How to buy Bitcoin with Cash App
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Cash App is a mobile payment service developed by Block, Inc. (formerly Square, Inc.) that allows users to transfer money to one another using a mobile phone app. It is available in the United States and the United Kingdom. As of September 2021, the service reported 70 million annual transacting users and US$1.8 billion in gross profit.
Key features of Cash App
- Send and receive money: Users can send and receive money from friends and family instantly with only a few taps.
- Get a Cash Card: Users can order a Cash Card, a customizable Visa debit card, directly from Cash App. The card can be used to make purchases online and in stores.
- Invest in stocks: Users can buy and sell stocks on Cash App.
- Buy and sell bitcoin: Users can buy, sell, send, gift, and receive bitcoin (BTC) on Cash App.
- Boost savings: Users can set up automatic transfers to their savings account.
Fees:
- Sending money: Standard transfers are free. There is a fee of 2.5% for Instant transfers.
- Receiving money: Receiving money is free.
- Getting a Cash Card: There is a fee of $5 to order a Cash Card.
- Investing in stocks: There is a fee of $5 for each stock trade.
- Buying and selling bitcoin: There is a fee of 1.5% for buying and selling bitcoin.
Security:
Cash App uses industry-standard security measures to protect user data. All transactions are encrypted, and Cash App does not store users’ Social Security numbers.
Overall, Cash App is a convenient and easy-to-use mobile payment service with a variety of features. It is a good option for users who want to send and receive money, get a debit card, or invest in stocks.
Buy Bitcoin with Cash App
- Open the Cash App and sign in.
- Tap the Bitcoin tab on the home screen.
- Tap Buy BTC.
- Enter the amount of Bitcoin you want to buy or tap … to enter a custom amount.
- Tap Buy.
- Enter your PIN and tap Confirm.
Your Bitcoin will be purchased and added to your Cash App balance. You can then view your Bitcoin balance and transaction history in the Bitcoin tab.
Here is a more detailed guide with images:
- Open the Cash App and sign in.
- Tap the Bitcoin tab on the home screen.
- Tap Buy BTC.
- Enter the amount of Bitcoin you want to buy or tap … to enter a custom amount.
- Tap Buy.
- Enter your PIN and tap Confirm.
Your Bitcoin will be purchased and added to your Cash App balance. You can then view your Bitcoin balance and transaction history in the Bitcoin tab.
Please note that there are fees associated with buying Bitcoin with Cash App. These fees are based on the amount of Bitcoin you buy. You can see the current fees on the Cash App website.
Steps to buy Bitcoin on Cash App
Download and install Cash App: If you haven’t already, download and install Cash App on your mobile device. You can find it on the App Store (iOS) or Google Play Store (Android).
Create a Cash App account: If you don’t have a Cash App account, you’ll need to create one. This involves providing your personal information, such as your name, email address, and phone number.
Link a bank account or debit card: To buy Bitcoin, you’ll need to link a bank account or debit card to your Cash App account. This will allow you to add funds to your Cash App balance, which you can then use to purchase Bitcoin.
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Verify your identity: Cash App may require you to verify your identity before you can buy Bitcoin. This typically involves uploading a clear photo of your government-issued ID.
Enable Bitcoin deposits and withdrawals: To buy Bitcoin, you’ll need to enable Bitcoin deposits and withdrawals in your Cash App settings. You can find this option under the “Investing” tab.
Buy Bitcoin: Once you’ve completed the steps above, you can start buying Bitcoin. To do this, tap on the Bitcoin tab on your Cash App home screen and then tap “Buy BTC.”
Enter the amount of Bitcoin you want to buy: You can enter a custom amount or choose from one of the preset amounts.
Review and confirm the transaction: Before confirming the transaction, review the order details, including the amount of Bitcoin you’re buying, the current market price, and any applicable fees.
Enter your PIN and confirm the purchase: Once you’ve reviewed the order details, enter your PIN and tap “Confirm” to complete the purchase.
Auto Invest Bitcoin on Cash App
The Cash App allows you to set up automatic Bitcoin purchases using a feature called Auto Invest. This feature lets you schedule regular Bitcoin purchases based on a set frequency and amount. Here’s how to set up Auto Invest for Bitcoin on Cash App:
Open the Cash App and tap the Investing tab.
Select Bitcoin.
Tap the Buy button.
Under Order Type, tap Change Order Type.
Choose your desired Auto Invest frequency: Daily, Weekly, or Every Two Weeks.
Tap Done.
Select a preset amount or tap … to enter a custom amount.
Tap Next.
Review your Auto Invest details and tap Confirm.
Once you’ve confirmed your Auto Invest settings, Cash App will automatically purchase Bitcoin on your behalf according to the chosen frequency and amount. You can always modify or cancel your Auto Invest settings at any time.
Steps to set up Auto Invest on Cash App
Setting up Auto Invest on Cash App allows you to schedule regular investments in Bitcoin or stocks. Here’s how to do it:
Open the Cash App and navigate to the Investing tab.
Select the asset you want to invest in, either Bitcoin or a specific stock.
Tap the “Buy” button.
Tap the drop-down menu where it says “Change Order Type” and select “Auto Invest.”
Choose a frequency for your Auto Invest purchases: daily, weekly, or every two weeks.
Select a preset amount or enter a custom amount for your recurring purchases.
Tap “Next” to review your Auto Invest order.
Tap “Confirm” to schedule your automatic purchases.
