Can You Buy Crypto with Venmo?

You’re already familiar with Venmo. It’s the app you probably use to split dinner bills with friends or pay for that secondhand couch you found online. But can you also buy cryptocurrency with it? The answer is yes, but understanding how to do so and whether it’s the best option requires diving into details that could save or cost you money. Let’s start from the most critical part—why Venmo’s crypto offering could matter to you, and how it compares with other platforms.

Why Buying Crypto on Venmo Could be a Game-Changer

Unlike more traditional methods of acquiring crypto, such as using specialized exchanges (think Coinbase or Binance), Venmo offers simplicity. It’s a platform many people are already comfortable using, making it easier for newcomers to dip their toes into the world of crypto without the intimidation of complex interfaces or long verification processes.

However, the simplicity Venmo offers does come with some trade-offs. While it is great for beginners, more seasoned traders might find themselves limited in terms of the features and flexibility it provides. But first things first, let’s break down how it works.

How to Buy Crypto on Venmo

1. Open Venmo: First, you need to make sure that your Venmo app is updated to the latest version.
2. Navigate to the Crypto Section: You’ll find a crypto tab where you can choose between a few cryptocurrencies, such as Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
3. Choose Your Crypto: After selecting your desired cryptocurrency, enter the amount of USD you’d like to convert to crypto.
4. Complete the Purchase: Review the transaction, confirm it, and voila—you now own cryptocurrency through Venmo!

Quick Tip: Venmo’s crypto purchases are directly linked to your Venmo balance or linked bank account. You can’t use credit cards for these purchases, which may be a limitation for some.

Venmo Fees and Comparisons with Other Platforms

One of the major factors to consider is transaction fees. Venmo charges a percentage fee depending on the amount of crypto you purchase. For example, purchasing less than $100 worth of crypto incurs a fee of 1.5%. This fee increases for larger purchases. While not the highest fees in the market, it’s important to be aware that platforms like Binance or Kraken often offer lower fees, especially for larger transactions.

The table below shows a quick comparison between Venmo, Coinbase, and Binance based on various factors:

Platform	Fees	Ease of Use	Variety of Cryptos	Withdrawal Options
Venmo	1.5%-2.3%	Very Easy	Limited to 4 Cryptos	Limited, No Transfer
Coinbase	1.49%-3.99%	Moderate	50+ Cryptos	Full Crypto Transfers
Binance	0.10%-0.50%	Advanced	100+ Cryptos	Full Crypto Transfers

Key Point: Venmo’s crypto offering is aimed at casual users or beginners, but if you’re looking to become a more serious trader, specialized exchanges offer more variety and lower fees.

Crypto Storage and Security on Venmo

When buying crypto on Venmo, you should also think about where your crypto is stored. Venmo doesn’t allow you to transfer crypto to an external wallet. This means that while you own the crypto, you don’t have full control over it, which is a serious limitation for those who want to hold their crypto outside of a centralized platform. For instance, crypto enthusiasts who believe in the “not your keys, not your coins” principle may find this concerning.

Security: Venmo is a PayPal-owned company, and it follows strict security measures to protect users. However, as with all centralized platforms, your assets are only as secure as the platform itself.

Pros and Cons of Buying Crypto on Venmo

Let’s wrap things up with a quick breakdown of the pros and cons of using Venmo for your crypto purchases:

Pros:

• Simplicity: Venmo is easy to use and convenient, especially if you’re already familiar with the app.
• Quick Setup: No need for additional apps or accounts. You can buy crypto in minutes.
• Integration: Since Venmo is already connected to your bank or card, it’s a seamless process to start.

Cons:

• Fees: Venmo’s fees can add up, especially for smaller purchases.
• No Crypto Transfers: You can’t transfer your crypto to an external wallet or another exchange.
• Limited Coins: Venmo offers only four cryptocurrencies, which is far fewer than dedicated crypto platforms.

Conclusion

So, should you buy crypto with Venmo? If you’re a beginner looking for convenience and simplicity, and you’re okay with the limitations—like higher fees and limited coin options—then Venmo could be a great starting point. However, for those interested in more serious crypto trading, lower fees, or the ability to transfer crypto to your own wallet, dedicated exchanges like Binance or Coinbase are probably better suited for your needs.

At the end of the day, it’s all about your personal priorities: Do you value ease of use over features, or are you willing to spend a bit more time learning about more complex platforms for long-term savings and control?