Following PayPal, Venmo also offers the possibility to buy and sell bitcoin through its platform.
Venmo is a mobile payment service owned by PayPal itself and uses an identical procedure to allow its users to buy and sell BTC.
The service is actually based on Paxos but is used directly inside the Venmo app, with the funds held on the account.
By buying bitcoin on the Venmo app, users will be able to have BTC on their Paxful wallet in less than an hour.
To make the purchase it is necessary to select one of the many offers published by users who sell BTC, using the app to search through the sales offers or to create one in the case of wanting to sell BTC held on the account.
Paxful allows its users to set sales prices and add their own sales offers, which will be available to buyers on Paxos as well as PayPal and Venmo.
How to buy Bitcoin on Venmo
In many ways, Venmo works like PayPal, although it’s basically a mobile wallet, and the same is true for buying and selling bitcoin.
So to make the purchase it is necessary to choose the preferred sale offer, select the amount in dollars to send, and send it: the platform will do the rest, namely the transfer of dollars to the seller, and bitcoin to the buyer.
For selling, on the other hand, it is necessary to post an offer to sell bitcoin by setting quantity and price, and wait for some buyer to select it and send their dollars to finalize the purchase.
The sale offers and trades are managed by Paxos, as is the custody of the bitcoin. Whereas Venmo manages the dollars and their sending.
So although the system is technically a bit complex, it is actually quite easy to use, especially when buying.
The sale operation is slightly longer both because it requires the input of more information (i.e. the price) and because it is rare that buyers purchase the whole amount of BTC put up for sale in the single offers.
It should be added, however, that although there are no commissions on the use of the service, the platform applies a spread on the price, i.e. increasing the purchase price and collecting the difference, as an alternative to charging fees on trades.
Moreover, the procedure is not as fast as on a real centralized exchange, because a bitcoin swap between wallets takes place and not only inside the wallet of the platform.