Bitcoin and other cryptocurrencies have exploded in popularity over the last few years. And Cash App has become one of the easiest platforms for buying your first bitcoin.
In this comprehensive guide, you’ll learn everything you need to know about how to buy bitcoin on Cash App.
Here’s what we’ll cover:
- What is Bitcoin and Why Buy It
- Introduction to Cash App
- Step-by-Step Guide to Buying Bitcoin on Cash App
- Tips for Securely Storing Your Bitcoin
- Sending/Receiving Bitcoin on Cash App
- Withdrawing Bitcoin to an External Wallet
- Cash App vs. Other Crypto Apps
- The Benefits of Buying Bitcoin on Cash App
- Risks and Considerations with Bitcoin Investing
- Frequently Asked Questions
So if you’re looking to dip your toes into the crypto waters with bitcoin, stay tuned for everything you need to know about using Cash App!
What is Bitcoin and Why Buy It?
Before jumping into the how-tos, let’s start with the basics…what even is bitcoin and why should you buy it?
Bitcoin is a decentralized digital currency that was created in 2009. Unlike fiat money like dollars or euros, bitcoin isn’t controlled by any government or central authority.
Instead, it runs on a peer-to-peer network that lets people send bitcoin payments to each other without needing a bank as intermediary. This open-source global payment network is essentially controlled by bitcoin users around the world.
Now you may be wondering…why would I even want to buy bitcoin?
Here are some of top reasons to consider adding bitcoin to your investment portfolio:
Growth Potential – Bitcoin has shown meteoric growth over the past decade, with huge price surges every few years. There’s still lots of room for growth in the future.
Inflation Hedge – With central banks printing money like crazy these days, bitcoin offers an inflation hedge since there will only ever be 21 million bitcoin created.
Transaction Freedom – Bitcoin allows you to send/receive money electronically without dealing with bank transfer fees or wait times.
Investment Diversification – Bitcoin tends to be uncorrelated to movements with stocks and bonds, making it an ideal way to diversify.
Of course, as a speculative investment, bitcoin price can still be volatile in the short-term. But its disruptive potential as “digital gold” continues to show promise over the long run.
Introduction to Cash App
Cash App is a fast, convenient app for sending/receiving money electronically. It’s developed by Square, the company behind the popular Square credit card readers.
Over the past few years, Cash App has made buying bitcoin easier than ever. With just a few taps, anyone can now buy/sell bitcoin from right inside the app.
Here are some key benefits that make Cash App a top choice for bitcoin beginners:
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Simplicity – Cash App has an intuitive interface that makes buying bitcoin simple for beginners.
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Instant Setup – You can register for a Cash App account in just a couple minutes.
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Link Bank or Card – Unlike some crypto exchanges, Cash App lets you instantly link your bank account or debit card to fund bitcoin purchases.
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Low Fees – Cash App charges around 1.75% for bitcoin buys/sells, which compares favorably to fees on dedicated crypto exchanges.
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Secure Storage – Bitcoin purchased on Cash App is stored securely on Cash App’s servers.
So if you’re looking for a simple on-ramp to buying bitcoin safely, Cash App offers an appealing package for first-timers. But how exactly can you buy bitcoin on Cash App? Let’s walk through the process step-by-step…
Step-by-Step Guide: How to Buy Bitcoin on Cash App
Here is an easy 5-step walkthrough for how to buy bitcoin on Cash App:
Step 1: Download the App & Set Up Your Account
First, you’ll need to download the Cash App app on your mobile device if you haven’t already. Cash App can be used on both iPhone and Android devices.
Once downloaded, open up Cash App and follow the prompts to register your new account.
Important note: For your security, be sure to use a strong and unique password that you don’t use elsewhere.
Step 2: Connect Your Bank Account or Debit Card
To fund your bitcoin purchases, you’ll of course need to connect a payment method. Cash App gives you the option to instantly link your bank account or debit card.
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From the Cash App home screen, tap the “Banking” tab on the bottom nav bar.
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Choose whether you want to connect directly to your bank account (takes 1-3 days) or debit card (instant).
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Follow the instructions to securely input your account details and link to Cash App.
Once connected, you can seamlessly fund your Cash App balance. If you prefer, you can also do a direct bank/debit card buy later at time of purchase.
Step 3: Navigate to the Bitcoin Page
Now that your account and payment method are good to go, let’s make our way to the bitcoin buy page.
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On Cash App’s bottom navigation bar, tap the “Bitcoin” button icon to go to the Bitcoin page.
