How to Send Bitcoin from Venmo to an External Wallet

In today's fast-paced digital economy, many people are looking to transfer funds across various platforms, including sending Bitcoin from Venmo to an external wallet. However, understanding the specific steps to achieve this transaction can be confusing, especially if you're unfamiliar with how Venmo operates in regard to cryptocurrencies.

Venmo, owned by PayPal, allows users to buy, sell, and hold cryptocurrencies, including Bitcoin, directly within its app. However, it does not currently support direct transfers of cryptocurrency to external wallets. This limitation is crucial to understand when navigating cryptocurrency transfers. That said, there are alternative methods to get your Bitcoin from Venmo to an external wallet, and they involve additional steps through third-party platforms.

Below is a step-by-step guide on how to achieve this indirectly:

1. Understanding Venmo’s Crypto Capabilities

Venmo provides a simple and user-friendly interface for buying and holding cryptocurrencies like Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. However, these coins are locked within the Venmo ecosystem, meaning users can’t directly transfer them to external wallets like MetaMask, Trust Wallet, or hardware wallets (such as Ledger or Trezor). The limitation arises because Venmo is structured more as a custodial platform, where Venmo holds the private keys of the cryptocurrency you own.

2. Steps to Convert Bitcoin on Venmo

To send Bitcoin to an external wallet, you’ll first need to sell your Bitcoin for USD within the Venmo app. Here’s how you can do that:

a. Sell Your Bitcoin in Venmo:

1. Open the Venmo app and navigate to the "Crypto" section.
2. Select the Bitcoin option and choose the "Sell" button.
3. Enter the amount of Bitcoin you wish to sell.
4. Confirm the sale, and Venmo will convert your Bitcoin to USD. You should now have the equivalent amount of USD in your Venmo balance.

b. Transfer the USD to Your Linked Bank Account:

1. Once your Bitcoin has been sold, go to the “Manage Balance” section.
2. Choose to withdraw the USD balance to your linked bank account.
3. Select the transfer speed (Instant or 1-3 business days).

3. Transferring Funds to a Crypto Exchange

Once you have your USD in your bank account, the next step is to transfer it to a cryptocurrency exchange that supports Bitcoin and external wallet transfers, such as Coinbase, Binance, or Kraken. Here’s how you can proceed:

a. Set Up an Account on a Crypto Exchange:

1. If you don’t already have an account, sign up for a trusted cryptocurrency exchange.
2. Complete any necessary identity verification steps required by the platform (KYC).
3. Link your bank account to the exchange for deposits.

b. Deposit USD into Your Exchange Account:

1. Log in to your crypto exchange and navigate to the “Deposit” section.
2. Select “USD” as the currency you wish to deposit and enter your bank details.
3. Complete the transfer, which could take between a few minutes and a few days, depending on your bank and the transfer method.

4. Buying Bitcoin on the Exchange

Once the USD has arrived in your exchange account, you can now purchase Bitcoin that is transferable to your external wallet:

1. Navigate to the trading section of the exchange.
2. Select Bitcoin (BTC) and choose the amount you wish to buy using your USD balance.
3. Complete the transaction, and your newly purchased Bitcoin will appear in your exchange wallet.

5. Transferring Bitcoin to an External Wallet

Now that you have Bitcoin in your crypto exchange account, you can transfer it to your external wallet. Follow these steps:

a. Get Your External Wallet Address:

1. Open your external wallet (e.g., MetaMask, Trust Wallet, or a hardware wallet like Ledger).
2. Find the “Receive” section, which will show your wallet address.
3. Copy this address. Ensure it's correct, as sending Bitcoin to the wrong address could result in a permanent loss of funds.

b. Transfer Bitcoin from the Exchange:

1. Go to the “Withdraw” section on your cryptocurrency exchange.
2. Select Bitcoin and paste the wallet address you copied earlier.
3. Specify the amount of Bitcoin you wish to transfer and confirm the transaction.
4. The Bitcoin should now be sent to your external wallet. Depending on network congestion, this process may take a few minutes to several hours.

6. Transaction Fees to Consider

It’s important to note that each step in this process may involve fees. Venmo charges a fee for selling Bitcoin, while your crypto exchange might charge deposit, trading, and withdrawal fees. Additionally, Bitcoin network fees apply when transferring your BTC to an external wallet. Make sure to factor in these costs to avoid surprises:

• Venmo transaction fee for selling Bitcoin: Ranges between 1.5% and 2.3%, depending on the transaction size.
• Exchange trading fee: Usually between 0.1% and 0.5%.
• Bitcoin network fee: This is dynamic and depends on network congestion, but typically ranges from a few cents to a few dollars.

7. The Importance of Security

When dealing with cryptocurrency transfers, security is paramount. Ensure that your external wallet’s private keys are safely stored and never shared with anyone. Consider using two-factor authentication (2FA) for your exchange account to add an extra layer of protection.

For those using hardware wallets, these devices provide an extra level of security by keeping your private keys offline. If you're using software wallets like Trust Wallet or MetaMask, make sure your devices are up to date with the latest security patches.

8. Conclusion

While Venmo does not directly support Bitcoin transfers to external wallets, there is a clear, albeit indirect, process that allows users to transfer funds from Venmo to an external wallet. By selling your Bitcoin on Venmo, transferring the USD to a crypto exchange, and repurchasing and sending the Bitcoin to your wallet, you can successfully complete the transaction.

Understanding these steps ensures that you can retain control over your Bitcoin and other cryptocurrencies, and secure them in a wallet you trust. As the cryptocurrency ecosystem continues to evolve, it’s likely that Venmo and other platforms may introduce direct transfer options in the future, but for now, these workarounds are effective.