Venmo has become one of the most popular peer-to-peer payment apps, allowing users to easily send and receive money from friends and family. In 2024, Venmo also offers the ability to buy, sell, and hold cryptocurrencies like Bitcoin right within the app. This provides a convenient way for Venmo users to get started with Bitcoin without needing to sign up for a separate cryptocurrency exchange.
However, while you can buy and sell Bitcoin on Venmo, the app does not currently allow you to withdraw your Bitcoin to an external cryptocurrency wallet. This means that any Bitcoin you purchase on Venmo is stuck within your Venmo account.
In this guide, we’ll walk through the options available in 2024 for transferring your Bitcoin from Venmo to a separate cryptocurrency wallet that you control. This gives you increased security and control over your cryptocurrency investments.
Steps to Send Bitcoin from Venmo to Another Wallet
Here are the main methods available for sending Bitcoin out of your Venmo account to another wallet:
Sell Bitcoin on Venmo, Withdraw Funds, Re-Purchase on Exchange
The most straightforward approach is to cash out your Bitcoin on Venmo, withdraw the funds to your bank account, and then use those funds to re-purchase Bitcoin on a cryptocurrency exchange that allows wallet transfers.
Here are the steps:
- Open the Venmo app and go to your crypto wallet.
- Tap on your Bitcoin balance and select “Sell”.
- Confirm the sale amount and Venmo will convert your Bitcoin to USD.
- Go to your USD wallet on Venmo and tap “Transfer Out”.
- Transfer the funds to your connected bank account.
- Once the money is in your bank, use a exchange like Coinbase or Kraken to purchase Bitcoin.
- On the exchange, send your newly purchased Bitcoin to your external wallet address.
The downside to this approach is you may incur some fees and tax liabilities from selling on Venmo and re-purchasing on an exchange. But it does allow you to move your Bitcoin off Venmo to hold in your own wallet.
Use P2P Exchange to Trade Venmo Balance for Bitcoin
Another option is to use a peer-to-peer (P2P) cryptocurrency exchange to trade your Venmo USD balance for Bitcoin. Here’s how:
- Load funds into your Venmo balance if needed.
- Browse P2P exchanges like Paxful or LocalBitcoins for listings accepting Venmo.
- Select a trader with good reviews/reputation.
- Follow the steps to send your Venmo USD balance to the trader.
- The trader will then send Bitcoin from their wallet to your external wallet address.
This allows you to exchange your Venmo balance for Bitcoin directly, avoiding fees and taxable events. However, P2P trades come with increased risk, so be sure to vet the trader carefully before proceeding.
Find Friend/Contact to Trade Venmo Balance for Bitcoin
If you don’t want to use a P2P exchange, another option is to find someone you trust who is willing to trade their Bitcoin for your Venmo balance. The steps would be:
- Load funds into your Venmo balance if needed.
- Contact a friend or acquaintance who owns Bitcoin.
- Agree to send them your Venmo balance.
- Provide the friend your external Bitcoin wallet address.
- The friend then sends an agreed upon amount of Bitcoin to your wallet.
This allows you to exchange your Venmo balance for Bitcoin without fees. However, it requires finding someone willing to trade with you directly. Be sure only to proceed with people you know and trust when arranging these types of trades.
Tips for Transferring Bitcoin from Venmo
When using any of these methods to transfer your Venmo Bitcoin balance, keep these tips in mind:
- Double check wallet addresses – Always verify the receiving wallet address multiple times before initiating a transfer. A wrong address could mean lost funds.
- Start small – Try doing a small test transfer first before moving large amounts. This can help identify any issues and minimize risks.
- Check transfer times – Exchanges and wallets may have different processing times. Factor this in when planning time-sensitive transfers.
- Understand taxes – Selling Bitcoin on Venmo and re-purchasing may be a taxable event. Consult a tax professional if needed.
- Communicate clearly – When coordinating peer-to-peer trades, communicate clearly about timelines, terms, and provide confirmation when payments are sent.
