Key takeaways
- With over 57 million users, Cash App has evolved into a versatile financial platform for money transfers, stock investments, and Bitcoin transactions.
- Sending and receiving Bitcoin is simple. You can use addresses, QR codes, or $Cashtags. Transactions are typically processed within an hour.
- Cash App manages your Bitcoin keys for convenience but limits control and imposes withdrawal caps. It’s ideal for small, frequent transactions.
- Sending Bitcoin requires KYC verification, ensuring secure, regulation-compliant transactions by verifying your identity.
Cash App has become incredibly popular, with over 57 million users managing their finances through the platform as of 2024. Launched in 2013 by Square (now Block, Inc.), it has grown into a financial powerhouse, making everything from sending money to investing in Bitcoin easier.
Originally designed as a simple money transfer tool, Cash App now offers a range of features, including investing in stocks, using a customizable debit card, and exploring cryptocurrency. Bitcoin, the world’s leading cryptocurrency, became part of the platform in 2018, opening up new use cases.
With Cash App, you can send Bitcoin to friends or family anywhere in the world in just a few taps. It eliminates the hassle of traditional bank transfers and removes the need for a separate exchange account. Cash App makes it super simple to buy, sell, and send Bitcoin directly to your friends, all within the app.
If you’re new to Bitcoin on Cash App, you might wonder how it all works. Let’s break it down step by step.
How to Send Bitcoin on Cash App
Sending Bitcoin through the Cash App is straightforward, but first-timers should follow these steps carefully.
Step 1: Open Cash App and Navigate to the Bitcoin Tab
Launch the app and log in. On the home screen, tap the Bitcoin icon (resembling a “B” with two vertical lines) at the bottom of the screen. This opens your Bitcoin wallet.
Step 2: Select “Send Bitcoin”
Tap the “Send” button. You’ll be prompted to enter the recipient’s Bitcoin address, a QR code, or a $Cashtag (if sending to another Cash App user).
Step 3: Enter the Amount
Specify how much Bitcoin you want to send in USD or BTC. Cash App automatically converts the USD amount to Bitcoin using real-time rates.
Step 4: Verify Transaction Details
Double-check the recipient’s address and amount. Bitcoin transactions are irreversible—once sent, they can’t be canceled.
Step 5: Confirm with Your PIN or Biometric Authentication
Cash App requires a security PIN, Face ID, or fingerprint to finalize the transaction.
Step 6: Wait for Confirmation
Transactions typically take up to an hour to process, depending on Bitcoin network congestion. You’ll receive a notification once the transaction is complete.
Pro Tip: Cash App charges a miner fee (paid to Bitcoin network validators) for outgoing transactions. This fee fluctuates based on network demand.
How to Receive Bitcoin on Cash App
Receiving Bitcoin is just as simple. Here’s how:
Step 1: Open Your Bitcoin Wallet on Cash App
Tap the Bitcoin icon on the home screen.
Step 2: Select “Receive Bitcoin”
Click the “Receive” button to generate a unique Bitcoin address or QR code.
Step 3: Share Your Address with the Sender
Copy the alphanumeric address or share the QR code directly. Each address is single-use for privacy reasons, but old addresses remain valid.
Step 4: Wait for the Bitcoin to Arrive
Funds usually appear in your Cash App wallet within 10–30 minutes. You’ll get a notification once the transaction is confirmed on the blockchain.
Important: Cash App doesn’t charge fees for receiving Bitcoin. However, the sender may incur network fees.
How Does Bitcoin Work on Cash App?
Cash App acts as a custodial wallet, meaning it manages the private keys required to access and move your Bitcoin. These private keys are like digital passwords that unlock your cryptocurrency funds. In simple terms, Cash App holds these keys securely on your behalf—similar to how a bank vault stores money for its customers. While this setup offers convenience, it also comes with trade-offs.
Pros of Custodial Wallets on Cash App
- User-Friendly: You don’t need to remember or safeguard complex private keys. Cash App handles that for you, making it perfect for beginners.
- Account Recovery: If you lose access to your phone or forget your credentials, Cash App has built-in recovery options to help you regain access to your account and funds.
Cons of Custodial Wallets on Cash App
- Less Control: You don’t have direct ownership of your private keys. This means you rely on Cash App’s security measures to protect your Bitcoin. If their systems are ever compromised, your assets could be at risk.
- Withdrawal Limits: Cash App imposes daily and weekly limits on Bitcoin withdrawals, which may not suit users who need to move large amounts of cryptocurrency. Identity verification is often required to increase these limits.
Custodial wallets like Cash App are great for small, frequent transactions. They make sending, receiving, and holding Bitcoin easy without requiring technical expertise. However, for larger holdings or if you value complete control over your cryptocurrency, consider transferring your Bitcoin to a non-custodial wallet. Non-custodial wallets like Ledger and Trezor or software-based wallets like Exodus allow you to manage your private keys directly.
This setup gives you full ownership of your Bitcoin but also means you are entirely responsible for safeguarding your private keys. Losing your keys could mean permanently losing your funds, so if you opt for a non-custodial solution, make sure to follow best practices for backup and security.
KYC to Send Bitcoin on Cash App
Cash App requires users to complete Know Your Customer (KYC) verification before sending Bitcoin to comply with financial regulations. Here’s what you need:
- Full Name and Date of Birth
- Social Security Number (SSN) or Tax ID
- Government-Issued Photo ID
Verification takes minutes to a few hours. Once approved, you can send Bitcoin freely, though withdrawal limits may apply.
Regulations aim to prevent fraud and money laundering. Like all U.S.-based financial services, Cash App must adhere to these rules.
Closing Thoughts
Cash App simplifies Bitcoin transactions for everyday users, blending accessibility with robust security. While custodial wallets aren’t ideal for everyone, they’re a practical entry point for those new to crypto. Always double-check addresses, monitor network fees, and consider transferring larger amounts to a private wallet for added security.
FAQs
Is Cash App free?
Cash App doesn’t charge fees for basic services like sending/receiving USD or Bitcoin. However, buying Bitcoin incurs a small fee (0.5%–2% per transaction), and ATM withdrawals cost $2.50 per transaction.
Do I need to complete KYC on Cash App?
Yes. KYC verification is mandatory to send Bitcoin or increase transaction limits. Receiving Bitcoin requires only a valid Cash App account.
You can join the millions leveraging this tool for fast, borderless transactions by demystifying Bitcoin on Cash App. Whether splitting bills or investing, the power of cryptocurrency is at your fingertips.
