This is a step-by-step guide on how to purchase Bitcoin using Cash App. But before we get to the topic, let us get familiar with Cash App.
What is Cash App?
Cash App is a multipurpose financial service app that allows customers to transfer money, invest in stocks, and file their tax records. The peer-to-peer (P2P) app developed by Block Inc. (formerly known as Square Inc.), a company founded by former Twitter CEO Jack Dorsey, offers stored value services that resemble deposit accounts.
One of the main reasons why Cash App is gaining popularity among U.S. consumers is because it provides financial services without forcing users to incur the high service charges that accompany similar offerings by traditional financial institutions like banks.
As a financial service provider, Cash App allows individuals to send and receive money, pay bills, file taxes, invest in stocks and options, and buy, sell, and transfer Bitcoin. Additionally, the company is also offering debit-card-powered banking.
In 2018, Cash App opened its doors to cryptocurrency by supporting Bitcoin, which remains the sole crypto-asset offering by the company.
Now let us learn how to purchase Bitcoin (BTC) on Cash App
Purchase Bitcoin (BTC) On Cash App
If you don’t already have a Cash App account, you will need to download the app from the App Store if you use an iPhone or the Google Play Store for Android. When you launch the app, it will ask you to create a new profile by setting up a unique username and password.
Once your Cash App account has been created or logged in to, you will be asked to link your profile to your bank savings or checking account. You will only be able to make purchases via Cash App if your bank has been linked to your account.
To purchase Bitcoin (BTC), you must first visit the app’s “Investing” section, which will be located at the bottom of your screen. Then tap on the “Buy” button and this will give you a range of options to choose from. From here, you will select Bitcoin as your preferred asset and proceed further.
Bitcoin will be available to purchase in the BTC/USD trading pair. Once you’ve selected BTC, Cash App will ask you to enter the preferred dollar equivalent value of the asset that you would like to buy.
Next, type in the security PIN you had set before and verify the transaction details before confirming.
Once the order is verified, tap on the “Buy” button to confirm the transaction and the dollar equivalent of Bitcoin will be transferred to your account wallet.
Does Cash App Charge Any Transaction Fees?
Yes, Cash App does charge a fee but it is based on the size of your transaction and also varies depending on the value of Bitcoin at any given time. It is estimated that Cash App charges roughly $4 in fees for every transaction involving Bitcoin.
The app also utilizes something called “spread”, which is a mechanism where you will pay a slightly higher amount than the market price while buying Bitcoin and selling the token slightly below its market value. Users are also charged a fee for transfers and withdrawals.
Read More: Why Is Bitcoin Going Down? Will Bitcoin Crash To Zero?
How To Transfer Bitcoin To Another Cash App User?
You can send and receive Bitcoin on the Cash App. The process is instantaneous if the other party also has a Cash App wallet.
To send Bitcoin to another user, find the recipient’s username and then toggle to the app’s Bitcoin section. Now enter the amount of BTC you want to transfer, add the recipient’s username ($Cashtag), then press “Pay”.
How To Store Bitcoin Purchased Via Cash App?
If you are looking to store your purchased Bitcoin in a separate, self-custody wallet, follow these steps:
- Open the Bitcoin tab on the Cash App
- Tap on the airplane icon, and select “Send Bitcoin”
- Tap on the top left corner of the screen to access a QR code scanner, or else manually type in the unique address of your wallet.
- Tap “Next” and choose a withdrawal speed, and then press the “Confirm and Send” button to complete your transfer.
Cash App also functions as a custodial wallet to store your Bitcoin. Similarly, you can transfer Bitcoin from an external wallet to your Cash App account by selecting the “Deposit Bitcoin” option from the Bitcoin tab on the application.
Also Check: Guide To Purchasing Ethereum: Easy Steps For Beginners
