How to Buy Bitcoin with Cash App in 2020
If you want to know how to buy Bitcoin using Cash App, then you have come to the right place. Keep on reading our guide to find out how you can quickly purchase BTC through this app.
What Is Cash App?
The Cash App was developed by Square, a San-Francisco financial technology company that has released mobile credit card readers and many other financial services. The app was created to provide an easy-to-use platform for Bitcoin beginners.
The Cash App is an app that facilitates the buying and selling of Bitcoin. Users from most states are able to make dollar and Bitcoin transfers between their peers and businesses that also have Cash App. Other features available include withdrawals, deposits, USD and BTC storage, the option to link your own debit/credit card, and more.
Square’s app allows beginners to buy Bitcoin easier. It should be noted that Cash App is not for day trading. For that, you can use Crypto Engine, as it is a more suitable app.
When it launched in 2013, the Cash App was initially used for sending money to family and friends for free (like Venmo), pay for goods and services, pay bills, etc. But then the app expanded its functionalities by adding in 2018 Bitcoin buying and selling options. This mobile app has gained a lot of traction, as it enables P2P transactions with Bitcoin while incurring no fees.
Source: TechCrunch
Unlike other crypto financial platforms, your Bitcoins are not stored externally of Square, instead, the funds are kept in your Square Cash account on your behalf while you make your transfers. You have the option of withdrawing your coins when you have completed your purchase or sale.
*Note: You will be required to verify your name, date of birth, and the last 4 digits of your SSN before you will be able to send more than $250 a week. After identity verification, the weekly sending limit is raised to $2,500.
Square limits purchases and BTC deposits to $10,000 per seven-day period, however, you have no restrictions for the amount you can sell. It can take up to several hours for the transactions to be confirmed on the blockchain.
The Cash app can only be used by residents of 50 United States with the expectation of Puerto Rico, Guam, the U.S. Virgin Islands, American Samoa, and the Northern Mariana Islands. You will not be able to use the Cash App if you’re traveling to other countries or live outside of US borders. There is a version of the app available for people based in the United Kingdom, Japan, Australia, and Canada.
How to Buy Bitcoin with Cash App: Step-by-Step Instructions
- Go to the Android or Apple app store and download the Cash App for your mobile device.
- Then, set up your Cash account.
- Enter the code sent to you and confirm your phone number or email address.
- Select if you want to use your account for business or personal matters. If you want to send money only to friends and family, select “Personal.” If you want to send money to goods or services, select “Business.” After you have registered, link your bank account.
- Before you can buy Bitcoin (BTC), Cash App will have to deposit money into your account. This may require additional identification steps.
- Open your Cash App.
- Tap “Cash & BTC” or the dollar amount featured at the top of your screen.
- Swipe left or tap the BTC symbol in the upper right corner.
Source: Govt. College of Education CTE
- Tap “Buy,” and adjust the price slider or swipe up to enter the sum you want to buy.
- Tap “Buy BTC.”
- Type in your Cash pin or identify yourself via Touch ID.
- Tap “Confirm.”
Are There Any Fees for Buying Bitcoin?
Cash App does not apply a supplementary percentage or fixed fee. The price of BTC is calculated by averaging the market prices featured on major exchanges, inclusive of a margin or speed.
The margin may be different to buy Bitcoin (BTC) from Cash App and to sell Bitcoin (BTC) to the app. The price and margin may also vary from the values featured on other exchanges, trading platforms, or marketplaces.
Fees for deposits and transfers
Cash app has no fees applied to debit accounts transactions, but it applies a 3% fee to credit card transfers for the sender. Personal use accounts do not incur any fees for sending, requesting or receiving money personal payments from a debit card or a bank account or for a standard deposit.
Using the instant deposit option will add a fee of 1.5% of the amount deposited to your bank account.
If you receive a payment on a business account, the business has to pay a fee of 2.75% of the sum that is being transferred to you.
Withdrawing Bitcoin to Your External Wallet
As we all know, it is not safe to leave your crypto fund on any online platform, and it is best practice to transfer your funds to a safe, external Bitcoin wallet.
Follow the steps presented below to move your Bitcoin to an external wallet:
- Open your Cash App;
- Tap the profile icon in the left part of the screen;
- Scroll to “Funds;”
- Tap on “Bitcoin;”
- You will have to verify your identity before withdrawing;
- After you have passed this step, tap on “Transfer Out;”
- Tap “Confirm;”
- Use the “Use Wallet Address” at the bottom of your screen or scan the QR code from your external wallet;
- Tap “Confirm.”
After the withdrawal from Cash App has been processed, your Bitcoin (BTC) will be deposited into your external wallet. Bitcoin transfers can take up to several hours to be completed, so be patient.
Cash App can also be used as a means of transferring Bitcoin P2P when you opt to buy Bitcoin on online marketplaces, such as Paxful and LocalBitcoins, if you have agreed to use this method with the other transitioning party.
Conclusion
Now that you have reached the end of our article, you should know how to buy Bitcoin using Cash App. Keep in mind that you have to be from the specified US states and countries in order to be able to use the app.
Featured image: ccn.com
