Cash App

Introduction

Cash App was originally a P2P payment service providing platform designed by a Fintech company Square Inc in 2013. In due course, it has increased its functionalities and grown its business to help users in buying bitcoin cryptocurrency. 

During the last quarter of 2017, Cash App had become available to users to sell and buy Bitcoin. It started charging almost 1.76% on Bitcoin deals. It is presently a highly profitable service for the company. Based on the current Bitcoin value, the company calculates the price.

Although the Bitcoin transaction is very limited on this platform, you can find some value from it. But, till now, Cash App has not announced anything about the availability of altcoin transactions.

How to create your Cash App account

The first step for creating the Cash App account is to download the app from Play Store/App Store. After downloading the app, you will find the option for registration. As a first-time user, you need to enter the basic details, like email address and mobile number. 

You will receive a verification code in your phone. Then, you have to enter the code to make the signup process successful.

You can also go through the registration process from the official website. You will find the above image every time you sign-in on the platform.

When you have successfully registered with Cash App, you can navigate through the platform. There are some buttons for different functions, like an investment account, money transfer, and finance overview. Moreover, you will find a referral tab helping you to earn money by inviting friends. When your referred friend has signed up and made a transaction, you will earn $15.

Buying Bitcoins on your Cash App

Open the app and go to the Investing section. You will find two options- Bitcoin and Buying stocks. You need to click on Bitcoin to make a purchase. 

Then, hit the Buy button to select the Bitcoin amount that you like to buy. But, to add a custom amount, you have to click on the small dots. Enter the desired amount and tap the option- Next.

You will see the confirmation screen with transaction details, like the Bitcoin amount, the funding source, and the exchange rate. Hit the button- Confirm.

Supported currencies and countries

The Bitcoin-only platform, Cash App, is available in the UK and the USA. Thus, you may also make transactions using fiat currencies, like the British Pound and US dollars. 

Cash App’s Crypto- How does it work?

By accessing the dashboard of Cash App, you will find a separate section to purchase and sell your stocks. Moreover, you will find options for trading Bitcoins from the platform. It is easy to make Bitcoin transactions by clicking a button. However, there are dynamic fees charged for this activity. Until you have started trading, you cannot know the accurate charge.

One of the most noticeable features is that you can withdraw and deposit the cryptocurrency directly from the relevant network. Thus, while purchasing Bitcoins using the Cash App, you will have full control of your crypto assets. You can withdraw Bitcoin and transfer them to your personal wallet. Moreover, you have options for depositing these coins into the Cash App again for the selling purpose. Bitcoin private keys will be under your control.  

Getting cash by converting Cash App Bitcoins

You can do it in two ways by using Cash App- 

• Sell Bitcoins on the platform. Transfer the related fiat currency (obtained from the sale) to the bank account. Then, you can go to the bank to receive the cold cash. 
• The second option is to use the Cash Card and get the cash after-sale from ATMs.

Compatible Crypto Wallets

You can withdraw Cash App Bitcoins to any wallet. Cash App is different from other digital banks, as its Bitcoin integration helps you in controlling your crypto assets. When the virtual currency is in the mobile, it is under the control of the Cash App. However, it also serves your non-custodial storage purposes. As a Cash App user, you can transfer Bitcoin from Cash App to another Bitcoin network.

Fees

You need to know about two major fees while making Bitcoin transactions using Cash App. One of them is the service fee applicable for all types of transactions. Another Cash App fee is based on the volatile price of Bitcoin. These two fees can be about 1.75% of the overall transaction value. It may be slightly high, while compared to some other platforms in the market. But, you will feel comfortable buying virtual currency directly on the platform.

Cash App is something more than a Bitcoin transaction platform, and thus, you have to know about fees related to it. 

• Fees for stock trading– Cash App may not charge a fee for selling and buying traditional stocks. However, you need to pay fees related to transactions, as the local government charges it. That is why the platform will reveal those fees while you are engaged in the trading activities.
• Fees for Cash Cards– The debit card can be integrated into the Cash App balance. While using the card to withdraw some cash, Cash App will charge a $2 fee. 

Is the Cash App exchange secure?

Security is one of the major concerns of every investment, and luckily, Cash App has earned a reputation as a secure platform in the present payment industry. Designed by Square, it has become one of the prominent payment service providers. Moreover, on the official website, it is mentioned that the company has implemented strong fraud detection technologies to ensure safety standards. Although you have a goal of using it as the cryptocurrency investment platform, business clients may use it for PoS transactions. Besides, Cash App has applied encrypted technology to protect your money transfer information.

Some other notable security features are-

• 2-factor authentication-You may enter a password before making a payment.
• Face ID and Touch ID integrations

More tips to protect your assets-

• Turn on the security features in Cash App- From the home screen of your profile, you can choose the option- Privacy & Security. Click on the Security Lock button. Set the PIN or activate the Touch ID feature of your mobile.
• Never store a high amount of money- Your Cash App account balance is not insured from a Federal perspective. That is why you must not choose as the substitute for your bank account.
• Send your digital assets to some trusted persons- Avoid sending funds to account holders whom you do not know. Moreover, you must verify the recipient’s account information. 

Deposit and withdrawal 

With Cash App, you can transfer Bitcoins to your friend’s $Cashtag. However, the wallet-to-wallet transfer process may be slightly confusing when you are not familiar with crypto. 

To receive and send Bitcoin to a different Bitcoin wallet using Cash App, you have to go through the deposit and withdrawal process. 

Thus, you need to turn on the Bitcoin Withdrawal and Deposits option before sending Bitcoins. Verification is also essential to make the transfer successful.

Click the Deposit option to receive the amount to Cash App’s public address. Similarly, you can choose the Withdraw button to send the amount outside this address.

The Bitcoin address needs to be copied and pasted before sending your money to any person. You may also scan the available QR code to check the validity of the address.  

The Bitcoin deposit and withdrawal process needs confirmation on the blockchain, and it may cover at least 30 minutes. Thus, Bitcoin payments are very easy, although you need to go through some steps to accomplish the process.

The good news is that Cash App has recently increased the minimum withdrawal limit.  Previously, it was .0001 Bitcoin, and now it is to .001 Bitcoin. Make sure that your Cash App account balance is at least 0.001 Bitcoin. In a single day, your withdrawal limit is $2,000. Similarly, in one week, it is $5,000. To move funds to some external wallets, you may need to wait for more than two hours.

According to the present exchange rates, the value of 1 BTC is $54,785. Thus, you can calculate the amount based on the minimum withdrawal limit.

Pros and Cons

Pros-

• Easy to make mobile payments 
• Buy and sell Bitcoins
• No additional fee for receiving and sending money
• No commission fee for stock investment 

Cons-

The transaction limit for the first 30 days is low.

Conclusion

Cash App is a legitimate platform as the peer-to-peer payment platform and cryptocurrency exchange. You can send payments to businesses, colleagues, and friends. However, geographical restriction is one of the major drawbacks of Cash App. Users from only the USA and the UK can use the app. When you are in the USA, you can send money to another US user. Still, you can try out Cash App to get an advantage of the direct deposit functionality of the platform.