Summary of the Best Ways to Buy Bitcoin with Venmo
Now, as mentioned before, you can simply opt for cryptocurrency mining, which as detailed before, happened to gain limelight with the emergence of Bitcoins and other Altcoins. However, before you invest your time and money into the trade, it is important for you to note that the field is not as profitable as it seems. While it does allow you to acquire Bitcoins without having to buy them, the one problem is that the process of mining in itself is quite resource-consuming.
You will need lots of electricity to fire up your rig and that will severely affect your electricity bills, causing more losses than profits overall. Another alternative you are therefore left with is that of straight away buying your Bitcoins. But here again, you are faced with a problem which may prove to be fatal to your Bitcoin ventures if not dealt with carefully.
The market is full of options. You will find all sorts of exchange services, wallets and many more willing to offer you Bitcoins or even other cryptocurrencies in exchange for your money. For the average consumer, this is a really confusing situation as you can’t really differentiate the good and the bad and often end up choosing the wrong alternative for buying your Bitcoins. This further leads to extra high transaction fees, unsecured payment channels and more such problems commonly associated with such transactions.
But to put these problems to rest, the only thing you need is a decent guidance channel which you promptly direct you towards the right choices. And that is exactly what this article aims to be. We plan to tackle each of these methods of acquiring Bitcoins one at a time and analyze their pros and cons carefully to find out the best of the lot. In this article, we will be talking about how to go about buying Bitcoins with Venmo and aim to guide you on the best ways to do so.
Venmo: A Digital Wallet
Venmo touts itself as a digital wallet. This wallet can be used for all sorts of currencies and is primarily used in paying and requesting money from friends and family. Venmo links directly to your bank account and can be used to add or send money to your bank account, while also functioning as a convenient way to pay for dinners, cabs, movies and more. The very thing users need to do when they first set up an account on Venmo is to determine their choice of payment method. For example, while some people may prefer to buy stuff using their Venmo balance itself, others may prefer using their credit or debit cards. It is also possible for people to make payments directly from the bank account, as explained earlier. However, this feature only applies to United States bank account holders. The next thing you need to do is connect your bank account to your Venmo account. That way, you will be able to easily handle transactions and transfers to and from your bank account.
Venmo is owned primarily by Paypal and it happens to be a mobile-based application that can easily make way for quick digital mode payments but in smaller amounts. Venmo as a service is a bit short-sighted in nature, that is, it generally won’t be used for carrying amount large amount transfers, or even transfers which are corporate in nature. Even international transfers are not suitable for the platform, but it should rather be used as a local exchange platform among users who share friendly relations. For these very reasons, a couple of the most influential cryptocurrency exchange services in use today, namely Coinbase and Binance outright refuse to accept Venmo as a form of payment for Bitcoins.
Venmo: The Complications
Venmo was inherently designed to be a platform which will only be used for short distance and small amount transfers. Therefore, it is only used by people who already trust each other and as a result, Venmo causes illiquidity in the market.
The payment system of Venmo was designed to be user-centric and pretty convenient to both parties involved. For this precise reason, they have incorporated the feature of easy reversals which means a party can easily send back the funds they might have received, and that too instantly. This makes way for easy frauds and scams on the platform, thereby making it a poor choice for handling a large number of funds.
The verification system at Venmo is poor, to say the least. They don’t even ask for the most basic of verification and will basically allow anyone to make transactions on the app. This is of course in line with their customer-centric policy but does put the funds of those very customers at great risk of being stolen. For the registration process, Venmo only asks for your name or your Facebook profile and password should you choose to use that. And since Facebook is open to anyone who wishes to create an account on it, Venmo in turn also becomes quite vulnerable. Even email IDs or telephone numbers are not asked for during the entire procedure.
Buying Bitcoins using Venmo
If you are willing to make a payment of a professional nature, you will most certainly have a hard time finding a trader who is willing to accept a payment on the Venmo platform, simply because of the lack of security features, it is associated with. Even if they do happen to accept a payment on the platform, they will most likely do so for an amount that is really small, something below $20 or so.
Top 2 Best Ways to Buy Bitcoin with Venmo 2018
LocalBitcoins is arguably the most popular and widely used trading platform for Bitcoins. This peer-to-peer platform is based out of Finland and specializes in over the counter transactions or trades in the local currency. Just about five years ago, LocalBitcoins decided to integrate Venmo in its system, and as a result for Bitcoin purchases on the Venmo platform, LocalBitcoins just about happens to be your best bet.
