Bitcoin has rapidly grown from an obscure cryptocurrency into a mainstream financial asset with the potential to fundamentally transform the global economy. Buying your first bitcoin can be a daunting task if you‘re new to crypto. Thankfully, Cash App offers one the easiest and most convenient methods for purchasing bitcoin in just a few quick steps.
In this comprehensive guide tailored for beginners, we’ll outline everything you need to know from start to finish to buy your first bitcoin on Cash App, including:
- Benefits of Buying Bitcoin on Cash App
- Step-by-Step Purchase Tutorial
- Securing Your Investment
- Cash App Bitcoin Q&A
- The Future of Crypto Adoption
After reading, you‘ll have confidence in safely navigating Cash App to buy, store, and manage bitcoin holdings. Now let’s begin uncovering why Cash App should be your go-to for entering the world of bitcoin!
Why Cash App for Bitcoin Purchases
As bitcoin grew from $5,000 to nearly $60,000 per coin over the last 5 years, platforms like Cash App emerged to meet surging mainstream demand from individual investors.
Bitcoin‘s Meteoric Price Rise Since 2017 via BuyBitcoinWorldwide
Initially released in 2015 as Square Cash, the P2P payments app rebranded to Cash App as part of expanding into bitcoin and stocks. The company behind it, Block (formally Square), is a leader in financial technology innovations.
As a trusted mainstream fintech developer with 70+ million active monthly Cash App users, no platform is better positioned to onboard first-time bitcoin buyers than Cash App.
But why should you choose Cash App over alternatives? Here are the top advantages to buying your first bitcoin on Cash App:
| Cash App Bitcoin Buyer Benefits | Description |
|---|---|
| Simple Interface | Intuitive mobile design perfect for bitcoin beginners. Streamlined buying, selling and withdrawals. |
| Account Security | Password protection, 2FA, and data encryption to safeguard accounts and holdings. |
| Fast Set Up | Can link bank accounts & cards to deposit funds in minutes. |
| Low Fees | Competitive 1.75% purchase & sale fees beat most exchanges. |
| Bonus Perks | $Cashtags for easy transfers + discover bull/bear price alerts. |
| Mainstream Brand | Trusted platform with 70M+ users and A+ BBB rating |
With an accessible design, robust feature set tailored to first-timers, and the reputation of a mainstream fintech app, Cash App checks all the boxes for the best bitcoin buying experience.
Step 1: Download and Sign Up
Let‘s begin by downloading Cash App to your mobile iOS or Android device:
Once installed, open Cash App and enter your email or phone number. You‘ll receive an SMS or email with a verification code to create your account.
Provide some personal details when prompted so Cash App can confirm your identity and eligibility. Required information generally includes:
- Full Legal Name
- Date of Birth
- Physical Address
Cash App has three verification levels that determine account purchasing limits:
| Account Verification Level | Purchase Limit | Requirements |
|---|---|---|
| Basic | $2,500 weekly | Email, DOB, Name |
| Partially Verified | $5,000 weekly | + Physical Address |
| Fully Verified | $7,500 weekly | + SSN or ID Document |
You can unlock higher purchase limits by providing additional info later
Once your account is created, Cash App will default to the basic verification tier. You can start buying up to $2,500 worth of bitcoin immediately.
Enable app lock password protection or biometrics to secure your account. Otherwise, thieves with phone access can buy bitcoin on your wallet!
We’ll also set up 2-factor authentication shortly as an extra account safeguard.
Step 2: Fund Your Cash App Balance
To buy bitcoin, you first need to deposit USD money into your Cash App balance.
Inside Cash App, tap the Banking tab on the bottom to manage linked payment accounts. Select an option to instantly connect your funding source:
Linked Bank Accounts
- Direct bank account deposits and transfers
- Free inbound transfers, 3-5 day wait times
Debit Cards
- Instant access to funds
- 3% inbound transfer fees
Once added, select your linked account and enter the deposit amount. Transferred funds will show in your Cash App USD balance!
Step 3: Navigate to Bitcoin Purchasing
Now that cash is in your account, tap the Investing tab at the bottom of the app screen.
Under Cryptocurrencies, select Bitcoin to reach the buying portal.
The dashboard displays dynamic pricing info:
Review bitcoin’s current cost in dollars alongside 1 hour, daily, and weekly price direction graphs.
When ready, tap the orange Buy Bitcoin button to make your purchase!
Step 4: Enter Purchase Amount
A pop-up will prompt you to enter the dollar amount of bitcoin you wish to buy.
Bitcoin can be divided down to eight decimals. So even tiny investments like $5 are possible on Cash App.
For easy quick buys, there are preset purchase amounts like $10, $25, $50 already entered.
Or manually enter a custom amount – just know your verification limits based on identity confirmation.
