With over 50 million users in the US and UK, Cash App is one of the most popular payment apps available. But the platform offers more than just peer-to-peer payments. You can also buy stocks or even Bitcoin. In this guide, we’ll learn how to buy Bitcoin on Cash App step by step.
We’ll also discuss fees and ways to transfer or sell your Bitcoin using Cash App. Lastly, we’ll compare Cash App to another leading Bitcoin trading platform so you can decide which is best for you.
Let’s dive in.
How to Buy Bitcoin on Cash App Explained
- Download the Cash App. Visit Cash.app and click on Download Cash App to ensure you’re downloading the genuine app. Install Cash App on your iOS or Android device.
- Make a Cash App account. Enter an email address or your mobile phone number to start an account. You’ll also need to provide your full name, address, and date of birth. You can create a Cash App username ($Cashtag) at this step as well.
- Connect a funding source. Add a debit card to your account. Later, you can set up bank transfers or even direct deposit if you wish.
- Verify your identity. To enable certain features, you’ll need to verify your identity and specify your source of income. Cash App walks you through the process, including uploading a picture of your ID with your current address. This option becomes available after you connect a funding source.
- Deposit funds to your Cash App account. Select an amount for your deposit. Click on Cash Balance from the Money home screen to set a deposit amount and funding source.
- Buy Bitcoin. Choose an amount of Bitcoin to buy from the preselected amounts or set a custom amount. By default, the order type is set to One-Time Order, meaning your purchase won’t repeat, and you’ll buy at the current market price.
How to Buy Bitcoin on Cash App – Tutorial
The basic steps above can get you started, but it’s helpful to illustrate in more detail and explain other options, such as selling Bitcoin or sending your Bitcoin to another wallet.
Let’s start with how to buy Bitcoin on Cash App.
Step 1: Download the Cash App.
The safest way to get Cash App is to go directly to the Cash App website and click on Download Cash App. On the desktop app, you’ll see a QR code you can scan with your mobile device instead. Cash App is a mobile-first app, and the desktop app offers limited functionality, so you’ll want to install the mobile app for iOS or Android.
Step 2: Make a Cash App Account.
Enter your phone number or email address to start your account. You’ll receive a code by text if you choose a phone number login or a code by email if you choose an email address login.
Step 3: Connect a Funding Source and Add Basic Personal Information.
Add your debit card to your Cash App account.
If you don’t have a debit card, you can tap “Skip.”
When you add a funding source after account setup, you’ll see a button that reads “No Card?” from which you can link your bank account instead.
However, this option is not available when setting up your account. After setup, you can connect a bank account by clicking on your profile icon on the top right, selecting “Linked Banks,” and then clicking on the “No Card?” button.
Now, it’s time to add your personal details.
In the next screens, you’ll need to add the following:
- Your first and last name
- Your date of birth
- The last 4 digits of your SSN (US users)
- Your address
Cash App uses your phone’s camera to upload pictures of one of the accepted forms of ID.
Next up, it’s selfie time. Follow the on-screen instructions carefully, including when to turn your head. It pays to take your time with KYC so you don’t have to repeat the process.
Next, Cash App asks a few questions regarding your source of income. If you’ve used an investing app before, these questions should look familiar.
This short series of questions centers on the source of funds you deposit. These questions all relate to KYC requirements along with anti-money laundering (AML) regulations.
Step 5: Deposit Funds to Your Cash App Account.
Now, select an amount for your deposit. If you want to use a debit card, you can just click on Add Cash on the Money home screen and choose an amount.
However, if you’d prefer to use your bank account, click on your profile icon, then scroll down to “Linked Banks” and select “No Card?” when you reach the page to add a debit card.
You can also link a credit card, but not until you’ve linked a bank account or debit card.
Step 6: Buy Bitcoin With Cash App.
Your account is set up and funded, so it’s time to buy Bitcoin. From the Money home screen, select the Bitcoin Tile. Then, click on Buy Bitcoin.
