How To Buy Bitcoin on Cash App: Steps to Take in 2024

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Mileva Stankovic, Ramsha Naushad

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Kraken
Exchange Rating
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Available Countries

+232

Available Cryptocurrencies

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+153

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Intro

Are you interested in exploring how to buy Bitcoin on Cash App?

Cash App, a peer-to-peer money transfer application similar to Venmo or PayPal. It provides a seamless avenue for buying Bitcoin. However, there’s a limitation - Bitcoin is the only available digital currency you can purchase via Cash App.

Read on to learn more.

Disclaimer: The information provided on this website is for informational purposes only and should not be considered as financial, investment, or legal advice. Cryptocurrency investments are volatile and high-risk in nature. Consult with a qualified financial advisor and/or tax professional before making any investment decisions. We are not responsible for any loss incurred due to the use of information on this website. Do your own research and exercise caution. Don’t invest unless you’re prepared to lose all the money you invest.

Best Sites

1.

Kraken

Exchange Rating 9.5
Available in
Available in United States
9.5
Description: 

Kraken is one of the oldest exchanges out there, having been around since 2011. They offer many trading interfaces and are extremely trustworthy.

General Information

Year founded: 
2011
Coins Available: 
Bitcoin
Ethereum
Tether
Polkadot
Chainlink
Cardano
Bitcoin Cash
Litecoin
Uniswap
USD Coin
XRP
Aave
Stellar
Tezos
Curve DAO Token
Algorand
Monero
Synthetix
Dai
Filecoin
Compound
EOS
The Graph
Cosmos
Keep Network
ICON
yearn.finance
TRON
Qtum
Dash
Basic Attention Token
Zcash
Kusama
OMG Network
Waves
Nano
Dogecoin
Enzyme
Decentraland
Kava.io
Ethereum Classic
Orchid
Kyber Network
Storj
Siacoin
Lisk
Aragon
PAX Gold
Gnosis
Balancer
tBTC
Augur

Anonymity

Kraken is a registered US exchange, so they must follow strict KYC & AML laws. These laws prohibit anonymous accounts from being generated.

Reputation

Kraken has one of the best reputations in the crypto industry. They are the only crypto company in the world to secure an SPDI banking license. 

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7.

Coinbase

Exchange Rating 7.7
Available in
Available in United States
7.7
Description: 

Coinbase, a major player since its inception in 2012, is a user-friendly cryptocurrency exchange offering a secure platform for buying, selling, and managing a variety of digital assets.

General Information

Anonymity

Committed to regulatory compliance, Coinbase adheres to strict KYC and AML protocols, necessitating user identity verification and preventing the establishment of anonymous accounts.

Reputation

With a solid reputation, Coinbase is widely recognized for its reliability, ease of use, and regulatory adherence. As a publicly traded company, it holds a position of trust in the cryptocurrency market.

Pros and Cons

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Why Trust Us

 

Unlock the world of Bitcoin with confidence using CryptoManiaks as your guide for purchasing on Cash App. Our step-by-step insights ensure a seamless experience for both beginners and seasoned users.

Explore the simplicity of the process, from setting up your Cash App account to executing a Bitcoin purchase. CryptoManiaks delves into practical tips, considerations, and potential pitfalls to make your journey into Bitcoin easy.

Trust CryptoManiaks to empower you in navigating the intricacies of buying Bitcoin on Cash App, turning your cryptocurrency aspirations into a reality.
 

Key Takeaways

 

  • Cash App provides a seamless process for buying Bitcoin but is limited to Bitcoin transactions only
  • Users can choose from a variety of cryptocurrencies on other platforms like Kraken, Gemini, and BinanceUS
  • Cash App fees vary based on transaction size, including a spread
  • Cash App prioritizes security with encryption and compliance standards
  • Cash App's advantage lies in its user-friendly interface and easy registration

 

Pros and Cons of Buying BTC on Cash App

While buying BTC on Cash App is easy, there are still some pros and cons to check out:

 

Pros and Cons of Using Cash App to Buy BTC
Pros Cons
Cash App offers a straightforward and user-friendly process for purchasing Bitcoin Users may encounter fees for Bitcoin transactions, including buying and selling
The app provides a convenient way to buy Bitcoin using linked bank accounts or debit cards The selection of cryptocurrencies on Cash App is limited compared to specialized exchanges
Users can set up recurring Bitcoin purchases for consistent investment Privacy concerns may arise as users are required to provide personal information for KYC verification
Cash App allows for easy withdrawal of Bitcoin to external wallets Bitcoin purchases on Cash App are subject to market price fluctuations
Instant Bitcoin purchases are available for immediate exposure to the market Cash App might not be available in some countries
Cash App provides a familiar and widely used platform for Bitcoin transactions  

 

 

What Is Cash App?

