If you want to buy Bitcoin but don’t have another payment method available to you to do so securely or you don’t care about your privacy, Venmo is the best option. Using it is child’s play. You can start using Venmo right after downloading the app and linking your bank account.
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Buying Bitcoin with Venmo – A Step-by-Step Guide
You can buy Bitcoin directly on the Venmo platform or use Venmo as a payment method on some crypto exchange (recommended way to do this).
To get started, you need to find a crypto exchange that allows you to buy Bitcoin with Venmo. Some of the most popular exchanges that support Venmo are Gemini, Coinbase Pro, Bitfinex, Bitstamp, Crypto.com, etc. In addition, P2P exchanges have Venmo as a payment option: the best known are LocalBitcoins, Paxful, etc.
After selecting a suitable crypto exchange, the next step is to join and follow the steps required to add a Venmo account as a payment option on your exchange account. Finally, buy your Bitcoin using Venmo as your payment method.
AVOID THIS:
Bitcoins can be purchased directly through Venmo without going to a crypto exchange. BUT KEEP IN MIND: these are not real coins that you can send from the Venmo platform. These are essentially IOUs issued by Venmo to represent real coins. So we recommend that you buy real coins on crypto-focused platforms.
To do this, follow these simple steps:
- Press the “” ☰ icon.
- or choose “Manage” next to the “Crypto Balance” option.
- Choose Bitcoin as your crypto option. In addition to the current price, Venmo will also include a purchase option.
- Finally, click on “Review” after entering the USD amount you want to spend in Bitcoin.
Choose “Explore” next to the “Crypto” option
What crypto coins can you buy at Venmo?
While some platforms offer over 100 cryptocurrencies, the Venmo app lets you choose from four different types of cryptocurrencies, and those are Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
Venmo fees for buying cryptocurrencies
When you make a purchase or sale using Venmo, you will be charged a fee. The cost will change with the total quantity bought or sold. To better understand, here is the commission table:
| Amount of buying or selling cryptocurrencies | taxes |
| $1.00 – $4.99 | $0.49 |
| $5.00 – $24.99 | $0.99 |
| $25.00 – $74.99 | $1.99 |
| $75.00 – $200.00 | $2.49 |
| $200.01 – $1000.00 | 1.80% |
| >$1000 | 1.50% |
Bank fees, such as overdraft fees or insufficient funds, may apply if you use a linked bank account or debit card to buy cryptocurrencies.
Venmo doesn’t charge fees for storing cryptocurrencies, but like other exchanges, you may have to pay capital gains tax if and when you sell your coins.
Venmo Vs. Other crypto platforms?
Venmo has a small set of coins available for purchase on their platform: Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. Some features found on crypto exchanges won’t be available to you if you decide to use Venmo as your go-to crypto platform.
You can buy and store cryptocurrencies on Venmo, but you can’t withdraw them from the service. In addition to buying and selling, trading, and earning interest on cryptocurrencies, customers of other exchanges can also take full custody of their digital assets that is not possible on coins purchased on Venmo.
Below is a list of exchanges that are better alternatives for buying cryptocurrencies at Venmo (you will simply use Venmo as your payment method while these exchanges will buy real coins for you that you can withdraw to your unguarded wallet like Trust Wallet, MetaMask or even better hardware wallet like Ledger):
Kraken
The oldest Bitcoin and cryptocurrency exchange, Kraken, was founded in 2011 and is headquartered in the United States. It has over 9 million customers worldwide and is available in over 190 countries. In addition, it supports over 185 cryptocurrencies.
Both crypto futures and spot trading are supported. Margin trading is an option for people with a high level of risk tolerance.
Uphold
Uphold was created in 2014 by American entrepreneur Halsey Minor and is a trading platform for buying and selling different assets, including crypto.
On Uphold’s platform, you can trade more than 200 cryptocurrencies and utility tokens, 37 fiat currencies, 50 US stocks, foreign exchange, four precious metals, and other assets. Uphold’s services are frequently used by over 1.5 million people in more than 150 different countries.
Kucoin
KuCoin was founded in 2017 and is headquartered in the Seychelles. It was founded by a group of industry professionals who wanted to simplify the process of trading cryptocurrencies for users around the world in a secure environment.
It serves users in more than 200 countries and has a user base of over 10 million. On the platform at the moment, you can trade more than 600 different digital currencies.
FTX
Sam Bankman-Fried and Gary Wang, two cryptocurrency enthusiasts, founded the FTX trading platform in May 2019. Their headquarters are in Nassau, Bahamas.
Thanks to its focus on futures and leveraged trading, it quickly met a need in the cryptocurrency trading ecosystem. It is currently backed by over 300 distinct cryptocurrencies and is accessible in more than 200 countries.
Which exchanges accept Venmo as a payment method?
In the text below, we wrote about 3 crypto exchanges with many payment options, and Venmo is one of them.
eToro
When it comes to social trading and multi-asset investing, eToro is a world leader. Large banks, hedge funds, family offices and high-net-worth individuals are among its clientele. The company began operations in 2007 and its current tradable assets include stocks, commodities, indices, exchange-traded funds (ETFs), foreign exchange and digital currencies.
It offers access to more than 60 different cryptocurrencies and has more than 20 million registered users in 140 countries.
