Cash App is one of the most popular personal finance apps available today. The platform was launched by Square (now Block) in 2013 as a peer-to-peer payment app. Since then, it has grown to become much more.
By 2018, the company enabled Bitcoin trading on the app. Today, the company generates billions of dollars per year in cryptocurrency trading fees as a popular place to buy and sell Bitcoin.
However, popular options aren’t always the best options. How does Cash App crypto trading stack up against its competitors?
Key Features of Cash App Crypto
Cash App is one of the most popular finance apps on the market today and for good reason. Their app has several features that help simplify financial management. Some of the most exciting features you’ll find on the app include:
Simple Access to Bitcoin
Bitcoin is the most successful cryptocurrency to date. It’s likely where you’ll get your feet wet in cryptocurrency if you’re a beginner.
Cash App has been all about a user-friendly interface that simplifies financial transactions and management from the very beginning. You’ll experience that high level of simplicity when you buy Bitcoin on the app as well.
Buying the cryptocurrency is as simple as inputting the amount you’d like in U.S. dollar (USD) values and entering your PIN to complete the transaction. The app handles the rest.
It’s worth mentioning that although you’ll find easy access to Bitcoin on the app, you’re not going to have access to any other cryptocurrency. This limitation was a primary reason Cash App Crypto didn’t score higher in our review of the service.
Nonetheless, Cash App is a good place to start if you’re a beginner who wants to get your hands on a few bucks’ worth of Bitcoin.
Take Custody of Your Bitcoin
Most digital banking solutions that allow you to bank with cryptocurrency are custodians of the cryptocurrencies you buy. In reality, that means you never really own your cryptocurrency.
With no central authority dictating terms in the blockchain, ownership boils down to the crypto wallet address that holds the assets. If that digital wall ID is your custodian’s wallet, the blockchain doesn’t recognize the asset as yours.
There are some perks to having a custodian. Many custodians are heavily secure, and they can restore access to your assets if you lose your password; both of these aren’t the case when using your own non-custodial wallet.
Nonetheless, many crypto enthusiasts prefer to store their own crypto assets in their own secure wallets, and Cash App makes it possible.
On Cash App, you can transfer your Bitcoin to any cryptocurrency wallet online. Of course, if you choose not to transfer your Bitcoin out of your Cash App account, Cash App will store it securely in its own cryptocurrency wallets. However, it’s nice to know you’re able to transfer your Bitcoin to your wallet at any time.
Send Bitcoin to Friends & Family
As Bitcoin continues to gain in popularity, it’s becoming a great gift idea. It’s also being used as a peer-to-peer payment option. When you use Cash App, sending Bitcoin to friends and family is a breeze.
If you’d like to send Bitcoin to someone else, all you’ll need to do is log into the app and tap the Airplane icon. Next, tap “Send Bitcoin.” Enter the amount of Bitcoin you’d like to send, the recipient’s cashtag, and your pin to complete the transaction.
The best part is that you won’t pay any fees to send Bitcoin to any registered cashtag.
Integration With Existing Cash App Accounts
You won’t have to sign up for a new dedicated crypto account if you’re already a Cash App user. If you use the app, you have access to Bitcoin, it’s that simple!
Cash App Bank Account
Cash App wasn’t designed as a cryptocurrency exchange; it was originally launched as a personal finance and peer-to-peer payment app. It has evolved over time.
One exciting feature resulting from this evolution is the company’s bank account.
The cash app account acts like a traditional bank account. It’s even got a Visa debit card known as the Cash Card. The account has FDIC insurance and you can use your card at any ATM of your choice, although the company does charge a $2 fee for ATM transactions on top of any transaction fees the ATM operator charges.
If you use direct deposit, Cash App will refund up to three ATM operator fees totaling $7 or less per 31-day cycle.
The online bank account features on the app make banking convenient, and it’s relatively easy to track and manage your spending.
Trade Stocks & Exchange-Traded Funds (ETFs)
Cryptocurrencies, including Bitcoin, are high-risk assets and should never make up 100% of your investment allocation. Cash App also offers commission-free stock and ETF trading, making it easy to diversify your investing portfolio.
Admittedly, the app doesn’t feature many charting features or technical analysis tools. So, it’s not a great option for an active trader, but it has everything the average investor needs when making long-term investments.
All cash app users create a cashtag that acts as a virtual address where payments can be sent. The cashtag simplifies sending and receiving payments whether you’re using cash, Bitcoin, stocks, or ETFs.
Advantages of Cash App Crypto
Cash App’s evolution has led to a long list of advantages. Some of the biggest include:
- Availability. The app is available on most mobile devices. Find it in the Google Play store if you’re an Android user, or head over to the Apple App store if you have an iPhone.
- Simplicity. Cash App has always been an easy-to-use application, even in the beginning days when it was simply a payments app. Founder Jack Dorsey and his team clearly held ease of use in high regard when adding features like Cash App Banking, stock & ETF trading, and cryptocurrency trading.
