How to buy and sell Bitcoin using the Cash App
Using the Square Cash app (available on iOS & Android):
Tap on your profile image in the upper left hand corner from the Cash App starting screen.
Under Funds, look for Bitcoin. You will see a corresponding balance that should be 0.00 when you are getting started. Tap Bitcoin.
Tap either Buy or Sell.
To Buy Bitcoin, enter the amount of dollars you would like to spend to buy Bitcoin.
Note: You do not have to buy a “whole” Bitcoin. You can purchase as little as $1 of Bitcoin using Cash app, which will give you a fraction of a share.
You will receive a confirmation screen showing you how much Bitcoin you are purchasing at the current exchange rate (ie: The current Bitcoin price).
From their either tap “X” in the upper left hand corner to cancel your purchase, “Confirm” to make the purchase or “Rate Info” to get more details on the current rate.
To buy Bitcoin you can use the funds in your Cash App balance or draw against the debit card you have associated with Square.
If you live in New York, Georgia, and Hawaii you cannot use Square Cash App to buy and sell Bitcoin. Note: This may change at anytime as Wyoming was on the list and was recently removed.
Square does not add a fee for buying and selling Bitcoin. However the margin may differ when you buy or sell using Cash app, as you are buying and selling the Bitcoin from Square.
If you make a profit selling Bitcoin on Square Cash App, Square will provide you a copy of a Form 1099-B for your taxes.
When you buy and sell using the Square Cash App, Square acts as your wallet. Square states the it “…holds your Bitcoin as a custodian at your risk.” If you have another Bitcoin wallet, you can withdraw your Bitcoin from Square for the external wallet.
The price of Bitcoin fluctuates significantly. In January 2017 the price of Bitcoin hovered around $1,000. By December 2017 Bitcoin hit record highs at over $19,000. Just three months later, in March of 2018, the price of Bitcoin is now fluctuating between $8,000 to $11,000.
Before buying and selling Bitcoin consider these and many other risks. It is a new, unknown market and it is difficult to determine all investments risks. As Square states on their website “…please make wise financial decisions.”