Is there a difference in fees between buying (for cold storage) vs buying with this feature? And do they offer that first service too
Discussion
I should have asked second question first 😂
Cashapp does let you buy bitcoin in the app, and you can keep that in your custodial account with them or withdraw it. I don’t have this new feature yet to try it to see what fees there may be. I assume they’re rolling it out in waves, so hopefully I get it soon. On Strike, there is a small spread when using this feature, but no other fees. Not sure how Cashapp approaches it.
That makes sense. I would think slightly more expensives maybe because of dealing with merchants and conversion fees. Amazing feature.
Assuming it works similar to Strike, what they charge for converting between dollars and BTC isn't dependent on whether it's for purpose of cold storage or lightning.
NOTE, however, that Strike to Strike transactions don't necessarily require any conversion since they can just adjust balances within their system accordingly. I'm just guessing, but I strongly suspect the video presented above - since it shows "Fees Free" - is CashApp to CashApp; or maybe CashApp to Square (since both are Block, inc).
https://strike.me/faq/what-fees-and-rates-apply-to-cash-transactions/
"Certain transactions within the Strike app involve a conversion between cash and bitcoin, such as buying and selling bitcoin, paying Lightning invoices from your cash balance, or making an on-chain transaction from your cash balance. The conversion rate is based on exchange rates offered by Strike’s third-party service providers at the time the transaction is executed and, for some services, a margin applied by Strike, from which Strike and its service providers earn revenue."
Never tried any of those 2 products. We don’t have them in the north 😂