Cash App vs Coinbase: How Do They Compare?

Coinbase and Cash App are two user-friendly crypto-buying wallets becoming popular in the USA. They’re gaining popularity due to their user-friendliness and competitive fees. These online applications are used for trading crypto-currencies online.

They equip the user with digital valets and other amenities. Helping users trade and generate money from cryptocurrencies with ease. Both of these platforms are secure and hence trustworthy for users. 
They may look similar, but they’re both opposites in reality. Cash App is a payments app that works as a stockbroker offering Bitcoin trading. Yet, Coinbase is a leading cryptocurrency exchange. It has a standard and a premium version.

Let’s see more in-depth on how both of these apps compare.

The Overview of Coinbase

Since its creation, Coinbase has become one of the leading well-known Crypto exchanges with worldwide popularity. It’s used to trade cryptocurrencies globally, with a popular and secure e-wallet for digital currencies. Coinbase has even created a physical card powered by your digital balance for easy use.

Fred Ehrsam and Brian Armstrong founded Coinbase in early 2012. On top of popular acclaim,  it has received funding of 850 million dollars in its decade of operation. It has prominent investors, including Abacus, Securitize, Horizon Blockchain Games, Coinbase CBT, Blade, Alchemy Insights, and more, which are big names in cryptocurrency. Coinbase shows phenomenal growth, with more than 15 organizations partnered with them in 2021. 

Coinbase has more than 300 billion dollars in its quarterly trade volume and has expanded to over 100 countries with 60 million users verified to date. Users can leverage the Coinbase wallet and store all digital assets like NFTs (Non-fungible tokens) and cryptos in one place safely. 

Decentralized apps can also be stored, making it easy to make payments directly through favored apps for fast and easy banking. Coinbase does well, making crypto spendable as money in a person’s bank. 

It can be used with ease at countless locations to make contactless payments. It can also make easy payments in offline and online stores. 

Is Coinbase Good for Bitcoin?

It’s one of the leading Bitcoin wallets. Let’s explore several pros and cons of owning Bitcoin in a Coinbase wallet.

The Good and Bad about Coinbase

The Good

• Coinbase provides investment services and management of portfolios.
• Coinbase provides secure vault storage for your funds, allowing for deferred withdrawals.
• Servers for cryptos are covered by insurance.
• Digital assets are stored securely offline.
• It provides insurance coverage to its investors. 
• A bonus of $36 in crypto for users learning the work protocols for crypto and specifications of the digital assets.
• Wallet secured through biometric verifications and secure enclaves authentication.

The Bad

• The user data remains under constant monitoring, meaning users don’t have any anonymity.
• Delayed deposit and withdrawal processes.
• Users are responsible for protecting passwords and security keys.

The Overview of Cash App

Cash App is a peer-to-peer payment platform created in 2013 by Square Inc. (SQ). It’s a popular choice for facilitating payroll and is used for various transactions like paying restaurant bills, buying from Amazon, and much more.

It’s easy to use and access as it’s available on iOS and Android. Cash App has gained massive popularity among 30 million users across the US, UK, and Canada but is concentrated mainly in North America. App Store ranks it number one for finance.

In a Cash App Bitcoin review, the app has shown fast growth in a very short space of time. It’s no longer a payment facilitator but a credible alternative to the whole banking system. It’s a popular payment option that’s being widely used for dining, shopping, and online payments. It has made payments simple by simplifying the process.

All the user needs to do is enter the receiver’s “$Cashtag,” phone number, or email in order to send them a payment.

Apart from sending and receiving payments, the user can file tax returns which takes less time and effort than traditional banking methods. Moreover, apart from traditional banking and financial services, it has started offering users the option to invest in cryptocurrencies.

Is Cash App Good for Bitcoin? 

Cash App makes it easier to invest in stocks and Bitcoin. It lets investors invest for as little as $1. This is a great financial platform for pros and beginners alike. 

The Good

• A level 1 certification of security through PCI-DSS.
• Safe and secure offline system storage.
• Low minimum stock investments of 1$.
• Fast and free peer-to-peer Bitcoin transactions.
• Bitcoin withdrawal minimums of 0.0001.
• Transfers only take 30 minutes, which is faster than competitors.
• Cash App provides a withdrawal facility and even discounts at some merchants.