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For first purchases, you may need to enter additional info like your date of birth or SSN so Cash App can verify your identity. This helps prevent fraud and maintains regulatory compliance.
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Once set up, this page cleanly displays the current BTC price right up top. Below you’ll see options to buy or sell bitcoin.
Step 4: Specify Buy Amount and Complete Order
Time for the fun part…actually buying some bitcoin!
The buying interface couldn’t get much easier.
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In the center of the Bitcoin page, tap the “Buy” button.
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On the next screen, toggle to the dollar amount, percentage of your balance, or specific bitcoin amount you wish to purchase.
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Review the order details like timing, fees paid to Cash App, and exchange rate. Note that with market fluctuation, the exchange rate from dollar to bitcoin can vary from when you preview to when the transaction processes. If you aren’t comfortable with the live rate during order execution, you can cancel the buy at time of purchase.
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Complete the transaction by confirming purchase on the next screen. Voila! Your bitcoin will now be funded from your connected bank/card and show in your Cash App Bitcoin balance.
Step 5: Monitor Your Bitcoin Balance
After you successfully buy bitcoin, you’ll be able to view your Cash App BTC balance right on the Bitcoin page.
Here you can track its value in dollars over time, get the address for receiving bitcoin from outside sources, withdraw back to dollars, or send funds to another Cash App user or external crypto wallet address.
And remember, with Cash App you can buy as much or as little bitcoin as you want, with no account minimums.
Tips for Securely Storing Your Bitcoin
Now that you know the ins and outs of actually buying bitcoin on Cash App, let’s talk security best practices for keeping those funds safe. Here are some tips:
Use a Strong Password – Always opt for a long, complex password consisting of random letters, numbers and symbols. Don’t use personal info and enable 2-factor authentication via text or third-party app for added security.
Write Down Recovery Phrase – Each Cash App account generates a phrase to let you recover your wallet if you lose your device. Note this phrase and keep in secure offline storage like a safety deposit box in case you ever need access back into your wallet.
Keep Cash App Updated – Make sure to keep the Cash App app updated on your phone to benefit from the latest security enhancements. Updates also fix discovered vulnerabilities faster.
Be Wary of Scams – Avoid dodgy links promising bitcoin bonuses that could be phishing attempts trying to steal your login or keys. Cash App will NEVER ask for your sign-in code or password recovery phrase.
Consider External Wallet – For large bitcoin holdings, advise storing crypto in an external wallet rather than Cash App for enhanced security and control. Read on for more details on this option…
Sending/Receiving Bitcoin on Cash App
A handy benefit of buying bitcoin on Cash App is how they make it easy to send BTC funds to friends, family or really anyone else with a bitcoin address.
Here’s how simple Cash App makes it to transfer your bitcoin:
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Tap bitcoin address on “Bitcoin” page to copy your unique address – this is what people can send you bitcoin with.
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To send BTC to another user, tap “Pay” and put in the dollar amount equivalent. Input their Cash App $cashtag or external BTC address.
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Send for free to other Cash App users! But beware, there’s a 1.76% fee to send off platform.
Check balances, transaction history and manage your small crypto fortune all in one spot with Cash App’s clean mobile interface.
Withdrawing Bitcoin to External Wallet
Storing bitcoin on Cash App is certainly convenient. But for advanced crypto traders with more substantial holdings, it can be smart to move your bitcoin off platform.
You may want to withdraw BTC from Cash App to transfer into a software, hardware or paper wallet that you control. Why withdraw to external wallet?
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More control – With external wallets, you hold the private keys that control the crypto, not Cash App. If something happened to Cash App, you’d still retain access to crypto holdings on your wallet.
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Enhanced security features – Hardware wallets for example provide super robust protections against hackers trying to steal your keys or coins.
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Your keys, your crypto – “Not your keys, not your crypto” is a common refrain in the bitcoin world. Rather than trusting assets to Cash App long term, external wallets let you have ultimate control and self-custody.
The process to withdraw bitcoin to external wallets from Cash App just takes a few quick steps:
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Tap “Withdraw” on Bitcoin page.
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Input the address you want to withdraw funds to (i.e. external wallet address, other trading platform). Scan QR codes for efficiency.
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Confirm the details like the network fee cost for sending. Then complete the bitcoin transfer.
Once the bitcoin network has enough confirmations, your withdrawal will complete! Just save your wallet address info to easily send more bitcoin to/from your preferred crypto storage method going forward.
