In a world of fast-paced, on-the-go banking, Venmo is 1 of the most widely used financial technologies on the market today. Venmo was developed as a peer-to-peer payment smartphone application to enable you to transfer money to friends and family. In mid 2021, Venmo began offering cryptocurrencies for purchase directly in the app.
While you're currently unable to use the Bitcoin you purchase on Venmo, it's a great way for beginners to get started with only $1. Ideally, Venmo will add a native cryptocurrency wallet so customers can gain custody and begin using their cryptocurrencies to their full potential.
Steps for Buying Bitcoin with Venmo
Buying Bitcoin on Venmo only takes a few seconds and costs as little as $1.
- Set up a venmo account.
The process of setting up a Venmo account is simple and only takes a few minutes.
First, download the Venmo mobile app or visit their website on your computer.
Click sign up, and enter your personal information. The prompt then asks for your smartphone number and to set a password. Once the information is submitted, Venmo sends an authorization code via text message to confirm that code to verify your account.
Link your bank account by entering your ACH and routing number.
You can also link debit or credit cards to your Venmo account but can only send money and pay in apps. It should be noted that a 3% fee applies to credit cards. The fee is waived for completed Authorized Merchant Payments, Venmo balance transactions, bank account, and debit card transactions, so those methods are technically free to use. - Make your first purchase with as little as $1.
Venmo now offers its customers access to cryptocurrencies like Bitcoin and Ethereum. Tap the circular crypto icon at the bottom of the screen, and approve the terms and conditions after reading them.
Select Bitcoin from the list, and enter the USD amount you'd like to purchase. Approve the transaction and you're good to go! Make sure to share the message with your friends to let them know you're a pioneer!
Venmo Alternatives
Venmo is a nice way for beginners to become interested in crypto, however, there are much better options for anyone serious about making money. There are 2 things you'll need to start: a crypto exchange account and a crypto wallet (or 2).
Best Crypto Exchanges
While it may feel like you are buying Bitcoin on Venmo, you don't actually own the crypto – Venmo does. This also means that you can't use your crypto for lending, staking, buying NFTs or any of the other cool things going on in the blockchain space right now. Step 1 to taking crypto seriously is setting up an account with Coinbase, eToro or another exchange that lets you send your crypto to a wallet of your own. Here are some of the best choices for your first exchange account.
- Best For:Coinbase LearnRating:Read Review
- Best For:Low MinimumsRating:Read Review
- Best For:Crypto futures tradersRating:Read Review
- Best For:Buying & selling DogecoinRating:Read Review
- ERC-20 tokens
Best Hardware Wallets
Once you've set up an exchange account and purchased some real Bitcoin, you can now send it to your own wallet. You'll want to do this rather than hold it on the exchange wallet. For any large amounts, you'll want to secure them in a cold storage wallet like the Ledger Nano X. A cold storage wallet is typically a hardware device that stores your private ket safely off the web. You'll use a cable or bluetooth to access the private key to authorize sends and spends.
- Web3 Security
Best Software Wallets
Amounts dedicated to spending or trading should be kept in a hot wallet. Hot wallets are internet enabled for quick access, which incurs some extra risk. Don't keep large idle amounts on a hot wallet, that's what your hardware wallet is for. The most popular software wallet is the Ethereum wallet MetaMask. If you're using Bitcoin however, you'll need a separate wallet like ZenGo. ZenGo uses facial recognition and is a great choice for beginners.
Frequently Asked Questions
Can I buy Bitcoin on Venmo?
Yes, you can now purchase Bitcoin directly on Venmo, although you cannot use it. Technically, Venmo owns any Bitcoin you purchase on their platform.
Should I buy Bitcoin on Venmo?
If you are only looking to invest $10 in Bitcoin, then Venmo is a fine route. If you’re serious about crypto and making money, Venmo is a poor choice compared to Coinbase, eToro and other dedicated cryptocurrency exchanges which allow you to own your Bitcoin.
- Exclusive Crypto Airdrops
- Altcoin of the Week
- Insider Interviews
- News & Show Highlights
- Completely FREE