With an active user base of over 50 million, Cash App is the premier mobile payment app for the residents of the US and UK. It offers a convenient way to send & receive money, pay bills, and even make online purchases. But, that is not all.
Seeing the increasing interest in Bitcoin as a digital asset and investment, Cash App also added the option to buy Bitcoin in 2018. The best part about this is that you can make this purchase directly from the app, without having to sign up at a crypto exchange.
If you’re looking to invest in Bitcoin with Cash App, here’s our step-by-step guide on how to do so:
Setting up a Cash App Account
You need to set up a Cash App account to use its services. Here’s how:
In our experience, the app does a good job of guiding new users through this process. If you encounter any issues, you can look up official Cash App guide videos on YouTube.
You can also rest easy about the safety of your account as Cash App employs several effective security features. These include a PIN code, Touch ID, Face ID, and PCI-DSS level 1 encryption.
Verifying Your Cash App Account
Just creating the Cash App account is enough to send & receive a limited amount of money. UK customers, for example, can send up to £250 and receive a maximum of £500 within any given 7-day period.
However, you will have to verify your account further if you want to buy & sell Bitcoin on this platform. This will also make your account more secure by tying it to your legal identity.
To verify, go to the profile section and click on the “Personal” menu button. The app will automatically guide you through the verification process in a step-by-step manner.
Some information and documentation that you might have to provide include:
You must also be above the age of 18 to be eligible for this verification process.
Adding Funds to Your Cash App Account
Now that your Cash App account is fully verified and primed for buying Bitcoin, it’s time to add funds to it. During our time testing Cash App, we found five different ways for you to add money to your account. These include:
With your linked debit card
This is by far the simplest way to top up your Cash App account. All you have to do is click on your account balance and press the “Add Cash” button. Then select the amount you want to deposit and Cash App will automatically transfer that amount from your linked debit or credit card.
From another Cash App user
You can also add money to your account through other Cash App users. Ask them to send the required amount to the cashtag you entered when signing up and you will receive that money.
With a direct bank transfer
If you don’t want to use your debit card, you can transfer money directly from your bank account. For this, click the “Bank Transfer” button below your account balance information and provide the required bank info to complete the process.
Through direct paycheck deposit
You can also deposit your paychecks directly into your Cash App account. Cash App provides built-in access to many major employers like Amazon and Walmart, but you can also link any employer by providing the payment account information.
By depositing paper money
Lastly, if you have cash on hand and want to transfer that to Cash App, you can deposit it through Cash App registered stores. You can locate the nearest store to your location by clicking the “Paper Money” option below your account balance information.
Buying Bitcoin on Cash App
Once you’ve added enough funds, you can purchase Bitcoin through Cash App with relative ease.
First, click the money tab located on the bottom left of the app interface. Here you’ll notice your account balance, and two squares below that; one for Bitcoin and the other for stock investing.
From these, click the Bitcoin sphere and then press the “Buy” button. Cash App will then show you five different preset amounts to choose from. You can also enter a custom amount by pressing the button with three dots.
Next, Cash App will ask some basic verification questions including your legal name, date of birth, and last four digits of your SSN. If you enter this info correctly, the process will complete and you will receive a confirmation of your Bitcoin purchase.
Cash App also offers the ability to make recurring Bitcoin purchases at a set interval and place a custom buy order.
Keep in mind that you will have to pay a small fee when buying Bitcoin through Cash App. The exact amount of this fee depends on the size of your purchase.
Managing Your Bitcoin on Cash App
You can also send, receive, and sell your Bitcoin assets directly from Cash App. From our experience, all three of these options are fairly beginner-friendly and easy to understand.
Here’s how you can utilize them:
Sending
To send Bitcoin, you’ll have to open the app and click on the "Bitcoin" tab. Then, select the "Withdraw Bitcoin'' option and enter the recipient's wallet address and the amount you want to send. If the info is correct, confirm the transaction and your BTC assets will get transferred as quickly as possible.
Receiving
All you need for receiving BTC in your Cash App account is to send your Bitcoin address to the sender. You can find this address by selecting the "Deposit Bitcoin" option in the Bitcoin tab.
Selling
To sell, select the "Sell" option on the Bitcoin tab. Next, enter the amount you want to sell, and confirm the transaction. The fiat equivalent of the BTC you sold will be instantly credited to your Cash App balance.
Cash App Bitcoin security
If you’ve set up the PIN, Touch ID, or Face ID security, Cash App will require them to allow payment. This ensures that no one can transfer or sell your BTC assets, even if they gain access to your phone.
Tips and Best Practices
Here are our top tips and best practices to help you buy and manage Bitcoin on Cash App more securely:
Conclusion
Cash App is definitely one of the most convenient and easy-to-use services we’ve used to buy Bitcoin over the years. All you need is a Cash App account with as little as $1 USD in it, and you can purchase BTC directly from your phone. No need to set up Bitcoin exchange accounts, sign up for crypto wallets, and go through lengthy “Know Your Customer” verification processes.
However, it's important to note that investing in Bitcoin comes with its own risks. So, make sure to do thorough research to make informed decisions before purchasing Bitcoin with Cash App.