What is the Cash application? The Easy Way for Redditors to Trade Stocks

Individual stock traders coordinating their behavior on Reddit sent Wall Street into a free fall: a hedge fund went bankrupt while some traders made real millions.

Users who participate in the stock pumping action have a few options for trading stocks. While most of the users use the Robinhood trading app, another app called Cash App is reaping the benefits as well.

As users reportRobinhood appears to be trying to get its hands on free-for-all by blocking some stock transactions that the community targets for pumping, such as GameStop and AMC. But Robinhood is not the only option: the App Cash also makes stock trading extremely easy.

Cash App is currently number seven in the top free apps Google Play Store, and 11 in the Apple App Store. People on Twitter who are participating in the stonk madness are advising others to download the Cash App as Robinhood falters.

What is the Cash application?

Cash App, which is owned by Square, is a bit like a hybrid between the Venmo and Robinhood apps. You can buy and sell both stocks and Bitcoin, and you can transfer money between individuals. Cash App also has a debit card that offers limited time cash back offers on purchase categories called “boosts”. With both a debit card and an account, it’s a digital alternative to traditional banking.

It’s free to use and offers cash incentives to invite friends to join us. All you need to do to start transferring money is first download the app, connect it to your phone number and add your bank account through a debit card. If you want to use the app to buy and sell stocks or Bitcoin, you will need to provide additional information, such as the last four digits of your social security number.

Related Video: What You Need To Know About Halving Bitcoin

How did Cash App become so popular?

Although created in its initial form in 2013, Cash App has only really started to take off in recent years: it was the tenth most downloaded app of 2020.

In 2013, Square, the payments company created by Twitter CEO Jack Dorsey, launched Square Cash, the app that would eventually become Cash App. In 2018, it added the ability to buy and sell Bitcoin. The following year, he did the same for stocks.

Cash App is also a podcast advertiser whose Joe Rogan Experience, and Rogan asked his many viewers to download the app. Rogan also had Dorsey on his podcast where they discussed Cash App and Bitcoin trading.

While some users adore Cash App for its cash back “boosts”, more recently Cash seems to have been riding Reddit’s wave of stock market renegades. According to Apptopia, US users downloaded Cash App 27 million times over the past six months, compared to 16 million times for Venmo.

Square Q3 2020 Shareholder Report indicates that stock trading has helped increase the popularity of Cash App. It indicates that all Cash App transactions have doubled in the year since the addition of stock trading, and that more than 2.5 million users have purchased stocks using the Cash App. , with “billions of dollars” negotiated by October 2020.

Are there any downsides to Cash App?

There is a day trading limit, which you can find out more about here. Like Venmo, Cash App invoice fees send money with a credit card, and a fees for instant transfers to your bank account.

If you want instant transfer, it will cost you.
Credit: screenshot: Cash / mashable application

Should I download Cash App?

If you want to have one stop shopping for several aspects of your financial life, Cash App is a great option. Its cash back increases can really add up, the money transfer interface is clean and simple, and it might be dangerously easy to start trading stocks and Bitcoin.

However, if all you are looking for is a money transfer app, you might be better off using Venmo or Zelle. Chances are that more people you know are already using these services and have fewer features to get bogged down in.

In addition, Cash App has been greeted as a great trading portal for beginners. But if you want to get more serious about trading stocks or Bitcoin, it’s worth checking out other dedicated portals like Coinbase, Robinhood, or maybe even a human stockbroker who can guide you.

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