Cash App has revolutionized peer-to-peer payments with its user-friendly dollar transfers via $cashtags. Now, it extends that simplicity to Bitcoin transactions—allowing users to buy, sell, send, and receive BTC alongside traditional financial services. Owned by Block, Inc. (formerly Square), Cash App targets mainstream users seeking a frictionless entry into cryptocurrency without the complexity of advanced trading platforms.
Prerequisites for Sending Bitcoin
Before initiating a Bitcoin transfer, ensure you meet these requirements:
Cash App Setup
- Download the app and link a bank account/debit card (Visa, Mastercard, Discover).
- Create a unique $cashtag and complete your profile.
Identity Verification (KYC/AML)
- Bitcoin features require full verification: legal name, birthdate, SSN (partial or full), and sometimes a driver’s license photo.
- Navigate to Security & Privacy to check your verification status.
Bitcoin Balance
- Purchase BTC directly in Cash App (with associated fees) or deposit from an external wallet.
- Note: Weekly deposit limits (~$10,000) apply—check your account specifics.
Two Methods to Send Bitcoin
1. On-Chain Transfers (Traditional Bitcoin Network)
Steps:
- Navigate to Money → Bitcoin → Send (airplane/arrow icon).
- Enter the BTC amount (in USD or BTC).
- Paste the recipient’s full Bitcoin address (starts with
1,3, orbc1). Double-check for accuracy. Select speed and fees:
- Standard/Free: 0.001 BTC min, delays possible (up to 24 hours).
- Rush/Medium: ~2 hours, ~$0.50 + network fee.
- Priority/Fast: ~10 minutes, ~$1.00 + network fee.
- Confirm with PIN/biometrics.
👉 Compare Bitcoin transaction speeds to optimize costs.
2. Lightning Network Transfers (Instant & Low-Cost)
Steps:
- Tap Send and scan a Lightning invoice QR code or paste the invoice string.
Verify amount and confirm—transactions complete near-instantly.
- Note: Lightning may be unavailable in some regions (e.g., New York).
Key Changes & Limitations
- $Cashtag Bitcoin Transfers Discontinued (as of December 2024):
All BTC sends now require a full Bitcoin address or Lightning invoice, even for peer-to-peer transfers within Cash App. Fee Structure:
- Buying/Selling: 1–3% service fee + potential exchange rate spread.
- Withdrawals: Free for Lightning; tiered fees for on-chain.
Account Limits:
- Unverified users: ~$1,000/month send/receive.
- Verified users: Higher thresholds (check Profile → Limits).
Pros and Cons of Using Cash App for Bitcoin
✅ Advantages
- Seamless integration with fiat and stocks.
- Lightning Network support for fast, cheap transfers.
- Beginner-friendly interface.
❌ Drawbacks
- Custodial (no private key control).
- Supports only Bitcoin—no altcoins.
- Higher fees than dedicated exchanges.
👉 Explore self-custody wallet alternatives for full asset control.
FAQ Section
1. Can I cancel a Bitcoin transaction sent via Cash App?
No—once confirmed, Bitcoin transfers are irreversible. Always verify details before sending.
2. Why was my Bitcoin withdrawal delayed?
On-chain delays occur during network congestion. Lightning transfers avoid this issue.
3. Is Cash App safe for Bitcoin storage?
While Block uses cold storage and encryption, it’s custodial. For maximum security, withdraw BTC to a self-custody wallet.
4. What’s the minimum Bitcoin I can send?
- On-chain: 0.001 BTC (Standard) or 0.00005 BTC (Rush/Priority).
- Lightning: No minimum (invoice-based).
5. Are there alternatives to Cash App for Bitcoin?
Yes:
- Self-custody wallets (Exodus, Trust Wallet) for full control.
- Exchanges (Coinbase, Kraken) for trading-focused features.
Final Thoughts
Cash App excels in convenience, especially for Lightning Network transactions. However, its custodial nature and limited crypto support may prompt power users to explore alternatives. Assess your priorities—simplicity versus control—and choose the platform that aligns with your goals.
For deeper dives into Bitcoin tools, 👉 visit our comprehensive resource hub.