Note: There is a $10 minimum for Auto Invest purchases. Additionally, Auto Invest trades may occur during non-market hours, and the actual execution price will be determined at the next market open.
Cash App fees for purchasing Bitcoin
- $200.01 – $1000: 1.75% fee
- $1000.01 – $2000: 1.5% fee
- $2000.01 – $3000: 1.25% fee
- $3000.01 – $5000: 1% fee
For example, if you enter that you want to purchase $200 in Bitcoin, you’ll get about $196 worth of Bitcoin and pay roughly $4 in fees.
In addition to the transaction fee, Cash App also includes a spread on the exchange rate we use to price bitcoin buys and sells on our platform. Depending on market conditions, the spread we apply to our exchange rate may be anywhere between 0% and 1%.
Here is an example of how to calculate the total cost of purchasing Bitcoin on Cash App:
- Transaction size: $200
- Transaction fee: 1.75% = $3.50
- Spread: 0.5% = $1.00
- Total cost: $200 + $3.50 + $1.00 = $204.50
As you can see, the total cost of purchasing Bitcoin on Cash App is typically between 2% and 3% of the transaction size.
Here are some tips for minimizing your fees when purchasing Bitcoin on Cash App:
- Purchase larger amounts of Bitcoin: The fee structure is tiered, so you’ll pay a lower percentage fee on larger purchases.
- Monitor the spread: The spread can vary depending on market conditions, so it’s a good idea to check it before you make a purchase.
- Use a different exchange: There are a number of other cryptocurrency exchanges that charge lower fees than Cash App.
Who can buy Bitcoin with Cash App?
Anyone in the United States who is 18 years of age or older and has a verified Cash App account can buy Bitcoin with Cash App. You will also need to have a sufficient balance in your Cash App account to cover the purchase price of the Bitcoin, plus any applicable fees.
Here are the specific requirements for buying Bitcoin with Cash App:
- You must be 18 years of age or older.
- You must have a verified Cash App account. This means that you have linked your bank account or debit card to your Cash App account.
- You must have a sufficient balance in your Cash App account. This means that you have enough money in your Cash App account to cover the purchase price of the Bitcoin, plus any applicable fees.
- You must be in the United States. Cash App does not allow users to buy Bitcoin from outside of the United States.
Once you have met all of these requirements, you can buy Bitcoin with Cash App by following these steps:
- Open the Cash App and tap on the “Bitcoin” tab.
- Tap on the “Buy” button.
- Enter the amount of Bitcoin you want to buy.
- Review the purchase details and tap on the “Confirm” button.
Your Bitcoin will be purchased and added to your Cash App account. You can then store your Bitcoin in your Cash App account, transfer it to another Bitcoin wallet, or sell it back to Cash App.
Get Bitcoin with Cash app via Bitcoin Boost
Bitcoin Boost is a feature on the Cash App that allows you to earn Bitcoin with each Cash Card transaction. To get Bitcoin with Cash App via Bitcoin Boost, follow these steps:
- Open the Cash App and tap on the Cash Card tab.
- Tap on Save with Boost.
- Select a Bitcoin Boost offer.
- Tap on Add Boost.
- Make a Cash Card purchase.
When you make a Cash Card purchase with a Bitcoin Boost offer enabled, you will automatically earn Bitcoin. The amount of Bitcoin you earn will depend on the offer you select.
Here are some additional things to keep in mind about Bitcoin Boost:
- You can only have one Bitcoin Boost offer active at a time.
- Bitcoin Boost offers are not available for all Cash Card transactions.
- You can view your Bitcoin Boost earnings in your Activity tab.
Drawbacks to buying Bitcoin via Cash App
While Cash App is a popular and convenient platform for buying and selling Bitcoin, there are a few potential drawbacks to consider before using it:
Fees: Cash App charges fees for both buying and selling Bitcoin. These fees are typically higher than those charged by dedicated cryptocurrency exchanges like Coinbase or Binance. For example, Cash App charges a variable fee of up to 1.75% for Bitcoin transactions, while Coinbase charges a flat fee of 1.99% for transactions under $200.
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Spread: Cash App also builds a spread into its Bitcoin prices, which means that you will pay slightly more than the market price when you buy Bitcoin and receive slightly less than the market price when you sell it. This spread can be as high as 2%, which can eat into your profits if you are trading Bitcoin frequently.
Limited features: Cash App is a relatively simple platform, and it does not offer all of the features that you may find on a dedicated cryptocurrency exchange. For example, Cash App does not allow you to margin trade Bitcoin or to withdraw your Bitcoin to a non-custodial wallet.
Security: Cash App has been criticized for its security practices, and there have been reports of users being hacked or having their accounts compromised. While Cash App does take some security measures, such as requiring two-factor authentication, it is not as secure as some other cryptocurrency platforms.
Customer support: Cash App’s customer support has been mixed, with some users reporting positive experiences and others reporting negative experiences. If you encounter problems with your Cash App account, it may be difficult to get help.
Overall, Cash App is a convenient way to buy and sell Bitcoin, but it is important to be aware of the potential drawbacks before using it. If you are a serious Bitcoin trader, you may want to consider using a dedicated cryptocurrency exchange instead.
In Conclusion:
Cash App offers a user-friendly platform for buying and selling Bitcoin, but it may not be the best option for everyone. The convenience and simplicity of the app are appealing, especially for beginners in the cryptocurrency world. However, the limited customer support and potential security risks are factors that should be taken into consideration. Ultimately, it is important to weigh the pros and cons and choose the platform that aligns with your specific needs and preferences.