The very first things you need to do are log on to the official website of the LocalBitcoins platform, and then promptly create an account for yourself if it doesn’t already exist. Once you sign in to your account, you need to select your country and further select your payment method, which will obviously be Venmo in this case, although you may take your time to explore other payment options as well if you want. Once you have gone ahead and done that you need to click on Search and you will promptly receive a results page. Here, you need to select the ideal seller for you out of the options available and further establish contact with the person. Once that is done, you need to click on the Send Trade Request button after selecting the amount which you wish to use. Once your amount reaches the seller’s account, they will promptly release the applicable Bitcoins into your wallet.
You may think of Paxful as a newer but smaller version of LocalBitcoins. It was created with the intention of improving upon the problems in the cryptocurrency giant and even introduce new features altogether.
Building upon the model already built by LocalBitcoins, Paxful allows for exclusive trading, buying and selling in Bitcoins. Also, similar to LocalBitcoins and even other exchanges, Paxful currently severely faces a shortage of traders willing to accept Venmo as a form of payment. This is again due to the fact that transactions on Venmo are unsafe in nature and it has been proven to be prone to frauds and scams as detailed earlier. In fact, a few years ago social microblogging and hugely popular website Reddit received an influx of complaints issued by users and centering around the fact that there was an increasing number of scams happening on Venmo. This further discouraged sellers and traders to deem Venmo as an acceptable form of payment.
However, recently, the people behind Venmo came forward to address this issue and it was revealed that Venmo was working on better verification procedures and strengthening their security. This may, therefore, lead to an increase in the number of traders currently available for accepting Venmo as payment.
Log on to the Paxful.com website and select the tab that says Buy Bitcoin. Now depending on whether or not you have already registered for the service, you need to create an account on the website. The registration process is fairly simple and once you have done that, you need to select your currency, your preferred mode of payment, which is obviously Venmo in this case and then further clicks on the search button. You are again greeted with a search results page where you need to look for your ideal seller and once you have found a seller you can trust, simply click on the Buy Now button after selecting the desired amount for the purchase. Finally, all you have to do is wait for the coins to be released from the seller’s account straight into your Bitcoin wallet.
If you think the Bitcoin is the currency of the future, then you are certainly not wrong. The very same sentiments, in fact, are shared by billions around the world. But what really matters is that a lot of these people are quite influential, and their beliefs about the Bitcoin, coupled with the general consensus around them have led to the Bitcoin becoming one of the most powerful and widely used currencies of the world today. It seems almost impossible to think that something which didn’t even exist up until a decade back is now at the center of one of the most profitable trades in the world today. While it was earlier proving to be a failure, the Bitcoin wasn’t here to let go of things that easily and soon rose up to become one of the fastest growing currencies in the world. It is as popular as it is convenient. While transactions with other currencies may prove to be an infringement upon your privacy since you aren’t really sure who is monitoring said transactions, the transactions that you carry out with the Bitcoin come with the guarantee of being completely safe and free from prying eyes. The cryptocurrency has been specifically designed to be completely decentralized, that is, no singular government or authoritative body in the world has the power to regulate Bitcoin transactions, making it ideal for people who wish for their dealings to remain private.
There was a time when a single Bitcoin valued close to twenty thousand dollars. It is staggering to even consider that such a feat was achievable but the Bitcoin managed to go ahead and do it. As a result, a number of financial organizations and investment experts all over the world began monitoring the fluctuations in Bitcoin. Investments started flowing in and people started taking an active interest in the cryptocurrency domain. Today, the Bitcoin holds a good majority of the market share and is literally able to create multi-million dollar industries all of its own accord. A prime example of this is the cryptocurrency industry, which remained relatively anonymous until the Bitcoin rose up to the challenge and literally tore through all previous records to bring it back into the limelight. The cryptocurrency mining industry too began its rapid ascent towards fame only due to the sudden rise in popularity of cryptocurrencies. A field which was earlier known by only the most dedicated of cryptocurrency enthusiasts is now being recognized heavily in all parts of the world, and people are genuinely taking interest in mining for coins themselves.