Support deposit methods, such as SEPA, PayPal, Online Banking, Debit Card, Bank Transfer, Venmo, etc.
Paxful
A team of developers created Paxful, a centralized peer-to-peer exchange network, to make Bitcoin more widely available. The website serves as a playground where buyers and sellers of cryptocurrencies can connect and trade cryptocurrencies without the involvement of third parties. Customers can only buy Bitcoin, Tether or Ethereum in more than 190 countries around the world.
The platform offers over 350 different payment methods, including all kinds of fiat currencies and the 3 cryptocurrencies mentioned above. Some of the most popular payment methods on Paxful include bank transfers, payment apps (such as PayPal), gift cards, other cryptocurrencies, cash, Venmo, and others.
Localbitcoins
One of the largest and safest peer-to-peer crypto trading platforms is LocalBitcoins, which stands out among many others. In Finland, Nikolaus Kangas started it in 2012.
It facilitates face-to-face and online transactions by connecting those who wish to buy Bitcoin with locals who are ready to sell it. On its platforms, it offers services to more than 200 nations and territories.
Users can buy and sell with a variety of different payment methods. Bank transfers, PayPal, cash, Western Union, WebMoney, Skrill, Venmo, Payoneer, debit cards and more are just some of the options.
Pros and Cons of Buying Cryptocurrencies with Venmo
Here are some pros and cons of using Venmo in our opinion:
For
- Venmo is fast. Its deposits are immediately processed.
- Venmo offers an in-app Bitcoin purchase (but there are limitations + it’s not a real cryptocurrency you’re buying).
- It is easy to connect Venmo with other exchanges and load fiat currency on them.
Against
- While Venmo deposits are accepted by some of the top exchanges, the vast majority of Bitcoin brokers and crypto exchanges do not offer it as a payment method.
- Unlike other payment services, Venmo does not offer any security against fraudulent transactions.
- Since Venmo was not intended to handle large sums of money, it needs further modifications before it can be used for broader purposes.
Here’s why you shouldn’t buy crypto on the Venmo platform
The fact that it is easy to use does not make it a recommended method of acquiring cryptocurrencies. Despite the advantages, there are some drawbacks that make using a crypto exchange preferable. These drawbacks are discussed below:
You can’t move your cryptocurrency
It is not possible to transfer cryptocurrencies purchased on Venmo outside of the service. You have two options, keep it or sell it. You’re essentially betting on the price of cryptocurrency when you buy it on Venmo – you don’t own the real coins.
Some people can simply leave their cryptocurrency where they bought it. However, there should be an option to send your cryptocurrency. But there isn’t one since you didn’t buy any real coins, you essentially just made a bet through Venmo on the crypto price (if it goes up, you can sell it for more fiat.
You can’t lend your cryptocurrency
The ability to earn cryptocurrencies using Venmo has been disabled. There are numerous other crypto platforms (almost all major exchanges + many lenders that specialize in loans and loans such as Nexo, Blockfi etc.) that provide lending services. You can earn income on your crypto holdings if you lend them. Having that choice available would be convenient.
The selection is very limited
Only four coins can be used with Venmo, and these are Bitcoin, Ethereum, Bitcoin Cash and Litecoin. Cardano and Polkadot are just two of the many popular coins that are missing. It’s possible that Venmo will add support for more coins later, but at the moment they only deal with these 4.
Less secure
Since Venmo doesn’t allow you to withdraw your cryptocurrency to your digital wallet, thieves can easily empty your account of all your cryptocurrencies if they get hacked. Since there is no insurance for crypto accounts, any lost or stolen funds will not be replaced.
Frequently asked questions
Buying cryptocurrency with Venmo is fast
Buying Bitcoin with Venmo is almost instantaneous, the money will typically appear in your exchange account in 30 minutes or less.
Which cryptographic platforms accept Venmo
Venmo is a payment system accepted by several Bitcoin platforms, such as eToro, Paxful, Localbitcoins, and Binance P2P.
Can I buy Bitcoin with Venmo anonymously
No, it is not possible to buy Bitcoin with Venmo anonymously because Venmo requires identity verification.
What are the limits
There are several limitations with Venmo. A weekly limit of $4,999.99 on an ongoing basis, a weekly sending limit with a maximum of $2,999.99 on an ongoing basis, and 30 transactions per day with a maximum purchase amount of goods or services of $2,000.
Venmo is the easiest way to buy Bitcoin
Yes, Venmo is very easy to use and you buy Bitcoin IOU on their platform. But this is not a real bitcoin, so you should not use Venmo for cryptocurrency purchases.
Can I buy Bitcoin with Venmo instantly
Yes, you can buy Bitcoin with Venmo instantly with specific brokers. Also, you can buy Bitcoin IOU directly from the Venmo app.
Can I hold cryptocurrency in my account Venmo
Yes, you can
keep crypto in your Venmo account, but we don’t recommend doing so because the coins you buy directly on Venmo are only price bets and not real coins that you can send to your wallet or someone else. They are stuck in the Venmo ecosystem.
How to send bitcoins from Venmo to blockchain
At this time, you cannot send your Bitcoins from your Venmo account anywhere else. You must first sell bitcoins in cash and send that money to a crypto exchange where you can buy real bitcoins which can then be sent to your wallet or somewhere else.
