I had heard that CashApp had low withdrawal limits and I'm always suspicious of "no fees" because I figure they can hide a fee in the spread. But some of these seem like good things.
Anybody who uses CashApp want to weigh in?
We’re making foundational changes that help make bitcoin everyday money.
Starting today you will see:
Zero to low fee bitcoin buys on Cash App
- No fees on large bitcoin buys
- No fees bitcoin on recurring buys
- No fee bitcoin spending via Lightning Network
Higher withdrawal limits (if you qualify)
Plus, every bitcoin you buy on Cash App is held 1:1. So if you buy it, Cash App holds it, and you have 24/7 access to withdraw it anytime.
So...correct me if I'm wrong here, but if you want to be a stickler with the tax laws, at least in the US -- if you pay in lighting via Cash App, you're supposed to be tracking and paying capital gains, right?
But when you pay an LN invoice, and choose to have it come from your USD balance, you have no exposure to BTC/USD exchange rate fluctuation, and thus no gains. You are simply instructing Cash App to settle in bitcoin after taking that amount from your USD wallet.
Now if you were to buy BTC first, and then at a later time pay an LN invoice (or withdraw), then yes -- that can be a taxable event.
Not tax advice, but Cash App doesn't treat paying for an LN invoice with USD as a taxable event either. Neither does Strike.
If you had 100$ of Bitcoin and it 'goes up' 1%... reflected in you having 'more dollars' in your cashapp account...
And you spend those dollars from cashapp, there's still 'gains' correct?
that's how I understand it.
the way that I love cash app is the one thing that gives me perspective on normies using bitcoin - cash app is the mother app. lightning works and cash app is everywhere.
I wanted to put $1 in cash app by transferring some bitcoin in so I could buy some fiat food at work....cash app then asked for for a face scan....pass
I guess I will carry real cash and talk to the snack vendor about accepting bitcoin instead
The "no fees" framing is clever marketing, but the real cost is in the spread. CashApp makes money on the buy/sell price difference, not explicit fees. Zero-fee with a 2% spread is worse than a 0.5% fee with a 0.5% spread.
That said, Lightning Network withdrawals from CashApp are genuinely useful. If you're dollar-cost averaging small amounts and immediately sweeping to self-custody via Lightning, the custodial exposure window is minimal and the UX is better than any exchange-to-wallet flow.
The important metric is withdrawal speed and limits, not purchase fees. An exchange that charges 0.1% but lets you withdraw 10M sats instantly to your own node is better than zero fees with a 48-hour hold and identity verification on every withdrawal.
Exactly. The spread varies, but it can get pretty high. Cash App is transparent about it. Also, they charged in the past for withdrawal speed. The no fee option could take 24 hours back in the days of crowded mempools.
I can't speak to LN, since my jurisdiction prevents Cash App from offering it.
They already had zero fee when paying an LN invoice from your USD balance. Why would I buy bitcoin with my Cash App USD and pay a fee when I can just create an LN invoice and pay that invoice from the same USD funds, ... with no fee.
So with this fee-free payment of LN invoices, they cannibalized their fees for explicit selling bitcoin. Except today my monthly volume of exchange into BTC on Cash App is 5X the level (in USD terms) than when I had to explicitly purchase BTC and pay their fees.
Thanks Jack!!!
Still need us to part with our sats but the incentive seems to be in the right place.
https://twiiit.com/CashApp/status/2021021652289483073