Digital Assets
Ease of Use, and Exposure to Crypto Improving – Cash App Integrates LN, Trezor to Support DCA
With an increasing number of people using cryptocurrencies, the ease of use and exposure to this new asset class is improving. Such is the lure of cryptocurrencies that even businesses couldn’t remain immune from them, as they have begun accepting them as payment in large numbers, which only further adds to the popularity of digital assets.
This is a never-ending cycle as more users will compel more companies to accept crypto payments, and more companies mean more users will be ready to use and pay in crypto.
But some companies are playing a much more active role in growing crypto usage globally. For instance, Cash App, a popular mobile payment application created by ex-Twitter CEO and Bitcoin proponent Jack Dorsey’s Block Inc. (previously known as Square), has now integrated the Bitcoin scaling solution Lightning Network (LN) into its platform. This allows for a faster, cheaper way of sending and receiving Bitcoin.
Powered by Lightning Network, Cash App users can now send and receive BTC payments instantly. The Lightning Network is a second-layer solution that works to accelerate Bitcoin transactions, allowing bitcoin to be used for smaller purchases. Its advocates claim that Lightning will help achieve widespread adoption for the world’s largest digital asset since it enables people to use BTC for daily purchases.
Instant BTC Payments Across the US
To transact BTC through Cash App, a user must go to the platform and open the “Money Tab.” As you select the Bitcoin option, a QR code or link is generated that allows users to transact with other Lightning-enabled wallets.
According to the Cash App website, with Lightning, there are “typically little to no fees involved,” and there is a $999 limit every seven days with the Lightning integration.
Supported on both iOS and Android mobile devices, users need to update to the latest version of the app to be able to enjoy this functionality.
The feature is available across the US, except for New York State. As per the official statement from the company, as long as users interact with Lightning wallets, Cash App users can send or receive BTC from the app in the U.S.
Speaking of Cash App’s user numbers, the app boasts more than 44 million monthly users but is only available in the U.S. and U.K.
Turning the focus on Cash App’s integration with Lightning Network, it was actually first announced by Cash App in February, but it only allowed users to send BTC to other Lightning wallets at the time. That has changed now, as users can also receive BTC.
The addition was revealed on Twitter by Cash Apps bitcoin product lead Michael Rihani and confirmed with the Cash App’s new support page, called Lightning. Cash App first started offering bitcoin exchange services way back in 2018, and it quickly became extremely popular for bitcoin transactions across the US and UK.
Block also announced a “Pay Me In Bitcoin” for Cash App users this year, allowing people to receive all or a portion of their paycheck in the leading cryptocurrency.
Trezor Enables DCA Bitcoin
The popular hardware wallet Trezor, too, is working towards improving the exposure to crypto by supporting dollar-cost-averaging (DCA) automated bitcoin purchases within the Trezor Suite. Once the bitcoin is acquired through DCA, they are placed in cold storage.
“The key to Bitcoin’s future is to welcome people who are currently intimidated by cryptocurrencies,” said Trezor co-founder Pavol Rusnák. “But we’ve found that new users continually worry over two things: finding the perfect time to enter the market and keeping their Bitcoin safe. This integration solves both.”
As for what Dollar-cost-averaging (DCA) stands for, it is the practice of accumulating an asset over time by investing equal amounts of money in the asset at regular intervals, regardless of its price. The beauty of this practice is that it can reduce the overall impact of price volatility. On top of that, increasing your Bitcoin holdings doesn’t require managing it, either.
This new feature at Trezor, which allows you to schedule a fixed amount of BTC buys over a particular time period to build your Bitcoin savings, is enabled by cryptocurrency infrastructure provider Invity. It is provided by Swan Bitcoin in the USA (except New York, Hawaii, and South Dakota) and BTC Direct in Germany, Spain, the Netherlands, Belgium, and the Czech Republic.
Trezor users can find this feature under the Trade menu of their Bitcoin account, labeled the Save Bitcoin button. You just have to set up the amount you want to spend and how often, such as days, weeks or months. Moreover, the DCA settings can be changed at any time too.
