Coinbase and Cash App are two top options for a secure and user-friendly way to buy virtual currency. Both make it straightforward to invest in digital currencies, but apart from that, the platforms are similar.
Users can purchase and sell BTC (Bitcoin) via Cash App, a stock broker that works as a payment application. The leading crypto exchange is Coinbase, available for beginners and professional investors.
Fee Structure: Coinbase vs Cash App
Coinbase charges lower trading fees than Cash App, which is an essential benefit if you are looking to invest in crypto assets regularly.
Cash App calculates the fee amount when the user initiates a purchase instead of making it public. Before confirming your transaction, you should consider the cost. On 100 dollars or fewer purchases, costs are usually higher than 29 percent. Bigger purchases result in low fees, but they’re still more than what the best virtual currency exchanges take.
It is a bit challenging to know about Coinbase fees. This is because of the different fees based on whether users use its easy or advanced trading option.
The correct option, with costs differing from 0 to 6 percent, is the advanced trading tools of Coinbase, which it created to replace the Coinbase Pro exchange. According to the maker-taker model, the fee depends on the user’s trading volume. By extension, the Coinbase platform takes a taker fee when one order is instantly filled by a second order on the order books and the maker fee if an order is not.
Coinbase has yet to disclose the fee structure for simple trading options. Based on a particular amount, smaller trades require a flat fee that differs from 0.99 dollars to 2.99 dollars. Trades of 205 dollars and more have a variable fee normally under 1.5 percent.
Also Read: 13 Best Solana Wallets of 2023
Supported Cryptocurrencies: Coinbase vs Cash App
Coinbase platform notably outperforms Cash App in the digital currency selection.
Regarding selection, Coinbase is one of the top digital currency exchanges. It provides over 150 virtual currencies and is continuously adding more. After creating a Coinbase account, users can trade various cryptocurrencies, such as stablecoins, market leaders, and some smaller currencies. Also, Coinbase offers cryptocurrency staking, which allows users to profit from various digital currencies.
Currently, Cash App only sells BTC. That isn’t a big deal if you seek a stock trading payment app that enables users to buy BTC. Still, a reliable cryptocurrency exchange is a better choice if they are serious about investing in virtual currencies. There are numerous leading digital currencies you cannot purchase on Cash App, such as:
- Cardano (ADA)
- Polkadot (DOT)
- Ethereum (ETH)
- USD Coin (USDC)
- Solana (SOL)
Crypto Wallets: Coinbase vs Cash App
Users can initiate transactions and receive crypto (only BTC, in Cash App) using their wallet address via the custodial wallets provided by Coinbase and Cash App. Also, considered as hosted wallets, the platform itself manages these blockchain wallets. If you need full control, move the digital currency to a non-custodial crypto wallet.
Also, the Coinbase platform offers a non-custodial wallet. You don’t need to register an account with the Coinbase exchange to use it. It is a reliable wallet option that supports storing digital currencies and other virtual assets such as NFTs (non-fungible tokens) and storing fiat assets.
Safety Measures: Coinbase vs Cash App
It is secure to purchase and sell crypto on Coinbase and Cash App. Among the two, Coinbase provides insurance and stores most of the crypto assets offline in cold storage, providing its users with the best security. It is more challenging to steal digital currency kept offline.
Cash App safeguards users’ financial data and sensitive information using encryption and cutting-edge fraud detection technology. Here are some major safety features of Cash App:
- Users obtain a one-time sign-in code every time they access the Cash App.
- Users can enable a safety lock, so Cash App requires their passcode to initiate transactions.
- One can also turn on account alerts, which drop text messages, notifications, or emails whenever there is any activity on the account.
- Cash App keeps the BTC from users in cold storage, in part. Although, the part stored in cold storage is not explicit. Its official website shows Cash App utilizes an offline or online wallet system.
One of the renowned and secure crypto exchanges is Coinbase. Following are some of the safety features it has in place to secure its users and their assets:
- Coinbase users should allow 2-FA (two-factor authentication. A reliable password and a code obtained by the account holder on their phone are two examples of the identification users must use to access their account with 2-FA.
- Coinbase keeps most assets (about 98 percent) in cold storage.
- For the digital currency it keeps in hot wallets (online), Coinbase has created an insurance policy.
- Coinbase provides FDIC insurance to U.S. user accounts to cover cash funds. This kind of insurance provides coverage of up to 250,000 dollars for each user.
User Support
Coinbase provides customer service via email between 24 to 72 hours. For general queries, it also has a sizable FAQ.
Via the app, users can contact customer service (tap on your profile and choose the Cash Support option). Exceptional user service isn’t specifically well-known for Cash App. Numerous users complain about getting their accounts disabled for no evident reason, with no user support assistance to resolve the problem.
Reputation: Coinbase vs Cash App
Coinbase enjoys great trust and reputation as a verified and regulated company with popular V.C.s as investors, an immaculate track record, and a transparent team.
Being a San Francisco-based BTC organization, Coinbase should abide by each federal and state rule and regulation in the United States. Following are a few of the laws, regulations, and regulatory bodies that Coinbase complies with:
- Coinbase complies with each applicable state’s rules and laws governing currency transmission.
- It sticks to Bank Secrecy Act needs.
- It adheres to the USA Patriot Act.
- Coinbase has Currency Service Business registration with the FinCEN organization.
On the other hand, Cash App has received a license from state currency transmitter licenses.
It is subject to the institution’s supervision, enforcement obligations, and rulemaking when it uses services such as ACH. This could involve the EFTA (Electronic Funds Transfer Act). The (FTC) Federal Trade Commission and the Consumer Financial Protection Bureau (CFPB) regulate EFTA.
Conclusion
Coinbase and Cash App selection depend on your requirements and preferences, as both platforms are dissimilar. Coinbase is a great choice for investing in digital currencies. The widest selections of digital currencies, informative materials, cutting-edge trading tools, and top-level safety are all available. Trading commissions are reasonable if you wish to use sophisticated trading tools. Overall, Coinbase provides all the services you can expect from an exchange.
If you are seeking a user-friendly stock trading application that lets you purchase and sell Bitcoin, Cash App is worth considering. Because of the reason that, unlike the Coinbase exchange, it is not only dedicated to digital currencies; it has more restricted crypto support.