Select an amount of Bitcoin you want to buy. The default order type is a One-Time Order. You’ll pay the current market price, and your order won’t repeat with this setting.
On the next screen, verify your order details, including funding source and amount.
If everything looks good, click confirm. You’ll be asked to confirm the order with a PIN or biometric ID if you set one up.
And that’s how to buy Bitcoin on Cash App. You’ll see your Bitcoin balance on your Money home screen after your purchase.
Reasons to Verify Your Identity on Cash App
We were able to buy a small amount of Bitcoin by providing only basic information, including name, address, date of birth, and the last 4 digits of the social security number.
However, you’ll quickly find some limitations that require proof of identity.
Money transmitters like Cash App are required by regulators to verify the identity of users under what are known as KYC (Know Your Customer) requirements.
To activate your Cash App Bitcoin wallet, for example, you’ll need the basic information above plus a valid photo ID. In some cases, Cash App may also require income verification or information regarding the source of your funds.
If you haven’t completed ID verification yet, you can use Cash App to complete identity verification by clicking on the account icon on the top right of the app and scrolling down to Security & Privacy. Then, select Identity Verification to get started. Follow the on-screen instructions or the detailed steps we discussed in Step 4 of the previous section.
We completed the verification steps in less than 5 minutes. However, Cash App advises that ID verification can take up to 24 hours.
How to Buy Bitcoin on Cash App With Auto Invest
In addition to one-time purchases, you can also use Cash App to invest in Bitcoin automatically. The concept is called dollar-cost averaging (DCA). By buying a fixed dollar amount at regular intervals, you automatically buy more when prices are lower and less when prices spike. But you also eliminate the guesswork regarding whether the market will go up or down in the short term. You’re buying regardless of price, yet optimizing your cost by buying more at lower prices.
To use Auto Invest, just change the order type on the Buy Bitcoin screen.
Choose from daily, weekly, or every two weeks. Unlike one-time purchases, which can be as little as $1, you’ll need a minimum order of $10 or more for Auto Invest. For example, you can set up Auto Invest to buy $10 worth of Bitcoin weekly. Your $10 spend includes the fee ($0.22 shown below).
Auto Invest is only available for buy orders, but you can set a custom price for sell orders.
How to Buy Bitcoin on Cash App With Custom Orders
You can also use fixed-price orders, which can be handy if you think the price of Bitcoin will dip.
Then you can choose an expiration period. Choose from 1 day, 1 week, 30 days, or 90 days. If the price doesn’t reach your target within the time period you specify, Cash App cancels the order for you.
One thing to be aware of, however, is that the funds for custom orders are locked when you place the order. If you cancel the order or the order expires without being filled, your funds are returned.
You can also use custom orders to sell Bitcoin, which we’ll discuss next.
How to Sell Bitcoin on Bitcoin on Cash App
When you’re ready to exit your position, selling is even easier than buying because the account setup job is already done.
There are two ways you can sell Bitcoin on Cash App:
- One-Time Order
- Custom Sell Order
One-Time Order
With a one-time sell order, you’re selling at market price. Cash App shows this price at the time you want to trade, as illustrated below.
From the Money home screen, select Bitcoin and then tap the “Sell” button to get started.
Choose an amount from the presets or select a custom amount using the button with three dots. As with a buy order, the minimum sell order is $1.
Verify the transaction details on the next screen. If it all looks good, click “Confirm” to complete the sale.
Custom Sell Order
Like custom buy orders, custom sell orders let you set the price.
From the Money home screen, select Bitcoin and then tap the “Sell” button to get started. This time, you’ll want to change the order type to Custom Sell Order.
Use the slider to select a sell price and then click on the “Set” button. Then, select an amount you want to sell and an expiration date up to 90 days from the current date.