Cash App, developed by Block Inc (formerly known as Square Inc), stands as a mobile payment service that operates on a peer-to-peer (P2P) model. It provides users with stored value services that mirror traditional deposit accounts. 

Cash App offers a fresh approach to accessing financial services.

Functioning as a non-banking financial solution, Cash App empowers individuals to engage in money transfers. It can also handle bill payments, file taxes, and venture into stock investments, all while enjoying the convenience of a debit card. 

Boasting a substantial user base of 51 million, Cash App presents an alternative avenue for buying and selling Bitcoin. At the same time, it distinguishes itself from standard cryptocurrency exchanges.

Since 2018, Cash App has expanded its services to include cryptocurrency transactions, specifically Bitcoin. This move solidified its position as a leading mobile payment application in the UK and the US. 

Starting from 2023, Cash App users can seamlessly track their Bitcoin transactions. This simplifies the process of tax reporting and calculation of taxes related to BTC holdings.
 
 

How to Buy Bitcoin through Cash App?

Before buying Bitcoin on Cash App, you need to go through the following steps:
 

Set up a Cash App account

If you haven't already, download the Cash App and go through the account creation process. This involves establishing a username and password

Afterward, link your Cash App account to either your checking or savings account. Once this connection is made, you'll be able to proceed with purchases.
 

Navigate to the 'buy Bitcoin' section

Access the 'Buy Bitcoin' feature by tapping "USD" on the Cash App's main screen. This will bring up a menu at the bottom. From there, select the option labeled "Buy Bitcoin."
 

Provide purchase details and confirm

Indicate the dollar amount of Bitcoin you wish to purchase, then enter your PIN and verify the transaction. The final confirmation screen will display the portion of your purchase allocated to fees.
 

Transfer Bitcoin

Transferring Bitcoin via Cash App is a fast process.

To initiate a Bitcoin transfer, you'll require the recipient's username within the app, known as a $Cashtag. 

Once you have this information, navigate to the Bitcoin section of the app, input the desired amount, the recipient’s $Cashtag, and then press "Pay."

Here are the steps to follow if you wish to withdraw Bitcoin to another wallet:
 

  • Access the Bitcoin tab within the application
  • Tap the airplane icon and select “Send Bitcoin”
  • You can either scan a QR code located in the top left corner or manually input your unique wallet address by selecting the “Send” button
  • Proceed by selecting a withdrawal speed. Finally, confirm and execute your transaction by pressing “Confirm and send”

Additionally, you can transfer Bitcoin from a wallet to your Cash App account. Choose the "deposit Bitcoin" option in the Bitcoin tab of the application
 

Storage

Cash App functions as a custodial wallet for any Bitcoin you purchase through the app. This means you can store your Bitcoin directly within the application. 

Unlike Venmo, Cash App also permits transfers to any cryptocurrency wallet.

However, it's worth noting that storing Bitcoin in a separate wallet is generally considered a more secure option. Platforms that handle transactions or hold cryptocurrency can be prime targets for hackers.

In 2022, Cash App experienced a data breach. It affected many of its users, resulting in hackers gaining unauthorized access to accounts and siphoning funds. While the breach wasn't exclusive to Bitcoin, it underscores the potential risks of long-term storage on such platforms.
 

Selling

For those looking to sell Bitcoin through the app, navigate to the Bitcoin tab, select "Sell," input the desired amount, and confirm the transaction by entering your PIN or using touch ID.
 

Transaction fees

Amount Fees
$0 - $9.99 3%
$10 - $100 2.25%
$100.01 - $200 2%
$200.01 - $1000 1.75%
$1000.01 - $2000 1.5%
$2000.01 - $3000 1.25%
$3000.01 - $5000 1%
>$5,000.01 0.75%

Cash App fees

Cash App's fees are contingent on the size of the transaction and are integrated into the purchase price. For instance, if you decide to buy $200 worth of Bitcoin, you'll receive approximately $196 worth of Bitcoin, with around $4 going towards fees.

