How to Buy Bitcoin on Cash App: Your 2023 Step-by-Step Guide

Why Buy Bitcoin Through Cash App?

Cash App has revolutionized cryptocurrency access by making Bitcoin purchases instant and intuitive. Owned by Block (formerly Square), this mobile payment platform eliminates complex exchanges, allowing you to buy Bitcoin directly from your smartphone in under 5 minutes. With over 44 million active users, Cash App combines bank transfers, peer payments, and Bitcoin trading in one secure ecosystem—perfect for beginners dipping into crypto.

Step 1: Download and Set Up Cash App

1. Download Cash App from the iOS App Store or Google Play Store
2. Open the app and enter your phone number or email
3. Link a debit card for instant Bitcoin purchases (credit cards not supported)
4. Create your unique $Cashtag username

Pro Tip: Enable two-factor authentication in Settings > Privacy & Security for added protection.

Step 2: Complete Identity Verification (KYC)

Cash App requires Know Your Customer (KYC) compliance. Tap the profile icon > Personal > Verify Identity. You’ll need:

• Full legal name
• Date of birth
• Last 4 digits of your SSN
• A clear photo of your driver’s license or passport

Verification typically takes 24-48 hours. Limits increase after approval ($7,500/week for buys).

Step 3: Add Funds to Your Cash App Balance

1. Tap the Banking tab (🏦 icon)
2. Select “Add Cash”
3. Enter amount (minimum $1)
4. Confirm with PIN or biometrics

Funds arrive instantly from linked debit cards. Bank transfers take 1-3 business days.

Step 4: Navigate to the Bitcoin Section

From the app home screen:

1. Tap the Bitcoin tab (₿ icon) on the bottom toolbar
2. Review real-time Bitcoin price charts
3. Tap “Buy” to initiate your transaction

Step 5: Execute Your Bitcoin Purchase

1. Enter purchase amount in USD (min $1)
2. Toggle between “USD” or “BTC” amount views
3. Review fees (see breakdown below)
4. Tap “Confirm & Buy” and authenticate

Bitcoin appears in your Cash App wallet immediately. Transactions are irreversible.

Step 6: Secure Your Bitcoin (Critical!)

While Cash App provides custodial storage, experts recommend moving large holdings to a private wallet:

1. Tap Bitcoin tab > Withdraw Bitcoin
2. Scan or paste your external wallet address
3. Confirm network (Bitcoin only)
4. Authorize withdrawal (takes 2+ confirmations)

Recommended Wallets: Ledger Nano X (hardware), Exodus (software), or Trust Wallet (mobile).

Cash App Bitcoin Fees Explained

Understand these costs before buying:

• Service Fee: Variable fee based on market volatility (typically 1%-2%)
• Network Fee: Miner fee for blockchain processing (Cash App covers this)
• Spread: Difference between market price and Cash App’s quoted price

Example: Buying $100 of Bitcoin might deliver $97-$99 worth after fees.

Pro Trading Tips for Cash App Users

• 🛡️ Never share your 12-word recovery phrase
• 📈 Use recurring buys to dollar-cost average
• 🔔 Set price alerts in the Investing tab
• 💸 Sell Bitcoin instantly to your Cash App balance
• 🧾 Track taxes via exported CSV files

Frequently Asked Questions (FAQ)

Q: Is Cash App safe for buying Bitcoin?
A: Yes, with FDIC-insured USD balances, biometric login, and encryption. However, self-custody via hardware wallets is safer for large amounts.

Q: What are the purchase limits?
A: Unverified: $1,000/week. Verified: $7,500/week. Limits reset Sundays at 6 PM CT.

Q: Can I transfer Bitcoin to another exchange?
A: Absolutely. Use the Withdraw function to send BTC to external wallets like Coinbase or Kraken addresses.

Q: How long do withdrawals take?
A: Usually 10-40 minutes depending on Bitcoin network congestion. Cash App processes withdrawals twice daily.

Q: Are there tax implications?
A: Yes. The IRS treats cryptocurrency as property. You’ll owe capital gains tax when selling or trading Bitcoin.

Final Thoughts

Cash App delivers unparalleled simplicity for Bitcoin beginners, but remember: cryptocurrency is volatile. Only invest what you can afford to lose. By following this guide, you’ve learned how to buy Bitcoin on Cash App securely—now explore, learn, and participate in the digital economy responsibly.