Venmo now allows users to buy, sell and hold cryptocurrencies.
Venmo is a peer-to-peer (P2P) payment service. It enables users to send and receive money from other users rather than using cash or banking apps. People use P2P payment services for a range of purposes, from buying goods and services to splitting restaurant bills between friends.
Venmo is owned by PayPal Holdings Inc. It is one of the most popular P2P platforms in the US.
Today, they have announced that users can now buy, sell and hold cryptocurrencies on its app. Because of the platform’s popularity, it may only be a matter of time before cryptocurrencies explode into everyday life.
Which cryptocurrencies does Venmo allow?
From today, users will be able to buy, sell and hold four different cryptocurrencies:
- Bitcoin Cash
Users can now buy these cryptocurrencies for as little as $1.
Venmo wants to create a platform that makes the buying, selling and holding of cryptocurrency much easier. If you’ve ever tried to buy it, you’ll understand how confusing it is to get started – wallets, keys, exchanges, fees, etc., – it’s complicated.
Not only that, but it sometimes feels unsafe because you’re buying and selling on platforms you may never have heard of before.
The advantage that Venmo has is that they’re owned by a trusted brand. Most of us know and trust PayPal by now (I remember when they first appeared and people were reluctant to use them – not anymore).
What’s the catch?
Well, unfortunately, if you aren’t a US citizen, you can’t use Venmo yet. It’s a US-only platform at present.
In the US, it’s one of the most popular payment platforms with more than 70 million users! It’s especially popular amongst younger people.
In 2020, Venmo processed roughly $159 (£113) billion worth of payments.
Good news for those of us in the UK, though, because PayPal allegedly has plans to expand its cryptocurrency services here.
Crypto boom (again)
Cryptocurrencies have been increasing in value over the past 10 years, and recent moves to bring them into the mainstream have only served to fuel interest in the coins. In fact, Bitcoin’s value has increased nearly doubled since the beginning of the year.
If you’re thinking of getting in on the action, it may be as good a time to start as any, but be warned: many other people are having the same idea. Since the start of the pandemic, 20% of Venmo customers have bought cryptocurrencies or equities (equities are effectively stocks representing ownership in a business). Not only that, but the coin is extremely unstable with high fluctuations in value happening relatively often.