Additionally, the app incorporates a spread. This means you'll pay a slightly higher rate than the market value when buying Bitcoin, and conversely, you'll sell for slightly below market value. There are also extra charges for expedited settlement withdrawals.
 

Safety of Transactions

Cash App places paramount importance on security and implements robust measures to safeguard user data. It adheres to the highest security compliance standard for merchants, known as the PCI Data Security Standard (PCI-DSS) Level 1

This means that your information is not only protected but also encrypted for added security.

While Cash App offers a convenient platform for Bitcoin transactions, it's imperative to prioritize safety. Implement two-factor authentication (2FA) and utilize a strong, unique password for your account. 

These steps serve to fortify the protection of both your Bitcoin wallet and transactions.

Activating 2FA, requiring a PIN for cash transfers, and setting up alerts for account activity can further enhance the security of your Cash App account. 

In the unfortunate event of a lost or stolen card, swift deactivation can prevent unauthorized charges. Additionally, exercise caution when it comes to sharing sensitive information. Remain vigilant for potential scams related to cryptocurrency purchases.
 
 

What Advantages Does Purchasing Bitcoin via Cash App Offer?

There are three primary advantages to buying Bitcoin through Cash App:
 

  • It stands as one of the most straightforward methods, courtesy of its user-friendly interface and uncomplicated registration procedure
  • The associated fees are reasonable and competitive
  • Cash App allows you to transfer your cryptocurrency to a personal wallet or exchange, offering greater flexibility and control over your holdings

 

To Sum Up

In short, using Cash App to buy cryptocurrency is easy and convenient. Its simple interface and sign-up process make it accessible for beginners. Plus, its reasonable fees and option to transfer to personal wallets or exchanges make it stand out. 

However, don't forget to prioritize security with measures like two-factor authentication and strong passwords to protect your investments. With careful attention, you can effectively use Cash App for cryptocurrency transactions.

Frequently Asked Questions

What are Cash App Bitcoin withdrawal/deposit processing times?

The time it takes for transfers into or out of your Cash App to be confirmed on the blockchain can vary and is contingent on network activity. Presently, Jack Dorsey's brainchild, Cash App, stands as one of the most user-friendly applications for buying, receiving, and sending Bitcoin.
 

Does Cash App impose fees for Bitcoin purchases?

Yes, there are additional fees associated with buying Bitcoin through Cash App. When purchasing and/or selling Bitcoin, Cash App applies a user fee of up to 1.76%. However, it's worth noting that Cash App does not charge users any fees for transferring Bitcoin from one user to another. 
 

Can you move Bitcoin from Cash App to an external wallet?

Indeed, it is possible to transfer Bitcoin from your Cash App to an external wallet that is not part of the Cash App ecosystem. To initiate this, navigate to the “Money” tab on the main screen, then select “Buy Bitcoin.” From there, tap the “Withdraw” option. At this moment, you can input the recipient's Bitcoin address—i.e., your wallet—and specify the amount you wish to send.
 

What happens to my Bitcoin on Cash App if I lose my phone?

If you misplace your phone or can't recall your Cash App login details, rest assured that you can still access your Bitcoin balance. Just reach out to Cash App's customer service team. Their representatives will guide you through the process of recovering your account or retrieving any lost investments. 
 

Can I sell Bitcoin back to Cash App?

Yes, Cash App allows you to sell Bitcoin for cash seamlessly. Navigate to the "Bitcoin" tab, choose the amount to sell, and confirm. The funds are instantly deposited into your Cash App balance for withdrawal or further use.

How to buy Bitcoin on Cash App?

Download Cash App, link your bank account, and navigate to "Investing." Select "Bitcoin," choose the amount, and confirm. Cash App securely processes your payment, adding Bitcoin to your wallet instantly. Enjoy hassle-free cryptocurrency investing!

Written by

Mileva Stankovic

When Mileva invested in Bitcoin at the end of 2017, she never believed she’d end up becoming so focused on crypto. Today, she's investing in various coins and playing Texas Hold 'em with passion. 

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