The following article will be a useful tool for anyone who wants to get to know and use Venmo, the new everyone’s favorite feature of PayPal. We will explain why you should have Venmo on your radar and go through pros and cons of the method itself, as well as the exchanges that accept the method.
Summary: Ordering Bitcoins with Venmo
- Open an account at P2P platform of your choice (in our case, LocalBitcoins).
- Go to “Search” page and choose wanted country, currency and Venmo as payment method.
- Check out different selling ads and choose one that suits your interest the best by clicking “Buy”.
- Once on the ads’ page, read terms of trade and click “Send trade request” if all is in order.
- Communicate directly with the seller and follow instructions.
- Upload proof on the site once payment is made through Venmo and receive coins.
- Withdraw BTC to your external wallet and keep a record of your transaction.
Rapid exchange network development, as well as the intake of new traders sets bitcoin at the top of digital currencies. Millions of graders are trying to predict the future and fill up their digital wallets, as the value fluctuates. Social networks are upgrading their business models to provide their users with fastest P2P payments. That is where PayPal comes in with its impressive growth among professionals and social media users.
In this quick guide, we will show you how to convert your money into bitcoins using a Venmo account. We will also show you the best place to do so at places that allow you to create and maintain anonymous accounts.
Little Bit About Venmo
Venmo is a free digital wallet that allows you to pay and request money from friends. It is a social service at its finest, letting you split the bill, cab fare, wire your roommate half of the rent and much more. Basically, Venmo is a mobile payment service, which allows its users to transfer money via mobile phone app or web interface.
Cash transfers with Venmo are not momentary, but the service is free, so it is very popular around the world. Currently, it is one of the fastest growing financial apps on the market. Since more and more people tend to use digital wallets these days, the ability to transfer small sums using a simple and clever app is ideal.
Rivalry with Bitcoin
Since the digital finance market is growing fast, some rivalry is necessary, and it has proven useful so far, because the progress usually speeds up, due to the existence of other competitor’s efforts. For example, Venmo is stealing bitcoin’s thunder quickly, as it is faster, and works more transparently, so its users have clearer knowledge of the whereabouts of their money.
Bitcoin is doubling the efforts, and one of the latest novelties is that Square is testing waters with letting a small group of Cash users buy, sell, and hold bitcoin directly from the app. For those of you who are not familiar with it, Square Cash is a Venmo’s rival. Currently, they are just exploring their possibilities.
Safe Place to Use Venmo
Venmo has truly done a lot to ensure its users safety, and protect them from thefts, and even provides consumers with protection policies to losses. Today, Venmo has widely expanded acceptance among merchants, stores, applications. Most of them have already added a Venmo button on their checkout page, and if not, you are able to access it through PayPal button.
Paxful
Paxful is one of major bitcoin trading exchanges, designed to help connect traders to easily and quickly exchange bitcoin. Paxful offers the opportunity to choose from an array of payment methods, one of which is Venmo.
Paxful opted to include a warning on its website, saying that Venmo was not made for moving large volumes of money for major trades, so it can be used, but it is not recommended. Bitcoin value fluctuates much faster than with any other currency, and Paxful considerately updates its rates online, so you are able to view them and calculate before trading.
Pros
- has an escrow system that helps avoid fraud;
- offers more payment methods than most exchanges.
Cons
- charges from sellers a 1% fee on each transaction;
- exchange rates differ from one seller to another, so you should compare rates before choosing.
LocalBitcoins
LocalBitcoins is currently one of the most popular choices concerning the peer-to-peer bitcoin trade in the fast-developing cryptocurrency industry. This platform offers a wide variety of buying options, such as cash via delivery, cash via mail, PayPal, Western Union, Venmo and others.
LocalBitcoins is famous for creating more alternative ways and conveniences regarding the trades. Their customers are able to make and post advertisements, chat about possible options with potential buyers and sellers and confirm transaction items before going through with it. As far as Venmo for bitcoin transaction is concerned, there have been numerous complaints because of frequent scams, so you are advised to be careful.
Pros
- short and simple ID procedure (email/username, password, phone number);
- wide variety of possible payment methods.
