A Comprehensive Guide to Buying Bitcoin with Cash App in the UK

Introduction

Cash App is a multipurpose financial app that offers users the ability to handle transactions, invest in stocks, and explore cryptocurrencies like Bitcoin (BTC). With its user-friendly interface and comprehensive features, Cash App aims to simplify financial tasks and help users navigate the modern financial landscape.

What is Cash App?

Cash App, created by Block Inc (formerly Square Inc), is a mobile payment service that offers stored value services similar to deposit accounts. This innovative platform provides users with access to financial services without the standard fees charged by traditional banks. With a user base of 51 million individuals, Cash App offers an alternative to buying and selling Bitcoin on crypto exchanges.

Buying Bitcoin with Cash App

Before purchasing Bitcoin through Cash App, there are a few key steps to take. Install the Cash App and create an account, then link it to a checking or bank account. Once linked, you can proceed with Bitcoin purchases. Keep in mind that Cash App only supports Bitcoin transactions and its investing balances are not FDIC- or FSCS-insured. However, there is limited SIPC coverage for fiat investing balances.

Steps to buy Bitcoin on Cash App

1. Launch Cash App and log in to your account.
2. Ensure that your Cash App account has sufficient funds.
3. Tap on the "Investing" section at the bottom of the screen.
4. Look for the "Buy Bitcoin" option and tap it to proceed.
5. Enter the amount of Bitcoin you wish to purchase.
6. Enter your PIN and review the transaction details.
7. Tap the "Buy" button to confirm your instant Bitcoin purchase.

Auto Invest Bitcoin on Cash App

The Auto Invest feature on Cash App allows users to schedule recurring Bitcoin purchases according to their preferences. This eliminates the need for manual transactions and helps mitigate price fluctuations. To set up Auto Invest:

1. Access the "Bitcoin Investing" screen and tap "Buy".
2. Click the drop-down menu labeled "Change Order Type".
3. Choose a frequency (daily, weekly, or every two weeks) and tap "Done".
4. Opt for a preset amount or customize your desired amount.
5. Press "Next" (a $10 minimum for Auto Invest purchases applies).
6. Confirm your selection to set up automatic investments.

Cash App fees for purchasing Bitcoin

Cash App may charge fees for Bitcoin transactions based on transaction size, and its prices may slightly differ from the market value. The app includes a spread in its pricing, resulting in paying slightly more or less than the market value for Bitcoin. The fees will be displayed before completing the transaction, giving you the option to proceed or not.

Who can buy Bitcoin with Cash App?

To buy Bitcoin on Cash App, users must meet specific requirements. Users must be at least 18 years old, individuals (not businesses), and using the service for personal use. Cash App is available in the UK and the US, and all 50 US states can access the platform for Bitcoin purchases. Some personal information, such as name, phone number, and identification details, may be required for certain types of transactions.

Get Bitcoin with Cash app via Bitcoin Boost

Another way to acquire Bitcoin on Cash App is through the Bitcoin Boost feature. This feature allows you to accumulate Bitcoin with each Cash Card transaction. To implement a Cash App Bitcoin Boost:

1. Access the "Cash Card" tab on your home screen.
2. Tap "Save with Boost" and choose a Boost to add.

Security and Safety Measures Offered by Cash App

Cash App complies with the highest security standards for merchants that accept payments. Users' data is secured and encrypted. However, it's important for users to prioritize their own security measures, such as enabling two-factor authentication and using strong passwords. By taking precautions, users can protect their Bitcoin wallet and transactions.

Drawbacks to buying Bitcoin via Cash App

While Cash App provides a convenient platform for buying Bitcoin, there are some drawbacks to consider. Cash App only supports Bitcoin and does not offer other cryptocurrencies, limiting your investment options. Additionally, Cash App's Bitcoin and investing balances are not insured by the FDIC or FSCS, although they may be covered by SIPC in some cases. Investors seeking a wider range of options and FDIC insurance may prefer dedicated crypto exchanges.