Can you buy Bitcoin with a credit card on Cash App? Continue reading to learn whether you can invest in the popular cryptocurrency with your Cash App account.
Can you buy Bitcoin with a credit card on Cash App?
Yes; you can Buy Bitcoin With Credit Card on Cash App. To buy Bitcoin with a credit card: 1. Open Cash App 2. Link a Credit Card 3. Go to the Bitcoin Purchase Screen 4. Select “Bitcoin” 5. Click “Buy” 6. Confirm Purchase. Bitcoin’s price fluctuates and its value may change rapidly.
Stick around to learn about the process and the risks involved.
RELATED READ:
- What Happens If you Sent Bitcoin to the Old Address of your Cash App account?
- How To Find Cash App Bitcoin Wallet Address?
- How To Send Bitcoin From Cash App To Coinbase?
- How to Withdraw Money and Bitcoin from Bovada to Cash App?
How to Buy Bitcoin on Cash App with Credit Card?
You can use a credit card to buy Bitcoin on Cash App; however, you have to make sure that your cryptocurrency exchange of choice allows the use of credit cards and that it supports payments from credit card issuers.
Buying Bitcoin With Your Cash-App-Linked Credit Card
Cash App supports the following credit cards:
- Visa
- Mastercard
- American Express
- Discover
You can see the complete list of supported and unsupported cards on its website.
Typically, the story should go that once you link your credit card to your Cash App account, you’re good to go on most purchases of goods and services.
However, not all cryptocurrency exchanges and credit card companies let you buy cryptocurrencies like Bitcoin.
Cryptocurrency Exchanges
Some big crypto exchanges like Coinbase don’t support payments for cryptocurrencies facilitated through credit cards.
Meanwhile, less established exchanges like Coinmama only accept two out of the four Cash App-supported credit cards (Visa and Mastercard).
Therefore, look into whether your cryptocurrency exchange of choice allows you to buy cryptocurrency with a credit card. If yes, make sure it supports payments from your credit card issuer (Mastercard, Visa, etc.).
Credit Card Issuers
Your credit card issuer might not allow you to purchase Bitcoin using your card. Once again, you’ll have to look into whether you’re allowed to do so to avoid getting penalized.
Risks of Paying for Bitcoin With a Credit Card
You need to be aware of the risks involved when paying for Bitcoin with a credit card. They’re as follows:
Cash Advance Penalties
If your credit card issuer allows for purchases of Bitcoin, they might treat the transaction as a cash advance. You’re charged 3-5% of the transaction amount when that happens.
Moreover, the interest rates on cash advance transactions are higher, and you don’t get the 21-day grace period you’re usually entitled to for other credit card purchases.
Forex Fee
If you buy Bitcoin from an exchange based offshore, you might incur a 3% foreign exchange fee (if your issuer charges such fees).
Buying Bitcoin Using Cash App Balance
Using a credit card isn’t the only way to buy Bitcoin on Cash App. You can opt for a more hassle-free way when using your Cash App funds to buy the cryptocurrency. This can be done as follows:
- Launching Cash App
- Tapping the Bitcoin tab on the home screen
- Taping “Buy BTC”
- Choosing from the preset amounts or tapping “Select an Amount” to enter a specific figure
- Enter your pin and tap “Confirm”
Restrictions on Cash App Bitcoin Purchases
You need to meet specific requirements before you can purchase Bitcoin through Cash App. The criteria you’ll have to meet are:
- 18 or Older: You’ll need to be at least 18 years old to purchase Bitcoin on Cash App
- Resident in the US: Only people resident in the US and who are using the app within its borders can buy Bitcoin through the service
- Individual, not Entity: Buying Bitcoin on Cash App is strictly people only. No corporations are allowed
Cash App’s Auto Invest Feature
Suppose you’d like to invest in Bitcoin without dealing with the psychological and decision-making aspects. In that case, you can make automated Bitcoin purchases through Cash App’s Auto Invest feature.
You can set an amount and purchasing schedule for your Bitcoin purchases, and Cash App will automatically take care of the rest. To use the feature, do the following:
- Launch Cash App
- Tap on the Bitcoin tab on the home screen
- Tap the “Buy” option
- Navigate to “Standard One-time Order” on the drop-down menu
- Set the frequency (daily, weekly, bi-weekly) of your purchases and tap “Done”
- Choose the amount you’d like to auto-invest from the available presets (minimum $10) or enter a specific amount
- Tap “Next”
- Tap “Confirm”
Also, you can cancel this feature at any time.
Does Cash App Charge a Fee When You Purchase Bitcoin Through Its Service?
Yes, Cash app charges a fee when you purchase Bitcoin. You’ll be presented with Cash App fee for facilitating the purchase before completing the transaction.
The company charges a service fee and an additional fee that it calculates using the price volatility of Bitcoin across US-based crypto exchanges.
Conclusion
Cash App enables you to buy Bitcoin through its platform if you meet its age requirements and have funds in your Cash App balance.
However, if the funds are linked to a credit card, the purchase may not be as straightforward.
Not all cryptocurrency exchanges accept credit cards as a payment method. Additionally, not all issuers allow you to purchase cryptocurrencies on credit. As such, you’ll need to do your due diligence before proceeding.
Did you find this article helpful? Do you have any queries? For any problem, let us know in the comments below and we will try our best to help you out!
