With the rising popularity of mobile payment apps, more and more people are starting to use cash app for daily money transfer and payment. Cash app, developed by Square, is one of the most widely used mobile payment apps that allows users to send and receive money instantly. As cash app gains more financial capabilities, some users have started exploring the possibilities of investing money through the app. Although cash app’s investment feature is still very limited compared to traditional brokerages, it does provide some basic investment opportunities for beginners. This article will discuss the best ways to invest through cash app for long term wealth growth.
Purchase stocks and ETFs with Cash App Investing
The most straightforward way to invest through cash app is to use the Cash App Investing feature. Launched in 2019, Cash App Investing allows users to easily buy and sell stocks and ETFs without commissions or account minimums. The selection of securities is still very limited compared to leading brokerages – only around 10-15 individual stocks and 3 ETFs are available. However, popular stocks like Tesla, Apple, and Starbucks are included. For beginners who want to get their feet wet in stock investing, Cash App provides a simple and low-cost way to buy fractional shares of brands they know and like. Just make sure to do proper research beforehand instead of blindly purchasing trendy stocks.
Invest in bitcoin and other cryptocurrencies
In addition to stocks, cash app also allows users to buy, sell and withdraw bitcoin instantly. The crypto feature sets cash app apart from other mobile payment competitors. However, take note that other cryptocurrencies like Ethereum or Dogecoin are not supported yet. The bitcoin investment minimum is very low at $1, perfect for experimenting. But fees are on the higher side – Cash App charges around 1.75% for bitcoin transactions. For long-term crypto investors, it’s better to use exchanges like Coinbase with lower fees. Overall, cash app provides a convenient entry to bitcoin investing for curious beginners.
Automatically invest spare change
The Cash App “Auto-Invest” feature provides hands-off investing by rounding up everyday purchases and investing the spare change. For example, if you buy a coffee for $3.50, Cash App will automatically take $0.50 from your account and invest it. Although the amount invested each time is tiny, it can add up over time into a sizeable portfolio. The drawback is you are limited to only investing in bitcoin through auto-invest, rather than a diversified basket of assets. But it’s an effortless way to passively invest your digital loose change into bitcoin.
Earn stock rewards with Cash Boost
Cash App has a rewards program called Cash Boost that gifts users stock in popular companies when they use Cash App’s payment services. For example, you may get a $1 reward in DoorDash stock after your first food delivery on DoorDash. The stock rewards are completely free and are a nice perk for regular cash app users. While the amounts are small, they provide an easy way to build a diversified stock portfolio over time without any investment needed from you. Make sure to claim the stock rewards promptly, as they expire after one year if left unclaimed.
For beginners looking to start investing with small amounts, Cash App provides easy and affordable options like fractional share stock trading, bitcoin investing, and automated spare change investing. However, more advanced investors are better off using traditional brokerages that offer more investment choices, lower fees, and better trading platforms.