The Bad

• Sparse and limited app features compared to other crypto wallets.
• The international payment facility is available only in the UK.
• Cash App lacks FDIC insurance. 
• You can’t deposit more than $10,000 in the wallet on any day of the week. 
• It only supports one cryptocurrency: Bitcoin.

Detailed comparison

Signup Bonus

Coinbase gives a better signup bonus than Cash App. Coinbase gives up to two times Cash App’s welcome bonus plus 150% over time. It also gives $5 worth of cryptocurrency as a welcome bonus. It’s quite lucrative for new entrants.

Cash App gives you a $5 signup bonus plus $5 for every person you refer. 

Beginner Friendliness

When it comes to being user-friendly, Coinbase takes the lead. It’s much more beneficial to beginners as it incentivizes learning. New users can earn up to $40 in crypto by learning about protocols and new coins. These protocols and assets include GRT (The Graph), Compound, Celo, UMA, and many others. 

New users are offered scheduling services for their investments. When leveraged, users can invest in altcoin and cryptocurrency slowly over time through scheduled buying. It can be scheduled by days, weeks, or months.

On the other hand, the Cash App doesn’t incentivize learning. However, it lets beginner investors start investing for as low as $1. It has made it easy for novices to purchase Bitcoin in just a few clicks. 

Signup Process

Cash App takes the lead here as it has a less complicated and quicker signup process. On the other hand, Coinbase makes it slightly harder to sign up. 

Signing up for Coinbase is a tad bit more complicated than Cash App. Coinbase follows a stricter verification protocol. When signing up for Coinbase, one must follow these industry protocols. 

It takes more verifications to complete the process. Some of them are:

• The user needs to be above 18 years old.
• The extra verifications include verifying the mobile number and email. 
• It’s verified through the government ID that the person holds.
• The person requires a smartphone or computer connected to wifi.

To signup for Cash App, users can make accounts through both the mobile app and desktop website. When linking accounts to the bank, users will need their debit card on hand to enter the information.

Uniqueness is decided by creating a unique username called “$Cashtag.” Every user has this unique tag, a combination of letters, numbers, and symbols. Users use this tag to send and receive money between each other. 

Cash App vs Coinbase Fees

Cash App takes the lead when it comes to fees. It has comparatively fewer fees than Coinbase. Coinbase has ridiculously high fees when it comes to transactions. It takes $0.99 to $2.99 on a transaction between $10 to $200. It’s almost 1% to 1.5%, and hence considered high when it comes to 0.2% transaction fees, which are average. 

Cash App Bitcoin fees will be listed on the trade confirmation before completing transaction.

Available Cryptocurrencies

Coinbase takes the lead here when it comes to the number of available cryptocurrencies. It has over 57 currencies and services in all of the US, CA, SG regions, UK, and EU.

Cash App is a Bitcoin-only service. No other forms of cryptocurrencies are available, which is a massive letdown for traders.

Cash App or Coinbase: The Conclusion

Both Coinbase and Cash App offer a user-friendly trading experience. They both have excellent customer support and a secure server to store users’ assets. 

Let’s look at other factors like fees and supported currencies. Coinbase has more currencies to trade in, but in terms of fees, it loses to Cash App. Cash App is cheaper and charges fewer fees than Coinbase. 

Coinbase is a good option for people looking forward to leveraging the cryptocurrency market. 

It has a better range of currencies and assets to trade compared to Cash App.

Coinbase gives you both card and wallet services. This makes using crypto offline more practical for most users. Cash App is helpful when the user wants to focus on the trading ecosystem as a whole, including the famous bitcoin. 

Cash App is used for net banking, payments, and stock trading starting at 1$. 

Cash App is better for safely sending Bitcoin payments to your near and dear ones. It has a faster service than Coinbase when transferring Bitcoin. 
They both are excellent and innovative payment platforms. We’ll leave it up to the user to decide according to their priorities. We can assure the user that whichever platform they choose, their money is secure. They’re both well-reputed firms with excellent transparency. So, dear users, it’s time to stop worrying and start investing!