April 11th, 2019
A great way to buy and sell Bitcoin is using the easy to use Cash App from Square, the company created by entrepreneur Jack Dorsey. The advantage of Cash App is that you can manage buying and withdrawing Bitcoin within the one app. In addition, Cash App is what’s called ‘PCI Data Security Standard (PCI-DSS) Level 1 compliant’ which means in practice your payment information is secure; it’s encrypted and sent securely to the Cash App servers, whether you’re using public Wi-Fi or mobile data such as 4G.
With Cash App you can track the price of BTC in realtime and start to invest in the cryptocurrency, with only a minimum $1 purchase. To check the latest bitcoin’s price, simply tap the Bitcoin tab on your Cash App home screen. Plus, once you have made your investment, you have the option of storing it in the Cash App or withdrawing it to a bitcoin wallet of your choice.
To get started with using Cash App to buy bitcoin you first need to download the app from the Apple App Store (iPhone only) or Google Play Store to your tablet or smartphone. After signing up and linking a payment method whether a bank account or debit card, you get to choose a unique name for your account known as a Cashtag which also allows you to receive funds. Once this is set up go to the Request/Pay screen, which includes a Home tab. Click on the tab to verify your identity in order to be allowed to buy bitcoin. Tap on Bitcoin to verify your identity and enter your full name and Social Security Number. The ID verification process takes anything from a few minutes to a day to complete. Once that’s done, you can start buying Bitcoin!
First add money to your account before buying Bitcoin. On the Investing tab select Bitcoin, and then select the Buy button, before entering the amount you want to buy and then enter your PIN and select Confirm. You then can review the order, including fees to be paid, before confirming you want to buy Bitcoin. You may also need to enter geographical information if asked.
Cash App may charge fees when you buy or sell bitcoin. These fees are be listed on the trade confirmation before you complete your purchase. Cash App charges two kinds of fees for bitcoin transactions: a service fee for each transaction and, depending on market activity, an additional fee determined by price volatility across US exchanges. The actual cost is decided by taking an average price of Bitcoin charged on the major crypto exchanges, such as Coinbase.
Once the sale has completed, all you need to do is click Done to view your total Bitcoin holdings in the app in the Home tab. While Cash App allows you to keep your purchases in the app it is good practice to store the purchases in a wallet. To do this tap your profile icon, then Funds, and select Bitcoin. Once you have completed identity checks, simply tap Transfer Out, tap confirm, and then with the Use Wallet Address or by scanning the QR code of your external wallet process the desired amount to withdraw. Finally, confirm the withdrawal with your PIN or Touch ID.
Remember that Bitcoin transfers can take several hours, depending on factors such as the amount of traffic on the overall Bitcoin network, and your wallet provider. Cash App policy is that you must have a balance of at least 0.0001 bitcoin to make a withdrawal. You can withdraw up to $2,000 worth of bitcoin every 24 hours and up to $5,000 within any 7-day period.
As you get more experienced, what’s also a great feature of using Cash App is that you can set up automatic purchases of bitcoin to occur every day, week, or 2 weeks: “You don’t need perfect timing if you’re thinking long-term. Auto Invest lets you set it and forget it by dollar-cost averaging, which is an investing term for regularly buying small amounts over time. By spreading purchases out, you can minimize the impact of market swings,” Cash App help pages explain.
To schedule an automatic Bitcoin purchase first navigate to the Bitcoin investing screen, tap Buy, and select your desired purchase frequency from the drop-down menu where it says One-Time Purchase, then tap Done. Simply choose a pre-set amount or tap and enter a specific amount, then press Next. Finally, tap Confirm to schedule your automatic purchase. To confirm, there is a $10 minimum for Auto Invest purchases.
There are some restrictions in using Cash App, one of which is that it is not ideal for larger regular purchases, with a limit of up to $10,000 in seven days. Plus, as it is only available to US residents, so you cannot use the app to directly send bitcoins to Cash App users around the world, you will need to use your external Bitcoin wallet for that.
Please note: Cash App is no longer available as a means of purchase on Bitcoin of America (Sept 2020).