How To Purchase Bitcoin On Cash App

From its humble origins as a peer-to-peer lending platform, Square's Cash App has been leading fintech innovation in recent years. From their digital wallet, app-linked Cash App Card, direct depositing feature to their in-app investments, they're continually paving the way to becoming a more inclusive financial service company. This article will discuss how to buy, withdraw, and send Bitcoin through Cash App.

How to Buy Bitcoin on Cash App

Before you purchase Bitcoin on Cash App, you must first make sure that your account is verified. To verify your account, key-in your full name, date of birth, and the last four digits of your social security number (SSN). You will receive feedback on your verification within 24 hours.

You can now trade Bitcoin on your phone with Square Cash app (in New York) - CNET Download.com — Cash App lets its users buy, withdraw and send Bitcoin directly from their app. | Cash.app

Once you have verified your account, here's how you can buy Bitcoin on your Cash App:

Open Cash App
Tap the "Investing" tab on your screen, the second icon on the rightmost side of the lower screen.
Tap "Bitcoin"
Press "Buy"
Select the amount, or type in the custom amount that you wish to purchase.
Confirm your transaction with your Cash App PIN or Touch ID.
Tap "Confirm"

Take note that you will need to have the balance ready on your Cash App for you to purchase Bitcoin. Make sure that you have the amount in your Cash App balance before clicking "Buy."

How to View Your Bitcoin Limits & Progress on Cash App

Once you have purchased your bitcoin, you can view your limits and progress with ease. All you have to do is do the following:

Open Cash App
Tap on the "Banking" tab, the icon on the left part of the bottom of the screen.
Select "Bitcoin"
Scroll down to the Bitcoin Limits section.

And there you have it, you have made your first Bitcoin investment on the Cash app. After verification, Cash App users can purchase up to $10,000 worth of Bitcoin weekly. You may also set up a recurring deposit that buys Bitcoin on a daily, weekly, and bi-weekly basis.

Once you are happy with your investment, you can also choose to withdraw your Bitcoin in-app. You may also send it to other people.

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How to Send Bitcoin on Cash App

Cash App requires a minimum balance of 0.0001 Bitcoin before you can make a withdrawal. To send your Bitcoin from Cash App, you have the option to send it in to your Cash App balance or an external wallet.

Here's how you can send Bitcoin from Cash App:

Open Cash App
Tap on the "Banking" tab, the icon on the left part of the bottom of the screen.
Select "Bitcoin"
Tap "Withdraw Bitcoin"
Scan a QR code address to press Use Wallet Address and key-in the required information
Confirm your transaction with your Cash App PIN or Touch ID

Typically, funds are transferred within an hour, but can occasionally take longer. You can withdraw up to $2000 worth of Bitcoin a day, or $5000 per week.

Bitcoin, Cryptocurrencies, and Taxes

Classified as capital assets in the United States, Bitcoins are taxed as property and not as currency. Viewed as a matter of income, transacting with Bitcoin means that you will either have a capital gain or capital loss. With this, you are supposed to pay at the point of both purchasing and selling your Bitcoin.

Depending on how long you have held your Bitcoin before selling, there will be two types of tax rates that may be applied. If you have held onto your Bitcoin for the short term, taxation will be considered ordinary income according to your tax bracket. While taxation will be at either 0, 15, or 20%, depending on your overall income for long-term Bitcoin traders.

If you're worried about the taxes involved with selling your Bitcoin in the future, don't worry. Cash App will be providing you with a readily available form 1099-B on February 15th of the following year. You can also download this from your Cash App account.

Conclusion

One of the main advantages of using Cash App over competitors like Robinhood or Coinbase, it's that Cash App stores you Bitcoin on your Cash App account. Because there is no need for a separate digital wallet, it is easier to access your Bitcoin gains from a single app.

With Cash App, you won't just be able to seamlessly purchase Bitcoin and track its growth, but also be able to quickly withdraw it and use your gains for either personal use or other investments.

Cash App also helps its users by providing the forms necessary for the taxes involved with their Bitcoin withdrawals. With this, you'll be sure that you're not only investing safely, but you're also compliant with government standards and requirements.

Frequently Asked Questions

Can I purchase Bitcoin without verifying my account on Cash App?

No. While other platforms may allow you to buy Bitcoin without verification, Cash App does not. Verifying your Cash app account only takes less than 24 hours and only requires you to provide your name, birthday, the four digits of your SSN.

Is purchasing Bitcoin on Cash App safe?

Cash App is Level 1 compliant with the PCI Data Security Standard (PCI-DSS). Unless you give someone your log-in details, your Cash App is very secure.

Can you send Bitcoin to an external wallet?

Yes, it is possible to withdraw your Bitcoin to a different wallet and not your Cash App account. All you have to do is to add your external wallet to your account and select it when you transfer out your Bitcoin.

What are the Cash App Bitcoin Transaction Fees?

Before November 2019, Cash App included their Bitcoin transaction fees within their spreads. To be more transparent, you will be able to see the breakdown of these fees upon check out.

For every Bitcoin purchased, Cash App charges two kinds of fees – service fees and volatility fees that are determined by the U.S. market activity. While there is currently no exact number, buying Bitcoin fees can go as high as 1.76%.

What is Bitcoin?

Following the 2008 market crash, Bitcoin emerged as the world's largest cryptocurrency by market cap. Starting with the now-famous outlined white paper "Bitcoin: A Peer-to-Peer Electronic Cash System," it talked about eliminating the need for middlemen such as banks that support government-issued currencies.