With the Cash App, you can buy and sell Bitcoin, as well as other cryptocurrencies. And in this guide, we’ll show you exactly how to do it…
Constantly promoted by Joe Rogan on his podcast, the Cash app is one of the most popular and easy ways to buy Bitcoin on your iPhone or Android phone.
Cryptos like Bitcoin are great places to invest and speculate with your spare cash. The market is extremely volatile but, despite all the controversy surrounding cryptocurrencies, there are massive gains to be made.
And blockchain is a technology that is going to completely reshape the world we live in.
I mean, just check out what Ex-Google chairman Eric Schmidt had to say about Bitcoin:
“Bitcoin is a remarkable cryptographic achievement and the ability to create something that is not duplicable in the digital world has enormous value.”
And Julian Assange:
“Bitcoin actually has the balance and incentives right, and that is why it is starting to take off.”
So, yeah, Bitcoin – and other cryptos like Ethereum – are not only interesting, but they’re a great way to grow your investments (providing you know what you’re doing).
Crypto definitely ain’t for noobies, so if you do want to start accumulating Bitcoin or other cryptocurrencies, it is well worth boning-up on the ins-and-outs of buying and selling bitcoin – I’d start here with this course.
Once you know what you’re doing, you can then download the Cash app and start buying and selling Bitcoin. All from the comfort of your iPhone or Android phone.
How To Buy Bitcoin Using Cash App
The process is actually pretty simple. Just follow these steps to buy Bitcoin via the Cash app:
1. Download Cash App
First things first: download the Cash app. You can get it via the App Store or Google Play, so it’ll run on all iPhones, Android phones, and iOS and Android-powered tablets.
2. Login & Setup
You’ll next be prompted to log in and create an account inside the Cash app. You can use either an email address or your phone number. Once you’ve done this, you’ll be prompted to enter your name. Do this then proceed to the next step.
3. Link Your Bank Account / Payment Method
In order to buy or invest in bitcoin (or the stock market), you’ll need funds in your account. And to get funds into your account, you’ll need to link a bank account to the Cash app.
It’s simple to do, so don’t worry about this aspect. Also, the Cash app uses extensive security protocols to ensure your details and data are kept safe.
4. Get Your Cashtag
The Cashtag is your unique name for receiving funds. You can use whatever you like. And it is worth setting one up because you will be able to earn bonuses whenever somebody signs up via your Cashtag.
You can also use the Cashtag (and your friend’s Cashtag) to send and receive money which is ideal if you’re out with housemates and need to split a bill. Or, you live in a shared household and need to split the cost of utilities like internet, Netflix, and other things.
5. Go To Home Screen of Cash App
Before you can buy Bitcoin, you’ll need to verify your identity. To do this, go to the homescreen, then tap the BITCOIN tab. You will then be asked to verify your account.
6. Account Verification
During the verification process in the Cash app, you’ll need to provide your full name and your social security number. Why? Simple: Cash app, because it deals with money and investments, is required to follow FINRA (Financial Industry Regulatory Authority) compliance rules and adhere to AML/KYC (Anti-Money Laundering and Know Your Customer) regulations.
Once you’ve completed the verification steps, you’ll be sent a notification once your account is verified – it’s usually pretty quick. But it can take up to 24 hours.
7. Select & Invest In Bitcoin
You’re all set up and verified. Now you can buy Bitcoin. In order to buy Bitcoin via the Cash app, simply tap the INVESTING tab and select BITCOIN.
From here, you’ll be able to buy Bitcoin instantly using funds from your linked account.
You can buy as much as you want (up to $100,000 a week). I’d start nice and low, something you can afford to lose and/or won’t miss. Let’s say $100. Enter the figure into the app and select buy.
The Cash app will now buy $100 of Bitcoin (BTC) on your behalf. Want to get fancier? You can set up reoccurring BTC buys inside the Cash app. Select the ONE TIME PURCHASE option and when the menu drops down, select the reoccurring payment option.
With a reoccurring payment, you’ll assign an amount, say, $10 per week, and the Cash app will automatically by $10 worth of BTC every week until you stop it. If you have good cash flow, this is definitely the way to do it – slow and steady always wins out when it comes to investing.
You’ll lose money and gain money but, over the long haul, your small $10 investment per week will eventually grow into a sizeable chunk of BTC. And once the price of BTC skyrockets, as it often does, you sell your BTC and make a killing.
That’s Bitcoin trading in a nutshell. It’s how I do it. And it does work. You just have to be prepared to ride the waves – up and down, up and down, then BOOM, a spike happens in BTC price, and then you sell.
8. Confirming Your Order
Once your order is confirmed, the Bitcoin (BTC) will be transferred to your wallet. You will get a BTC address. Make sure you write it down and DO NOT lose it – this is super-important.
At this point, or, ideally, before you purchase Bitcoin, you’ll want to set up an external Bitcoin wallet, so you can store all your Bitcoin outside of the Cash app.
There are tons of BTC wallets out there; I use Exodus – it’s designed to be simple to use and is, therefore, perfect for those that are new to BTC. Exodus is also completely free. And is available for both iOS and Android.
9. Setting Up Wallet For Withdrawals
Once you have some BTC in your account and you’ve set up Exodus as your external BTC wallet, you can now transfer BTC from the Cash app to your Exodus BTC wallet.
To do this, select the amount of BTC you want to withdraw and then enter the unique address for your Exodus wallet. Hit withdraw, and the BTC will be transferred from your Cash app to your external BTC wallet.
PLEASE NOTE: when making withdrawals ENSURE that you give the Cash app the EXACT write address for your external wallet. Double and triple-check it before you confirm the transaction. If you get it wrong, the BTC will disappear forever, so please make sure you take extra precautions here.
Buying Bitcoin on iPhone & Android: Things To Keep In Mind
That’s it. You’re done. Simple, right? There are a couple of caveats, however: you will need funds in your account to purchase Bitcoin, obvs, and you will also need to enter information about your geographical location.
I’d also recommend that you DO NOT spend ALL your money and/or savings on Bitcoin. You want to start small, only use what you can afford to lose, and build up slowly.
Dropping $10,000 on Bitcoin in one go is NOT advisable. Unless you’re Jeff Bezos. For the average Joe, people like you and me, you’re best spending small amounts often. This way you build up a nice collection of Bitcoin without financially ruining yourself.
I’d recommend using the reoccurring BTC buy option in the Cash app. This way you can make small, consistent BTC buys which will help you quickly – but safely – accumulate BTC over the course of, say, six months to a year.
You will see ups and downs, but by dripping cash into BTC, you avoid getting taken to the cleaners by massive fluctuations. This is how most index funds work and they’re great as well – slow and steady with less risk.
And remember, the price of Bitcoin fluctuates. Massively. What you own today might be worth less tomorrow. But by next week or next month, it could be worth 5X what you paid for it. Such is the magic of crypto investing.
Richard Goodwin has been working as a tech journalist for over 10 years. He is the editor and owner of KnowYourMobile.