- Take Custody of Your Bitcoin. Cash App is the perfect option if you’re not comfortable with your Bitcoin being held in a custodial wallet by your cryptocurrency exchange. You can easily transfer your crypto holdings to any cryptocurrency wallet of your choice.
- Diversify Your Holdings. Most cryptocurrency exchanges only offer crypto, but Cash App’s focus isn’t only on cryptocurrency. Free stock trading is a major draw to the platform and a huge advantage. With Cash App, you’ll be able to properly diversify your holdings, ensuring all your eggs aren’t in the same basket.
- Cash App Banking. According to the FDIC, over 5% of Americans don’t have a bank account — that’s more than 7 million people. Services like Cash App Banking are making banking services more readily available for the underserved.
- Easily Send and Receive Bitcoin and Other Payments. You can easily send and receive Bitcoin, cash, and shares of stocks and ETFs on the app thanks to the company’s cashtag technology.
Disadvantages of Cash App Crypto
Cash App Crypto is a great way to access Bitcoin, but there are some drawbacks. The most important to consider include:
- Only Bitcoin is Available. Bitcoin is the only cryptocurrency you’ll find on Cash App. If you’re interested in other digital currencies, you’ll need to access them through a different exchange.
- Limited Trading Tools. Cash App’s focus has always been on simplicity, but trading — especially active trading — isn’t a simple process. The Cash App platform lacks the tools and functionality that fast-paced traders need.
- Relatively High Fees for Bitcoin Transactions. Bitcoin transaction fees are the norm, and you’ll pay them with any exchange. On Cash App, Bitcoin transaction fees typically range from 1.5% to 2.3% of the transaction amount and vary based on demand at the time. These fees are on the higher end of the spectrum compared to other cryptocurrency exchanges.
How Cash App Crypto Stacks Up
Cash App’s closest competitor is Venmo, but its largest competitor on the cryptocurrency side of the fence is Coinbase, the world’s largest cryptocurrency exchange. Here’s how the company stacks up:
|Cash App Crypto||Venmo||Coinbase|
|Cryptocurrencies Available||Bitcoin||Bitcoin, Ethereum, Bitcoin Cash, Litecoin||More than 100 cryptocurrency options, including the most popular coins.|
|Spending Card||Cash Card allows you to make purchases against your Cash App balance.||Venmo Card allows you to make purchases against your Venmo balance.||Coinbase Card allows you to use your cryptocurrency for point-of-sale purchases.|
|Fee to Buy Bitcoin||1.5% to 2.3%||2.3% with a $0.50 minimum.||0% to 0.5%|
Cash App Crypto Frequently Asked Questions (FAQs)
It would be hard to learn anything if you didn’t ask questions. If you’re new to Cash App’s cryptocurrency services, chances are you’ve got a few. Find the answers to the most common questions about the app below.
Is Cash App a Good Place to Buy Crypto?
The answer to this question largely depends on you. If you’re only looking for Bitcoin and want one of the most simplified ways to access it possible, Cash App is a great option.
On the other hand, if you’re interested in diversifying your crypto holdings with multiple different coins, or you’re interested in actively trading Bitcoin, the app isn’t going to be a good fit. Bitcoin is the only cryptocurrency available on Cash App, and its charting and trading functionality is limited.
Can I Withdrawal My Crypto From Cash App?
You can withdraw the cryptocurrency held in your Cash App account in two ways:
- Sell Your Crypto. By selling your cryptocurrency, you’ll be converting it into cash that’s added to your Cash App balance. Once the sale is complete, you’ll be able to access the cash at any ATM or use your Cash Card for purchases using the proceeds of the sale.
- Withdrawal to a Digital Wallet. You can also withdraw your Bitcoin to the crypto wallet of your choosing, giving you custody and complete control of your crypto assets.
Are There Cash App Crypto Scams?
Cryptocurrency is a new industry where there’s quite a bit of money being thrown around. Con artists often look to industries like these for weak points and loopholes through which they can make a quick buck at other peoples’ expense.
Unfortunately, crypto scams do take place on Cash App, as they do in just about any other service in the industry.
The key is being knowledgeable about the types of scams con artists use and being diligent about protecting yourself.
When it comes to Cash App, the most common scams are phishing scams. Many users have been conned by people pretending to be the company’s support team and asking for sensitive information. Cash App will never call you and ask for your username, password, PIN, or any other sensitive information associated with your account.
Cash App is a great payment and banking app, but as a means for access to the cryptocurrency market, it has plenty of room to improve. Sure, the platform is a fine fit for beginners who only want access to Bitcoin, but it doesn’t offer the tools or resources serious traders need to succeed.
However, the biggest issue with its platform is that it doesn’t offer any alternatives to Bitcoin.
Diversification is an important tool to protect yourself from significant losses should one asset in your portfolio take a dive. While you can diversify with stocks on the platform, there’s no way to bring diversity to your crypto holdings.
If you’re primarily interested in payments, banking, and maybe buying a little Bitcoin, Cash App is a great option. But if you’re interested in investing or trading in the crypto space, you’ll want to look to other providers with more robust features that cater to you.