How to buy crypto with Venmo: A complete tutorial.

Understanding Venmo's Crypto Integration

1. Venmo launched cryptocurrency trading capabilities in 2021, enabling users in eligible U.S. states to buy, hold, and sell select digital assets directly within the app.

2. The service operates through a partnership with Paxos Trust Company, a regulated crypto custodian and issuer of stablecoins like USDP.

3. Supported cryptocurrencies include Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH) — no altcoin expansion has occurred beyond this initial set.

4. Users must complete identity verification aligned with FinCEN and KYC requirements before accessing the crypto feature.

5. Venmo does not support external wallet withdrawals or deposits; all holdings remain custodial and non-transferable outside the platform.

Navigating the Purchase Flow

1. Open the Venmo app and tap the “Crypto” tab located at the bottom navigation bar.

2. Select a supported asset and view real-time pricing, 24-hour change percentage, and market chart.

3. Tap “Buy” and enter either a USD amount or quantity of the chosen cryptocurrency.

4. Confirm the transaction using your PIN, biometric authentication, or Venmo password.

5. Execution occurs instantly at the displayed price, and the purchased tokens appear under “My Holdings” without delay.

Fees and Transaction Limits

1. Venmo charges a spread-based fee rather than a flat commission — the difference between the market rate and the rate shown in-app constitutes the cost.

2. Spread ranges from 1.5% to 2.5%, varying by asset and market volatility; it is disclosed before confirmation.

3. Daily purchase limits start at $1,000 for new users and scale up based on account age, verification level, and transaction history.

4. No fees apply for selling crypto back to USD, though the same spread mechanism applies on the sell side.

5. Instant transfers to linked bank accounts are unavailable for crypto proceeds — funds settle into the Venmo balance within one business day.

Tax Reporting and Recordkeeping

1. Venmo issues IRS Form 1099-B annually to users who sold, exchanged, or disposed of crypto with gross proceeds exceeding $600.

2. The form reports total proceeds but does not include cost basis — users must independently track acquisition dates and prices.

3. In-app transaction history includes timestamps, USD amounts, asset types, and direction (buy/sell), exportable as CSV.

4. Venmo does not calculate capital gains or losses; integration with third-party tax tools like CoinTracker or Koinly requires manual CSV upload.

5. All trades are subject to U.S. federal income tax rules governing property transactions, including short-term and long-term capital gains treatment.

Frequently Asked Questions

Q: Can I transfer my Venmo crypto to an external wallet?No. Venmo maintains full custody. Assets cannot be withdrawn, imported, or connected to hardware or software wallets.

Q: Is Venmo crypto insured against loss or theft?Crypto holdings are covered under Paxos’ crime insurance policy, which protects against cybersecurity breaches and internal fraud, but not against user error or market loss.

Q: Does Venmo support recurring crypto purchases?No recurring buy functionality exists. Each transaction must be initiated manually through the app interface.

Q: Are crypto transactions reversible if sent to the wrong asset?All purchases are final and irrevocable once confirmed. There is no mechanism to cancel or undo a trade after authentication.