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According to Delaware-based strategy consulting firm Global Market Insights, the P2P payment market boasted a size of $3.21 trillion in 2023, and its 2024 figure should present a 15% increase compared to the previous year’s number, maintaining a similar pace of growth until 2032. Naturally, that is happening and will continue to occur because of the widespread adoption of smartphones, as evidenced by the number of active devices reaching 6.84 billion in 2024 per WhatstheBigData.com.
Several US P2P sector players, such as PayPal, Venmo, Zelle, and CashApp, are vying for the top spot in this market. The latter has carved a niche among specific demographics and fans of cryptos due to its Bitcoin storage and trading feature. The app launched in 2013, and in January 2018, its team introduced Bitcoin functionalities, letting users buy and sell BTC super straightforwardly within seconds.
CashApp beat competitors by bringing forward many features, such as sending money over iMessage and launching a physical debit card. Hence, its dive into cryptocurrency surprised no one, a new direction that it accompanied with an explainer site. Below, we give you a quick guide on how to get your feet wet with Bitcoin trading on CashApp.
Setting Up CashApp for Bitcoin
Naturally, the first step in this process is installing CashApp onto your smartphone, which you can do from your app store. All you have to do is follow the on-screen prompts, and you should have your CashApp account created in minutes. The process will entail you supplying some personal info, like your phone number and email, and linking a debit card/bank account to your profile so that you can buy Bitcoin using your real money funds.
After setting up your account, verify your identity before buying/selling Bitcoin. That is a relatively quick process that will require you to give up more personal information, including the last four digits of your Social Security number and a photo of your government-issued ID. Enabling 2FA is a must for an added layer of account protection.
Purchasing Bitcoin on CashApp
To purchase BTC with a funded CashApp balance, tap the Money tab on your CashApp home screen and select the Bitcoin tile by tapping it. Then press Buy, and enter the amount you wish to purchase. You must enter your PIN or Touch ID, which are security features you should have set before reaching this stage. Then, you tap Confirm to finalize your transaction. Be aware that this process may require you to enter additional geographical information. Many users pick this method for crypto gambling at CashApp casino sites, thinking they can avoid geo-restrictions. However, that is not the case, as identity verification nowadays is mandatory at all fiat and coin-based Internet gaming hubs.
Remember that using a debit card to buy Bitcoins may result in higher transaction fees compared to using your balance or bank account. CashApp does charge small fees for Bitcoin purchases. These will somewhat eat into your balance, so remember them.
Selling Bitcoin on CashApp
You go through the same motions described above for buying, but instead of tapping the Buy after doing so on the Bitcoin tile, you tap Sell. Then, you follow the same steps outlined in the previous subheading.
Of course, selling also produces fees, and timing is essential when trading an asset as volatile as Bitcoin, as its price fluctuates frequently and can do so very dramatically.
Sending & Receiving Bitcoin via CashApp
You can transfer BTC to any Lightning-compatible wallet through CashApp. To do so, navigate to the payment pad, hit the USD toggle, and pick BTC from the offered options. Then, input a sum of $1 or above before tapping Pay. Locate your recipient’s phone number, email, or $cashtag to finalize the transfer.
An alternative is to use Bitcoin or Lightning Networks by tapping the Bitcoin tile, then the arrow button, selecting Send Bitcoin, inputting the desired sum and the recipient’s BTC address or $cashtag, pressing Next, choosing a speed, and confirming the desired transaction by tapping Confirm and Send.
Be wary that Bitcoin transactions have limits and accumulate in seven- and thirty-day periods. You can also send Bitcoins as gifts, which many do to split bills or show appreciation. There are no tax implications for this, but there may be some for selling. Please consult an advisor on this topic so that you stay within the law.
CashApp’s Bitcoin Security Features
The app is Level 1 compliant with the PCI Data Security Standard. Hence, all information is encrypted and sent securely to the service’s servers. CashApp does not let anyone borrow or earn interest from anyone’s BTC. Therefore, all users have access to their Bitcoins at any moment and can do with them as they please.
Moreover, most blockchain funds from CashApp stores go into cold wallets, which refer to offline drives in secure locations. This practice reduces the risk of theft. Lastly, CashApp follows KYC regulations, even for Bitcoin-exclusive users. So, everyone must verify their identity here.
