Yes, you can easily sell Bitcoin on Cash App. Cash App is a popular mobile payment service developed by Square that allows users to send and receive money as well as invest in stocks and Bitcoin.
How to Sell Bitcoin on Cash App
Selling Bitcoin on Cash App is straightforward:
- Open the Cash App app on your mobile device.
- Tap on the Investing tab at the bottom.
- Select Bitcoin.
- Tap on the paper airplane icon next to your Bitcoin balance.
- Enter the amount in USD or BTC that you wish to sell.
- Confirm the details and tap “Sell Bitcoin”.
Your Bitcoin will be instantly converted to USD cash and deposited into your Cash App balance. You can then cash out the USD to your bank account or debit card if you wish.
Benefits of Selling Bitcoin on Cash App
There are several advantages to using Cash App to sell Bitcoin:
- Instant Sales – When you sell Bitcoin on Cash App, the sale is instant. The BTC is immediately converted to USD in your Cash App balance.
- No Fees – Cash App does not charge any fees to sell Bitcoin. This makes it one of the most affordable ways to cash out your BTC.
- Easy to Use – Cash App has a simple interface that makes selling BTC quick and easy. Just a few taps and your Bitcoin is sold.
- Secure – Cash App uses industry-leading security measures to keep your money and info safe. Funds are insured through FDIC and all data is encrypted.
- Flexible Cash Out Options – You can leave the USD in your Cash App balance or instantly cash it out to your bank account or debit card. This provides flexibility in accessing your funds after selling.
Cash App Bitcoin Purchase and Sale Limits
Cash App has purchase and sale limits in place when transacting in Bitcoin. These limits can vary over time depending on market conditions.
Bitcoin Purchase Limits
Currently, the maximum amount of Bitcoin you can purchase weekly is:
- $2,500 for basic Cash App members
- $10,000 for fully verified members
Bitcoin Sale Limits
The maximum amount of Bitcoin you can sell in a single transaction or within a 7 day period is:
- $2,500 for basic members
- $10,000 for fully verified members
To increase your limits, you can provide additional verification such as your SSN, ID, and more bank account info. This raises limits to $10,000 purchase and $20,000 sale weekly.
How to Avoid Cash App Bitcoin Day Trade Limits
Cash App prohibits excessive day trading of Bitcoin and may temporarily restrict your BTC buying and selling privileges if you frequently trade many times per day.
To avoid hitting Cash App’s day trade limits:
- Space out transactions – Make sure to space out your BTC buys and sells over multiple days instead of rapidly trading multiple times per day.
- Hold between trades – Hold each Bitcoin purchase for a minimum 1-2 days prior to selling to avoid day trading flags.
- Upgrade account – Fully verifying your account can provide higher trading allowances with fewer restrictions.
- Use other exchanges – For heavy trading volumes, use dedicated exchanges like Coinbase Pro or Kraken which are built for active traders.
Taxes on Selling Bitcoin on Cash App
When you sell Bitcoin for a profit on Cash App, this triggers a taxable event. Any capital gains you earn from the sale need to be reported on your taxes.
Here’s what you need to know about Bitcoin taxes on Cash App:
- You’ll receive a 1099-B form from Cash App if you sold over $600 worth of Bitcoin in a tax year.
- Your cost basis is the original BTC buy price. Capital gains are calculated by subtracting the cost basis from the sale price.
- Short-term gains (held under 1 year) are taxed as ordinary income. Long-term gains (held over 1 year) are typically taxed at lower long-term rates.
- Losses can be deducted to offset gains. Unused losses can be carried over to future tax years.
- It’s recommended to keep detailed records of your cost basis, sale price, and holding period for each Bitcoin sale on Cash App to accurately calculate taxes owed.
- Consider using crypto tax software to automatically track and generate tax reports for your Bitcoin transactions across wallets and exchanges.
Is Cash App Good for Selling Bitcoin?
Overall, Cash App provides a solid experience for selling Bitcoin instantly. The pros such as no fees, quick sale capability, and flexible cash out options make it convenient for converting Bitcoin to cash. The purchase and sale limits are reasonable for small to moderate amounts of trading.
For larger trading volumes or more active investing, traditional exchanges like Coinbase Pro may be better suited. The lack of advanced trading options and limited investment choices on Cash App are the biggest drawbacks for serious Bitcoin traders. But for basic Bitcoin buying and cashing out, Cash App delivers a streamlined user experience.
Other Ways to Sell Bitcoin
In addition to Cash App, here are some other popular options for selling Bitcoin:
- Coinbase – Leading US exchange with high liquidity makes selling easy. But watch out for higher fees.
- Kraken – Respected exchange with low fees but can have higher minimums and more complex interface.
- Gemini – Regulated exchange based in New York. Great security and decent liquidity.
- Crypto.com – All-in-one cryptocurrency app supporting BTC sales with reduced fees.
- Binance.US – Popular global exchange available to US traders but more limited coins versus Binance.com.
- P2P Trading – Platforms like Paxful and LocalBitcoins connect with buyers directly to sell Bitcoin. Higher risk of fraud.
- Bitcoin ATMs – Convert BTC to cash by selling directly to Bitcoin ATM operators. Fees are high but fast and private.
- In Person – Direct cash transactions with trusted buyers you connect with offline. Use caution when meeting strangers.
Pick an option that aligns with your priorities whether that is convenience, privacy, low fees, or advanced trading capabilities. Evaluate risks carefully when using less regulated P2P and in-person selling methods.
Frequently Asked Questions
Does Cash App report to IRS?
Yes, Cash App is required to report your Bitcoin sales to the IRS if you meet certain activity thresholds. You will receive Form 1099-B if you sold over $600 worth of Bitcoin through Cash App in a tax year.
Can Cash App detect day trading?
Yes, Cash App monitors accounts for excessive day trading activity and may temporarily restrict your ability to rapidly buy and sell Bitcoin if flagged. Space out trades over multiple days to avoid detection.
What payment methods can I use to cash out Bitcoin from Cash App?
You can instantly transfer the USD funds from a Bitcoin sale on Cash App to your connected bank account or debit card. Or you can leave the USD balance in your Cash App account to spend via Cash Card or send to others.
Can I reverse a Bitcoin sale on Cash App?
No, Bitcoin sales on Cash App are final. Once your BTC is converted to USD in your balance, the transaction cannot be reversed. Double check sale details before confirming.
Is it better to sell Bitcoin on Coinbase or Cash App?
Coinbase generally has higher liquidity for larger sell orders but charges commission fees, while Cash App has no fee. For convenience and smaller amounts, Cash App is likely better. For large volumes, Coinbase may provide a better selling experience.
What happens if I sell Bitcoin I don’t have on Cash App?
You cannot sell Bitcoin you do not already have in your Cash App BTC wallet. The app will prevent you from entering a sale amount that exceeds your balance.
The Key Takeaways
- Cash App allows easy and instant selling of Bitcoin into your USD balance with no fees.
- Maximum weekly sale limits are $2,500 for basic or $20,000 for fully verified accounts.
- Avoid hitting day trade restrictions by spacing out buys and sells over multiple days.
- Bitcoin sales may generate taxable capital gains that must be reported. Keep detailed records.
- For convenience and small amounts, Cash App is great. But larger crypto traders may prefer specialized exchanges.
So in summary, yes Cash App provides a fast and user-friendly way to convert Bitcoin holdings into cash on your mobile device for occasional sales and smaller trading amounts. Just be aware of purchase/sale limits and tax implications.