Guide To Buying and Selling Crypto With Venmo
Written by
Jacob Wade
Edited by
Emily Gadd
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Venmo is a popular peer-to-peer payments app that added support for buying and selling crypto in 2021. You can purchase a few different cryptocurrencies on the platform, but support and functionality is limited. Here’s everything you need to know about buying and selling cryptocurrency with Venmo:
How To Buy Crypto On Venmo
If you want to buy crypto with Venmo, here are the steps to take:
Step 1: Verify Your Identity
Before you can buy or sell crypto on Venmo, you’ll need to verify your account through the identity verification process. This is for account protection and liability reasons–and requires submitting personal information plus supporting documentation. You will need to provide:
- Name
- Address
- Social Security Number
- A photo ID (such as a driver’s license)
- Proof of address (such as a recent utility bill)
Step 2: Choose Your Cryptocurrency
Once your account is verified, navigate to the “Crypto” tab within the Venmo app and choose which cryptocurrency you wish to purchase. Currently, Venmo only supports five crypto, including:
- Bitcoin
- Ethereum
- Litecoin
- Bitcoin Cash
- PayPal USD
Note: There are no fees charged to purchase PayPal USD, which is a crypto launched by Venmo’s parent company, PayPal.
Step 3: Choose How Much Crypto You Want To Buy
Once you’ve selected the crypto you wish to purchase, you’ll need to specify an amount. Venmo allows you to purchase as little as $1 of crypto, and up to $20,000 in crypto purchases per week. The total amount of crypto you can purchase in a 12-month period is $50,000.
Step 4: Select Your Payment Method
Once you’ve selected your crypto and how much to purchase, you’ll need to choose how you want to pay. You can buy crypto with your:
- Venmo balance
- Linked debit card
- Bank account
Step 5: Confirm Your Purchase
To finalize your purchase, review your order (including applicable fees), and confirm by hitting the “Buy” button. The transaction will complete, and you’ll be able to review your order history and crypto balance in your Venmo wallet.
Venmo Crypto Fees
When buying crypto on Venmo, you’ll have to pay fees. Venmo charges a flat fee on your crypto purchase based on the amount you choose to spend. There’s also a “spread” fee of about 0.50% built into each transaction, which will vary by your crypto chosen and market conditions.
Thanks!
Venmo charges more than most reputable crypto exchanges, and buying smaller amounts of crypto with Venmo may result in a higher fee. Here’s how the fees break down when buying crypto with Venmo:
| Purchase amount | 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 – $1000.00 | 1.80% |
| >$1000 | 1.50% |
In addition to buying and selling fees, there are other fees that may be assessed on crypto within your Venmo account:
| Venmo transaction | Fee |
|---|---|
| Receiving a cryptocurrency transfer | $0 |
| Transferring cryptocurrency to another Venmo or PayPal account | $0 |
| Transferring cryptocurrency to an address outside of Venmo or PayPal | Amount varies (paid in cryptocurrency) |
Holding Crypto On Venmo
Venmo holds your crypto in a secured wallet through custodian Paxos Trust Company, LLC. But you can manage all your crypto holdings directly through the Venmo app. There are no fees to store your crypto in your Venmo wallet, and you can view your purchase history and investment returns within the Venmo “Crypto” tab.
You can also now send and receive crypto from external wallets with Venmo. This allows you to send cryptocurrency to a supported wallet–whether it’s another Venmo or PayPal user–or a third-party crypto wallet.
Selling Crypto On Venmo
When you want to sell your crypto through Venmo, you follow the same process as purchasing crypto:
- You’ll navigate to the “Crypto” tab within the Venmo app
- Choose the crypto you want to sell
- Choose how much to sell
- Submit your order
Selling crypto requires paying the same fees as when you buy. When the transaction is complete, your proceeds will be deposited into your Venmo balance.
Earning Crypto On Venmo
You cannot currently earn cryptocurrency through Venmo. Many other crypto exchanges allow you to earn interest on your cryptocurrency through crypto “staking.” The process involves locking up your crypto for a period of time and earning interest. And some exchanges (like Coinbase) may pay you interest just for holding your crypto on the platform. But, Venmo does not currently offer this.
Protecting Your Crypto In Venmo
Venmo keeps all cryptocurrency in secure wallets with partner custodian Paxos Trust Company, LLC. But it’s important to note that cryptocurrency balances are not insured like a regular bank account, and you will not be reimbursed if you lose access to your account or if Venmo shuts down. It’s usually safer to store your cryptocurrency in an offline hardware wallet that you control.
FAQ
- Is buying crypto on Venmo a good idea?
- Buying crypto on Venmo is easy--but it may not be the best idea. The fees are much higher than most exchanges, and you don't control your cryptocurrency unless you take personal custody through a third-party wallet or hardware wallet. Buying crypto through a trusted crypto exchange is usually a better bet.
- Can you transfer crypto from Venmo to a wallet?
- Yes, you can now transfer crypto from Venmo to an external wallet. You can save external wallet addresses in the Venmo app and choose to transfer your holdings at any time. But external crypto transfers charge a network fee that you'll have to pay each time you transfer.
- How much does Venmo charge to sell crypto?
- Venmo charges a flat fee plus a "spread" when selling crypto. The spread fee is usually around 0.50%, but can vary based on the coin you're selling and market conditions. The flat fee ranges from $0.49 up to $2.49 for transactions under $200, and from 1.50% to 1.80% for transactions over $200.
- How to sell crypto on Venmo?
- When you want to sell crypto on Venmo, you can simply navigate to the "Crypto" tab within the app, select the crypto you want to sell, select the amount to sell, and complete the transaction. After you sell your crypto, the proceeds will deposit into your venmo balance.
