Venmo announced on Tuesday that it will allow users to buy and sell cryptocurrencies on its platform. That means that 70 million monthly active users will soon be able to access bitcoin, ethereum and other digital tokens at a time when their value has never been higher.
Here’s what you need to know about buying bitcoin on Venmo.
Which cryptocurrencies can I buy?
The digital tokens that will be for sale are bitcoin, bitcoin cash, ethereum and litecoin. Venmo has not specified a limit on the amount of crypto a person can acquire. The only rule is that your investment must be worth at least $ 1. The investment is then saved to your account in the Venmo app and can be sold at any time.
What if I already own crypto elsewhere?
Investors who own bitcoin in another wallet such as Coinbase will not be able to transfer their bitcoin to Venmo, a company spokesperson told CNBC Make It. Likewise, any crypto obtained through Venmo can only be accessed through the app and cannot be sent to another wallet.
In addition, users will not be able to send cryptocurrencies to other Venmo accounts, the company confirmed.
Can I use my Venmo balance?
Part of Venmo’s pitch as a cryptocurrency wallet is that users don’t have to make any bank transactions to transfer money. Instead, they can use their existing Venmo balance to buy bitcoin and other tokens. Users who do not have enough money in their balance can link a bank account or debit card to complete their purchases.