What is Cash App and How Does Crypto Work?
Cash App, developed by Square (now Block, Inc.), is a popular mobile payment service that expanded into cryptocurrency trading in 2018. The platform allows users to buy, sell, send, and receive Bitcoin directly within the app. With over 40 million active users, Cash App has become one of the most accessible gateways for beginners entering the crypto space thanks to its simple interface and instant bank linking capabilities.
Step-by-Step Guide: How to Buy Crypto on Cash App
- Download and Set Up: Install Cash App from iOS App Store or Google Play. Create an account with your phone number or email and link your bank account or debit card.
- Verify Your Identity: Navigate to the profile icon > Personal > Verify Identity. Submit required documents (driver’s license, SSN) to unlock crypto trading.
- Fund Your Account: Tap the Banking tab > Add Cash. Enter the amount you want to deposit (minimum $1). Funds appear instantly.
- Buy Bitcoin: Select the Investing tab > Bitcoin > Buy. Enter dollar amount or use the slider. Review transaction details including fees.
- Confirm Purchase: Tap Confirm & Buy. Bitcoin will appear in your portfolio immediately. You can view holdings under the Investing tab.
Key Features of Cash App Crypto
- Recurring Buys: Automate daily, weekly, or monthly purchases
- Instant Withdrawals: Send Bitcoin to external wallets in minutes
- Price Alerts: Set notifications for market movements
- Fractional Purchases: Buy as little as $1 worth of Bitcoin
Understanding Fees and Limits
Cash App charges variable fees for crypto transactions, typically 1.5%-2% above market rates. These fees are built into the quoted price during purchase. Important limits include:
- $10,000 weekly buy limit for verified users
- $5,000 weekly withdrawal limit
- $2,000 daily send limit to external wallets
Fees and limits adjust based on account history and verification level. Always check current rates in-app before transacting.
Safety Tips for Crypto Beginners
- Enable two-factor authentication and biometric login
- Never share your 12-word recovery phrase
- Start with small test transactions
- Use the in-app withdrawal feature to transfer large amounts to cold storage
- Monitor transaction confirmations on the blockchain
Frequently Asked Questions
Can I buy cryptocurrencies besides Bitcoin on Cash App?
Currently, Cash App only supports Bitcoin purchases and sales. Other cryptocurrencies like Ethereum or Dogecoin aren’t available.
How long does verification take?
Identity verification typically completes within 24 hours. Delays may occur during high-volume periods.
Are there taxes on Cash App crypto?
Yes. The IRS treats cryptocurrency as property. You’ll receive Form 1099-B for taxable events like selling or sending crypto off-platform.
Can I transfer Bitcoin to another exchange?
Yes. Use the Withdraw Bitcoin feature to send funds to external wallet addresses. Always double-check addresses before confirming.
What happens if Cash App shuts down?
Your Bitcoin remains accessible via your recovery phrase. Store this 12-word backup offline in multiple secure locations.
Is Cash App crypto available worldwide?
Currently, cryptocurrency features are only available to U.S. residents (excluding Hawaii and New York) with verified accounts.
