Guide To Buying and Selling Crypto With Venmo

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Venmo, best known for its seamless peer-to-peer payment experience, entered the cryptocurrency space in 2021 by allowing users to buy, sell, and hold digital assets directly within the app. While this integration brings crypto access to mainstream users, it comes with notable limitations in functionality, selection, and cost. This guide breaks down everything you need to know about using Venmo for cryptocurrency transactions—covering setup, fees, security, and alternatives.

How To Buy Crypto On Venmo

Buying crypto on Venmo is designed to be user-friendly, especially for those already familiar with the app’s interface. However, before making your first purchase, several steps are required.

Step 1: Verify Your Identity

To comply with financial regulations and prevent fraud, Venmo requires full identity verification before enabling crypto trading. This process includes submitting:

The verification process typically takes a few minutes to a few days. Once approved, you gain access to all crypto features.

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Step 2: Choose Your Cryptocurrency

Venmo supports a limited selection of five cryptocurrencies:

Among these, PayPal USD stands out as a stablecoin issued by PayPal, fully backed by U.S. dollar deposits and short-term U.S. Treasuries. Notably, Venmo does not charge fees for buying or selling PYUSD—making it a cost-effective option for stablecoin transactions.

Step 3: Determine Purchase Amount

You can buy as little as $1 worth of cryptocurrency, making Venmo accessible for micro-investors. However, weekly and annual limits apply:

These caps may affect active traders or those looking to make larger investments.

Step 4: Select a Payment Method

Venmo allows three funding sources for crypto purchases:

While all options work, using your Venmo balance or bank transfer tends to be more cost-efficient than debit cards, which may incur additional processing fees elsewhere.

Step 5: Confirm and Complete the Transaction

Before finalizing your purchase, review the total cost—including the base price, flat fee, and spread. Once confirmed, the transaction executes instantly. Your newly acquired crypto appears in your Venmo wallet under the “Crypto” tab, where you can track performance and transaction history.

Understanding Venmo Crypto Fees

One of the biggest drawbacks of using Venmo for crypto is its relatively high fee structure compared to dedicated exchanges.

Purchase Fees Breakdown

Venmo uses a tiered flat fee model for smaller transactions and percentage-based fees for larger ones:

Additionally, a spread fee of approximately 0.50% is built into every trade. This hidden cost reflects the difference between the market price and what Venmo charges—effectively increasing your overall expense.

Transfer and Withdrawal Fees

While internal transfers are free, moving crypto off-platform incurs costs:

This last fee varies based on blockchain congestion and cannot be avoided when withdrawing to self-custody wallets.

Holding Crypto On Venmo

Your cryptocurrency holdings are stored in secure custodial wallets managed by Paxos Trust Company, LLC, a regulated financial institution specializing in digital asset custody. While this adds a layer of institutional security, there are important caveats:

Despite these risks, you can monitor your portfolio’s performance directly in the app and view historical returns—a useful feature for casual investors.

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Selling Crypto On Venmo

Selling works similarly to buying:

  1. Open the “Crypto” tab
  2. Select the asset you want to sell
  3. Enter the amount
  4. Confirm the sale

Fees mirror those for purchases: flat fees for small amounts and percentage-based fees above $200, plus the standard spread. Proceeds are deposited into your Venmo balance, from which you can transfer to your bank account or use for payments.

Can You Earn Interest On Crypto With Venmo?

Currently, Venmo does not offer staking or interest-bearing accounts for cryptocurrency. Unlike platforms such as Coinbase or Kraken, which allow users to earn passive income by locking up assets, Venmo treats crypto purely as a tradable asset—not an income-generating one.

This lack of yield opportunities makes it less appealing for long-term holders seeking growth beyond price appreciation.

Security Considerations When Using Venmo for Crypto

While Paxos provides enterprise-grade custody solutions, you remain vulnerable to platform-specific risks:

For maximum security, experts recommend transferring larger holdings to a self-custody hardware wallet where you control the private keys.

Frequently Asked Questions (FAQ)

Is buying crypto on Venmo safe?
Yes, transactions are protected through encryption and custodial safeguards via Paxos. However, since your crypto isn’t FDIC-insured and you don’t control private keys, it’s safer for short-term use rather than long-term storage.

Can I transfer crypto from Venmo to an external wallet?
Yes. You can send crypto to any compatible third-party wallet. Just save the recipient address in the app and initiate the transfer—though network fees will apply.

How much does Venmo charge to sell crypto?
Selling fees match buying fees: tiered flat rates up to $200 and 1.5%–1.8% above that, plus a ~0.50% spread depending on market conditions.

What cryptocurrencies are available on Venmo?
Venmo supports Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), and PayPal USD (PYUSD).

Are there limits on how much crypto I can buy?
Yes. Weekly purchases are capped at $20,000, with an annual maximum of $50,000 per user.

Does Venmo offer staking or crypto rewards?
No. Unlike other exchanges, Venmo doesn’t currently provide staking, yield farming, or interest programs for crypto holders.

Final Thoughts

Venmo offers a convenient entry point into cryptocurrency for beginners who value simplicity over advanced features. Its integration into a widely used payments app lowers the barrier to entry—but at the cost of higher fees, limited coin selection, and reduced control over assets.

For serious investors or those looking to maximize returns and minimize costs, dedicated crypto platforms often provide better value through lower fees, broader functionality, and earning opportunities like staking.

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