After entering a dollar amount, complete the 2-3 checkout confirmation screens and…congrats, you own bitcoin! 🎉
The BTC purchase will execute at the next available price on financial markets and appear in your Cash App bitcoin wallet.
Step 5: Protect Your Investment
Now that you’ve bought bitcoin, let’s enable some account security features to lock down your investment.
Here are four quick safeguards to enact:
1. Two-Factor Authentication
Add an extra verification step when signing in via text message code or authenticator app.
On Cash App‘s profile, navigate to Security > Enable Two-Factor.
2. Screen Lock
Password protect your physical phone access with PIN code, fingerprint, or face recognition.
Locate this setting in your device settings app.
3. Paper Key Backup
Save the paper key phrase Cash App provides at signup. This functions as a master password to restore your account if you lose phone access.
4. External Wallet Transfer
For bitcoin holdings over $500 in value, consider transferring to a hardware wallet. External wallets offer unmatched account security.
Otherwise, enable all on-platform security measures above to lock down your Cash App wallet!
Cash App Bitcoin Q&A
Here are answers to the top 10 most frequently asked questions about buying bitcoin through Cash App:
Is Cash App bitcoin purchasing safe?
Yes. Cash App implements encryption protocols and security features to protect account funds. As long as you enable screen locks and other precautions, Cash App offers adequate safety for buying bitcoin.
What are Cash App‘s fees for buying bitcoin?
A 1.75% service fee is charged per transaction when you buy or sell bitcoin. There are no deposit, transfer or withdrawal fees which makes sending bitcoin to others free.
Can I transfer my purchased bitcoin externally?
Yes, Cash App allows withdrawing your bitcoin off-platform at any time to external wallets you own. Just be aware of network mining fees when sending BTC.
If I lose my phone, can I still access my Cash App bitcoin?
By saving your sign-up paper key backup, you can restore your entire Cash App account + bitcoin on a new device through their recovery process. Their support team is also there to assist account/password troubleshooting issues.
Does Cash App have recurring buys?
At this time, there is no auto-recurring buy option for bitcoin within Cash App. But its simple mobile interface makes it easy to manually execute buys in seconds.
What factors affect Cash App‘s Bitcoin price?
Cash App bases its market data on averages from major exchanges like Coinbase, Bitstamp, and Gemini. Expect about a 1% price spread above broker rates due to direct on-platform buying.
Is there a way to export my Cash App transaction history?
Yes! In Cash App, navigate to your profile > statements page. Here you can export full transaction archives to shareable PDF documents.
What identity verification is required to buy bitcoin on Cash App?
To start, only your phone number, email, name and DOB are required. Optional address and SSN can raise purchase amounts from $2,500 to $7,500 weekly.
Does Cash App have reporting tools for taxes?
Yes, integrated tax centers provide customizable reports tallying your net bitcoin gains/losses for simplifying tax preparation.
Can I earn bitcoin back as rewards within Cash App?
Cash App periodically offers BTC reward promotions as incentives – such as sending $50+ to get $5 in free bitcoin. Otherwise, no dedicated rewards program exists currently.
Hopefully these answers provide more insight into using Cash App for your bitcoin needs!
The Future of Bitcoin & Crypto Adoption on Cash App
Cash App introduced bitcoin to the mainstream fintech world in late 2017. Other prominent apps like PayPal, Robinhood, and Venmo later followed this lead by integrating crypto.
But Cash App maintains the most elegant UX tailored for beginners starting their bitcoin buying journey.
As bitcoin and blockchain technology continue maturing into a recognized asset class over the next decade, expect Cash App to lead innovation in simplifying cryptocurrency storage and utilization:
- Integrating future token listings like Ethereum or USDC to diversify offerings
- Allowing crypto deposits for expanded trading capabilities
- Launching auto-DCA and staking functionality
- Streamlining taxes via integrated reporting tools
- Scaling web dashboard accessibility alongside mobile
Cash App undoubtedly has the brand, platform and vision to keep accelerating bitcoin mass adoption worldwide!
5 Key Beginner Tips When Selecting Bitcoin Wallets
In closing, here are five key tips to guide beginners in finding the right bitcoin wallet and exchange platform:
1. Prioritize Usability
Look for an intuitive interface that simplifies bitcoin buying, selling and transfers.
2. Consider Security & Storage
Understand each platform’s safety measures before depositing assets and private data.
3. Check Identity Verification Requirements
Confirm how much personal info is mandated to unlock account features.
4. Compare Fee Schedules
Minimizing purchase premiums, withdrawal charges and spread markups saves money.
5. Check Company Credibility & Reviews
Vet the wallet provider’s financial licensing, reputation and service history.
Apply this framework when comparing Cash App to alternatives like Coinbase. Ultimately Cash App excels across all five evaluation criteria for the best bitcoin buying experience tailored to first-timers.
