How to Buy and Send Bitcoin on Venmo

Buying and sending Bitcoin on Venmo might sound complicated, but it’s much easier than you think. With Venmo’s introduction of cryptocurrency functionality in 2021, users can now purchase, hold, and sell Bitcoin directly from the app. This feature makes it a viable option for those looking to dive into the crypto world without navigating complex exchanges or wallets. Whether you’re buying Bitcoin as an investment or sending it to a friend, Venmo has streamlined the process for ease of use.

Venmo, primarily known for peer-to-peer money transfers, has gradually embraced cryptocurrency, allowing users to interact with four different types: Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH). Since Venmo’s user base is over 70 million strong, this integration offers a convenient way for people to access Bitcoin without needing a specialized crypto wallet.

In this article, we’ll take you through the process of buying and sending Bitcoin on Venmo. Whether you’re completely new to Bitcoin or just looking for an easy way to transact, this guide has got you covered. By the end, you’ll have a full understanding of how to integrate Bitcoin transactions into your Venmo usage.

Getting Started: What You Need

Before you can buy Bitcoin on Venmo, there are a few prerequisites:

1. Venmo App: Make sure you have the most up-to-date version of the Venmo app installed on your phone. The cryptocurrency functionality is only available through the app, not the web version.
2. Verified Account: To buy Bitcoin, you need to have a verified Venmo account. This means that you’ve added personal information like your legal name, address, and Social Security number. Venmo needs this to comply with KYC (Know Your Customer) regulations.
3. Linked Payment Method: You must have a linked bank account, debit card, or Venmo balance to purchase Bitcoin. Credit cards cannot be used to buy cryptocurrency on Venmo.

How to Buy Bitcoin on Venmo

Venmo makes buying Bitcoin straightforward. Here’s how you can do it in a few simple steps:

1. Open the Venmo App
   Launch the app on your smartphone and log in if necessary. Navigate to the main menu by tapping the three horizontal lines in the top-right corner.

2. Go to the Crypto Section
   From the menu, select the "Crypto" tab. This will bring you to a page where you can see the four cryptocurrencies Venmo supports: Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.

3. Select Bitcoin
   Tap on "Bitcoin" to view its current market price, historical data, and other information. Venmo provides helpful charts and resources if you want to learn more about Bitcoin before making your purchase.

4. Click ‘Buy’
   Once you’re ready to buy, press the "Buy" button. You’ll be prompted to choose how much Bitcoin you want to purchase. Venmo allows you to buy as little as $1 worth of Bitcoin, so it’s very accessible for beginners.

5. Confirm Payment
   Select your preferred payment method (bank account, debit card, or Venmo balance) and confirm the transaction. Venmo will show you any applicable fees before you complete the purchase.

6. Final Confirmation
   After confirming, the Bitcoin will appear in your Venmo crypto portfolio. Venmo doesn’t give you a private key for the Bitcoin; instead, it holds the cryptocurrency for you, making it easy to access and track your holdings.

Fees and Limits

Venmo charges transaction fees for buying and selling cryptocurrency, which vary based on the amount of crypto you’re trading. For purchases or sales between $1 and $200, the fee is $2.49. As the amount increases, the fee becomes a percentage of the transaction:

• $200.01 to $1,000: 1.8%
• Over $1,000: 1.5%

These fees are important to consider when buying or selling cryptocurrency on Venmo. Additionally, there is a daily limit of $20,000 for crypto transactions.

How to Send Bitcoin on Venmo

Unlike traditional cryptocurrency wallets, Venmo doesn’t allow users to send Bitcoin directly to external Bitcoin addresses. Instead, Bitcoin and other cryptocurrencies bought on Venmo remain within the Venmo ecosystem. However, you can send the dollar value of your Bitcoin holdings to another Venmo user in just a few clicks.

Here’s how to send Bitcoin’s equivalent in USD:

1. Go to Your Crypto Portfolio
   Open the Venmo app and navigate to your cryptocurrency portfolio.

2. Select Bitcoin
   From your portfolio, click on "Bitcoin" to view your holdings. Venmo will display the USD equivalent of your Bitcoin.

3. Sell Bitcoin for USD
   To send Bitcoin, you first need to convert it to USD. Tap the "Sell" button and choose the amount of Bitcoin you want to sell. Venmo will immediately convert the Bitcoin to USD and add the funds to your Venmo balance.

4. Send Money
   Once your Bitcoin has been converted to USD, go to the main Venmo screen and click "Pay or Request" to send the funds to your desired recipient. Enter their username or scan their QR code, and you’re good to go.

Advantages of Using Venmo for Bitcoin Transactions

Using Venmo for Bitcoin transactions has its perks, particularly for users who are new to cryptocurrency. Here are some advantages:

• User-Friendly: Venmo’s interface is simple, and adding the ability to buy Bitcoin directly makes it much easier for new users to start buying and selling cryptocurrency.
• No Need for External Wallets: Traditional Bitcoin transactions require knowledge of public and private keys, but Venmo simplifies this by holding the Bitcoin for you.
• Integrated with Daily Payments: Since Venmo is widely used for everyday payments, you can quickly convert Bitcoin into USD to send to friends and family.

Limitations

Despite the simplicity, there are some downsides to using Venmo for Bitcoin transactions:

• No External Transfers: You can’t send your Bitcoin to a different wallet outside of Venmo, which limits flexibility.
• Fees: While the fees for buying and selling crypto on Venmo are transparent, they can add up quickly for frequent traders.
• Custodial Wallet: Since Venmo holds your Bitcoin for you, you don’t have full control over your private keys, which is a significant drawback for advanced crypto users who prioritize security.

Is Venmo the Best Option for Bitcoin?

If you’re new to cryptocurrency and already use Venmo for everyday transactions, it can be a great place to start. However, for serious crypto enthusiasts, the lack of control over private keys and the inability to send Bitcoin to external wallets might be dealbreakers.

For those looking for convenience and ease of use, Venmo offers a user-friendly way to buy, hold, and sell Bitcoin without the complexities of setting up a separate wallet. However, if you're looking for full control over your cryptocurrency, you may want to consider using a dedicated crypto exchange like Coinbase or Binance, which provide more comprehensive services for crypto enthusiasts.

Conclusion

Buying and sending Bitcoin on Venmo is a simple, straightforward process that makes cryptocurrency accessible to everyday users. With just a few taps, you can purchase Bitcoin, hold it in your Venmo account, and sell it for USD when needed. While the platform offers significant ease of use, it does come with limitations, such as the inability to transfer Bitcoin to external wallets and custodial control over your assets. Depending on your goals, Venmo can be a great introduction to the world of Bitcoin or a stepping stone toward more advanced cryptocurrency management.

Incorporating Bitcoin into your Venmo usage could be the start of a deeper journey into digital assets, but it’s important to stay aware of the platform’s limitations. If you’re looking for an easy way to buy Bitcoin without diving deep into the technicalities, Venmo is an excellent choice. But if you’re serious about cryptocurrency ownership and flexibility, consider exploring other platforms that offer more control.

Happy buying and sending!