Nestled in the ever-expanding world of digital currencies is a versatile financial tool, Venmo, designed to demystify the complex web of cryptocurrencies. Vocalized as a comprehensive financial service, Venmo is ramping up the stakes by including digital assets like BTC to its peer-to-peer (P2P) money transfer system.
The application, undeniably making waves in the financial industry, allows users to execute transactions and navigate the intricacies of modern economic systems without a hitch. As a digital wallet, Venmo users can stash away some green for future expenses, while also dabbling in the promising world of cryptocurrencies. Following in the footsteps of its parent company, PayPal, Venmo rolled out its crypto services in April 2021. Limited to the US, except for Hawaii, Venmo currently supports BTC, Ether, Litecoin, and Bitcoin Cash, proudly sporting plans to include the PayPal USD stablecoin in the future.
While the allure of digital currencies continues to skyrocket, the process of purchasing Bitcoin through the Venmo app has sparked curiosity among potential users. To partake in the world of Bitcoin via Venmo, individuals get to choose from an array of funding options such as their Venmo balance, bank account or debit card. While Venmo Credit Cards and credit cards are off the table, users are capped at $20,000 in crypto purchases weekly and $50,000 annually.
However, great power often comes with a matching scepticism. Like anything that carries a digital footprint, the oncoming waves of digital currency present an array of challenges. Though the application employs the hi-tech data encryption technology and two-factor authentication among others to protect its users from unauthorized transactions, users must brace for various potential pitfalls such as scams and fraud by cybercriminals. Despite these efforts, Venmo’s Bitcoin transactions are irreversible which brings a new string of complexities to the table.
This irreversible buying implies that to regain U.S. dollars, users may have to sell their digital currencies. This implies the need to methodically comb through the potential challenges of engaging in such transactions. Furthermore, Venmo’s Bitcoin and investment balances aren’t protected by the Federal Deposit Insurance Corporation (FDIC), the SIPC or other public or private insurance. Therefore, to protect themselves from potential losses, Bitcoin enthusiasts should weigh these facts before diving headfirst into cryptocurrency purchasing.
While these limitations may appear daunting, they pale in comparison to the potential of digital currencies. The oncoming years will certainly be crucial in establishing how Venmo overcomes these challenges and expands its user base by simplifying the otherwise complex world of digital currencies. The question that remains is whether the potential risks outweigh the advantages of diving into the deep end of the cryptocurrency market. As with all things unknown, only time will tell.
Source: Cointelegraph
