Cash App has become one of the most popular and convenient ways for buying, selling, and sending Bitcoin. The mobile payment service developed by Square allows US users to easily purchase Bitcoin with their Cash App balance or linked bank account. In this guide from Igeekbloggers, we’ll cover everything you need to know about using a Cash App to buy Bitcoin.
What Is Cash App?
Cash App is a mobile payment application developed by Square, the financial services and digital payments company founded by Twitter’s Jack Dorsey. Cash App allows users to easily send and receive money with friends and family.
One of the most popular features of Cash App is the ability to buy, sell, and withdraw Bitcoin instantly. This is made possible through partnerships with various Bitcoin exchanges. Users can deposit money into their Cash App balance, purchase Bitcoin within the app, and then withdraw the Bitcoin to an external wallet.
Cash App is available for free on both iOS and Android devices. The simple interface and quick signup process make Cash App one of the easiest ways for both beginners and experts to buy Bitcoin. However, it’s important to remain cautious, particularly in the realm of digital transactions, where instances of scams or misleading information, like fake Cash App screenshot, can occur. Always ensure you’re using legitimate sources and verifying information to maintain a secure financial experience.
Steps To Buy Bitcoin On Cash App
Here is a step-by-step walkthrough on how to purchase Bitcoin through Cash App:
Step 1: Download and Sign Up
Download and install the Cash App app on your mobile device. It’s available on both the App Store (iPhone) and Google Play Store (Android).
Once installed, sign up for a free Cash App account. All you’ll need to provide is your mobile number, email address, name, and date of birth. Accept the Terms of Service and you’re good to go.
Step 2: Verify Identity
Cash App will ask you to input your SSN and other info to verify your identity. This helps Cash App comply with KYC and AML regulations for buying Bitcoin.
Step 3: Link a Bank Account or Debit Card
You’ll need to link a bank account or compatible debit card to fund your Cash App account. Confirm small test deposits to verify your bank connection.
Step 4: Deposit Funds
Deposit money into your Cash App balance by instantly transferring from your linked bank account. You can only purchase Bitcoin through Cash App with available Cash App balance – not directly with your bank account.
Step 5: Buy Bitcoin!
Once there are funds in your Cash App balance, you can instantly buy Bitcoin! Just tap the Bitcoin tab at the bottom, enter the amount in dollars you want to buy, and confirm the purchase.
Step 6: Withdraw the Bitcoin
Now that you’ve bought Bitcoin within Cash App, you can instantly withdraw it to an external Bitcoin wallet by scanning your wallet address QR code or copying the address.
That’s it! Once confirmed on the blockchain, the Bitcoin will be in your external wallet to securely hold, send to others, or trade on exchanges.
Who Can Buy Bitcoin With Cash App?
Cash App allows users in almost all US states to buy and sell Bitcoin. Currently, the service is restricted for residents of the following states:
- New York
In addition, Cash App enforces certain limits and restrictions:
- You must be a US resident and at least 18 years old.
- Full identify verification is required.
- Weekly purchasing limit of $300 until more identity info is provided.
- $10,000 maximum account balance.
- $3,000 weekly Bitcoin withdrawal limit.
As long as you fully verify your identity and provide all required info, most U.S. users will be able to buy Bitcoin on Cash App subject to the limits outlined above.
Benefits Of Buying Bitcoin On Cash App
There are many advantages to using Cash App for your Bitcoin purchases:
- Simple and easy process – Cash App is designed for simplicity. Even a complete beginner can easily buy Bitcoin.
- Instant purchases – Unlike exchanges, purchasing Bitcoin on Cash App happens in real-time. Just deposit funds and tap Buy!
- Withdraw Bitcoin to external wallet – You retain full ownership of your coins instead of keeping them within the Cash App.
- Low fees – Cash App charges around 1.5% transaction fees when buying Bitcoin, which is competitive compared to other options.
- In-app support – Get assistance right within the app if you have any issues with buying, selling, or withdrawing Bitcoin.
- Alternative to exchanges – Cash App provides a convenient way to buy Bitcoin without using a traditional crypto exchange.
- KYC compliant and legal – Cash App adheres to strict identity verification rules to comply with anti-money laundering regulations.
Risks Of Buying Bitcoin On Cash App
While Cash App provides a quick and convenient way to buy Bitcoin, it’s good to be aware of the potential risks:
- As a custodial service, Cash App controls the private keys to wallets holding users’ Bitcoin. This means you do not have full autonomy until withdrawing to an external wallet.
- Cash App accounts have been known to be hacked in the past, especially those with reused passwords from other sites/services. Enable all available security features to maximize account protection.
- You are dependent on Cash App’s availability and performance. Any downtime can prevent you from accessing or withdrawing your Bitcoin when needed.
- Cash App may freeze accounts suspected of suspicious or outright illegal activity. While unlikely if you follow all rules and regulations, frozen account access means you temporarily lose access to your Bitcoin.
- Cash App has full discretion to change fees, limits, and terms of service at any time. Users must agree to their evolving policies and features.
Cash App offers a quick, convenient, and beginner-friendly way to instantly buy real Bitcoin directly from your mobile device. With its streamlined interface and instant transfers, purchasing Bitcoin on Cash App only takes minutes. Just sign up, link a bank account, deposit funds, and tap Buy! In just a few taps, anyone can become a Bitcoin owner.