Venmo, the popular peer-to-peer payment app, has expanded its financial offerings by allowing users to buy, sell, and hold cryptocurrencies directly within the app. Since its crypto feature launched in 2021—following a similar move by its parent company, PayPal—Venmo has become a convenient entry point for casual investors looking to dip their toes into digital assets.
While it’s user-friendly and accessible, especially for small-scale transactions, Venmo's crypto functionality is more limited compared to dedicated cryptocurrency exchanges. You can’t transfer your crypto to an external wallet, use it for payments, or trade directly with other users. Despite these constraints, it remains a viable option for beginners who want a simple, integrated experience.
The platform supports four major cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH). Transaction fees are moderately priced but can add up, especially on smaller purchases. Understanding how Venmo handles buying, selling, fees, and security will help you make informed decisions.
How to Buy Crypto on Venmo
To begin trading crypto on Venmo, you’ll need a verified personal account. Business accounts and users in Hawaii are currently ineligible for cryptocurrency transactions.
Here’s a step-by-step guide:
- Navigate to the Crypto Tab
Open the Venmo app and locate the “Crypto” tab at the bottom of the home screen. This is your gateway to all crypto-related activities. - Complete Identity Verification
Before trading, Venmo requires identity verification. You may need to accept crypto-specific terms and conditions and submit documents to confirm your name, address, date of birth, and Social Security number. Assistance is available through Venmo’s support page if needed. - Enter Purchase Amount
Input the dollar amount you’d like to spend (as little as $1). Tap “Review” to see the exact amount of cryptocurrency you’ll receive and any associated fees. - Select Payment Method
Choose from your Venmo balance, linked bank account, or debit card. Keep in mind that credit cards are not supported for crypto purchases. - Confirm the Purchase
Tap “Buy” to complete the transaction. Venmo updates prices every few seconds, so the final value is locked in at the moment you confirm.
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Understanding Venmo’s Crypto Fees
Venmo charges two types of fees for crypto transactions:
- Trading Spread: Approximately 0.5%, based on the difference between the market price and Venmo’s exchange rate.
- Transaction Fee: A flat or percentage-based fee depending on purchase size.
Here’s a breakdown of transaction fees:
- $1.00 – $4.99: $0.49
- $5.00 – $24.99: $0.99
- $25.00 – $74.99: $1.99
- $75.00 – $200.00: $2.49
- $200.01 – $1,000.00: 1.80%
- Over $1,000.00: 1.50%
These fees are applied on both purchases and sales, making frequent small trades relatively costly compared to zero-fee platforms.
Holding Cryptocurrency on Venmo
There are no fees for holding crypto in your Venmo account. You can monitor your portfolio in real time, view current market values, and track transaction history by currency.
Venmo also displays your “Total Return”—the overall profit or loss across all your crypto holdings based on purchase price versus current value.
However, you cannot withdraw crypto to an external wallet. Your assets remain custodied within Venmo’s system, which limits control and long-term security. For larger holdings or enhanced security, a self-custody wallet is strongly recommended.
How to Sell Crypto on Venmo
Selling works similarly to buying:
- Go to the Crypto tab.
- Select the asset you want to sell.
- Enter the dollar amount or select “Sell All.”
- Review fees and final payout.
- Confirm the sale.
Proceeds are deposited into your Venmo balance and can be used for peer-to-peer payments or transferred to your bank account.
Just like purchases, selling incurs the same fee structure: transaction fee plus ~0.5% spread.
Earning Crypto Rewards With the Venmo Credit Card
Venmo offers a co-branded credit card that lets you earn cash back on purchases. At the end of each rewards cycle, you can choose to redeem your cash back as cryptocurrency.
While Venmo waives its usual transaction fees for these automatic crypto purchases, the 0.5% market spread still applies.
This feature provides a passive way to accumulate small amounts of digital assets through everyday spending—ideal for gradual portfolio building.
Setting Price Alerts
Stay informed with customizable price alerts:
- Go to Settings > Push Notifications.
- Enable alerts for specific cryptocurrencies.
- Set thresholds for percentage increases or decreases (e.g., “Alert me if Bitcoin drops 5%”).
These notifications help you react quickly to market movements without constantly monitoring prices.
Security and Protections
It’s important to understand that crypto holdings on Venmo are not protected by FDIC insurance, unlike traditional bank deposits. This means if something goes wrong—such as a security breach—your funds may not be recoverable.
However, Venmo states that unauthorized transactions will be investigated and users are protected against fraud. If you notice suspicious activity, contact customer support immediately through the app’s help center.
While convenient, this custodial model means you’re trusting Venmo with your assets—there’s no private key access or self-sovereignty over your coins.
Frequently Asked Questions (FAQ)
Q: Can I transfer my crypto from Venmo to another wallet?
A: No. Venmo does not allow transfers to external wallets or other platforms. Your crypto stays within the app.
Q: Is there a limit on how much crypto I can buy?
A: Yes. The weekly limit is $20,000, with a maximum of $50,000 within any 12-month period.
Q: Are there fees for holding crypto on Venmo?
A: No. There are no storage or maintenance fees for keeping crypto in your Venmo account.
Q: Can I use crypto to pay friends on Venmo?
A: Not currently. You cannot spend cryptocurrency directly through the app for peer-to-peer payments or purchases.
Q: Which cryptocurrencies does Venmo support?
A: Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH).
Q: Is Venmo’s crypto service available everywhere in the U.S.?
A: No. It’s unavailable in Hawaii, and business accounts cannot participate.
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Final Thoughts
Venmo offers a beginner-friendly way to buy and sell major cryptocurrencies without leaving a familiar app environment. Its integration with everyday payments and credit card rewards makes it appealing for casual investors.
However, its limitations—no wallet transfers, no spending functionality, and relatively high fees—make it less suitable for serious traders or long-term holders.
For those looking to grow their crypto journey beyond basic trading, exploring dedicated platforms with greater flexibility and control may be the next logical step.
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