Stay updated regarding the market behaviour and prices of the cryptocurrency you wish to invest in.
- Security: Protect your Venmo account from unauthorised access using a strong password and two-factor authentication.
- Understand the Risks: The value of cryptocurrency investments can be unstable. Always know the risks before you buy.
Venmo Bitcoin Fees
You must incur a couple of charges to purchase Bitcoin using Venmo.
First, every time you buy Bitcoin, there’s a nook charge for the transaction of 1.5% levied by Venmo. Such transaction fees help them manage the expense of transactions using the platform.
There’s also a spread fee, which is hidden under the exchange rate you see when you make the trade.
Venmo earns that fee when buying and selling Bitcoin. It’s the difference between the price at which you can buy Bitcoin at the market and the price at which Venmo offers it.
Apart from some other crypto exchanges, which may impose a deposit fee and either a monthly maintenance or a withdrawal fee, Venmo does not charge such a fee.
The only levies are the initial 1.5% transaction fee and the spread fee charged when you finish making the transaction on Bitcoin.
Hence, it is actually a very fair and very competitive fee structure compared with many others, especially in terms of levies.
Security
All Venmo functionalities are provided with security measures, such as encryption, the option of logging out remotely, PIN protection, and two-factor authentication.
Nevertheless, one should remain vigilant to risks such as scams and cybercrime.
Moreover, to secure your account, it is advisable to take sufficient precautionary measures, such as strong passwords or daily transaction checks.
Guard Your Wallet: Don’t share your Venmo password or login information with anyone. Your login details are the keys to your wallet, and they shouldn’t be abused.
Create Strong Passwords: Create safe and strong passwords that are unique to your Venmo account. This lowers the odds of someone guessing or hacking the login information.
Enhance privacy: Change the available options in your account settings to increase privacy. This includes putting your account in a private mode so that no one sees the updates, information on your transactions, and activity on your financials.
Understand The Nature Of The Platform: Venmo publishes every peer-to-peer transaction by default. Although this may not expose valuable information in some cases, users should still be careful how they share their financial information.
Drawbacks
Here are the key drawbacks of purchasing Bitcoin through Venmo:
No Purchase Protection: Venmo does not offer Purchase Protection for digital currency; therefore, users run the risk of loss as a result of fluctuations in market prices.
Lack of Insurance: Venmo does not offer any form of insurance cover regarding cryptocurrency holdings, as would happen with banks, thus raising worries for individuals with large amounts.
Transfer Restrictions: Coins purchased through Venmo are not transferrable to other exchange platforms or personal wallets, which confines users’ authority over their coins.
Conclusion
To sum up, in 2024, purchasing cryptocurrency, including Bitcoin, on Venmo will be a very simple activity that takes care of the users.
Nonetheless, it is important to point out the adverse aspects, such as the lack of guarantee of purchase or limited capacities for transfer.
Importantly, by remaining vigilant, they stand a fair chance on the platform and benefit from investing in cryptocurrency.
