Four types of cryptocurrencies can now be bought and sold via the social payments app Venmo, the company announced on Tuesday.
There are already a number of smartphone apps that support crypto trading, including Coinbase, Gemini and Robinhood, but Venmo pitched its own integration as further streamlining the process—letting its U.S. users get involved for as little as $1.
Those users will now have the ability to buy, hold and sell Bitcoin, Ethereum, Litecoin, and Bitcoin Cash within the app—with some key limitations.
While the crypto is stored on the Venmo account, CNBC confirmed that users who own tokens won’t be able to transfer them out to a personal digital wallet. In addition, users who have crypto in another service can’t transfer crypto into their Venmo account, and users won’t have the ability to send cryptocurrencies between Venmo accounts.
For anyone seeking to wade gently into cryptocurrency, the Venmo app could be one beginner-friendly option. This article is not intended as financial advice and any financial investments should be carefully considered with the risk in mind.
How to Buy Crypto on Venmo
Per the official Venmo FAQ, this is a step-by-step guide on how to purchase any of the four types of cryptocurrency currently available via the Venmo payments app.
- Tap the menu button, or ☰
- Tap “Explore” next to Crypto or “Manage” next to Crypto Balance.
- Select a preferred cryptocurrency. It will show price and by option.
- Enter the dollar amount for your purchase, hit “Review.”
- The app will show you a breakdown of how much of the cryptocurrency you’re about to buy, along with any fees that will be applied to the purchase.
- Tap the Buy button to complete the purchase.
Users will be able to buy crypto using their in-app Venmo balance, a bank account or debit card but credit cards cannot be used at this time, the company confirmed. The crypto-based trading is now limited to $20,000 per week and $50,000 per year.
There are no fees on the service for holding digital currencies, and the app will track price changes in almost real-time, with values updating every few seconds. Currently, users cannot use crypto holdings to make purchases using the Venmo app, and the company warned that crypto transactions cannot be canceled or reversed.
How to Sell Crypto on Venmo
After buying cryptocurrency via the payments app, it is also possible to off-load your tokens. Be warmed that crypto is volatile, and prices are constantly changing. Here is the step-by-step guide, per Venmo’s website, on how to sell your crypto-tokens.
- Tap the menu button, or ☰
- Tap “Manage” next to “$X in crypto”
- Tap on the relevant option under “Your Crypto”
- The Venmo app will display historical prices for your selected cryptocurrency. tap “Sell” and enter the amount of cryptocurrency that you want to sell.
Venmo said: “The proceeds will go to your Venmo account. From there, you can use the funds to make payments or purchases, or you can transfer the funds out of Venmo.”