Storing Bitcoin Safely
Once you’ve transferred your Bitcoin from Venmo to an external wallet, it’s important to safely store your funds. Here are some tips:
- Use a hardware wallet like Ledger or Trezor for maximum security. This stores your private keys offline.
- Consider a multisig wallet, which requires multiple signatures to authorize transactions. This provides added security.
- Enable two-factor authentication on your wallets to prevent unauthorized access.
- Keep backup phrases/seeds stored securely offline. This lets you recover access if devices are lost.
- Research and choose trusted wallets that have robust security features enabled by default.
- Split funds between multiple wallets to avoid keeping all eggs in one basket.
Taking steps to store Bitcoin securely reduces the risk of loss due to hacks, phishing, device theft, and other threats.
Venmo’s Future Crypto Plans
While currently limited, there are signs that Venmo plans to expand its cryptocurrency capabilities in the future:
- In 2021, Venmo began allowing users to buy, sell, and hold cryptocurrencies. This demonstrates an interest in crypto services.
- Venmo parent company PayPal already allows for transfers of crypto to external wallets and has a broader range of supported cryptocurrencies.
- Venmo has applied for a Bitlicense in New York, suggesting potential preparation for more robust exchange services.
- Venmo regularly surveys users about their interest and adoption of crypto features, possibly to gauge demand.
- There is competitive pressure from apps like Cash App that support withdrawls to external wallets.
If Venmo enabled withdrawals to external wallets, it would provide a convenient fiat on-ramp directly to Bitcoin and other cryptocurrencies for its over 90 million users.
This potential makes Venmo’s future crypto plans worth watching closely for both current users and the wider crypto community.
Frequently Asked Questions
Is it possible to transfer Bitcoin from Venmo to a wallet?
Currently no, Venmo does not allow transferring Bitcoin to external wallets. Users can only buy, sell, and hold Bitcoin within Venmo. To get Bitcoin into your own wallet, you need to use a workaround like selling and re-purchasing through an exchange.
What are the fees for buying/selling Bitcoin on Venmo?
Venmo charges a spread on each Bitcoin transaction. There are no deposit or withdrawal fees since external transfers are not supported. Venmo’s spread pricing is about 1.5% above market price on buys and 1.5% below market on sells.
Are there any limits for buying Bitcoin on Venmo?
Yes, there are purchase limits when buying crypto on Venmo. The weekly limit is $2,999 worth of crypto. Higher tier Venmo customers may have higher limits. The minimum purchase amount is $1.
Can I use Bitcoin on Venmo to pay friends?
No, Venmo does not currently allow using Bitcoin balances to pay other Venmo users. The crypto balance on Venmo cannot be sent to other users or used to pay merchants. You can only buy, sell, and hold Bitcoin within your Venmo account.
Is Bitcoin on Venmo safe?
Venmo uses industry-standard security measures to protect crypto funds on its platform. Keys are held by Venmo custodians rather than the users themselves. This is safer than holding your own keys, but not as secure as non-custodial wallets where only you control the funds.
Will Venmo ever add support for sending Bitcoin to other wallets?
Venmo has not officially announced plans to allow Bitcoin withdrawals. However, its parent company PayPal already supports this feature. Venmo also appears to be expanding its crypto capabilities over time. There is a possibility that Venmo could enable Bitcoin withdrawals to external wallets in the future, but nothing is guaranteed yet.
Conclusion
While Venmo currently does not allow transferring Bitcoin to external wallets, there are some workarounds available in 2024 using peer-to-peer trades or selling and re-purchasing through a separate exchange. Each approach has its own risks and downsides. But for Venmo users looking to move Bitcoin into a wallet they control, it is possible using these methods.
As Venmo expands its cryptocurrency features over time, enabling withdrawals to external wallets would provide a more seamless experience. But even without native withdrawal support, the ability to purchase Bitcoin within Venmo provides an easy introduction to crypto for its millions of users.
