Review: Venmo App for Cryptocurrency

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Venmo has long been a go-to platform for splitting bills, sending money to friends, and making quick peer-to-peer payments. But with the growing interest in digital assets, Venmo introduced cryptocurrency trading directly within its app—making it easier than ever for everyday users to enter the crypto space. This review dives into how Venmo’s crypto feature works, its supported assets, fees, usability, and limitations, helping you decide whether it's the right choice for your investment journey.

Supported Cryptocurrencies and Fiat Options

Venmo supports a limited but foundational set of cryptocurrencies, ideal for beginners looking to explore digital assets without complexity. The available options include:

All transactions are conducted using USD only, meaning international users or those holding other fiat currencies cannot currently participate unless they have access to a U.S. bank account or payment method.

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How to Buy Cryptocurrency on Venmo

Getting started with crypto on Venmo is straightforward—especially if you're already familiar with the app’s interface. Here's a step-by-step guide:

  1. Create and verify your Venmo account using your email and phone number.
  2. Link a payment method, such as a bank account, debit card, or credit card.
  3. Navigate to the Crypto tab and select Explore.
  4. Choose the cryptocurrency you want to buy—BTC, ETH, BCH, or LTC.
  5. Enter the dollar amount you'd like to invest (as little as $1).
  6. Review the transaction details, including fees and estimated coin value.
  7. Tap Buy to complete the purchase.

Once bought, your crypto appears in your Venmo balance. However, you do not own the private keys, and the assets are held in custody by Paxos Trust Company on behalf of Venmo.

Selling Crypto Through Venmo

Selling works just as seamlessly:

  1. Go to Manage under the Crypto section.
  2. Select the cryptocurrency you wish to sell.
  3. Enter the amount (in units or USD value).
  4. Confirm the sale.

Proceeds are instantly converted to USD and added to your Venmo balance, which you can use for purchases or transfer back to your bank.

Understanding Fees and Costs

While convenience is a major selling point, Venmo’s fee structure may deter frequent traders or larger investors.

Transaction AmountFee
$1 – $24.99$0.50 flat
$25 – $1002.3%
$100.01 – $2002.0%
$200.01 – $1,0001.8%
$1,000.01+1.5%

Additionally:

These fees are relatively high compared to dedicated exchanges, especially for small-dollar trades where the flat $0.50 minimum eats into returns.

Key Advantages of Using Venmo for Crypto

✅ User-Friendly Experience

For beginners, Venmo lowers the barrier to entry. If you're already using the app daily, adding crypto feels natural and intuitive.

✅ Instant Transactions

Purchases and sales settle almost immediately—no waiting for blockchain confirmations or exchange processing delays.

✅ Social Sharing Features

Venmo allows users to share crypto transactions (with privacy settings), helping normalize digital asset use among social circles.

✅ Portfolio Tracking

Your holdings are automatically updated in real-time based on market prices, giving you a clear view of your investment performance.

Limitations and Drawbacks

Despite its ease of use, Venmo comes with significant trade-offs.

❌ No Private Key Control

You cannot withdraw crypto to an external wallet. This means you don’t truly own your assets—they remain under Venmo’s control.

❌ Cannot Use Crypto for Payments

Unlike platforms that support crypto spending, Venmo does not allow you to pay merchants or send crypto directly to contacts.

❌ Limited Asset Selection

Only four cryptocurrencies are available. There’s no access to altcoins like Solana, Cardano, or Dogecoin—let alone emerging DeFi tokens or NFTs.

❌ Higher Fees Than Competitors

Compared to major exchanges like OKX or Coinbase Pro, Venmo’s fees are less competitive, particularly for regular traders.

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Frequently Asked Questions

Q: Can I transfer my crypto from Venmo to another wallet?
A: No. Venmo does not support withdrawals of cryptocurrency. Your assets stay within the app unless sold for USD.

Q: Is Venmo’s crypto feature available outside the U.S.?
A: Currently, only U.S.-based users with eligible payment methods can buy and sell crypto on Venmo.

Q: Who backs Venmo’s cryptocurrency operations?
A: Venmo partners with Paxos Trust Company, a regulated financial institution that handles custody and compliance.

Q: Are there tax implications when buying crypto on Venmo?
A: Yes. Even if you don’t sell, transferring or spending crypto could trigger taxable events. Keep records of all transactions.

Q: Can I set price alerts or automate trades on Venmo?
A: No. The platform lacks advanced trading features like limit orders, stop-losses, or market alerts.

Q: What happens if Venmo shuts down its crypto service?
A: Users would likely be given a window to sell their holdings before discontinuation, but this risk underscores the importance of self-custody.

Final Verdict: Is Venmo Good for Crypto?

Venmo is an excellent on-ramp for beginners who want to dabble in cryptocurrency without navigating complex exchanges. Its seamless integration into a familiar app makes it ideal for small, speculative investments or social experimentation with digital money.

However, it falls short for serious investors. The lack of private key access, inability to transfer assets, limited coin selection, and relatively high fees make it unsuitable as a long-term holding solution.

If you’re ready to take full control of your crypto journey—with more coins, lower fees, and wallet interoperability—it’s worth exploring dedicated platforms that support self-custody and broader functionality.

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