Confirm the details of the order. If everything looks right, tap on “Confirm” to complete the Custom Sell Order. If the price of Bitcoin reaches the amount you set in your order before the order expires, your order will go through. If not, the order is canceled automatically.
Custom sell orders offer an easy way to lock in profits or protect your downside. You can also set a custom sell order below the current price, which then acts like a stop-loss order if the market drops.
How to Send Bitcoin to Cash App
Beneath its sleek money-transfer interface, Cash App also functions as a Bitcoin wallet. With this wallet, you can send Bitcoin to other wallets, which we’ll cover in just a bit. You can also transfer Bitcoin to Cash App. Once you have BTC in your Cash App wallet, you can send Bitcoin to others or use Cash App to sell your position for cash.
How Bitcoin Wallet Addresses Work
A Bitcoin wallet uses a public address, which is where you would send the Bitcoin from an external wallet like Electrum or Sparrow. A crypto wallet address works almost like an email address. If the address is incorrect, you won’t get your mail (but someone else might). Bitcoin transfers are irreversible, so it’s important to get the details right.
By default, your Bitcoin wallet address is hidden in Cash App. To view the address, you’ll need to verify your identity if you haven’t already.
Receive Bitcoin From Another Wallet App on Your Device
Self-custody wallets like Electrum offer a powerful way to manage your Bitcoin. But if you want to sell your Bitcoin or send Bitcoin to a $Cashtag, it’s helpful to know how to receive Bitcoin on Cash App.
If you’re sending Bitcoin from another wallet on your device to Cash App, just follow these steps:
- From the Money home screen, tap on the Bitcoin tile.
- Select Deposit Bitcoin on the next screen.
- Copy your Bitcoin address.
- Paste the Bitcoin address into the wallet you’re sending from, like Electrum, for example.
- Complete the transaction details in the other wallet, including the amount and transaction speed.
Note: Cash App also displays your Lightning network address. The Lightning network is a second layer on the Bitcoin network that allows faster and cheaper transactions. However, Bitcoin wallets differ from Lightning wallets, so verify which type of wallet you’re sending from before you try to send Bitcoin to your Cash App wallet.
When sending from a Bitcoin wallet, select your Bitcoin wallet address on Cash App.
In both cases, you can copy/paste the wallet address, which is a mix of letters and numbers 42 characters long.
If you’re using two devices, you can also send Bitcoin to Cash App using a QR code, so you don’t have to copy and paste the address or try to type it by hand (not recommended).
We’ll cover how to receive Bitcoin from another wallet app using a QR code shortly.
How to Enable Bitcoin on Cash App
To buy or sell Bitcoin on Cash App, you just need to click on the Bitcoin tile on the Money home screen and complete your transaction. However, to send and receive Bitcoin, you’ll need to enable your Bitcoin wallet.
KYC is the key, so if you already completed KYC by sending proof of identity, your Bitcoin wallet should be enabled. If not, when you click on “Enable Bitcoin” from the Bitcoin tile, you’ll get a message inviting you to verify your identity.
Click on Verify Identity and follow the instructions provided as covered earlier in Step 4 of “How to Buy Bitcoin on Cash App.”
After completing the verification and source of income questions, you can access your Bitcoin wallet address by clicking “Deposit Bitcoin” from the Bitcoin tile on the Money home screen.
How to Receive Bitcoin on Cash App
Cash App lets you receive Bitcoin in three ways:
- Receive Bitcoin from another Cash App user.
- Recieve Bitcoin from another wallet app on your device (covered earlier).
- Receive Bitcoin from another wallet app using a QR code.
Receive Bitcoin From Another Cash App User
If someone knows your $Cashtag, they can send you Bitcoin at any time using their Cash App. To enable your phone contacts in Cash App, tap on the account icon on the top right and then tap “Invite Friends.” This can make you easier to find. Alternatively, you can just share your $Cashtag.
Receive Bitcoin From Another Wallet App Using a QR Code
To receive Bitcoin from another wallet on another device, you can also use a QR code.
