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Cryptocurrency News 1 years ago
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Venmo Expands Financial Services to include Cryptocurrency Transactions

Algoine News
Summary:
Venmo, a mobile payment service, offers a range of financial features, including P2P money transfers and cryptocurrency transactions. Since April 2021, it allows users to buy, sell, and hold digital assets like Bitcoin. Presently, users can trade Bitcoin, Ether, Litecoin, and Bitcoin Cash within the app, with plans to incorporate PayPal USD stablecoin in the future. However, crypto purchases are limited to a weekly cap of $20,000 and a yearly cap of $50,000. Venmo also offers price alerts to help users track Bitcoin market movements. However, users should be aware of potential risks and limitations, including the absence of purchase protection for cryptocurrency transactions and the inability to transfer assets to other platforms or personal accounts.
The versatile finance app, Venmo, provides several features such as peer-to-peer money transfers and cryptocurrency trading. Acting as a comprehensive financial tool, Venmo offers users an easy way to execute transactions, including dealing with digital currencies like Bitcoin. The app aims to simplify financial transactions and helps users in managing modern economy systems. Venmo is a mobile payment service, founded in 2009 and acquired by PayPal in 2013. It serves as a platform for money transfers between users and businesses within the United States. Apart from facilitating money transfers, it also serves as a digital wallet, allowing users to store their funds for future use. Further expanding its capabilities, Venmo has integrated cryptocurrency transactions to its functions, enabling users to buy, sell and store digital assets within the app. This feature came to life in April 2021 following a similar move by PayPal, its parent company. Users across the U.S., except Hawaii, can trade four cryptocurrencies: Bitcoin, Ether, Litecoin and Bitcoin Cash. Venmo also has plans to include PayPal USD stablecoin in the future. Users can buy Bitcoin on Venmo using their Venmo balance, debit card or bank account, among other methods. Notably, credit cards and Venmo Credit Cards aren't allowed, and users have restrictions on the amount they can spend on crypto purchase with the weekly and yearly limits set at $20,000 and $50,000 respectively. Buying a cryptocurrency involves currency exchange, with the exchange rate determining the amount of Bitcoin a user get in exchange for their U.S. dollars. Bitcoin's value changes quite often as it’s highly volatile. To buy Bitcoin through Venmo, users need to: 1. Open the Venmo app and tap the “Crypto” tab. 2. Select “Bitcoin” from the list of digital currencies. 3. Click on the “Buy” button, enter the purchase amount, and confirm the details. 4. The app will show a summary of the purchase with any applicable fees. 5. After reviewing, users can finalize their transaction by clicking the “Buy” button. The transactions on Venmo are irreversible. Users would have to trade their cryptocurrencies to get back their U.S. dollars. Venmo doesn't compensate users for any loss caused by price changes. Once a purchase has been successfully made, users can track Bitcoin's price movement in the app. The app provides price history for the selected digital asset. Anyone who fulfills the following conditions is eligible to create a Venmo account and buy Bitcoin: 1. Must be at least 18 years old. 2. Must be physically within the U.S., except Hawaii. 3. Must have a unique U.S. cell phone number not associated with another Venmo account. However, to access the cryptocurrency services, users have to verify their identity by giving information like their Social Security number or Individual Taxpayer Identification Number. These services are only available for personal Venmo accounts. Venmo also allows users to set up Bitcoin price alerts by: 1. Navigating to the “Crypto” tab. 2. Selecting “Bitcoin". 3. Activating price alerts using the Price Alerts toggle. 4. Specifying the desired percentage for price changes. Nevertheless, users shouldn't rely solely on these alerts for making cryptocurrency-related decisions as these alerts could be delayed or disrupted. Concerning fees, Venmo charges a fee based on the purchase size. However, specific spread earned on each transaction is not detailed by Venmo. Users agree to cover all relevant exchange rates, including the spread and applicable fees when using Venmo’s crypto services. If a linked bank account or debit card is used for purchase, additional bank fees may be charged. Despite the benefits, there are certain risks involved with buying Bitcoin through Venmo. Firstly, Venmo's Purchase Protection doesn't cover cryptocurrency purchases. Also, Bitcoin transactions on Venmo are irreversible. Venmo’s Bitcoin and investment balances lack protection by the Federal Deposit Insurance Corporation, Securities Investor Protection Corporation or any other public or private insurance. Thus, funds held within the app are not protected as they would be in a bank account, posing a potential risk for those with significant cryptocurrency holdings. Lastly, acquired assets on Venmo remain limited to the platform prohibiting users from transferring crypto to other platforms or personal accounts. This can be limiting for those who want to store their coins in digital wallets or explore different trading options.

Published At

9/21/2023 3:29:53 PM

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