Using the Square Cash App to buy Bitcoin

hey guys crypto dad here again and today I'm going to show you how to buy Bitcoin using the square app on your mobile phone so let's get going so if you're a regular follower of my channel you probably know that I usually use coinbase to purchase crypto currencies and then from there we'll put them on exchanges or move them into wallets or whatever but there are other ways to purchase Bitcoin and I have heard lately that buying Bitcoin through the square app is becoming more and more popular so I thought I'd give it a try and kind of walk you guys through the steps so let's jump over to my screen alright I'm sharing my phone here so we're gonna go to the app store and we're gonna check Foursquare all right let's check it out here there it is Square point-of-sale okay actually what I want is the cash app which is the same company that does square I believe well I guess I already had this installed alright alright so let's see how can I buy Bitcoin using this app alright so if I go to settings and then scroll down here to funds you can see that there's a cash and BTC so I'm just gonna attack BTC and pull this interface up and how much do I want all right so let's see what happens when I hit by and I'm just going to put 25 dollars in and hit bye all right so basically you need to fund the app first with cash so I'm assuming it'll need to connect to my bank or my debit card so let me just try it this way all right so you may want to do this part first and put a little cash in there or just kind of do it on the fly the way I'm doing I'm gonna go ahead and put in my debit card number all right so I've entered the number and then it flips over and wants the expiration and code which I'm happy to provide them I'll choose next then let's see what happens all right there's my name just confirm that I got to give them my birthday and I got a pretty much given my life story if I want to buy any but going from them not that much different from though from coinbase though so now I've added the cash to the app so I'm gonna hit done and now I can buy the Bitcoin and let's see I'm gonna try 25 but I'm assuming it's probably gonna tell me hmm okay all right and it wants me to put in a pin so I'll set that up all right so I did buy some Bitcoin now I'm assuming that somewhere along the line they took out a little bit either as a merchant fee of their own or on the Bitcoin network so I didn't quite get $25 worth but it's not bad I only paid 30 cents for the 25 dollars in Bitcoin and that's not horrible right all right the only thing about this app and I'm sure that I could use this Bitcoin to purchase something that you know if they accepted Bitcoin in fact let's try that out but before I take that thought too much further I just wanted to point out that they did not set up a recovery phrase for me right so a normal cryptocurrency wallet where you control the private keys even if it's on your phone is gonna have you set up a backup phrase because the private keys are being held on the device this wallet does not appear to be a wallet that has the private keys on the device it looks more like a kind of a hot wallet kind of a web-based wallet so my assumption here is that I don't really own the Bitcoin I am the authorized user of this Bitcoin right by virtue of me setting up this app and connecting my ATM card to it but for all intents and purposes they own the Bitcoin and not me so if you wanted to buy some Bitcoin and maybe spend it right away this would be a great handy way to do it but for long-term storage I would not recommend storing your Bitcoin on an app like this because it looks like they're the custodians of the Bitcoin but let's check it out let's go back to Bitcoin and let's see what happens if we do sell oh okay hmm all right so it's not giving me the option to send it anywhere let's try an Abel withdrawals it wants me to verify my address with my driver's license or state ID so I can do that to most of the newer Bitcoin apps and exchanges are being compliant with the KYC regulations no your customer regulations so we have to verify who we are in order to send and receive Bitcoin all right so it wants to check out the camera and it wants me to hold up my ID all right so it likes that now it once the back of the car again oh you got it all right good so now that I've given it my life story and my exact location and my face alright so smile for the camera now it's gonna have to verify that I am who I say I am and they will let me know soon and we'll see then we'll be able to figure out if I can withdraw this you may be wondering why am i trying to do this if you're not that experienced with Bitcoin you may not realize that Bitcoin can also be moved around it doesn't you know it's not necessarily something that you can only buy and sell it's something that you can move around and store in different places just like you could cash you know you can put your cash in a wallet you can put it in your glove box you can put it at the bank or wherever you want to move your cash around that's entirely up to you bitcoin is just like cash only digital so there are destinations this in this case the Bitcoin is being held by the company that runs this wallet I would like to move this Bitcoin off of here into my own wallet I don't want to just sell it for cash I want to keep the Bitcoin I just want to move it somewhere else all right so I'll hang out and see how long this authorization takes okay so it took a while I stopped recording the video and I picked up when I got the alert and it's been less than 24 hours it's pretty early in the morning here in Los Angeles I was up fairly early and I heard a text to come in and they informed me that now I'm able to withdraw a Bitcoin from the cash app so a little bit of a wait but not that long