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Tech News & Podcast | Africa

How to Use Venmo to Unlock the World of Bitcoin

What is Venmo?

Venmo is a mobile payment service established in 2009 and has been owned by PayPal since 2013. It operates as a peer-to-peer (P2P) platform for money transfers within the United States. This social payment app is convenient for users to exchange money with friends and businesses. Moreover, it functions as a digital wallet, allowing individuals to store funds in their Venmo accounts for future expenses.

Cryptocurrencies have become a disruptive force in technology and finance, changing the way we think about money and transactions. Bitcoin is the original cryptocurrency and arguably the most well-known brand in the world of virtual currencies.

Millions of investors and fans around the world have been drawn to it because of its decentralised structure and potential for financial growth. However, how can one purchase Bitcoin and utilise well-known payment services like Venmo?

The incorporation of cryptocurrencies into established financial institutions has made purchasing Bitcoin easier than before. Peer-to-peer payment service Venmo, which is popular for dividing bills and sharing expenses among friends, has entered the cryptocurrency space.

For those looking to enter the realm of digital assets, this has created new opportunities. On the other hand, using Venmo to buy Bitcoin necessitates some familiarity with the procedure, safety precautions, and possible difficulties.

Fundamentally, Venmo provides a friendly means of managing money transfers between pals. It makes chores like paying your portion of the rent, dividing a cab ticket, or splitting a lunch cost easier. You may settle bills easily and without trouble by using Venmo instead of cash.

Users of Venmo can also make purchases from approved merchants. This covers making purchases from Venmo Business Profiles, scanning in-store QR codes for Venmo payments, using the Venmo Mastercard Debit Card at any U.S. location that accepts Mastercard, and using Venmo as a payment option in partner applications or mobile websites. In the Venmo app, it also offers the ability to classify payments as purchases.

It’s necessary to remember that while Venmo is helpful for private transactions and purchases from authorised retailers, it shouldn’t be used for transactions involving unidentified parties, such as the purchase of concert tickets, electronics, merchandise, sneakers, watches, or flat deposits. Social payments and purchases from reputable merchants are the main uses of Venmo.

Venmo users can pay from various funding sources, including their Venmo balance, credit/debit cards, or a U.S. bank account. Transferring funds to a bank account is also possible by linking your bank to your Venmo account.

How to Buy Bitcoin Using Venmo

Purchasing Bitcoin through Venmo is a straightforward process:

1. Open the Venmo app and go to the “Crypto” tab at the bottom of the menu.

2. From the list of cryptocurrencies, select “Bitcoin (BTC).” You’ll also see the current exchange rate for Bitcoin on this page.

3. At the bottom of the page, click “Buy.”

4. Enter the amount in dollars that you want to convert into Bitcoin (BTC). Then, tap the “Review” button. Before finalizing the transaction, this step allows you to review important purchase details, including your linked bank account, the exchange rate, and transaction fees.

5. The app will provide a breakdown of the amount of Bitcoin you’ll receive and any associated fees.

6. If you’re satisfied with the details, tap the “Buy” button to complete the Bitcoin purchase through Venmo.

It’s essential to be aware that once you’ve completed a purchase, the cryptocurrency obtained through Venmo is irreversible. This means you’ll need to sell it if you want to convert it back into U.S. dollars. Additionally, Venmo does not offer compensation for any losses resulting from price fluctuations.

Once you’ve successfully purchased Bitcoin using the Venmo app, you can easily monitor changes in its price within the app. Additionally, you will be able to view historical pricing information for the chosen cryptocurrency, as well as records of previous exchanges of that virtual asset. This keeps you updated on your cryptocurrency holdings.

What is Venmo’s process for selling cryptocurrency?

You can sell bitcoin through the Venmo app after you’ve obtained it through Venmo. Here are ways to go about it:

Go to the Crypto Tab by navigating: Locate the Crypto tab when you launch the Venmo app.

Pick a Cryptocurrency: Choose the coin that you want to offload. You will be shown the pricing as of right now.

Examine Past values: The Venmo app will provide past bitcoin values for the coin you’ve chosen. When you’re prepared to sell, select “Sell” and enter the cryptocurrency you wish to sell.

Which payment methods are available on Venmo when buying cryptocurrency?

