Venmo has today announced that its eponymous mobile app will now allow users to trade in cryptocurrency. Starting today, the Venmo app is adding support for cryptocurrency trading, and it will gradually expand to all users within the next few months. Right now, the app only supports four cryptocurrencies – Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. Sorry folks, no Dogecoin for now!
You can only spend $20,000/week or a maximum of $50,000/year for buying cryptocurrencies
The PayPal-owned company says that users can start their journey into the world of cryptocurrencies by purchasing crypto worth as little as $1. In addition to letting users buy, sell, or hold cryptocurrency, the Venmo app will also educate others about the whole cryptocurrency phenomenon. If you got questions such as ‘what is cryptocurrency’, ‘how is cryptocurrency different from owning stocks’, ‘what is the difference between owning cash vis-a-vis crypto money’, and ‘what is blockchain,’ among others, the app will help you find an answer to these questions too with guides and explainers.
Welcome to the world of #crypto, now on Venmo. ?✨ Get started in the app with as little as $1.
Learn more → https://t.co/CBa8a2odas pic.twitter.com/smMoPCVZxG
— Venmo (@Venmo) April 20, 2021
And once you’ve made your first cryptocurrency transaction, you can choose to share the achievement in a feed populated by fellow cryptocurrency enthusiasts. The purpose, as outlined in the official press release, is to help users familiarize themselves with the whole world of cryptocurrencies and how it is going to become – or not – the future of global economy in the near future.
But…
There are a few conditions and limitations to the Venmo app adding support for cryptocurrency trading. First of all, you need to get your identity verified. And in case your account is classified as a business profile, you can not engage in cryptocurrency trading. Moreover, you can only spend a maximum amount of $20,000 per week for buying cryptocurrencies, and up to $50,000 in a year.
Right now, Venmo app doesn't support peer-to-peer (P2P) crypto trading
Additionally, the Venmo app doesn’t support paying for items in crypto. Moreover, once you’ve purchased or sold Bitcoin (or any of the four supported cryptocurrencies), you cannot cancel or reverse that transaction. Lastly, cryptocurrency purchases are not protected by the Venmo Purchase Protection. And just in case you were wondering, yes, Venmo will charge a fee for all cryptocurrency transactions, and you can read about the rates here.