Hey there! Have you heard about Cash App and how it offers an incredibly easy way to buy Bitcoin? In this guide, I‘ll provide you with a detailed overview of what Cash App is, the benefits it provides for purchasing crypto, and walk you step-by-step through the process of buying Bitcoin on the platform.
What is Cash App and Why Use It to Buy Crypto?
Cash App is a mobile payment app launched by Square (the company behind Square card readers) in 2015 as Square Cash. It later rebranded to Cash App in 2018 when it expanded beyond peer-to-peer payments and added investments like stock and Bitcoin trading.
Here are some key stats on Cash App:
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Cash App has amassed over 70 million annual active users as of 2022.
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It processed $332 billion in transaction volume in Q2 2022 alone. Up 29% year-over-year.
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Cash App generated $746 million in Bitcoin revenue in Q2 2022. Trading volume is growing rapidly.
So in summary, Cash App is a widely used, trusted app with a huge user base. But why should you consider using it specifically for buying crypto? Here are the main benefits:
Simplicity – Cash App has a clean, intuitive interface that makes buying Bitcoin easy. You don‘t have to deal with the complexity of crypto exchanges.
Accessibility – It‘s free to download and easy to set up. You can be buying BTC in minutes.
Cost – Cash App charges just a 1.75% fee per transaction. Much cheaper than many other crypto platforms.
Funding – You can instantly fund trades by linking your debit card or bank account. No waiting for transfers.
Security – Cash App provides standard security like 2FA and PIN codes to protect your account and wallet.
Mainstream Reach – With 70M+ users, Cash App is exposing Bitcoin to a huge mainstream audience.
Now let‘s dive into step-by-step instructions for buying Bitcoin yourself on Cash App!
Step 1: Download and Set Up the Cash App
First, you‘ll need to download the Cash App iOS or Android app and link a payment method to fund your balance.
Here‘s how:
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Download Cash App from the App Store or Google Play Store.
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When prompted, enter your phone number or email and create a username (your CashTag)
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Input your personal info like legal name, birthdate, and physical address.
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Cash App will ask to verify your identity by scanning your driver‘s license or other ID.
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Finally, link a debit card, credit card, or bank account via your routing and account numbers. This will allow you to fund your Cash App balance.
Once your account is set up and identity confirmed, you‘re ready to move on to buying Bitcoin!
Step 2: Navigate to the Bitcoin Page
Here‘s how to get to the Bitcoin investing page to place a buy order:
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Open Cash App and tap the "Banking" tab on the bottom.
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Under the "Investing" heading, tap "Bitcoin."
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This will open the Bitcoin page that displays the BTC price chart, news feed, and info on buying/selling Bitcoin.
Step 3: Enter Your Purchase Amount
Next, you simply need to enter the dollar amount of Bitcoin you wish to buy.
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On the Bitcoin page, tap the orange "Buy" button.
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Type in the dollar amount you want to spend on BTC. For example, $100.
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Confirm whether this is a one-time purchase or recurring purchase.
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Preview the order details including BTC receive amount, miners fee, and total cost.
Step 4: Confirm and Complete the Purchase
To finalize and complete your Bitcoin purchase:
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If order details look good, tap "Confirm Buy" to proceed.
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You may need to enter your PIN or scan your fingerprint/Face ID to verify the transaction.
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Once confirmed and verified, Cash App will debit your linked payment method for the total dollar amount.
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After a brief processing period, the BTC will be credited to your Cash App Bitcoin wallet!
And that‘s it – you‘ve now successfully purchased Bitcoin using Cash App! The BTC amount will show in the overview of your Cash App Bitcoin wallet.
Other Important Details To Know
Here are some other key details to keep in mind when buying and managing Bitcoin on Cash App:
Purchase Limits
- There is a $2,500 weekly purchase limit per Cash App account. Attempts over the limit will fail.
Withdrawal Limits
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You can withdraw a maximum of $2,000 worth of BTC per transfer out of Cash App.
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And up to $5,000 worth within a rolling 24 hour window.
Fees
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Cash App charges a 1.75% transaction fee for buying and selling Bitcoin.
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You‘ll also pay a small miners fee when transferring BTC out of Cash App to external wallets. This averages around 0.0001 BTC (~$2.50 as of writing).
Security Tips
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Always enable 2-factor authentication (2FA) in Cash App under Settings > Security.
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Secure your private keys properly – don‘t store them on internet-connected devices.
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Consider using an offline crypto wallet like Ledger or Trezor for large Bitcoin holdings.
Availability
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Cash App‘s crypto services are not available in Hawaii, New York, or outside the United States currently.
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Check Cash App‘s website for the latest on geographic availability.
Taxes
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You may owe capital gains taxes when selling BTC at a profit. Talk to a tax professional about tracking cost basis.
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Cash App does not provide any tax forms. You must track this data.
I hope this guide has provided you with a helpful overview of getting started buying Bitcoin on Cash App! Let me know if you have any other questions.