you know considering they've verified my identity and the car that I'm using and everything else appears to be in good working order so now I have been enabled to withdraw the Bitcoin so let's see what happens when we withdraw the Bitcoin see how that works all right so we're gonna go back over to the cash app and let's take a look here this is the homepage so we want to go up to the top here where it's got this icon and that's gonna allow me to look at the different options here and as you can see I've got the Bitcoin wallet down here and I'll just tap that and it shows me my balance and then I'm gonna scroll down a little bit here where it says withdraw a Bitcoin so what I'm gonna do is withdraw Bitcoin to my own wallet and we'll see how that goes so I need an address to withdraw the Bitcoin to so I'm going to pull up my own wallet I'm going to get the receiving address and then we'll use that when we withdraw a Bitcoin from the cash app so I'm gonna go first of all turn off a screen sharing momentarily all right I'm gonna go over here and I've got my treasure connected and I'm gonna use my treasure hardware wallet is my destination so I just go over here to receive and I'm gonna get this address here now I can just click this to show the full address and just confirm on the treasure that that is the same address that is showing here all right continue there now I can see the entire address now I've done a QR code here so I'm wondering if the cache app supports that I'm just gonna give that a try make life a lot easier because as you can see the Bitcoin address is pretty long and complicated as well it should be so let's bring this one back up again alright I'm gonna hit withdraw Bitcoin on the phone okay so I have a balance of point zero zero six three basically and then I've got this slider here and it can let's see there you go it looks like that's the max that I'm able to withdraw I could withdraw less if I had a lot of Bitcoin in here we're just using a small test amount so I'm just gonna withdraw it all and I'll just tap withdraw down here alright and there I've got that QR code so I can just hold it right up there and that is the address of my treasure so that's gonna work just fine that was very easy I'm gonna hit confirm on the phone and then I'm gonna have to enter my pin and that worked just fine so I'm gonna hit done and it should show me that my balance is zero on the Bitcoin and it looks like something happened over here on the treasure and sure enough there's 28 74 that just came in on the treasure so it doesn't look like I suffered much of a hit on the Bitcoin network the fee for that transaction was pretty darn low because if I remember correctly I think my balance was around 24 dollars and 79 cents when we first got the Bitcoin on the cash app so we did pretty good the cash app did not charge us a heavy fee when we bought the Bitcoin and we didn't get much of a hit when we transferred the Bitcoin to the treasure but that really did not have anything to do with the cash app or the treasure in any way that was just the state of the Bitcoin blockchain network at this moment in time fees go up and down on the Bitcoin network depending on how heavy the traffic is in 2017 at the end when Bitcoin was really hot the fees and the time to do a transaction got very heavy the time went up and the fees went up right now I incurred a very small transaction fee on the Bitcoin network so that's the way Bitcoin should work okay so to wrap up we downloaded the cash app we purchased some Bitcoin using the cash app indirectly by using our ATM card we funded the transaction with our ATM card we got a Bitcoin balance in the cash app and then during that process we had to go through some kyc procedures verifying our identity and I'm able to purchase Bitcoin and then withdraw to my own all it and it worked pretty well it didn't take very long so all in all I'm impressed but as I mentioned the cash app that we installed on our phone is not strictly a Bitcoin wallet per se of the type where you control the private key there are phone apps like that that store the private key on the device and that you have the backup phrase in case you lose your phone in this case it's more of a hot wallet or a web-based wallet internet-based wallet as it were in which they are the custodians of your Bitcoin but you everything is fine if you want to withdraw the Bitcoin and bring it into your own wallet but while it's on the cash app it's basically in their possession they're the custodians of the Bitcoin so I hope you enjoyed the video I hope you explore the cash app it's a really good easy way to buy Bitcoin and a good way to even spend the Bitcoin as you saw I could go into a store that accepted Bitcoin and send directly from my phone easy peasy not having to type anything in just scanning a Bitcoin address app so that worked really well I'd like to remind everyone that I have a live stream every Friday night 6 p.m. Pacific Standard Time please join me for the live Q&A in LA throw out any questions that you have I'll try to get them answered on the fly or just join in the discussion and have a great time if you like this video give me a thumbs up if you'd like to subscribe to my channel I would appreciate it when you subscribe there's a bell that you can click that will allow you to be alerted whenever I post new content once again thanks for joining me and hope to see you again soon

11 thoughts on “Using the Square Cash App to buy Bitcoin”

  1. This guy just fund my Account with enough money and he never charged an upfront fee. Check MITBICK on instgaram or what’sapp +1 424 532 1528……he’ll help you too

  2. Very cool, Rex. That text was dated in June. I was wondering if that was really 9 months ago. Appreciate the info.

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