How to Buy Bitcoin on Venmo: A Step-by-Step Guide for 2024

Why Buy Bitcoin Through Venmo?

Venmo, a popular peer-to-peer payment app, now lets users buy and sell Bitcoin alongside its traditional services. This integration offers a convenient entry point for beginners exploring cryptocurrency. Below are the pros and cons of using Venmo to buy Bitcoin:

Pros

• User-Friendly Interface: Venmo’s app is designed for simplicity, making crypto purchases easy for newcomers.
• Convenience: Buy Bitcoin directly from your Venmo balance without linking external wallets.
• Security: Venmo uses encryption and fraud monitoring to protect transactions.

Cons

• No External Transfers: You can’t transfer Bitcoin out of Venmo to private wallets.
• Fees: Venmo charges a spread markup (1.5%–2%) on crypto purchases.
• Limited Control: No access to private keys, reducing ownership autonomy.

Step-by-Step Guide to Buying Bitcoin on Venmo

1. Set Up a Venmo Account

   Download the Venmo app (iOS/Android) and create an account. Link a bank account or debit card to fund purchases.

2. Enable Crypto Purchases

   Tap the ☰ Menu > Crypto > Get Started. Agree to the terms to activate crypto features.

3. Verify Your Identity

   Complete KYC checks by providing a photo ID and Social Security Number.

4. Add Funds to Venmo

   Transfer money from your bank or debit card to your Venmo balance.

5. Purchase Bitcoin

   Navigate to Crypto > Bitcoin > Buy. Enter the amount (minimum $1) and confirm.

6. Store Securely

   Bitcoin is held in Venmo’s custodial wallet. Enable two-factor authentication for added safety.

Fees and Purchase Limits

• Fees: Venmo charges a spread fee (1.5%–2%) on each transaction.
• Limits: Weekly purchase limits start at $20,000 but vary based on account history.

Alternatives to Venmo for Buying Bitcoin

1. Coinbase

   Steps: Sign up > Verify ID > Deposit funds > Buy Bitcoin > Transfer to external wallet.

2. Cash App

   Steps: Link bank account > Purchase Bitcoin > Withdraw to private wallet.

3. Binance

   Steps: Create account > Complete KYC > Deposit USD > Trade for Bitcoin.

FAQ Section

Can I Transfer Bitcoin Out of Venmo?

No. Venmo restricts Bitcoin to its platform, meaning you can’t send it to external wallets.

What Fees Does Venmo Charge for Bitcoin?

Venmo applies a spread markup (1.5%–2%) on each transaction, which is included in the quoted price.

Is Buying Bitcoin on Venmo Safe?

Yes, but risks include Venmo’s custodial control and market volatility. Enable 2FA for security.

Are There Purchase Limits?

Yes. Limits start at $20,000 weekly but may increase with account verification.

Do I Owe Taxes on Bitcoin Purchases?

Yes. The IRS treats crypto as property, so capital gains taxes apply when selling or trading.

Note: Cryptocurrency investments are volatile. This article is not financial advice.