Bitcoin has become so popular that platforms like Venmo, a leading digital payment gateway, now offer built-in cryptocurrency features, making it easy for users to buy Bitcoin on Venmo. This convenient option allows consumers to purchase Bitcoin directly through the app, eliminating the need for third-party exchanges or intermediaries.
While other services may require complex verification steps or external wallets, Venmo offers a streamlined, user-friendly experience. This simplicity can be a major advantage for beginners, though it might feel limiting for advanced traders seeking more control.
If you already have a Venmo account, purchasing Bitcoin takes just a couple of quick steps. The entire process is accessible through the Venmo mobile app, making it easy to invest in Bitcoin anytime, anywhere.
However, it’s important to understand that buying Bitcoin via Venmo does come with certain restrictions, including limitations on transferring your coins to external wallets. These factors may influence whether Venmo is the right platform for your crypto needs.
Let’s dive into how to buy Bitcoin on Venmo step by step, followed by a closer look at its benefits and potential drawbacks.
A Step-by-Step Guide to Buy Bitcoin on Venmo
Venmo offers a beginner-friendly solution. With just a few taps, you can buy Bitcoin on Venmo directly from your phone, making it perfect for first-time users or anyone looking for a quick way to enter the crypto market. This guide breaks down the process step by step, so you can start building your Bitcoin portfolio.
Create a Venmo Account
To get started, you first need to create a Venmo account. Download the Venmo app from the App Store or Google Play, then sign up by entering your mobile number and personal details. Keep in mind that you must have a valid U.S. mobile number to register. Venmo’s cryptocurrency features, including the ability to buy Bitcoin on Venmo, are only available to eligible U.S. residents.
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Complete KYC to Buy Bitcoin on Venmo
Before you can buy Bitcoin on Venmo, you’ll need to complete Venmo’s KYC verification process. This step is required to buy, sell, or hold any cryptocurrency on the platform and ensures your account meets U.S. regulatory standards. Without completing KYC, you won’t be able to perform any crypto transactions.
To verify your identity, Venmo will ask for the following:
- Personal details: Full name, residential address, date of birth, and national or tax ID number.
- Proof of identity: Acceptable documents include a U.S. passport, driver’s license, DHS card, or tribal ID card.
- Proof of address: Examples include a recent utility bill, bank or credit card statement, or current vehicle registration.
Document verification typically takes up to two business days. Once approved, you’ll have full access to Venmo’s cryptocurrency features and can start buying Bitcoin with ease.
Fund Your Venmo Wallet
Once your KYC is complete, the next step is to fund your Venmo wallet. While you can add funds later, having money in your Venmo balance beforehand makes it easier to buy Bitcoin on Venmo without delays.
Currently, only Venmo users who have been approved for a Venmo Mastercard Debit Card can transfer money directly to their Venmo balance from a verified bank account or linked debit card.
If you don’t have the card, you can still fund your account through a bank account transfer, but this process typically takes 3–5 business days, and the funds won’t be available until the transfer is complete.
Having a funded Venmo wallet ensures a smoother experience when purchasing Bitcoin and helps you avoid potential delays at checkout.
Now You Are Ready to Buy Bitcoin on Venmo
The platform makes it simple and accessible, allowing users to start investing with as little as $1. Apart from Bitcoin, you can also buy PayPal USDT, Ethereum, and Bitcoin Cash. The maximum limit for crypto purchases is $20,000 per week and $50,000 in a 12-month period.
Fees For Buying Bitcoin on Venmo?
Venmo charges a transaction fee for buying and selling cryptocurrencies, with the exception of PayPal USD (PYUSD), which can be purchased without additional fees. The exact fee varies based on the size of your crypto purchase, so larger transactions may incur slightly higher costs.
In addition, your bank or card issuer may charge separate fees for funding your Venmo account, depending on your payment method.
Another factor to note is Venmo’s crypto price spread, which is approximately 0.5%. This means you’ll pay around 0.5% more than the current market price when buying Bitcoin, and you’ll receive around 0.5% less when selling. Find all the fees here.
| Buy and Sell Amount | fees |
|---|---|
| $1.00 – $4.99 | $0.49 |
| $5.00 – $24.99 | $0.99 |
| $25.00 – $74.99 | $1.99 |
| $75.00 – $200.00 | $2.49 |
| $200.01 – $1000.00 | 1.80% |
| >$1000 | 1.50% |
Selling Bitcoin on Venmo
Selling Bitcoin on Venmo is just as simple as buying it, making it easy for users to manage their crypto investments in one place. However, it’s important to note that Venmo applies a 0.5% price spread, meaning you’ll receive 0.5% less than the market price when selling your Bitcoin.
In addition, Venmo may require tax document verification before you complete certain transactions. This process ensures compliance with U.S. regulations and helps confirm the legitimacy of your crypto activities.
Before you sell or buy Bitcoin on Venmo, it’s smart to review the platform’s fees, spreads, and potential tax implications.
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Why Use Venmo to Buy Bitcoin?
Here’s why many users choose to buy Bitcoin on Venmo:
- Simple and user-friendly: Venmo’s clean design makes it easy for anyone to start buying and selling Bitcoin in just a few taps.
- Great for U.S. residents: Venmo’s crypto services are designed specifically for American citizens, making it a reliable and regulated platform.
- Low entry point: You can start investing with as little as $1, making it ideal for beginners.
- Easy selling for profits: Venmo lets you sell Bitcoin directly through the app, allowing for quick and hassle-free profit-taking.
- Variety of cryptocurrencies: In addition to Bitcoin, Venmo also supports Ethereum (ETH), Bitcoin Cash (BCH), and PayPal USD (PYUSD), giving you more options for your portfolio.
Why Not Use Venmo to Buy Bitcoin?
Here are a few reasons why some users avoid using Venmo for crypto purchases:
- High fees: Venmo charges relatively high transaction fees and includes a 0.5% price spread.
- Limited security options: Unlike traditional crypto wallets, Venmo does not allow you to transfer Bitcoin to an external wallet, limiting control over your assets.
- Restricted availability: Venmo’s cryptocurrency services are only available to U.S. residents, excluding international users.
- Few advanced features: Venmo is designed for convenience, not active trading. It lacks tools like advanced charts, limit orders, or staking, which crypto traders often need.
Conclusion
If you’re new to cryptocurrency and just want to see how it works, you can buy Bitcoin on Venmo. But if you want to do more than just crypto, we wouldn’t recommend buying Bitcoin on Venmo.
The platform has high fees, low security measures, and limited availability for non-American citizens. Therefore, it is advisable to consider alternative platforms if you are looking to engage in more extensive crypto trading activities.
If you are a non-American citizen, then stay away from Venmo.
It’s also worth noting that Venmo is a product of PayPal, meaning many of PayPal’s terms and conditions apply. This includes the possibility of account freezes, particularly when buying assets like PYUSD. While this risk is low for casual users, it’s important to be aware of it before investing significant amounts.
Still, Venmo’s convenience is why thousands of people continue to use it to buy Bitcoin. If you’re curious, it’s worth trying out with a small investment to see if it fits your needs.