Cash App vs. Other Crypto Apps
How does Cash App compare to other popular platforms for buying bitcoin or other cryptocurrencies? Let’s do a quick rundown…
Cash App
- Best for convenience and bitcoin basics
- Quick setup and funding
- Familiar mobile interface
- Low 1.75% crypto buy/sell fee
Coinbase
- More advanced trading options like limit orders
- Supports many different crypto assets
- Slightly higher fees around 2% with Coinbase and 3.99% with Coinbase Pro
Binance, Crypto.com
- Hundreds of altcoin options not on Cash App
- Advanced features tailored towards active traders
- Can directly fund trades unlike Cash App, but steeper learning curve
BlockFi, Celsius
- Interest accounts for earning yield on crypto holdings
So while Cash App makes transactions super simple which is great for getting started, experts may want more advanced trading options. The good news is that you can always withdraw bitcoin purchased on Cash App to transfer to any external wallet or crypto platform down the road.
The Benefits of Buying Bitcoin on Cash App
We’ve covered a lot in this guide about how to buy bitcoin on Cash App. But what makes Cash App an ideal place to purchase your first bitcoin?
Here are five major perks to buying bitcoin on Cash App:
It’s Easy – Cash App delivers an incredibly simple interface, even a crypto beginner can easily figure out. Sign up quickly, fund your purchase, and buy bitcoin in minutes.
Convenient – Manage everything from your phone! Cash App eliminates hassles buying with traditional exchanges.
Fast Set Up – Get set up instantly to buy bitcoin right away. Much faster than signing up and getting verified on exchanges like Coinbase which can take days.
Low Fees – Cash App fees beat out a lot of competitors. Pay just 1.75% on transactions vs. up to 5% on some other platforms. Of course free bitcoin transfers between Cash App users is awesome too!
Secure – Cash App incorporates many security best practices behind the scenes while also emphasizing user education. As hot wallet providers go, they check a lot of boxes which should give reasonable peace of mind.
From convenience to low fees to strong security, Cash App delivers solid benefits for dipping your toes into bitcoin investments.
Risks and Considerations When Buying Crypto
While Cash App does make buying/selling bitcoin more straightforward than ever, it’s still important to consider risks that come with crypto:
Bitcoin Price Volatility – Crypto valuations can fluctuate wildly day-to-day and crash hard during bear markets. Only invest money you can afford to lose.
Get Educated – There’s a lot to learn about cryptocurrency. Make sure to do your research before investing so you fully understand the risks and tech involved.
Enable Security Protections – Turn on authentication requirements like PIN codes as an extra layer stopping thieves from accessing your funds. And never share sign-in details or wallet keys!
Not a Get Rich Quick Scheme – Overnight success stories are the exception, not the rule with bitcoin as with most investments. Temper expectations and invest responsibly based on your risk tolerance.
While the long-term outlook still looks bright, brace for lots of volatility along the way – both up and down!
Frequently Asked Questions (FAQ)
Lastly, let’s review some quick answers to common questions people have about buying bitcoin on Cash App:
Does Cash App report to IRS?
Yes, Cash App must issue 1099-B tax forms to users earning $600+ or doing 200+ transactions from bitcoin. Keep records of purchases/sales to accurately account for taxes owed.
Are there ID/verification requirements?
Yes, Cash App must verify identity per anti-money laundering regulations especially with larger purchases. Just provide basics like name, DOB, SSN when prompted.
Can minors use Cash App to buy bitcoin?
No, you must be a legal adult over 18 years old to use Cash App and its investing features according to their terms.
What payment methods can fund bitcoin purchases?
Cash App conveniently lets you instantly pay with either a linked bank account or compatible debit card. Credit card deposits are currently not supported.
What other coins does Cash App support besides Bitcoin?
For now, bitcoin is still the only cryptocurrency available to directly purchase and sell within Cash App. However, you can always withdraw bitcoin to exchanges offering almost any altcoin if looking to diversify later into other crypto assets.
Conclusion: How to Buy Bitcoin on Cash App
Getting started buying bitcoin is easier than ever thanks to Cash App. After reading this step-by-step walkthrough, you know the ins and outs of how to buy bitcoin on Cash App.
In summary, here’s how to buy bitcoin with Cash App:
- Download app, sign-up for account
- Connect bank or debit card for purchases
- Navigate to Bitcoin page and enter buy amount
- Review order and complete bitcoin transaction
Along with the basics, you now know how to store your holdings securely, send/receive BTC payments, withdraw to external wallets and more!
So if you’re searching for the simplest way to buy bitcoin safely, Cash App delivers. Armed with this guide, go give Cash App’s mobile-first solution for entering the world of bitcoin a try today!
