Cryptocurrency

What Crypto Can You Buy On Cash App

By David Krug David Krug is the CEO & President of Bankovia. He's a lifelong expat who has lived in the Philippines, Mexico, Thailand, and Colombia. When he's not reading about cryptocurrencies, he's researching the latest personal finance software. 6 minute read

When it comes to apps for managing one’s own money, many people use Cash. Square (now Block) first introduced the platform in 2013 as a means of making payments between individuals. It’s evolved into something much larger since then.

The company implemented Bitcoin trading within the app in 2018. As a leading marketplace for Bitcoin purchases and sales, the company now pulls in billions of dollars annually in trading fees from customers.

However, the most well-liked choices aren’t usually the greatest ones. In comparison to similar services, how does Cash App’s crypto trading fare?

Key Characteristics of Cash Apps

For good reason, Cash App is currently one of the most downloaded financial apps available. Their app streamlines budgeting with a number of useful features. The software has a lot of cool features, such as:

Easy Ways to Get Bitcoin

Bitcoin has become the most successful digital currency thus far. It’s the place where most people who are new to bitcoin start.

From the beginning, Cash App’s focus has been on providing a straightforward interface that streamlines money transfers and management. Also, purchasing Bitcoin through the app is quite easy.

Simply enter the desired purchase quantity in United States dollars (USD) and your personal identification number (PIN) to acquire some cryptocurrency. It’s all taken care of by the app.

Although Bitcoin is readily available on the app, no other cryptocurrencies are supported at this time. We gave Cash App Crypto a lower rating than it deserved because of this serious shortcoming.

However, if you’ve never dealt with Bitcoin before but would like to get your hands on a few dollars worth, Cash App is an excellent place to begin.

Get Ownership of Your Bitcoin

When you buy cryptocurrency, the digital banking solution usually acts as a custodian for your funds. Your cryptocurrency is never truly yours under these circumstances. Since the blockchain has no governing body, the owner of any given crypto asset is simply the owner’s wallet address. 

Blockchain technology won’t acknowledge the ownership of the asset if the digital wall ID belongs to your custodian’s wallet. Having a custodian around can be helpful in a few different ways. 

When storing assets in a custodial wallet, your funds are protected by the custodian’s security measures, and if you forget your password, you may get back into your account without any hassle.

However, Cash App allows users to store their crypto assets in their own secure wallets, which is preferred by many crypto aficionados. Your Bitcoin can be sent to any online cryptocurrency wallet with Cash App. 

However, if you don’t want to take your Bitcoin anywhere else, Cash App has its own secure cryptocurrency wallets where it will keep it. However, knowing that you can move your Bitcoin to your wallet whenever you choose is a good perk.

Send bitcoin to family and friends

It’s becoming increasingly common to give Bitcoin as a present due to its rising popularity. Additionally, it is being utilized as a form of cashless payment between individuals. Transferring Bitcoin to loved ones is a breeze when using Cash App.

Simply log in to the app, select the Airplane button, and you may transmit Bitcoin to another user. To continue, select “Send Bitcoin.” You can send Bitcoin by entering the desired amount, the recipient’s hashtag, and a private key.

To top it all off, sending Bitcoin to any registered hashtag will not cost you a dime in transaction fees.

Compatibility With Current Cash App Accounts

If you currently use Cash App, there’s no need to create a separate cryptocurrency account. It’s as easy as using the app to gain access to Bitcoin.

Account Bank Cash App

Cash App was released as personal finance and peer-to-peer payment app rather than a cryptocurrency exchange due to its developers’ initial intent. Because of time, it has changed.

That the company now has a bank account is a cool side effect of this development. The cash app account functions just like any other checking or savings account. Furthermore, it comes with a Visa debit card branded as the Cash Card. 

You can use your card at any ATM in the country, and your funds are protected by the FDIC, but the corporation will charge you an additional $2 on top of whatever the ATM operator will demand a withdrawal.

