Cash App is a peer-to-peer payment transfer app similar to PayPal or Venmo. Many people don't know this, but Cash App allows users to send and receive as well as buy and sell Bitcoin. Its interface is simple to use compared to a cryptocurrency exchange but also limited because it only lets you buy and sell Bitcoin. You won't be able to trade or invest in any other cryptocurrency or perform different types of transactions. Cash App does offer a decent referral code you won't want to miss.
How To Get Your Cash App Bonus (The Easy Way)
- Download Cash App and enter the Cash App promo code 737GWQC.
- Have a friend also download the app using the same code.
- Link your bank account or debit card and deposit at least $5.
- Send $5 to your friend, and then have them send it back. You'll both receive the signup bonus immediately.
If you want to learn what Cash App Bitcoin is and the pros and cons of using this mobile app, you're in the right place. In this Cash App Bitcoin review, we'll cover that, as well as its most prominent features, pricing, and whether or not it's a good way to buy and sell the most famous cryptocurrency today.
What Is Cash App Bitcoin?
Cash App Bitcoin is an exciting way to hold, send, receive, and buy and sell Bitcoin using Cash App. It's available in the Cash App Investing section alongside Stock.
Since Jack Dorsey, the CEO, and co-founder of Block Inc. (the company that owns Cash App), has been at the forefront of promoting Bitcoin as the native currency of the internet, Cash App Bitcoin has become an exciting option in the Bitcoin banking space. Although Cash App's integration with Bitcoin is currently somewhat limited, users can quickly buy and sell Bitcoin using the app. Users can transfer Bitcoin between the Cash App and other external wallets within the cryptocurrency network.
Features Of Cash App Bitcoin
Cash App Bitcoin is a simple investment platform, but it doesn't mean it can't help you achieve your investment goals. Users can buy and sell Bitcoins using the services at the click or tap of a button in this app. Additionally, you can send or receive Bitcoin to and from other crypto wallets such as VirgoCX or Coinbase. Here are all the features you can access when using Cash App Bitcoin.
Easy-To-Use Interface
The Cash App mobile app makes Cash App simple to use, and it's no different when buying Bitcoin. Press the Bitcoin tab on the main screen, choose or input an amount, tap “Buy BTC,” and then confirm the transaction to purchase Bitcoin using your Cash App. It's that simple.
In addition to buying Bitcoin, Cash App Bitcoin makes it simple to send Bitcoin to other users or an external Bitcoin wallet of your choice. Sending Bitcoin using a QR code or Bitcoin address to external wallets is similar to sending it to other Cash App users.
Highly-Secure Custodial Wallet
Cash App functions as a custodial wallet for any BTC you purchase on the app, allowing you to store your Bitcoin within the application itself. When storing your Bitcoin, Cash App uses cold storage solution to keep your Bitcoin safe.
This means they securely store your Bitcoin balance offline in a secure facility, avoiding all possibility of a hack.
Cash App's Lightning Network Integration
If you don't trust Cash App with your Bitcoin or you don't like the idea of a third party handling your private keys (you're a “my key, my crypto” kind of person), you can always transfer your Bitcoins to a personal cryptocurrency wallet you're more comfortable with. With Cash App's Lightning Network integration, users can send Bitcoin to any wallet globally, paying low to no fees.
Whether that's more or less safe than letting Cash App store your Bitcoin for you is debatable, but what matters here is that you have a choice.
Paid In Bitcoin
Cash App also offers a free feature called “Paid in Bitcoin.” This feature allows users to automatically invest a portion or all of their direct deposit into Bitcoin with no fees. So, it's basically automated Bitcoin investing for the masses.
Pros Of Cash App Bitcoin
- Simple and user-friendly interface.
- No fees for buying and selling Bitcoin (Cash App covers the network fees).
- Instant transfers between Cash App users.
- Ability to withdraw Bitcoin to an external wallet.
- Ability to set up recurring purchases.
- Cash App Bitcoin offers simplicity because Bitcoin is the only cryptocurrency available, and you can only place buy/sell orders.
- Ability to earn rewards with Boosts (discounts at selected merchants).
Cons Of Cash App Bitcoin
- Fees need to be more transparent: Cash App's fee structure needs to be clearer and easier to follow. Using the Lightning Network may or may not incur fees, but those fees aren't disclosed. They only show up upon trade confirmation when you finalize the transaction.
- Limited options: Cash App only offers one cryptocurrency — Bitcoin. Investors with a Cash App account who want to buy altcoins must search for other alternatives.
- Simple platform: Although Cash App advertises this as one of its biggest strengths, it is also one of its weaknesses, particularly for experienced traders who want to optimize their returns through Bitcoin investing.
- Geographical restrictions: Though they advertise that you can transfer Bitcoin anywhere, you cannot send it to other Cash App users globally because Cash App is only available in the US and UK.
Cash App Bitcoin Pricing
Cash App Bitcoin pricing lacks transparency because Cash App embeds most of its fees into its bid-ask spread. For instance, suppose you buy $500 worth of Bitcoin and then decide to sell it in the Cash App Bitcoin platform. Ultimately, you'll receive about $490 back, not $500, because Cash App, like any other platform, will want to sell high and buy low to make a profit.
The bid-ask spread is the difference between the bid price at which Cash App is willing to sell you Bitcoins and the asking price it's willing to pay you back if you decide to sell. In every practical way, the spread is equivalent to paying a fee.
Besides the spread, there are two other fees to be aware of. The first fee is a service fee, and the other depends on the volatility of Bitcoin in the crypto market. These fees often equal roughly 1.75% of the transaction's value, which is high compared to many of the alternative options on the market.
That said, once you have your Bitcoin, sending Bitcoins to other users through their $Cashtags or external wallets is free.
In Summary
There isn't a perfect marketplace for buying Bitcoin. Cash App might be an excellent place to start if you want to be part of the vast Bitcoin community but don't want to go in too deep.
If you're looking for a complete crypto trading experience, one of the full-featured crypto exchanges like CoinSmart, Coinbase, or our best-rated cryptocurrency exchange, VirgoCX, is a much better option.
Cash App Bitcoin FAQs
Is it safe to buy Bitcoin using Cash App?
Yes, it is safe to buy Bitcoin using Cash App. They use a cold storage solution to keep your Bitcoin safe, meaning they securely store your Bitcoin balance in their offline system. Besides that, they offer a way to transfer your Bitcoins to a private cryptocurrency wallet, which provides even greater security, depending on how you feel about keeping custody of your coins.
Is it free to sell Bitcoin on Cash App?
No, it is not always free to sell Bitcoin on Cash App. You may incur a fee when you buy or sell Bitcoin using the app. If so, before you finalize the transaction, Cash App will display the fee on the trade confirmation. They derive the price from the quoted mid-market price, including a margin or spread.
Can I use Cash App as a Bitcoin wallet?
Yes, you can use Cash App as a Bitcoin wallet. Cash App functions as a custodial wallet for any BTC that you purchase on the app. This means you can keep your Bitcoin stored within the application and even transfer BTC to other external wallets through the Lightning Network.
How do I turn Cash App Bitcoin into cash?
You can turn your Cash App Bitcoin into cash by selling them. Cash App will add the proceeds to your Cash App account balance. You can transfer it into your linked bank account or spend it from your Cash App account using a Cash Card.
How do I sell my Bitcoin on Cash App?
To sell Bitcoin on Cash App:
- Go to the Bitcoin tab in the Cash App Investing section.
- Click “Sell” and input the amount you wish to sell.
- Enter your PIN or touch ID to authorize the transaction.
