What is Cryptocurrency?
Cryptocurrency is a digital or virtual currency that is created by Cryptography. It is not physical and not issued by a central authority. It utilizes a decentralized network and works through a distributed ledger technology, known as a Blockchain.
What cryptocurrencies does Venmo support?
Customers in the US (except Hawaii) can buy, sell and hold four different cryptocurrencies on Venmo: Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
- Bitcoin was invented in 2009 by Satoshi Nakamoto, it is the largest cryptocurrency by value.
- Ethereum is also known as Ether. It is the 2nd largest cryptocurrency by value. It is a decentralized Blockchain featuring smart contract functionality.
- Bitcoin Cash was created in 2017. The group behind Bitcoin Cash say transaction times are faster than the original Bitcoin.
- Litecoin was designed to be a future payment method and can be mined more quickly than Bitcoin - producing one new coin every 2.5 minutes (whereas Bitcoin produces one every 10 minutes).
Who can buy, sell, and hold cryptocurrencies?
Customers in the US (except Hawaii) who have verified their identity with Venmo can buy, sell, and hold cryptocurrency with their personal Venmo profiles. Cryptocurrency transactions are not supported for business profiles on Venmo.
How do I sign up for buying, selling, and holding cryptocurrencies?
In order to buy, sell, and hold cryptocurrencies on Venmo, you will need to verify your identity. You can find more information about this process here.
Are there fees for buying or selling cryptocurrency on Venmo?
Venmo’s crypto fees are from the spread (or margin) between the market price we receive from our trading service provider (Paxos) and the exchange rate between US dollars and the crypto asset displayed to the user, and a transaction fee when buying or selling crypto assets. At the time you buy or sell crypto assets, we will disclose to you the applicable exchange rate and the amount of fees that you will be charged for that transaction.
The exchange rate may include an estimated spread of one-half of one percent (0.50%), provided, however, that the actual spread may be higher or lower based on market conditions. We will not separately calculate or disclose the spread we earn on each transaction. By using Venmo’s crypto services, you agree to pay all applicable exchange rates (including spread) and fees.
If you use a linked bank account or debit card as a funding source to buy crypto assets, your bank may charge you its own fees, including overdraft fees or insufficient fund fees, if applicable. Venmo is not responsible for any fees that may be charged to you by your bank.
More information on pricing and fees can be found on the Venmo Fees page.
Can I use cryptocurrencies to pay or send money with Venmo?
At this time, you cannot use crypto as a way to pay or send money on Venmo.
Can I use my cryptocurrency balance as a funding source for my purchases?
At this time, you cannot use crypto as a way to make purchases with Venmo.
I made crypto purchase in error - can I cancel or reverse it?
There is not a way for you to cancel or reverse a crypto transaction.
Are cryptocurrency purchases covered by Venmo Purchase Protection?
Venmo Purchase Protection does not cover cryptocurrency purchases. However, cryptocurrency purchases are protected in the event unauthorized activity takes place.
Venmo will not cover losses from cryptocurrency price fluctuations and we recommend that customers make sure purchasing crypto is right for their individual financial situations. Since crypto purchases and sales aren't reversible, Venmo urges customers to do their research and make decisions carefully.
Will I pay tax on cryptocurrency profits?
For any tax advice, you would need to speak with a tax expert. For more tax info, see this page.
Can I transfer cryptocurrency into and out of Venmo?
Currently, you can only hold the cryptocurrency that you buy on Venmo in your account. Additionally, the cryptocurrency in your account cannot be transferred to other accounts on or off Venmo.
What are the limits?
You are limited to $20,000 in cryptocurrency purchases per week. There is also a limit of $50,000 in cryptocurrency purchases in a 12-month period. You can find more information about other transaction limits for Venmo accounts here.
Will Venmo support peer-to-peer (P2P) crypto trades?
Not at this time. Venmo only supports the purchase and sale of cryptocurrency using your Venmo account. To complete P2P transactions with Venmo, all crypto assets held with Venmo must be sold and thus converted into USD.