Square’s Cash app lets you instantly buy, sell, store, withdraw, and deposit Bitcoin. Thus, Square’s Cash app doubles as a simple Bitcoin exchange and custodial wallet.
The one oddity is you cannot “pay,” send, or receive Bitcoin to another Bitcoin wallet either on Cash App or outside of it unless you go through the process of “withdrawing” or “depositing.”
This means to send to another person you need to “Enable Bitcoin Withdrawal and Deposits” and go through the verification process first, and to send to another Cash App account you need to both enable withdrawals and deposits and both go through the verification process first.
So using Bitcoin for payments is doable, but it takes a few extra steps, especially for payments between Cash App users.
One other note is that while buying and selling is instant, Bitcoin withdrawals or deposits have to have the transactions settle and be confirmed on the blockchain which can take 30 minutes or more (although this is mostly true for any Bitcoin wallet).
Still, those limitations aside, the Cash App is a useful and simple solution for Bitcoin newcomers and mainstays alike due to its ease of use.
It used to be, before Cash App, the simplest way to buy Bitcoin was Coinbase. Coinbase is still an excellent choice for all-in-one crypto service, especially when paired with Coinbase Pro (the Coinbase-run exchange), and especially for those who want more choice and more features (like sending / receiving for payments to any wallet).
However, it is likely that Square is today the simplest platform for buying Bitcoin (and a valid, if sometimes a little awkward platform for using it too).
The Cash App is an app that lets you buy and sell Bitcoin instantly in most states, transfer dollars and Bitcoin between peers and businesses who use Square’s Cash App and who have withdrawal and deposit features enabled, store dollars and Bitcoin, pairs with its own debit / credit card, and more.
This means its easier than ever to invest in Bitcoin (either to hodl or to buy and sell relatively quickly; although please note, the Cash App is not for day trading), and there is yet another way for businesses and individuals to accept Bitcoin as payment without taking all the risks that come with traditional crypto platforms and wallets.
Does that mean you don’t need Coinbase anymore? No, not at all. Coinbase is geared toward being an all-in-one custodial wallet, broker, and exchange. If anything, Square’s Cash app is simply a nice compliment to Coinbase, just like Bittrex or Kraken is a nice compliment to those services as well, and just like Robinhood will be a nice compliment when it rolls its crypto services out.
Square Cash App is now a full, albeit limited, custodial wallet: Starting in late June Cash App began allowing withdrawals and deposits for Bitcoin. See: Deposit Bitcoin and Bitcoin Withdrawals.
How to Buy/Sell/Send/Receive Bitcoin With the Cash App: To buy/sell Bitcoin with the Cash App: download the Cash App, input your info and bank account, and then hit the buy button under Bitcoin. To sell: just hit the sell button under Bitcoin. To withdraw / deposit / send / receive: First, through verification process to enable Bitcoin withdrawals and deposits. To withdraw or send, hit “Withdraw Bitcoin” to send Bitcoin to another Bitcoin wallet address. To deposit or receive, hit “Deposit Bitcoin” to get the address needed for others to send to you.
Confused? Try HODLing Bitcoin and Sending Cash: If you don’t want to deal with withdrawals and deposits, for example for payments on Cash App or when trying to give Bitcoin as a gift via the Cash App, you can always sell Bitcoin on the Cash App, hit the “pay” button to send cash, and then the recpeient can buy Bitcoin on their end. Yes, you pay a little extra in fees, but it also saves transaction costs and a few headaches for new users.
New States Are Coming: The app allows Bitcoin trading in all U.S. states aside from New York, George, Hawaii, and Wyoming (the idea is to get the app going in these locations soon).
"Square’s Cash App" contains information about the following Cryptocurrencies: