Review: Venmo app for cryptocurrency
- Fiat currencies
- 1
- Supported assets
- 4
Summary
Get started with cryptocurrency for as little as $1 with your existing Venmo account.
- Good for dipping your toes into cryptocurrency without needing to sign up to an exchange.
- Not so good for the limited range of cryptocurrencies, fees and restrictions on what you can do with your coins.
Check out our full list of pros and cons or read on.
Details
Product details
| Product Name | Venmo Cryptocurrency Exchange |
| Fiat Currencies | USD |
| Cryptocurrencies | BTC, ETH, BCH, LTC |
| Deposit Methods |
Debit card Bank transfer (Direct Deposit) |
| Trading Fee |
1.5-2.3% ($25 and above); $0.50 ( |
| Deposit Fees | $0-$5 |
| Withdrawal Fees |
Standard: $0.00 Instant transfer: 1% (minimum $0.25 fee, maximum $10 fee) |
There are many diverse ways to purchase Bitcoin, and with the launch of Crypto on Venmo, you can add one more option to the list. The socially-focused Venmo is a peer-to-peer payment service that is focused on easily sending money to family and friends.
Payment provider PayPal owns Venmo. Cryptocurrency transactions on Venmo are facilitated by PayPal’s partnership with Paxos Trust Company, a regulated provider of cryptocurrency products and services.
What fiat and cryptocurrencies are supported
Currently, Venmo offers the purchase of four cryptocurrencies. There is always the possibility that more will be added in the future. Cryptocurrencies that are included:
- Bitcoin (BTC). Released in 2009 as the original cryptocurrency, utilizing a Proof of Work consensus algorithm. Discover the fundamentals of Bitcoin in our guide.
- Ether (ETH). Released in 2015 as the native token to the Ethereum network, which is used to construct decentralized applications and home to the world of DeFi. Explore our deep-dive guide to learn more on Ethereum.
- Bitcoin Cash (BCH). Released in 2017 as a hard-fork from Bitcoin and often thought of as “digital cash” to Bitcoin’s “digital gold.” Learn more about why this cryptocurrency was developed.
- Litecoin (LTC). Released in 2011, Litecoin was focused on addressing the speed of blockchain transactions. Uncover this cryptocurrency’s strengths and differences from Bitcoin.
Which payments methods are accepted?
- Bank account
- Debit card
- Credit card
Fees
Venmo charges a minimum fee on all cryptocurrency transactions, although this amount can cost more depending on market conditions.
| Buy or sell amount | Fee | Fee estimates |
|---|---|---|
| $1 – $24.99 | $0.50 | $0.50 |
| $25 – $100 | 2.30% | $0.575 – $2.30 |
| $100.01 – $200 | 2% | $2 – $4 |
| $200.01 – $1,000 | 1.80% | $3.60 – $18 |
| $1000.01+ | 1.50% | $15+ |
Accurate as of 27 April, 2021.
How to buy Bitcoin with Venmo
Buy or sell cryptocurrencies on Venmo through the app or by accessing your Venmo account online. If you don’t have an account, you’ll need to create one. Here’s how to do it:
- Set up a Venmo account using your email address. An account authorization code is sent to your chosen mobile number and is required to verify your account.
- Connect contacts. Contacts can be added via your social media platforms or via your phone contact list.
- Connect payment methods. Within Payment methods connect either a bank account, debit card or credit card.
- Once a payment method is connected, choose Explore next to the Crypto tab.
- Select the cryptocurrency you would like to purchase. Options currently are Bitcoin, Ethereum, Bitcoin Cash and Litecoin. If you would like to purchase other altcoins, you’ll need to compare alternative ways to buy.
- Choose the amount. Enter the dollar amount for the purchase and select Review.
- Review. Look over the breakdown that appears on the next screen which will show you how much cryptocurrency you’re buying alongside the associated fees.
- Complete the purchase by hitting the Buy button.
After purchasing your cryptocurrency through Venmo you will be able to see your cryptocurrency balance in your account. Venmo holds the cryptocurrency and your private keys for you.
There’s no way to transfer out of the application. If you would like more control over your stored cryptocurrency and your private keys, you will need to use a different method to buy cryptocurrency.
How to sell cryptocurrency on Venmo
Venmo doesn’t allow you to import and export cryptocurrency private keys, like with a hardware wallet. You can only sell cryptocurrency you purchased through Venmo. Sell cryptocurrency:
- Choose the menu and select Manage.
- Select the cryptocurrency that you would like to sell.
- Venmo will display the price for your selected cryptocurrency. Enter the amount of the cryptocurrency that you would like to sell.
- Complete the sale by hitting the Sell button.
- The cryptocurrency will then be transferred back into USD and added to your Venmo account balance for you to continue using for purchases or to transfer back to your bank account.
Compare other ways to buy and sell cryptocurrency
Venmo doesn’t let you transfer your cryptocurrency out of the app, or to another wallet. This means you won’t be able to use cryptocurrency for payments, send it to friends, or move it on to an exchange if you want to start trading regularly.
As such, you may want to consider one of the other methods below to purchase Bitcoin and cryptocurrency.
In a nutshell
Pros
- Easy to use. Buy cryptocurrencies with the Venmo app or through the website in a few clicks.
- Track your portfolio. Venmo automatically updates your cryptocurrency portfolio so your daily total adjusts for price fluctuations.
- Share transactions with friends. Users can share cryptocurrency transactions to demystify the cryptocurrency process and raise awareness.
- Instant transactions. Buy and sell cryptocurrencies almost instantaneously.
- Small transactions. Purchase cryptocurrency for as little as $1.
Cons
- You don’t control your private keys. Venmo does not provide the option to transfer cryptocurrencies out of the app and into an external wallet.
- Fees. To complete the purchase or sale of cryptocurrencies there will be a fee based on the order total.
- Limited options. Venmo currently only offers the purchase of Bitcoin, Ethereum, Bitcoin Cash and Litecoin.
- No external purchases. Venmo does not allow you to use your cryptocurrencies for the payment of goods or services. The cryptocurrency can only be held on the app as a speculative investment.
Verdict
Venmo provides yet another way to easily purchase a select group of cryptocurrencies. But is it the best service out there? With the transactional fees and restrictions on usage, there are more cost-effective and user-friendly options available.
Instead of funding a Venmo account with a debit card, the same process could be used to purchase cryptocurrencies directly through exchanges that would also offer you the flexibility and security of holding your own private keys.
Venmo Cryptocurrency Exchange is not currently available on Finder
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James Finder
Editor
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