Venmo is one of the most popular and convenient ways to send and receive money online today. But did you know that you can also use Venmo to buy and sell crypto? That’s right, Venmo has recently joined the crypto craze and enabled its users to access four of the most popular cryptocurrencies on the market: Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
Whether you want to diversify your portfolio, explore the world of digital assets, or simply join the conversation, Venmo makes it easy and fun to buy crypto with just a few taps. In this article, we will guide you through the steps of how to buy Bitcoin and crypto with Venmo, as well as answer some frequently asked questions about Venmo and crypto.
Can You Buy Crypto with Venmo?
Yes, you can buy crypto with Venmo. You can buy crypto with your Venmo balance, linked bank account, or debit card and invest in major cryptocurrencies like BTC, ETH, BCH, and LTC.
To buy crypto with Venmo, you need to have a verified Venmo account and agree to the Venmo Crypto Terms and Conditions. You also need to have enough funds in your Venmo account or linked payment method to cover the purchase amount and any fees. You can also view your crypto balance and performance, as well as access educational content and tips on crypto.
How to Buy Bitcoin and Crypto with Venmo
To buy crypto with Venmo, you need to follow these steps:
- Open the Venmo app and select the crypto icon at the bottom of the screen.
- Read and accept the terms and conditions of using crypto on Venmo.
- From the list, pick the coin you wish to purchase. You will see the current price and the option to buy.
- Enter the amount of money you want to spend on crypto. You can use your Venmo balance, your bank account, or your debit card as a payment method. You cannot use a credit card or your Venmo Credit Card to buy crypto.
- Review the details of your purchase, including the amount of crypto, the exchange rate, and the fees. Venmo charges a spread (or margin) between the market price and the exchange rate, as well as a transaction fee when you buy or sell crypto. The spread may vary depending on market conditions, but it is usually around 0.50%. The transaction fee depends on the amount of your purchase, but it ranges from $0.50 to $2.30.
- Tap Buy to complete the transaction. In your email, you’ll get a confirmation message and a receipt.
You can also sell your crypto on Venmo by following similar steps. However, you cannot withdraw your crypto to your own wallet or transfer it to another platform. You can only sell it back to Venmo and receive the money in your Venmo account.
Can I use Venmo to buy Crypto on Coinbase?
No, Coinbase does not accept deposits from American Venmo accounts. Coinbase Only supports bank accounts or debit cards as payment methods to buy crypto. However, you can use Venmo to buy crypto on other platforms that support Venmo as a payment option.
To use Venmo to buy crypto on these platforms, you will need to create an account and verify your identity. Then, you can browse the offers from different sellers who accept Venmo as a payment method. Once you find an offer that suits your needs, you can initiate a trade and send the payment through Venmo. The seller will then release the crypto to your wallet after confirming the payment.
Is Venmo Good for Crypto?
Yes, Venmo is a convenient and easy way to buy crypto with your existing bank account or credit card. However, there are some drawbacks and risks to using Venmo to buy crypto.
One of the drawbacks is that Venmo charges a 3% fee for sending money with a credit card. This means that you will pay more than the market price for your crypto purchase. You can avoid this fee by using your Venmo balance or a linked bank account, but you will still have to pay the fees charged by the platform you are buying from.
Another drawback is that Venmo does not support withdrawals of crypto to your own wallet. You can only sell your crypto on the same platform you bought it from and receive the money in your Venmo account. This limits your options and control over your crypto assets.
The biggest risk of using Venmo to buy crypto is that Venmo does not officially support or endorse this activity. According to Venmo’s user agreement, you are not allowed to use Venmo for any transactions involving cryptocurrencies. If Venmo detects that you are using their service for buying or selling crypto, they may suspend or terminate your account without notice. This could result in losing access to your funds and your crypto.
So, make sure to do your due diligence before investing in crypto with Venmo.
Bottom Line
Venmo is a payment app that can be used to buy cryptocurrencies on certain platforms and lets you send and receive money from your friends and family. However, it is not a recommended method for buying crypto, as it has several drawbacks and risks. You may face higher fees, lower security, and potential account suspension if you use Venmo to buy crypto.
Additionally, Venmo does not cover any money lost due to price fluctuations. Once purchased, crypto bought using Venmo cannot be reversed. You must sell your crypto assets to receive US dollars back.
Judging by these factors, it is better to be careful and cautious when using Venmo to buy crypto or use a dedicated crypto exchange that supports buying crypto with fiat currency and offers more features and benefits.
