How To Buy Stocks on Cash App

Cash App
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As one of the world’s most popular fintech applications, Cash App boasts a user base of more than 30 million active monthly users, according to Business of Apps. While the app has primarily been used for peer-to-peer payments, it made buying and selling stocks available in 2019.

It’s only natural that with so many active users, many are excited to start buying stocks on the app — but how do they do it?

How To Buy Stocks on Cash App

Buying stocks on Cash App is a simple process. Follow the steps below to get started.

Step 1: Determine Which Stocks To Buy

There are hundreds of stocks for investors to choose from on the app. When determining which stocks to buy, investors should consider their investment objectives, risk tolerance and the historical performance of the options they’re considering. Users should never forget that research forms the foundation of any investment decision. 

Step 2: Sign Up for Cash App

Cash App is available on both the App Store and Google Play.

The IRS generally requires its cut whenever anyone comes into money, including stock investments. As a result, all stock trading platforms request personal identification information from its users to begin investing. Fill out all forms and provide all requested information to access Cash App’s investing features. 

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Step 3: Tap the ‘Investing’ Tab

Once signed up, users can tap the “Investing” tab from the home screen, which forwards them to the Cash App stock trading platform. 

Step 4: Search for the Stock

On the Cash App stock trading platform, investors can use the search bar to find any stock or exchange-traded fund supported by the platform. Selecting a company will direct investors to a page dedicated to the stock. 

Step 5: Tap ‘Buy’

Investors will tap the “Buy” button on the asset page to buy the stock or ETF. 

Step 6: Determine How Much To Buy

Investors should determine how much stock to buy before actually buying and consider diversification to protect their assets. 

One general principle is the 5% rule, which stipulates that investors should never risk more than 5% of their total portfolio value on any single or risky investment. In other words, if one stock in an investor’s portfolio dives, the gains in other assets will offset the declines and ensure the hit won’t be too big.  

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Step 7: Verify Your Personal Information

One of the many layers of high security with Cash App is a requirement for the user to verify who they are before making any trades. Users will do so by following the prompts.

Step 8: Confirm the Purchase Order With a Fingerprint or PIN

For the final layer of security, Cash App gives users the option to either scan their fingerprint or enter a PIN to confirm a stock purchase order.

Features of the Cash App Investing Platform

Cash App Investing comes with several compelling features. Some of the most impressive include: 

  • Hundreds of stocks 
  • Seamless integration with your current Cash App account 
  • A high level of security 
  • Multiple order types to choose from
  • Automatic investing 

Is the Cash App Investing Platform Right for You?

Before using Cash App Investing, there are several questions you should consider to help you decide whether it’s the right choice for you when it comes to stock trading.

Is Cash App Good for Stocks?

Cash App Investing is a great way to access the stock market. The company offers commission-free stock trading and the general tools that you’ll find with most discount brokers.

Can You Make Money on Cash App?

Investing in the stock market is a well-known vehicle for wealth creation. Since Cash App gives members the ability to buy and sell stocks, it is possible to make money on the app. 

Is It Safe To Buy Stocks on Cash App?

Cash App provides its users with a wide range of advanced safety features. The layers of protection offered by Cash App include:

  • Encryption: Data transfers through the Cash App network are encrypted.
  • Fraud monitoring: Cash App constantly monitors accounts for fraud with the same cutting-edge technologies that have kept Square’s point-of-sale transactions safe for years.
  • Sign-in verification: Every time a user signs in to Cash App, they’ll receive a unique one-time-use login code. This verifies that the account holder is the person signing in.
  • Payment verification: Cash App users can use either a fingerprint scan or a PIN to confirm any transaction. This includes transactions on the personal payments side of the app’s services as well as transactions on the stock side of the app.

Cash App’s website also offers an overview of the app’s security features as well as what users can do to keep their data and Cash App accounts safe.

Is Cash App a Good Place To Buy Bitcoin?

Users can easily buy and sell bitcoin using Cash App and can do so by using their Cash App balance. Therefore, there’s no need for external digital wallets or detailed knowledge of the blockchain to get started.

Do Cash App Investing Users Have To Pay Taxes on Stocks?

Capital gains include any time an investor generates a profit by purchasing or selling stocks, and the IRS will impose capital gains taxes.

Taxes on long-term capital gains, or gains from investments held for longer than one year, are taxed at lower rates than gains from investments held for less than one year. Gains from investments held for less than one year are taxed at the investor’s ordinary income tax rate.

Takeaway

The Cash App investing platform offers a compelling way to buy and sell stocks. Look into limited-time promotions to see if you can find additional perks to using Cash App. 

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