OK, what’s bitcoin and how do I use it?

Bitcoin (BTC) is a new kind of digital money. It’s powered by blockchain technology and is one of the most secure financial systems in history.

Unlike the cash in your wallet, bitcoin is run by computers, not people. That means you don’t need a bank to buy it, sell it, use it, or keep it safe—all you need is an internet connection. It also means that no single person or government gets to decide who gets access to bitcoin or what it’s worth. Its price is determined by supply and demand.

As the world’s leading digital currency, Bitcoin is changing the way people send, save, and use money.

How can I access bitcoin?

Once you have bitcoin, you need a wallet and private key to access it. Cash App acts as a bitcoin wallet, where you can view your BTC balance and buy or sell at any time. Cash App securely stores the private keys for your bitcoin, so you can instantly access it at any time.

Wait, do I need the internet to access my bitcoin?

Yes. All bitcoin lives on the Bitcoin Network blockchain which is on the internet. If you want to buy, sell, send, or receive bitcoin, you’ll need to connect to the internet to make a transaction. If you keep your bitcoin on Cash App, you will likewise need to be connected to the internet to access it or move it.

Are there any risks with owning bitcoin?

Just like any other investment, Bitcoin’s price can’t be predicted—it’s gone up and down. Investing involves risk, you may lose money. But, if you own some, bitcoin can give you the chance to grow your money in the long run.

Will I owe taxes if I buy or sell bitcoin?

Bitcoin is taxed like any other financial investment, so it’s important to understand the tax implications before you buy or sell it.

When you buy and sell bitcoin on Cash App, we’ll provide you with a Form 1099-B for filing your taxes. It’s your responsibility to determine any tax impact of your bitcoin transactions on Cash App. Cash App doesn’t provide tax advice.

So, how does Cash App keep my money safe?

Cash App protects millions of people’s payments each month. Cash App is built on one secure platform, with advanced security features to power and protect your personal information and every single transaction that happens on the platform.

Cash App uses cutting-edge encryption and fraud detection technology to make sure your data and money is secure. Any information you submit is encrypted and sent to our servers securely, regardless of whether you’re using a public or private Wi-Fi connection or data service.

If you have a Cash App Card, the money in your Cash App account balance is covered by the FDIC through our partner banks (FDIC “pass-through” insurance) in the event of bank failure. The FDIC will cover eligible accounts up to $250,000 per Cash App customer. Bitcoin and investing balances are not covered by FDIC insurance.

No, FDIC offers insurance on deposits by institution, meaning that if your bank goes out of business, your money is protected up to $250,000. Insurance coverage is not provided for individual transactions.