To encourage the usage of direct deposit, Cash App will reimburse up to three individual ATM operator fees every 31-day cycle, provided that the sum of these fees is $7 or less.
Quick budgeting and easy tracking of expenses are two benefits of the app’s online banking functionality.

Trade shares of stock and ETFs (ETFs)

Bitcoin and other cryptocurrencies are speculative investments that carry a high degree of risk and should never constitute a person’s entire portfolio. You may easily diversify your investment portfolio with the help of Cash App because it allows you to trade stocks and ETFs with no transaction fees.

Sadly, the program is lacking in the charting and technical analysis department. So, it’s not the best choice for a day trader, but it contains everything a long-term investor could want.

Cashtag

To receive payments, each user of the Cash app must first generate a unique cashtag. The cashtag streamlines the process of sending and receiving payments in any of several different currencies as well as Bitcoin, equities, and ETFs.

Benefits of Crypto Cash App

The growth of Cash App has resulted in numerous benefits. To name a few of the most notable:

  • Availability. Most smartphones and tablets are compatible with the app. You can get it via the App Store on your iPhone or from Google Play if you have an Android device.
  • Simplicity. Even back when it was only a payments app, Cash App was designed to be simple and straightforward to use. There is no doubt that Cash App Banking, stock and ETF trading, and cryptocurrency trading were designed with user-friendliness in mind by founder Jack Dorsey and his team.
  • Don’t Trust Anyone Else With Your Bitcoin. If you want to buy Bitcoin but don’t want your exchange to hold your funds in a custodial wallet, Cash App is the way to go. Your bitcoin assets can be moved to any wallet that supports the currency you use.
  • Spread Your Bets. While most cryptocurrency exchanges solely deal in cryptocurrencies, Cash App deals in a wide variety of digital assets. There is a large user base that is attracted to the platform because of the free stock trading. You can avoid putting all your eggs in one basket by using Cash App to appropriately diversify your holdings.
  • Mobile Banking with Cash Deposits. FDIC data shows that over 5%, or over 7 million people, in the United States do not have access to a bank account. Cash App Banking and similar services are expanding access to financial services for the underserved.
  • Payments can be sent and received quickly and easily using Bitcoin. The cashtag technology utilized by the firm makes it simple to send and receive Bitcoin, cash, and shares of stocks and ETFs using the app.

Drawbacks of Cash App Crypto

Getting Bitcoin through a service like Cash App Crypto is convenient, but it does come with a few drawbacks. 

Important factors to think about are:

  • Accepted Payment Method Is Limited to Bitcoin Only. For the time being, Cash App only supports Bitcoin as a cryptocurrency. You’ll need to use a separate exchange if you’re interested in trading digital currencies other than Bitcoin.
  • Trading Tools Are Limited. Cash App has always prioritized ease of use, but trading isn’t easy especially active trading. Cash App is not equipped to meet the needs of active traders.
  • Bitcoin transactions incur comparatively high fees. Fees for buying and selling Bitcoin are standard and must be paid at any marketplace. The Bitcoin transaction fees on Cash App range from 1.5% to 2.3% of the total transaction value and are dynamically set based on market demand. When compared to other cryptocurrency exchanges, these costs are rather hefty.

How Cryptocurrency in Cash App Fares

To a greater extent than Venmo, Coinbase, the largest cryptocurrency exchange in the world, is Cash App’s main rival. 

Check out how the firm rates below:

Cash App CryptoVenmoCoinbase
Cryptocurrencies AvailableBitcoinBitcoin, Ethereum, Bitcoin Cash, LitecoinMore than 100 cryptocurrency options, including the most popular coins. 
Stock TradesYesNoNo
Spending CardCash Card allows you to make purchases against your Cash App balance. Venmo Card allows you to make purchases against your Venmo balance. Coinbase Card allows you to use your cryptocurrency for point-of-sale purchases. 
The fee to Buy Bitcoin1.5% to 2.3%2.3% with a $0.50 minimum. 0% to 0.5%
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