Venmo, the popular peer-to-peer payment app, has expanded its financial offerings to include cryptocurrency trading. Since launching its crypto feature in 2021, Venmo has allowed users to buy, sell, and hold digital assets directly within the app—making it a convenient entry point for beginners exploring the world of crypto.
While it’s not a full-fledged exchange, Venmo supports four major cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH). This integration brings crypto investing into the mainstream, especially for users already familiar with mobile payments. However, there are limitations compared to dedicated platforms.
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Getting Started: Buying Crypto on Venmo
To buy cryptocurrency on Venmo, you must have a verified personal account. Business accounts and users in Hawaii are currently excluded from crypto transactions.
Here’s a step-by-step guide:
- Open the Venmo app and navigate to the “Crypto” tab at the bottom of the home screen.
- Verify your identity if you haven’t already. This may require submitting personal details such as your name, date of birth, address, and Social Security number. You’ll also need to accept Venmo’s crypto terms and conditions.
- Enter the dollar amount you’d like to invest—anywhere from $1 up to weekly and annual limits ($20,000 per week and $50,000 over 12 months).
- Review your purchase. The app will display the exact amount of crypto you're buying and all associated fees.
- Choose your payment method: Use your Venmo balance, a linked bank account, or a debit card.
- Tap “Buy” to complete the transaction. Prices update every few seconds, so the final value is locked in at the moment you confirm.
This seamless process makes micro-investing accessible, allowing users to dollar-cost average into positions without complex setups.
Understanding Fees and Pricing
Venmo uses a two-part fee structure for crypto transactions:
- A fixed or percentage-based transaction fee, depending on purchase size.
- A spread of approximately 0.5%, which reflects the difference between the market price and Venmo’s exchange rate.
Here’s how transaction fees break down:
- $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 – $1,000.00: 1.80%
- Over $1,000.00: 1.50%
Compared to low-fee exchanges like Coinbase or Robinhood, Venmo’s pricing is moderately high—especially for larger trades. But for small, occasional purchases, the convenience may outweigh the cost.
Selling crypto follows the same fee model: expect the same per-transaction charge plus the 0.5% spread.
Holding and Managing Your Crypto
Once purchased, your crypto is stored within your Venmo account—you cannot transfer it to external wallets or other platforms. This means you don’t control the private keys, which reduces security compared to self-custody options.
However, Venmo provides a simple dashboard where you can:
- View your current holdings by currency
- Track real-time market values
- See your total return (profit or loss) across all assets
While holding crypto on Venmo incurs no additional fees, long-term investors should consider more secure storage solutions for larger amounts.
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Selling Crypto: Turning Digital Assets Into Cash
Selling works just like buying—navigate to the Crypto tab, select the asset you want to sell, enter the amount, review fees, and confirm.
Proceeds go directly into your Venmo balance, which you can then:
- Use to pay friends
- Transfer to your bank account
- Spend via the Venmo debit card
Keep in mind: you cannot use crypto directly for purchases on Venmo, nor can you send crypto to other users.
Earning Crypto Rewards With the Venmo Credit Card
Holders of the Venmo Credit Card (a co-branded card issued by Synchrony Bank) can earn cash back on purchases and redeem those rewards as cryptocurrency.
Here’s how it works:
- Earn unlimited 1.5% cash back on all purchases.
- At the end of each rewards cycle, choose to convert your cash-back earnings into BTC, ETH, LTC, or BCH.
- Venmo waives its usual transaction fees on these automatic conversions—though the 0.5% spread still applies.
This feature turns everyday spending into passive crypto accumulation—an attractive perk for frequent users.
Staying Informed: Price Alerts and Notifications
Venmo helps users stay on top of market movements with customizable price alerts.
To set one up:
- Go to Settings > Push Notifications
- Select “Crypto Price Alerts”
- Choose a cryptocurrency and set a target price change (e.g., +5%, -10%)
You’ll receive a push notification when your selected coin hits the threshold. This is useful for timing buys or monitoring volatility without constantly checking prices.
Security and Protections
It’s important to understand that crypto holdings on Venmo are not FDIC-insured. Unlike traditional bank deposits (which are protected up to $250,000), digital assets carry higher risk.
That said, Venmo does offer protection against unauthorized transactions. If you notice suspicious activity:
- Report it immediately through Venmo’s customer support portal
- The company investigates claims of fraud and may refund lost funds at its discretion
Still, because you can’t withdraw crypto from the app, your assets remain under Venmo’s custody—a trade-off between ease of use and control.
Frequently Asked Questions (FAQ)
Q: Can I transfer my crypto from Venmo to another wallet?
A: No. Currently, Venmo does not allow transfers of cryptocurrency to external wallets or other platforms.
Q: Is there a minimum amount I can buy?
A: Yes—you can purchase as little as $1 worth of any supported cryptocurrency.
Q: Are there fees for holding crypto on Venmo?
A: No. There are no storage or maintenance fees for keeping crypto in your Venmo account.
Q: Can I use crypto to pay friends on Venmo?
A: Not yet. You cannot spend or send crypto directly through the app—only convert it to USD in your balance after selling.
Q: What happens if Venmo shuts down its crypto service?
A: In such a scenario, Venmo would likely allow users to sell their holdings and withdraw funds, but this isn’t guaranteed. Always stay informed about platform policy changes.
Q: Is Venmo crypto safe for long-term investing?
A: It’s best suited for short-term trading or small investments. For larger holdings, consider using a dedicated exchange or hardware wallet.
While Venmo simplifies access to crypto for casual investors, power users may find its lack of advanced features limiting. For those ready to explore deeper markets with more control, broader functionality awaits.
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