Overview
The rivalry between Coinbase and Cash App intensified when Cash App, backed by Square and Twitter CEO Jack Dorsey, introduced Bitcoin purchases. Initially marketing itself as a commission-free platform (earning through spreads), Cash App lured users away from Coinbase. However, fee structure transparency and limited U.S. availability kept Coinbase a dominant player in crypto exchanges.
Coinbase: A Trusted Crypto Giant
- Founded: 2012 (San Francisco, California)
- Compliance: Adheres to U.S. regulations (Patriot Act, Bank Secrecy Act) and is FinCEN-registered.
- Reputation: Among the top cryptocurrency exchanges globally.
Cash App: Simplified Payments with Bitcoin
- Owned by: Square (now Block, Inc.)
- Features: Peer-to-peer payments, debit card, and Bitcoin purchases since 2018.
Fees Comparison
Coinbase Fees
| Purchase Method | Fee |
|---------------------------|-------------------|
| U.S. Bank Account | 1.49% ($0.15 min) |
| Credit/Debit Card | 3.99% |
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Cash App Fees
- Bitcoin Transactions: 1.75% fee (includes service + volatility fees).
- Instant Deposits: 1.5% premium.
- Credit Card Payments: 3%.
Takeaway: Cash App is cheaper for Bitcoin purchases, while Coinbase offers more currency options.
Purchase Limits
| Platform | Weekly Limit (Verified) | Bitcoin Withdrawal Limits |
|-----------|-------------------------|---------------------------|
| Coinbase | $50,000 (U.S.) | Varies by account tier |
| Cash App | $10,000 (7-day period) | $2,000/day, $5,000/week |
Supported Countries & Currencies
Coinbase
- Countries: U.S., U.K., Canada, EU nations, Australia, and more.
- Currencies: Bitcoin, Ethereum, Litecoin, XRP, etc.
Cash App
- Countries: U.S., Canada, U.K. only.
- Currencies: Bitcoin exclusively.
Security & Trust
Coinbase
- Funds: 98% offline in cold storage; FDIC-insured for USD.
- Regulation: Complies with U.S. federal and state laws.
Cash App
- Security: PCI-DSS Level 1 encryption, Touch ID/Face ID.
- Bitcoin Storage: Offline cold wallets.
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Pros and Cons
Coinbase
- ✅ FDIC insurance, multi-currency support.
- ❌ Higher fees, slower customer support.
Cash App
- ✅ Lower Bitcoin fees, user-friendly interface.
- ❌ Limited to Bitcoin, low transaction limits.
FAQs
1. Which is better for beginners?
Coinbase offers a streamlined interface, while Cash App excels in simplicity for Bitcoin purchases.
2. Can I use Cash App internationally?
No—it’s restricted to the U.S., Canada, and U.K.
3. Are both platforms secure?
Yes, both employ advanced security measures like cold storage and encryption.
4. Which has lower fees for Bitcoin?
Cash App generally charges less (1.75% vs. Coinbase’s 1.49–3.99%).
Final Verdict
- For Diversification: Coinbase (supports 10+ cryptocurrencies).
- For Low-Cost Bitcoin: Cash App.
Both platforms are secure and regulated, but your choice depends on whether you prioritize currency variety or cost efficiency.