In the last few years, Cryptocurrency has become a trend for everyone matter experienced or new to investing. The rising fame of digital currencies has driven various platforms to incorporate cryptocurrency transactions into their services. Among those platforms, one popular peer-to-peer payment service Venmo, has started supporting cryptocurrency and enabled its users to purchase, sell or send crypto seamlessly. This ultimate guide will take you through the process involved step by step if you are interested in sending crypto with Venmo.
How Venmo’s Cryptocurrency Feature Works?
A subsidiary of Paypal, Venmo brought its cryptocurrency offering to market in 2021 and allows users trade Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) or Bitcoin Cash. This was a major step towards adoption of crypto for the masses. Venmo is helping to bridge this gap by enabling users to send crypto type through its app, which double serves a standard money officering system.
The catch is that Venmo only supports the four kinds of crypto mentioned above right now. So, if you want to send another type of cryptocurrency, you will have to use a different platform. Well as always with all financial transactions it is important to know the fees and risks that come along for the ride. Venmo will charge a fee for buying and selling crypto on your account balance based on the transaction amount.
Venmo Account Setup for Crypto.
To send cryptocurrency on Venmo, you have to do a few things before getting started. If you have a Venmo account, this is pretty easy to do. First, make sure that the Venmo app on your handset is up to date because sometimes new features are released only for the latest versions and not available in older builds.
After updating the app, go to the main menu and from here select “Crypto”. In this part, I will show you what Venmo offers for trading in cryptocurrencies and the list of available cryptocurrencies. This may include verifying your identity to do things like contribute a document and activate crypto. A normal verification process, like entering your SSN and a legit ID to fulfill legal demands!
Purchasing Cryptocurrency On Venmo.
Once your account is ready, the next step of this ARK to Hostcoin guide is buying the cryptocurrency you wish to send. To do this, return to the “Crypto” tab and search for the cryptocurrency you wish to buy. You can buy crypto using the money in your Venmo balance or with a linked bank account directly from within the app. You may also use a debit card to purchase specific cryptocurrencies only. You enter the dollar amount you want to spend and it shows how much of “the coin” you would be buying at this time.
Most notably, keep in mind that prices for cryptocurrency can change drastically between the time of your purchase and when you sell. When you click the buy button, review the details of your transaction and then confirm it. After you complete the purchase, your cryptocurrency will be added to Venmo and become visible under “Crypto” at any moment.
We are sending cryptocurrency with Venmo.
Once you have bought Bitcoin and now want to send some of it over, follow these steps: Sending crypto is a bit more complicated than traditional money transfers using Venmo. You can pay your phone bill using the Cash App by heading over to the “Pay or Request” section of the app just as if you were trying to send someone money.
Fill in the name, phone number or email of who you send it to and pick how much you want to send. Instead of picking dollars click the currency dropdown and choose a cryptocurrency to send. For example, if you enter $50 USD as your transaction amount in the Venmo app, we could then immediately convert that to a set dollar value of cryptocurrency based on our current exchange rate with DMA capabilities.
Always check the details before you finally confirm your transaction. Don’t forget that cryptocurrency transactions are non-refundable so if you send the crypto it cannot be recovered unless in case of an agreement from a recipient to give them back. After you may review the transaction, tap “Pay” and the process will be finished. The receiver will be awarded the cryptocurrency in their Venmo app, where they can choose to hold onto it or sell and transfer it.
Fees and Limits are High.
Important Notes About Sending Crypto on Venmo Fees & Transaction Limits Venmo charges a small, undisclosed fee for each crypto purchase, which will fluctuate based on the size of the transaction. The fees for these transactions are usually higher than those for conventional wire transfers, which indicates the increased complexity and risk management.
Similar to fees, Venmo has a few restrictions in place when it comes to how much you can buy or send at any given time. These limits are used to protect against fraud and safeguard the security of transactions. New users will often have limits, but these can generally be increased through usage and verification. Please note that Venmo may adjust the terms of its fee schedule and limits from time to time due to shifts in market conditions or regulatory changes.
Security Considerations.
Venmo makes it easy to transfer cryptocurrency, but respects security. As cryptocurrency is a digital asset, exploiting fraud and hacking for this type of currency involve real risks. Activating two-factor authentication (2FA) is one of the best ways to secure your Venmo account. This makes the extra step of a second verification (often this might be to your mobile device) in order to complete any transaction just an added obstacle.
Always mind the receivers of your crypto transactions as well. Check twice that you are sending cryptocurrency to the proper user, because making a misstep in this department can be too expensive. While Venmo makes its best effort to design a user-interface that reduces error, it is recommended users review and confirm transacted details before clicking the confirmation button.
Sending Cryptocurrency on Venmo Pros & Cons.
The positives of Venmo sending cryptocurrencies are significant if you already use the platform First of all, merging the two worlds is an easy way to get your foot in the door — offering a one-way ticket from crypto enthusiasts everywhere straight onto millions of people’s day-to-day apps (while rounding their financial capabilities without them having to leave). This is an advantage that can become very beneficial for newcomers in the world of cryptocurrencies because it prevents them from having to deal with more complex aspects, such as those found when exchanging on cryptocurrency exchanges.
Additional perks include sharing Venmo, a social feature that will allow users to win with friends or keep it private. It is an interactive feature, and can be a fun way to engage with friends who are also interested in cryptocurrency.
And finally, because Venmo is related to PayPal it gives you one extra layer of trust. PayPal has established itself as a heavy hitter in the financial technology sector, bringing strong infrastructure and customer support to Venmo’s crypto services.
Potential cons and precautions.
As with all new tech in the payment industry, there are obviously some trade offs as well for when you send cryptocurrency on Venmo. One of the biggest complaints is that there are only very few cryptocurrencies to choose from. For trading lower volume and more specific altcoins, users will have to look elsewhere as Bitcoin & Ethereum are the only available options.
Fees for crypto come into play as another notable Venmo consideration. Those charges can add up, particularly for in addition to that are investing heavily or recurring prices of interest. It is still a good idea to contrast these costs with the ease of using Venmo for crypto transactions.
This is our final suggestion — although Venmo gives you an easy-to-use experience, it can lack the depth of trading features provided by dedicated cryptocurrency exchanges. Venmo does not offer things like limit orders, stop-loss options and other advanced technical analysis tools. For users in need of these advanced features, there are probably other more specialized platforms they would rather use for their crypto transactions.
Conclusion.
Using Venmo to send cryptocurrency makes it easier for a wide range of people in this new digital economy. Venmo makes it easy, regardless if you are a cryptocurrency enthusiast or just want to dabble in the space and buy/sell/send popular digital currencies alongside your other (more traditional) payments on their platform. If you follow these highlighted steps, then in no time, Venmo with its crypto features will become a part of your daily use and enable you to capitalize on the ever-booming world of Cryptocurrency! Of course, you should always know your risks and costs with anything in the finance world, so do a little extra reading to get even more out of Venmo.