Tap the Bitcoin tile on the Money home screen and then select “Receive Bitcoin.” Cash App generates a QR code that can be scanned with a compatible wallet. Most popular mobile Bitcoin wallets support scanning QR codes to get the Bitcoin wallet address.
The transaction must be completed in the other wallet app that’s sending Bitcoin. However, you can add an amount and a short note to the code.
This step updates the QR code, making it easier to complete the transaction.
How to Send Bitcoin on Cash App
Maybe you need to send Bitcoin to someone else, or perhaps you want to move your Bitcoin to an external Bitcoin wallet, like Electrum. Either way, the process follows the same steps.
Here’s how to withdraw Bitcoin on Cash App or send Bitcoin to another wallet.
First, tap the Bitcoin tile on the Money home screen. Then, choose the arrow icon. Next, select “Send Bitcoin.”
Now, it’s time to choose an amount you want to send. By default, the value is shown in dollars. Tap the up/down arrows to switch to BTC if you prefer.
If you need to send Bitcoin to a Cash App user or just have a Bitcoin address without a QR code, you can tap “Send.” The next page gives you the option to send via $Cashtag or wallet address.
To scan a QR code for the wallet address receiving Bitcoin, tap the square icon on the top right corner. Cash App will read the address automatically.
Here’s what a QR code from an Electrum Bitcoin wallet looks like.
Then select your withdrawal speed. The fees shown below represent the network fees to send Bitcoin from one wallet address to another. You can pay a bit more to move up in line and get into the next block of transactions.
If the transaction isn’t urgent, you can choose Rush or Standard, the latter of which is free.
Check the transaction details. If everything looks good, tap “Confirm & Send.”
Cash App Fees for Buying, Selling, and Sending Bitcoin
It’s free to send or receive Bitcoin from other Cash App users, but Cash App Bitcoin fees can vary for other transactions. If you want to withdraw your Bitcoin to another crypto wallet, the fee will vary depending on the speed chosen:
- Priority (10 minutes or less): Network fees and an additional fee of up to $3
- Rush (2 hours or less): Network fees and an additional fee of up to $2
- Standard (usually 24 hours or less): Free
Cash App Bitcoin trading fees vary depending on the amount you want to exchange. The more you trade, the less you pay.
Here are the fees we saw for various purchase amounts:
| Exchange amount | Percentage Fee |
| $0 – $9.99 | 3.0% |
| $10 – $100 | 2.25% |
| $100.01 – $200 | 2% |
| $200.01 – $1000 | 1.75% |
| $1000.01 – $2000 | 1.5% |
| $2000.01 – $3000 | 1.25% |
| $3000.01 – $5000 | 1% |
| >$5000 | 0.75% |
Cash App also charges a spread that usually ranges from 0% to 1% for exchanges
The fees we observed apply to both market buys and custom purchase orders, the latter of which work much like limit orders on larger exchanges where you can set a fixed price for your order. Unlike limit orders, you can’t keep a custom purchase open indefinitely, however. Choose an expiration date between 1 day to 90 days.
Conclusion
Cash App enjoys a loyal user base, and the payment app excels at making peer-to-peer payments. It is also a convenient and low-fee place to buy Bitcoin and “stack sats” in a safe and easy manner.
While it is only available in the US and UK at the moment, we hope that it will eventually be rolled out to other countries. The other major downfall of Cash App is that only offers Bitcoin. If you’re looking for some of the other best cryptocurrencies to buy then you should check out our list of the best crypto exchanges.
References
- https://www.swift.com/your-needs/financial-crime-cyber-security/know-your-customer-kyc/meaning-kyc
- https://www.finra.org/rules-guidance/key-topics/aml
- https://cash.app/help/US/en-us/6508-identity-verification
- https://www.investor.gov/introduction-investing/investing-basics/glossary/dollar-cost-averaging
