Venmo on Tuesday announced that it will allow users to buy and sell cryptocurrencies on its platform. That means 70 million monthly active users will soon have access to bitcoin, ethereum and other digital tokens at a time when their value has never been higher.
Here's what you need to know about buying bitcoin on Venmo.
The digital tokens that will be available for purchase are bitcoin, bitcoin cash, ethereum and litecoin. Venmo hasn't specified any limit on the amount of crypto a person can acquire. The only rule is that your investment must be worth at least $1. The investment will then be stored on your account within the Venmo app and can be sold at any time.
Investors who own bitcoin in another wallet like Coinbase won't be able to transfer their bitcoin to Venmo, a company spokesperson told CNBC Make It. Likewise, any crypto acquired through Venmo will only be accessible through the app and cannot be sent to another wallet.
Additionally, users will not be able to send cryptocurrencies to other Venmo accounts, the company confirmed.
Part of Venmo's pitch as a cryptocurrency wallet is that users don't need to do bank transactions to transfer funds. Instead, they can use their existing Venmo balance to purchase bitcoin and other tokens. Users who don't have enough money in their balance can link a bank account or debit card to complete their purchases.
Venmo has created a number of explainer videos to help novices understand the app's new offerings. The short, animated videos touch on topics such as the difference between crypto and stocks, as well as an explanation of what exactly cryptocurrencies are.
The service also has written posts explaining the basics of blockchain, as well as how cryptocurrencies differ from fiat currencies like the dollar.