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Like any other buying method, Cash App has its pros and cons.
Square’s Cash App has become an incredibly popular financial services platform, with 40 million active users and a ton of valuable features. For example, Cash App users can send money to friends and merchants, receive direct deposits, get a debit card, and start in stocks with as little as $1.
Cash App also allows users to buy, hold, send, receive, and sell Bitcoin. When it comes to buying Bitcoin and other cryptocurrencies, you have several excellent choices, from full-featured cryptocurrency exchanges to apps like this one, so it’s important to determine the best choice for you. With that in mind, here are the pros and cons of using Cash App to buy Bitcoin.
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Reasons to use Cash App to buy Bitcoin
The biggest reason you might want to consider Cash App for buying Bitcoin is the same reason most people use Cash App for other things — it’s easy.
Cash App is one of the most user-friendly financial apps, and that’s true when it comes to buying Bitcoin as well. To buy Bitcoin through your Cash App, simply tap the Bitcoin tab on the home screen, tap “Buy BTC,” select or enter an amount, and confirm the transaction. It’s that easy.
Cash App also makes it easy to send Bitcoin to other people (or to another Bitcoin wallet you own), as well as to receive Bitcoin. Sending Bitcoin to other Cash App users is a very quick and simple process, and sending to external wallets using a QR code or Bitcoin address isn’t much more difficult.
Potential drawbacks of using Cash App to buy Bitcoin
While Cash App is one of (if not the) easiest places to buy, sell, receive, and send Bitcoin, it isn’t without its drawbacks. Here are some of the most important ones:
Fees: Not only does Cash App charge fees for buying and selling Bitcoin, but the fees are not transparent. There is no published fee schedule, and on Cash App’s website, it says, “Cash App may charge a small fee when you buy or sell bitcoin. If so, the fee will be listed on the trade confirmation before you complete the transaction.”
Bitcoin only: For the time being, at least, Cash App only offers Bitcoin. Most other app-based ways to buy Bitcoin offer at least a few other cryptocurrencies.
Simple platform: This is one of the biggest strengths and weaknesses of Cash App. There are a few educational tools about Bitcoin, but not many. Other platforms have extensive educational resources that can be extremely valuable when learning about Bitcoin and other cryptocurrencies.
Is it right for you?
There’s no such thing as a perfect place to buy Bitcoin, and Cash App is no exception. If you’re simply looking to dip your toes into the Bitcoin waters, Cash App could be a good place to start. On the other hand, if you’re looking to learn as much as possible and get serious about cryptocurrencies, one of the full-featured crypto exchanges might be a better choice for you.
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There are hundreds of platforms around the world that are waiting to give you access to thousands of cryptocurrencies. And to find the one that’s right for you, you’ll need to decide what features that matter most to you.
To help you get started, our independent experts have sifted through the options to bring you some of our best cryptocurrency exchanges for 2021. Check out the list here and get started on your crypto journey, today.
About the Author
Matt is a Certified Financial Planner® and investment advisor based in Columbia, South Carolina. He writes personal finance and investment advice, and in 2017 he received the SABEW Best in Business Award.