Venmo, a popular peer-to-peer money transfer application, has integrated cryptocurrency functionality. This feature, introduced in April 2021, allows users to buy, sell, and hold select digital currencies directly within the app. While this offers notable convenience for those already using Venmo for everyday transactions, it's important to understand its capabilities and limitations compared to dedicated cryptocurrency exchanges.
This guide provides a comprehensive overview of how to use Venmo for your cryptocurrency activities, covering everything from the setup process to fees and security.
Supported Cryptocurrencies and Key Limitations
Venmo supports trading for four major cryptocurrencies:
- Bitcoin (BTC)
- Ethereum (ETH)
- Litecoin (LTC)
- Bitcoin Cash (BCH)
Before you begin, it's crucial to be aware of the platform's constraints. Unlike full-featured exchanges, Venmo does not allow you to transfer your cryptocurrency out of the app to an external private wallet. Additionally, you cannot use your crypto to make payments to other users or trade directly with them. Essentially, your assets are confined within the Venmo ecosystem, which may not be ideal for advanced users seeking full control over their digital holdings.
How to Set Up and Buy Crypto on Venmo
To start buying and selling cryptocurrency, you must have a verified personal Venmo account. This service is not available for business profiles and is inaccessible to residents of Hawaii. For users in the other 49 U.S. states, follow these steps:
Step 1: Access the Crypto Tab
Open the Venmo app and navigate to the "Crypto" tab. This is typically located at the bottom of the home screen.
Step 2: Complete Identity Verification
Venmo requires users to verify their identity to comply with financial regulations. You will likely need to:
- Accept Venmo's cryptocurrency terms and conditions.
- Provide documentation to confirm your full legal name, date of birth, home address, and Social Security Number.
Step 3: Initiate a Purchase
- Enter the dollar amount you wish to spend. The minimum purchase is $1, while weekly and annual maximums are $20,000 and $50,000, respectively.
- Select "Review" to see a summary. This screen will show the exact amount of cryptocurrency you will receive and all applicable fees.
- Choose your payment method: a linked debit card, your Venmo balance, or a connected bank account.
Step 4: Confirm the Transaction
Tap "Buy" to complete your purchase. Venmo's prices update every few seconds, so the quote you see at the moment of confirmation is the final rate you receive.
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Understanding Venmo's Fee Structure
The cost of buying and selling crypto on Venmo consists of two parts:
- Market Spread: This is a margin based on the market price of the coin, typically around 0.5%. It is built into the exchange rate you are quoted.
- Transaction Fee: A separate fee is applied based on the total dollar amount of your transaction.
| Purchase Amount | Transaction Fee |
|---|---|
| $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% |
For example, a $200 purchase would incur a $2.49 flat fee plus the approximate 0.5% spread, making it moderately priced compared to some dedicated exchanges.
Holding and Managing Your Crypto
There are no fees for holding cryptocurrency in your Venmo account. You can monitor your portfolio in the "Crypto" tab, which displays:
- The current market value of each holding.
- Your transaction history organized by currency.
- Your "Total Return," which shows the overall profit or loss on your combined crypto assets.
For significant long-term holdings, a self-custody wallet is generally considered a more secure option, but Venmo provides a convenient holding place for smaller, more active amounts.
How to Sell Cryptocurrency on Venmo
Selling your crypto on Venmo is a straightforward process:
- Go to the "Crypto" tab and select the currency you want to sell.
- Enter the amount you wish to sell and review the details, including the current market price and fees.
- Confirm the sale.
The fee structure for selling is identical to that of buying. The proceeds from the sale will be deposited directly into your Venmo balance. From there, you can use the funds for payments within the app or transfer them to your linked bank account.
Additional Features and Rewards
Crypto Cash Back with the Venmo Credit Card
If you have the Venmo credit card, you can choose to redeem your cash-back rewards directly into cryptocurrency. Venmo waives the transaction fee for these automatic purchases, though the market spread still applies. This is an easy way to accumulate crypto through everyday spending.
Price Change Alerts
You can set up customizable push notifications to track market movements. In your app settings under "Push Notifications," you can select a specific cryptocurrency and define a percentage price increase or decrease that will trigger an alert.
Security and Protection on Venmo
It is vital to understand the security landscape:
- No FDIC Insurance: Cryptocurrency held on Venmo is not protected by FDIC insurance, which covers traditional bank deposits up to $250,000.
- Unauthorized Activity Protection: Venmo states that it will protect users from unauthorized cryptocurrency transactions and fraudulent activity on their accounts. If you suspect any suspicious behavior, you should contact their customer support immediately.
Frequently Asked Questions
Can I transfer my crypto from Venmo to another wallet?
No, currently Venmo does not support transferring cryptocurrency to external wallets or other Venmo users. The crypto you buy on Venmo must remain within the app.
What are the main advantages of using Venmo for crypto?
The primary advantage is convenience, especially for existing Venmo users. It allows for easy buying and selling in small amounts directly from a familiar app, integrating crypto with your existing balance.
How do Venmo's fees compare to other platforms?
Venmo's fees are generally moderate. For small transactions, the flat fees can be high percentage-wise. For larger transactions, the percentage-based fees are competitive but may be higher than those on some advanced exchanges that offer lower rates for high-volume traders.
Is my cryptocurrency safe on Venmo?
While Venmo employs security measures to protect your account, any crypto held on an exchange or in a custodial wallet like Venmo's is inherently less secure than assets in a private, self-custody wallet where you control the keys. You are relying on Venmo's security systems.
Can I use crypto to pay my friends on Venmo?
No, you cannot. You must first sell your cryptocurrency, which deposits the cash value into your Venmo balance, and then you can use that balance to send money to friends.
What should I do if I see an unauthorized transaction?
You should contact Venmo customer support without delay to report any suspicious or unauthorized activity on your account to initiate their protection process.