Venmo has significantly expanded its financial services by integrating cryptocurrency capabilities directly into its app. This move allows millions of users to buy, sell, and hold select digital currencies with ease. If you're curious about how this update works and what it means for your Venmo experience, here’s a detailed overview.
What Is Venmo’s Crypto Update?
Venmo’s latest feature enables users to engage with cryptocurrencies starting with as little as $1. Accessible via the “Crypto” tab within the app, the service supports buying, selling, and holding a limited set of digital assets. In addition to transactional functions, the platform offers educational resources like trend trackers, beginner guides, and video tutorials addressing common questions about cryptocurrencies.
Social sharing is also part of the experience—users can optionally post their crypto activities on the Venmo feed, similar to payment sharing.
Supported Cryptocurrencies
Venmo currently supports four major cryptocurrencies:
- Bitcoin (BTC)
- Ethereum (ETH)
- Litecoin (LTC)
- Bitcoin Cash (BCH)
Notably, Dogecoin is not included, despite its popularity. The selection may expand in the future as the platform evolves.
Why Did Venmo Introduce Crypto?
This update reflects growing consumer interest in digital currencies. According to Venmo’s 2020 Customer Behavior Study, over 30% of Venmo users had already begun investing in cryptocurrencies. By integrating crypto services, Venmo aims to meet user demand and provide a seamless, trusted platform for digital asset management.
As a subsidiary of PayPal, Venmo operates under PayPal’s conditional BitLicense issued by the New York State Department of Financial Services. This regulatory approval enables both platforms to offer cryptocurrency services legally and securely.
How Crypto Payments Work
While Venmo allows users to buy and sell crypto, it’s important to understand how crypto-based payments function. When a user pays a merchant using cryptocurrency via PayPal or Venmo, the merchant does not receive crypto directly. Instead, the system converts the digital currency into traditional fiat money at the time of the transaction.
This approach reduces volatility risk for merchants while allowing consumers to use their crypto holdings for everyday transactions.
Availability and Rollout
Although the feature was officially launched, it may take a few weeks before all Venmo users gain access. The rollout is gradual, so if you don’t see the Crypto tab immediately, check for app updates or wait a short period.
Getting Started with Crypto on Venmo
To begin using Venmo’s crypto features:
- Open your Venmo app and navigate to the “Crypto” section.
- Complete identity verification if prompted.
- Explore educational content to familiarize yourself with crypto basics.
- Start with a small amount—as low as $1—to buy your first cryptocurrency.
- Monitor trends and manage your holdings directly within the app.
👉 Explore beginner-friendly crypto tools
Frequently Asked Questions
Can I withdraw cryptocurrency from Venmo to an external wallet?
No, at this time, Venmo only supports buying, selling, and holding cryptocurrencies within its platform. Transfers to external wallets are not permitted.
Are there fees for buying or selling crypto on Venmo?
Yes, Venmo charges a fee for each transaction. The exact amount varies based on market conditions and transaction size. Always review the fee disclosure before confirming a trade.
Is Venmo’s cryptocurrency service available worldwide?
Currently, the feature is only available to users in the United States with a verified Venmo account. International availability has not been announced.
How does Venmo protect my cryptocurrency?
Venmo uses security measures such as encryption and fraud monitoring. However, since crypto transactions are irreversible, users should enable two-factor authentication and follow best practices for account safety.
Can I use Venmo crypto to send payments to friends?
Not directly. While you can sell crypto and use the cash balance for peer-to-peer payments, you cannot send cryptocurrency directly to another Venmo user.
Will Venmo add more cryptocurrencies in the future?
Venmo has not confirmed specific plans but may expand its offerings based on user demand and regulatory approval.
Final Thoughts
Venmo’s entry into the cryptocurrency space marks a significant step toward mainstream digital asset adoption. By combining user-friendly design with educational support, Venmo makes it easier for beginners to start their crypto journey. Whether you’re looking to invest small amounts or simply learn more about digital currencies, this feature offers a convenient and accessible option.
Remember, cryptocurrency investments carry risks, including market volatility. Always start small, do your research, and never invest more than you can afford to lose. For those ready to take the next step, 👉 discover advanced trading strategies to deepen your understanding of the crypto market.