Cons
- low security measurements and operating with unverified accounts lead to frequent frauds;
- small numbers when it comes to completed trades per ad.
Cointal
Cointal brought a new approach to the world of cryptocurrency exchange by cutting out the middleman and offering a peer-to-peer marketplace. Cointal is the very first P2P Etherium and Ripple marketplace. Cointal prides itself with its quick transactions, and it takes the average user just five minutes to by the preferred cryptocurrency.
Cointal users can buy and sell bitcoin, and several other altcoins choosing from a wide range of payment methods, one of which is Venmo. However, leveraged trading is quite impossible with Cointal, as it is done between private individuals.
Pros
- low fees, compared to other P2P exchanges;
- very intuitive and convenient web trading interface.
Cons
- no coin-to-coin trading, users can either buy or sell cryptocurrencies, but they can’t exchange them for other altcoins;
- transaction fees are not specified on the website, which means that you won’t be able to calculate the trading costs in advance.
Is It Safe to Buy BTC Using Venmo?
Venmo uses bank-level security and data encryption to ensure its users safety in regard to unauthorized transactions. Venmo also allows its users to set up a PIN code for mobile application and gain some additional security. Venmo security and liabilities insurance protects its users from the majority of theft. If, however, account info gets comprised, users might be able to retrieve their lost funds, provided that Venmo is contacted within two business days.
As far as buying BTC with Venmo is concerned, there have been numerous complaints about some problems during transactions. Usually about Bitcoin Core staying stuck, transactions taking too long to complete, outrageously high fees, and such. Most experienced users strongly advise to transfer your money to your bank and then purchase BTC.
Why Only P2P Platforms Accept This Method?
PayPal’s primary goal with Venmo, was to connect people from all over the world with a free and convenient payment service. Peer-to-peer marketplace, which is a decentralized economy model that operates without a bank or a third party, is a perfect fit for the finance method Venmo is pushing.
One of the primary functions of P2P markets is to make it easy for buyers and sellers to engage in trustworthy and successful transactions. Venmo, with its social aspects and expanding web of traders, is exactly where it is supposed to be. Its ability to integrate with legacy infrastructure, which customers are already comfortable with, peer-to-peer system has proven to be the perfectly suitable market,
What About Other Options?
When deciding on whether to use a certain payment method or not, you should always take all circumstances into consideration. The service handiness, fees and available fiat currencies, customer service, reviews of other users etc. Speed and privacy could also mean a great deal depending on the purpose of your trade.
We pointed out some of the major pros and cons in this guide. Read them carefully, and feel free to do your own research as well. Take all the necessary precautions, before you decide and choose what is best for you.
Roundabout Way to Buy BTC with Venmo
The risky nature of transaction involving Venmo method has discouraged many traders to choose it as a form of payment. Venmo is built to be used between family and friends, so you will have to find a trustworthy person in order to buy bitcoin with Venmo. This method also has easy instant reversal of funds, which basically means that fraud attempts are likely to happen with Venmo.
Venmo also does not need high verification system for new users, as you can use just your name/Facebook profile and password.
This simple verification procedure doesn’t have the proper strict measurement required to ensure a safe big transaction. These are the main reasons why it is almost impossible to a trader willing to accept Venmo as a payment method for bitcoin. If on the other hand, you find a friend who is happy to trade bitcoins with Venmo, feel free to use it.
Proven Place to Store BTC
When it comes to safety, there are a lot of wallets out there that can help you secure your precious coins. Desktop and mobile wallets might provide some nice features, but they cannot be a match to a proper, well-designed hardware device. Ledger Nano S, TREZOR, and KeepKey are all equipped with numerous safety measures, such as physical button trade confirmation, availability to check balances offline and online and many more functions.
Suffice to say, these functions are either non-existent or are only partially available at other platforms, online or on desktop/phones. Thus, if you are looking for a way to securely stash your coins, HD wallets are go-to solution.
If this article did not answer some of your questions or provided your concerns with proper solutions, feel free to contact us directly at BitcoinBestBuy. One of our skillful and experienced team members will get back to you shortly after, with suitable answers.