When it comes to purchasing cryptocurrency on Venmo, you have a variety of payment methods at your disposal. You can utilize your Venmo balance, link your bank account, or use your debit card. However, it’s important to remember that credit cards and Venmo Credit Cards are not currently accepted for these transactions.

In the world of cryptocurrency purchases on Venmo, some predefined limits are in place. You can make crypto acquisitions of up to $20,000 per week, and there’s also an annual cap set at $50,000 for your crypto purchases.

So, why do we encounter cryptocurrency exchange rates? Well, cryptocurrency is essentially a digital form of currency, which means that when you buy or sell it, you’re effectively swapping one type of currency for another. These exchange rates tell you the value of the cryptocurrency in terms of dollars or other currencies. Importantly, these rates change frequently because the value of cryptocurrencies is in constant flux.

Which People Can Use Venmo to Buy Bitcoin?


There are some prerequisites and steps you must take in order to purchase Bitcoin with Venmo:

Age requirements: You have to be at least eighteen years old. Only those who have accomplished legal adulthood in their respective areas are permitted to transact with cryptocurrencies through Venmo.

Location: Generally speaking, current US customers of Venmo’s cryptocurrency services can access them in person. It is noteworthy, nevertheless, that certain state laws prevent Hawaii citizens from accessing these services.

Payment Options: In order to buy Bitcoin with Venmo, you’ll need to use your Venmo balance, a debit card, or a linked bank account. Funding for your cryptocurrency transactions can be obtained through these ways.

Unique Cell Phone Number: You should have a unique U.S. cell phone number not associated with another Venmo account. This requirement helps ensure each user has a distinct identity within the Venmo system.

Once you meet these prerequisites, you can create a Venmo account and buy Bitcoin. However, your identity must be verified before using Venmo’s cryptocurrency services. This verification process typically involves providing essential personal information, such as your Social Security number or an Individual Taxpayer Identification Number (ITIN). This verification is a security measure to confirm your identity and ensure compliance with regulatory requirements.

It’s important to understand that Venmo’s cryptocurrency services are designed for personal Venmo profiles and are not intended for use with business or charity profiles. This distinction helps Venmo maintain a clear separation between personal and commercial financial activities within its platform.

Things to Consider Before Purchasing Bitcoin with Venmo

There are a few things you should know about while buying Bitcoin with Venmo that can be viewed as disadvantages:

Absence of Purchase Protection: Transactions involving cryptocurrencies are not covered by Venmo’s Purchase Protection. Should you purchase Bitcoin and its value fluctuates, you will not be covered for losses.

It’s crucial to understand that Bitcoin transactions on Venmo are final, even though unauthorised transactions are protected. This emphasises how crucial it is to do extensive research and use caution when making decisions while working with cryptocurrencies.

Limited Insurance Coverage: The Bitcoin and investment balances stored on Venmo are not protected by organisations such as the Securities Investor Protection Corporation (SIPC) or the Federal Deposit Insurance Corporation (FDIC), in contrast to traditional banks.

In other words, the funds you keep within the Venmo app are not insured as they would be in a standard bank account. This lack of insurance can make Venmo a less secure option, especially for individuals with significant cryptocurrency holdings.

Inability to Transfer to Other Platforms: Any cryptocurrency or assets you acquire on Venmo are restricted to the platform. You can’t transfer your crypto to other platforms or personal accounts. This limitation may pose challenges for those who prefer to manage their cryptocurrency in digital wallets or explore different trading opportunities outside of Venmo.

Conclusion

In the digital finance landscape, Bitcoin has become a trailblazer, revolutionizing our perception of money and transactions. Its decentralized nature and the promise of financial growth have attracted a global community of investors and enthusiasts. The integration of cryptocurrencies into mainstream financial systems has made purchasing Bitcoin with popular platforms like Venmo more accessible.

However, this convenience comes with its own set of considerations. Users must know the challenges and security measures of buying and selling Bitcoin on Venmo. While this offers a new level of convenience, it’s essential to weigh the benefits against the potential risks and exercise caution when navigating the world of digital assets.

With the right knowledge and understanding, users can harness the power of cryptocurrencies to their advantage, ultimately unlocking a world of financial possibilities.

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