If you've been looking for a way to buy cryptocurrency, it just got a little easier. Recently, the popular payment app Venmo announced a way to buy Bitcoin, Ethereum, Litecoin or Bitcoin Cash through the platform. To participate in the new Venmo cryptocurrency option, you'll just need a Venmo account and some extra cash to purchase some coins.
Venmo Cryptocurrency Support
Can you buy crypto with Venmo? Until recently, the answer was no. But this spring, Venmo rolled out cryptocurrency support to all members. Both cryptocurrency and Venmo are peer-to-peer financial technologies that help consumers skip lenders for faster, more affordable transactions.
Currently, Venmo only supports four cryptocurrencies: Bitcoin, Ethereum, Litecoin and Bitcoin Cash. You can buy and sell cryptocurrencies directly within the app, with your currency being stored in your Venmo account. At this time, you can't pay for Venmo transactions using cryptocurrencies, even if you hold them in your wallet.
Buying and Selling Cryptocurrencies
You can build a Venmo crypto wallet directly within the platform in just a few simple steps. You'll need to tap the icon to go to your account settings and look for Crypto. Select Explore and choose your preferred cryptocurrency type. You'll then see both the current price and an option to buy.
To sell your Venmo cryptocurrency, tap on the icon for your account settings and look for $ in Crypto. Select Manage next to that and choose your cryptocurrency type. You'll see the current price, along with the option to buy.
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Benefits of Cryptocurrency Through Venmo
Once Venmo users get the hang of how it works, they can buy and hold cryptocurrencies with just a few taps on the screen. That's the biggest benefit of it. If you've been thinking of investing in cryptocurrency, this can be an easy way to get started. You can purchase cryptocurrencies for as little as $1.
Venmo's new Bitcoin, Ethereum, Litecoin and Bitcoin Cash purchases are not protected against price fluctuations. However, if there is a security breach and your coins are compromised, Venmo will cover your loss. For that reason, Venmo limits weekly cryptocurrency purchases to $20,000, with a cap of $50,000 per year.
Other Peer-to-Peer Cryptocurrency Options
Venmo isn't the only peer-to-peer payment platform letting users buy crypto. You can also buy and sell cryptocurrency using PayPal, and PayPal even lets you make purchases using the coins in your PayPal account. Like Venmo, you'll be able to buy crypto with as little as $1 and you can choose from Bitcoin, Ethereum, Litecoin and Bitcoin Cash.
Another option is to use a third-party service to manage your cryptocurrency purchases. Paxful lets you buy crypto and check out using bank transfer, PayPal, Zelle Pay or Western Union. There are also peer-to-peer services dedicated to exchanging cryptocurrency.
Consider also: 10 Things to Know About Cryptocurrency
Venmo Cryptocurrency Caveats
It's important to note that once you've started purchasing your Venmo cryptocurrency, you'll have to leave it there. Venmo doesn't currently let members transfer cryptocurrency in or out of the platform. You also can't send cryptocurrency to other Venmo accounts.
Buying and selling cryptocurrency on Venmo won't be free. There is a minimum fee of $0.50 up to $25, at which point, the fee switches to a percentage. This ranges from 1.5 percent to 2.3 percent, depending on the amount. At the time you make your purchase or sale, Venmo will disclose the exact fee that you'll be charged.
For those who already have a Venmo account, this news means there's an easy way to get involved in cryptocurrency trading. You won't be able to transfer your funds or use them for purchases, but you can sell them and use the funds for your Venmo purchases. As more time passes, Venmo may expand its cryptocurrency offerings to make things even easier.