Bitcoin has surpassed $1 trillion in market cap during this most recent bull market, thanks in large part to the present-day accessibility of cryptocurrencies. When Bitcoin went on its previous parabolic bull run in 2018, investors had far fewer options when it came to buying and selling digital currencies.
Today, Bitcoin can be purchased on exchanges like Coinbase and Gemini, online brokers like Robinhood and Webull, and peer-to-peer transaction apps like Cash App. Each platform has different cryptocurrencies available and charges different fees and commissions, but the availability of the largest assets like Bitcoin and Ethereum is no longer an issue. Cash App is one of the first peer-to-peer services to offer cryptocurrencies to clients and today we’ll look at how to buy and sell Bitcoin using the app.
About Cash App Invest
Cash App is the mobile peer-to-peer transaction service from Square (NASDAQ: SQ). Developed in 2013 as Square Cash, the Cash App functions like Venmo or PayPal, but with a few added bells and whistles. Like Venmo, you can choose a username (called a $cashtag) and send cashless payments back and forth to other users with no fees. Cash App even allows users to transfer to non-users as long as the recipient has a debit card.
Cash App also functions as a bank and investment account. Users can link an external bank account or debit card to transfer money into the app for investing in stocks and Bitcoin. While Cash App doesn’t have the stock selection of a TD Ameritrade or Robinhood, they do allow the purchase of fractional shares, which benefits users with limited capital. Likewise, the only cryptocurrency available is Bitcoin, but anyone with a balance in their account can purchase it.
Buying Bitcoin on Cash App in 4 Steps
One of the main goals of the Cash App platform is to simplify finance for a user base that lacks superior financial literacy. Cash App won’t have complex charting tools or multilegged options trades available for investors. However, it does provide an inclusive platform for people to send, save and invest money in assets like stocks and cryptocurrency.
Cash App charges two different fees on Bitcoin purchases, but neither is egregious. All transactions are tagged with a service fee and an exchange fee. The exchange fee varies depending on the volatility of BTC’s price across U.S. exchanges. Large Bitcoin purchases might be affected more in volatile markets, but smaller purchases will have fees comparable to those found on Coinbase or Gemini. If you want to buy Bitcoin on Cash App, follow this 4-step process.
- Download or Open Cash App.Cash App is available at both the Apple App and Google Play stores. If you haven’t opened an account yet, you’ll need a few pieces of information to get started. Your application for an account will require:
An email address
A phone number
A bank account or debit card number
You’ll also need to enter your name and pick a unique $cashtag. The cashtag is used as your platform handle and other Cash App clients can send you money using only the unique cashtag. It’s public too, so choose a name that won’t embarrass your mother.
- Fund your account.You’ll need to fund your Bitcoin purchase with money already in your account, so be sure to have funds available. Use the debit card or bank account you have saved on the app to transfer some cash if you don’t have a balance already. You’ll need more information to complete a bank transfer as well, such as your name, Social Security number and home address. You’ll also need to create a PIN to confirm transactions; choose something you won’t forget easily (or write it down). Actually, do both of these things.
- Decide how much Bitcoin to buy.Once you’ve funded your account, you’ll need to decide how much Bitcoin to buy. Bitcoin is one of hundreds of different cryptocurrencies, but it’s the largest with more than $1 trillion in market cap. Despite its size and new-found acceptance by the finance industry, Bitcoin remains a volatile asset that trades 24/7. The 1st Bitcoin was mined in 2009, so we’re still in the early stages of Satoshi Nakamoto’s long-term experiment. Devote a portion of your investment portfolio to Bitcoin, but don’t buy it at the expense of other investments, like stocks.
- Execute your trade.Now that you have cash in your account and the groundwork laid out for your trade, let’s buy some Bitcoin. Open the Cash App and navigate to the Investing tab. Once there, find Bitcoin and tap on it to open the trading screen. Select Buy and enter the amount you want to purchase. You can set up your transaction as a one-time or recurring buy, so choose whichever option fits your investment plan. Punch in your PIN, execute your trade and you should have your Bitcoin in your account. Below is a video to guide you on how to buy bitcoin with CashApp.