With Bitcoin on a serious rally and aiming to hit its previous ATH, many people are now looking to buy and hold the king of crypto. A lot of people make use of exchanges like Binance and Coinbase.
However, non-exchange apps like Cash App are great alternatives too. If you’re also looking to know if Cash App is good to buy Bitcoin, then you’ve come to the right place.
What is a Cash App?
If you have no idea what Cash App is, it’s an American mobile payment service launched by Square in 2013. Since 2018, the service has allowed users to buy and sell Bitcoin without needing an external crypto wallet.
Cash App allows users to use a $cashtag too. This unique tag enables users to receive cash and Bitcoin from any Cash App user. While Cash App is a reliable payment platform, it is only available for those within the US and the UK.
Is Cash App Good For Buying Bitcoin?
The straight answer is Yes. Cash App is an excellent place to purchase bitcoin. Here is why:
It is Safe
The first thing you can be sure of is safety. Cash App is very safe as it safely secures users’ payment information via powerful encryption. It also features a 2-factor authentication (2FA) which acts as an extra security layer to protect your account. Up until now, has been no attack so far on the platform.
Most importantly, Cash App was founded by Jack Dorsey, the owner of Twitter. Therefore, it’s doubtful that the exchange will fold up or escape with your crypto.
It is easy to use
If you find other crypto exchanges challenging to navigate, you will find Cash App a relief. It has a simple, seamless interface, which anyone can operate without hassle.
It Performs other BTC Exchange functions
Apart from buying Bitcoin, you can use Cash App to sell, send, receive, deposit, and withdraw Bitcoin. It, therefore, functions as a complete Bitcoin exchange.
Cash App also acts as a bitcoin wallet because you can also store bitcoin on the platform. However, it’s always better to lock your bitcoin in a secure, cold storage wallet such as Ledger.
Cash App Allows You to Pay for Utilities with BTC
Need to pay your bills in Bitcoin? Cash App allows you to pay your utilities in cash or Bitcoin. As Bitcoin use grows, this function would become more useful in the future.
How to Add Money to Cash App
Now that you know that it’s safe to buy bitcoin on Cash App, you may also want to know how to buy it.
Well, it all starts with funding your balance with fiat currency so you can eventually turn the fiat to bitcoin.
To add money to Cash App, you need to sign up for Cash App first. Signing up is relatively easy and quick. However, you have to meet specific requirements and provide some details before signing up.
For example, you must be 18yrs or more at the time of registration. Also, Cash App focuses on individuals and not businesses, so you have to sign up as an individual.
During registration, you may have to provide your email address, phone number, names, a bank account or debit card, and a $Cashtag. Your Social Security number, a government-issued ID, and your residential address are needed too. Once you fill the Cash App, your account should now be ready for use.
You can add funds to your Cash App either by:
- Using your bank account or
- Using a debit card.
Using your Bank Account:
- Enter your account information under the ‘Add Cash’ option.
- Select the amount you want to add.
- Input your PIN and
- Wait. Your money won’t reflect immediately, especially if it’s a weekend or a holiday.
Using a Debit Card:
- Click the ‘Add Cash’ button.
- Input the digits at the front of your debit card, its expiry date, and its CVS.
- Cross-check your information
- Click ‘Confirm.’ That’s all.
If you need to deposit money quickly, use your debit card. It’s much faster than a regular bank transfer.
How to Buy Bitcoin on Cash App
Buying Bitcoin with Cash App is easy once you have signed up and funded your Cash App. Without a balance, you cannot buy Bitcoin.
Here are the steps to follow to buy bitcoin on Cash App:
1. Go to the Cash App home page. You would see the ‘Bitcoin’ tab under ‘Deposit and Transfers.’ Tap on it.
2. On the next page, you will be given a list of options, tap on ‘Buy BTC.’
3. Choose the amount of BTC you want to buy.
4. If you want to buy a particular amount, not on your screen, click on ‘Custom’ and enter your desired amount.
5. Input your Cash App PIN.
6. Go through your transaction again and hit the ‘Confirm’ button.
You can see how much your BTC is worth by clicking on your wallet anytime.
How Much Bitcoin Can I Buy on Cash App?
Cash App has a limit on the amount of Bitcoin you can buy per week. You can’t buy more than US$100,000 (or 1.97 BTC at the time of writing). For BTC deposits, the amount is much less.
Users can’t deposit more than $10,000 worth of Bitcoin within seven days. Moreso, $2,000 worth of BTC is the maximum amount you can withdraw every 24 hours.
Additionally, you cannot withdraw more than $5,000 worth of BTC within any seven days. If you like trading BTC, then you would find the Cash App a bit limiting.
Does Cash App Charge for Buying Bitcoin?
Yes. Cash App charges you for buying Bitcoin. How can you know how much your charges are? After entering the amount of BTC you want to buy, you will see a fee. The commissions might vary because of the market’s volatility.
Buying Bitcoin with a Cash App is safe. We say this because your bitcoin is tightly secured and less prone to exchange attacks. Cash App is beginners’ best crypto exchange as it is easy to use with minimal technicalities.