Buying crypto within cash and payment apps
A number of cash and peer-to-peer payment apps now allow users to buy and sell Bitcoin. On balance, these apps are more limited in what they offer than the exchanges and brokers above.
CashApp, a peer-to-peer money transfer system run by Square, allows users to purchase and sell Bitcoin. Unlike other cash apps noted here, Cash App allows users to transfer their Bitcoin to their own cryptocurrency wallet. Cash App charges a fee depending on price volatility and market trading volume, which it reveals at the time of purchase.
PayPal allows users to purchase and sell Bitcoin, Ethereum, Litecoin and Bitcoin Cash. Fees include an estimated 0.5% trading fee (this may vary depending on market conditions) and a tiered transaction fee that amounts to $2.49 for $200 in Bitcoin.
PayPal allows purchases to be made with crypto where available, but you will need to pay taxes on the sale of Bitcoin on top of any taxes related to the purchase of the goods or service.
Venmo also offers Bitcoin, Ethereum, Litecoin and Bitcoin Cash. Venmo, which is owned by the same company as PayPal, has a similar fee structure: estimated 0.5% trading cost, with a fee structure that amounts to $2.49 on a $200 purchase.
