Venmo is an online payment system that allows users to send and receive money from family and friends. The PayPal owned app is mobile –based and allows quick digital payments in small amounts. It is rarely used to transact business transactions or conduct international transfers. Major cryptocurrency exchanges such as Coinbase and Binance do not accept Venmo as a payment method for Bitcoin. This article explains systematically the process of buying Bitcoin using Venmo on LocalBitcoins and Paxful.
Why is it hard to buy Bitcoin using Venmo?
- Venmo is built to be an application to be used between family and friends. This means you will need to find a close friend or trustworthy person to buy Bitcoin using Venmo. This makes the market illiquid.
- The payment system allows for easy reversal of funds hence fraud attempts are very likely to occur when using Venmo.
- Venmo does not need high verification for any new user. To register, you only use your name/Facebook profile and password only. No emails or telephone numbers are needed for verification. This compromises the identity verification process needed for high security measures.
How to buy Bitcoins using Venmo
The risky nature affiliated with Venmo makes it almost impossible to find a trader willing to accept payment of Bitcoins through it. Venmo is an online payment system developed for people who have complete trust amongst each other: friends, family and colleagues. However, at select moments, some traders accept Venmo payments but in very small amounts (usually below $20).
If you find a person willing to accept Venmo for Bitcoins, follow the guideline below on how to use LocalBitcoins and Paxful to exchange the funds. Remember to keep all conversations on LocalBitcoins for record in case of a trading dispute.
Venmo: LocalBitcoins vs Paxful
|Bitcoin Exchange||Exchange Reviews||Fees||Location||Sellers||Check Website|
|LocalBitcoins Review||$0.98||Worldwide||No Sellers||Buy|
|Paxful Review||0.10%||Worldwide||No Sellers||Buy|
LocalBitcoins is currently the largest peer-to-peer Bitcoin trading platform. The Finnish company, allows over-the counter trades in local currency among individuals. With Venmo integrated in the system over 5 years ago, it is yet to gain massive popularity on the site as its parent company, PayPal does in that respect.
This section aims at giving actions to how to buy Bitcoins using Venmo payment systems on LocalBitcoins.
“Venmo is one of the most fraudulent ways when it comes to buying Bitcoin. The system allows quick reversals of sent amounts. This makes it risker as compared to other modes of payment.”
Due to the risky nature of using Venmo, we recommend you connect your credit card or debit card to Venmo. You can send the Venmo amount to your credit card and follow the methods outlined in the 10 Best Ways to Buy Bitcoin with a Credit Card Instantly.
How to buy Bitcoin with Venmo in LocalBitcoins
- Go to the official LocalBitcoins.com site (Check for the secure green padlock on the URL). Log in or sign up for an account if you lack one.
- On the Search tab, fill in your country and select Venmo on the payment option drop down menu.
- Click ‘Search’.
- On the resulting page choose an ideal seller (choose a person you trust) and contact to trade. At time of writing, there was no trader willing to accept Venmo payment in exchange for Bitcoin.
- Click ‘Buy’.
- Select the amount and click ‘Send trade request’.
- The sender will release the Bitcoins to your wallet. You own Bitcoin!
Paxful is a newer, smaller version of LocalBitcoins. Similar to LocalBitcoins, Paxful allows buys and sells of Bitcoin exclusively. In addition, Paxful also lacks traders willing to accept Venmo as a source of payment at the moment. Some years ago, users issued complaints on Reddit of the increase in scams using Venmo to buy Bitcoins thus discouraging most sellers from accepting it as a mode of payment.
However, Venmo hinted on the possibility of increasing security measures through verification processes last year. This means we may very soon witness a rapid growth in use of Venmo to purchase Bitcoins. This section gives an ordered and sequential procedure on how to buy Bitcoin using Venmo on Paxful.
How to buy Bitcoin with Venmo in Paxful
- Go to the official Paxful.com website. Check if it’s the correct one.
- Select ‘Buy Bitcoin’ tab.
- If registered log in. If not, click the ‘Create an Account’ tab and follow the instructions to register.
- On the resulting page select your currency, choose Venmo as your preferred payment selection and click ‘Search’.
- Select your preferred and trusted seller. Remember Venmo allows reversals of funds hence the extra need to be careful.
- Enter desired amount and click ‘Buy Now’.
- Wait for the Bitcoins to be released from the escrow to your wallet.
The risky nature of transactions involving Venmo payment service has so far discouraged many cryptocurrency exchanges and sellers from accepting it as a form of payment. However, if you have a friend, colleague or family member with Bitcoins and is willing to accept payment by Venmo, this would be the ideal way to buy Bitcoins.