Guide To Buying and Selling Crypto With Venmo

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Venmo has evolved from a simple peer-to-peer payment app into a platform that allows users to buy, sell, and even transfer select cryptocurrencies directly from their mobile devices. Since launching crypto services in 2021, Venmo has made digital asset investing more accessible—especially for beginners. However, while convenient, its crypto functionality comes with limitations, higher fees, and reduced control compared to traditional exchanges.

This comprehensive guide walks you through everything you need to know about buying and selling crypto with Venmo, including step-by-step instructions, fee breakdowns, security considerations, and key differences from other platforms.

How To Buy Crypto On Venmo

Purchasing cryptocurrency on Venmo is designed to be user-friendly. Whether you're investing $1 or approaching weekly limits, the process is straightforward—if you meet the requirements.

Step 1: Verify Your Identity

Before engaging in any crypto transactions, you must complete Venmo’s identity verification process. This is mandatory for compliance with financial regulations and helps protect against fraud.

You'll need to provide:

Once submitted, verification typically takes a few minutes to 24 hours. You’ll receive a notification when your account is approved for crypto trading.

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Step 2: Choose Your Cryptocurrency

After verification, open the “Crypto” tab in the Venmo app. Currently, Venmo supports only five cryptocurrencies:

PYUSD stands out as a stablecoin issued by PayPal—Venmo’s parent company. Notably, there are no fees when buying or selling PYUSD, making it an attractive option for low-cost transfers or hedging against volatility.

Step 3: Decide How Much To Invest

Venmo allows micro-investments starting at just $1, ideal for new investors testing the waters. However, there are purchase limits:

These limits may vary based on account history and activity.

Step 4: Select a Payment Method

You can fund your purchase using one of three options:

Debit cards offer instant funding but may come with higher fees. Bank transfers are slower but often cheaper for larger amounts.

Step 5: Confirm and Complete the Purchase

Review the transaction details carefully—especially the final price, which includes both the base cost and applicable fees. Tap “Buy” to execute the trade. Once confirmed, your crypto will appear in your Venmo wallet under the "Crypto" tab.

Understanding Venmo Crypto Fees

One of the biggest drawbacks of using Venmo for crypto is its relatively high fee structure compared to dedicated exchanges like OKX or Kraken.

Venmo uses a tiered flat fee system plus a hidden spread of approximately 0.50%, which varies depending on market conditions and the cryptocurrency involved.

Here’s the current fee schedule for buying or selling crypto:

For example, buying $50 of Bitcoin would incur a $1.99 fee—nearly 4% of the total transaction.

Additionally:

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Storing and Managing Crypto on Venmo

When you buy crypto on Venmo, it's held in a custodial wallet managed by Paxos Trust Company, LLC, a regulated financial institution. While this adds a layer of security, it means you don’t have private keys or full control over your assets.

Key features of Venmo’s crypto wallet:

Despite these conveniences, experts recommend transferring large holdings to a self-custody hardware wallet for maximum security.

How To Sell Crypto On Venmo

Selling works similarly to buying:

  1. Go to the “Crypto” tab
  2. Select the cryptocurrency you want to sell
  3. Enter the amount
  4. Confirm the transaction

Fees mirror those for purchases—flat rate plus spread. Proceeds are deposited directly into your Venmo balance, which you can then use for payments or transfer to your bank.

Can You Earn Interest On Crypto With Venmo?

As of now, Venmo does not offer staking, yield earning, or interest rewards on crypto holdings—unlike platforms such as Coinbase or OKX, where users can earn passive income by locking up assets.

This limits Venmo’s appeal for long-term investors seeking growth beyond price appreciation.

Security and Risk Considerations

While Paxos provides institutional-grade custody, remember:

For enhanced protection:

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Frequently Asked Questions (FAQ)

Is buying crypto on Venmo safe?
Yes, transactions are secured through encryption and custodial protection via Paxos. However, since you don’t control private keys, it's less secure than self-custody wallets.

Can I transfer crypto from Venmo to an external wallet?
Yes. You can send supported cryptocurrencies to third-party wallets. Each transfer incurs a network fee based on blockchain congestion.

What are the fees for selling crypto on Venmo?
Selling fees match buying fees: a flat rate (ranging from $0.49 to $2.49) plus a spread (~0.50%) and percentage-based fees above $200.

Why is Venmo’s crypto fee higher than other platforms?
Venmo prioritizes simplicity over cost-efficiency. Its audience includes casual users who value ease-of-use more than low fees.

Does Venmo support all major cryptocurrencies?
No. Only Bitcoin, Ethereum, Litecoin, Bitcoin Cash, and PayPal USD are available—far fewer than most exchanges.

Can I use Venmo crypto for purchases?
Not directly. While you can spend your Venmo balance, you must first sell your crypto to convert it into USD.

By understanding the pros and cons of using Venmo for cryptocurrency, you can make smarter decisions about where and how to invest. While great for beginners due to its familiar interface, consider moving larger investments to more robust platforms that offer lower fees, broader coin selection, and earning opportunities.

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