Coinbase Card Review 2021: Should You Get One? (2023)

FAQs

Is it worth it to get a Coinbase card? ›

If you're an active Coinbase user and hold cash or USDC in your account, the Coinbase card is worth using. The rotating rewards help you diversify your portfolio. And earning 4% back on certain cryptos is one of the highest rates out there. However, avoid spending crypto to earn crypto at all costs.

Transactions may be declined for several reasons: You have insufficient funds in your account. You surpass the spending limit of $2,500 a day. You try to spend at a prohibited merchant category (learn more at "Where can and can't I use the Coinbase Card?").

The Coinbase debit card limit is $2500 per day.

This means that you can use your card to purchase up to $2500 worth of goods and services in a single day. If you need to make a larger purchase, you will need to either use another form of payment or split your purchase into multiple transactions.

You'll receive a physical Coinbase Card in the mail within seven to 10 business days. If you would like to use Coinbase Card through Apply Pay or Google Pay, you will need to create a PIN. You can do this within the app or by calling Coinbase Support.

The Coinbase Card* is a debit card issued by Metabank and runs on the Coinbase platform. It allows you to spend any cryptocurrencies or U.S. dollars you own anywhere Visa cards are accepted. To spend your cryptocurrency, Coinbase will automatically convert all your cryptocurrency to U.S. dollars when making a purchase.

If you want to buy Bitcoin with a debit card, you will receive your Bitcoin instantly, but there's a buying fee associated with it. But if you are willing to wait for the transfer, use your bank account to avoid the associated fees. Coinbase offers ACH transfer, free wire transfers and bank account transfers.

Visa and MasterCard debit cards can be used to buy on Coinbase. We're unable to support prepaid cards or other cards without an associated billing address. To learn more about how to cash out funds using your debit card please see, Instant Card Cashouts.

Coinbase, the cryptocurrency startup, announced Tuesday (Feb. 13) that it disabled the ability for customers to add new credit cards as a payment method for those in the U.S.

Yes, Coinbase reports to the IRS. It sends Forms 1099-MISC to the IRS for U.S. traders who made more than $600 in crypto rewards or staking. $600 is the Coinbase IRS reporting threshold for tax year 2022.

Can I pay bills with Coinbase card? ›

With the Coinbase Visa debit card, the largest cryptocurrency exchange in the United States, supports both Google Pay and Apple Pay, making it easier to use cryptocurrencies for regular transactions and bill payments. You can use your card to make purchases with cash, cryptocurrencies that you own, or to pay bills.

Purchases made using a debit card or the USD balance are made available instantly. The ACH bank transfer system is used for payments with your bank account and typically takes 3-5 business days* to complete after initiating a purchase.

Are there any fees associated with Coinbase Card? There are no transaction fees for spending with the Coinbase Card. You can spend your default cash currency, USDC, or any supported crypto on Coinbase using your Coinbase Card and there will be no transaction fees.

Is there a maximum amount that I can withdraw? There are no maximum withdrawal limits on Coinbase Commerce—you can withdraw all funds at any point.

At Coinbase we go to great lengths to keep all of your sensitive information safe. Account numbers and routing numbers are stored using bank level AES-256 encryption on our servers. In addition, all traffic is encrypted in transit to prevent third parties from eavesdropping on your connection.

Coinbase is generally a safe investment and is a secure platform for buying, trading, and storing cryptocurrencies like Bitcoin and Ethereum. It's one of the most trusted ways to exchange cash, and it employs strong security measures to protect users, including AES-256 encryption, 2FA, and cold (offline) asset storage.

Coinbase generates revenue via staking, transaction fees on the Coinbase debit card, spread when converting cryptocurrency to fiat currency, and spread on cryptocurrency trades conducted on its platform.

Coinbase charges a flat 1% transaction fee on all cryptocurrency transactions.

Coinbase allows you to stake your assets in a third party if you use cryptocurrency. There can be rewards on this investment minus a hidden Coinbase fee of 25% commission.

Coinbase is a US-based company and is subject to US Securities and Exchange Commission regulations, which are generally more stringent than those in other countries. This means that Coinbase has higher compliance costs, which are passed on to users in the form of higher fees .

Which banks allow Coinbase? ›

Crypto-friendly Bank FAQs

To our knowledge, Revolut, Monzo, Xace, Cashaa, Orounda, Royal Bank of Scotland, NatWest, Nationwide, Barclays, Santander, Metro Bank and Halifax all allow payments to Coinbase.

To cash out your funds, you first need to sell your cryptocurrency for cash, then you can either transfer the funds to your bank or buy more crypto. There's no limit on the amount of crypto you can sell for cash.

As the SEC sees it, Coinbase is essentially running an illegal enterprise under existing securities laws. The SEC charged Coinbase with operating as an unregistered securities exchange, broker, and clearing agency, and took aim at the brokerage's “staking” service, which offers high yields on a few tokens.

With Coinbase being an institutional platform, some alternatives to Coinbase in that regard are Bitstamp, Kraken, eToro, Gemini, and Binance. Kraken charges much lower fees than Coinbase and is more secure, hence much better than Coinbase.

Binance, the world's largest crypto exchange, charges less fees than Coinbase. Another one on the list is Bitstamp. It is best for beginner and advanced regular trading with low fees. Kraken crypto exchange is also a cheaper alternative to Coinbase and also offers advanced investment options.

Coinbase - Cheapest Way to Buy Bitcoin for Beginners

Deposits are straightforward through ACH transfers, credit cards, wire transfers, and PayPal. ACH transfers are free, credit card payments cost 2.49% of the transaction value, and wire transfers cost $10.

Coinbase Debit Card Fees

The limit is $2,500 in transactions and $1,000 in ATM withdrawals. 2% fee when you use the card outside the United States. 2.49% cryptocurrency liquidation fee on every transaction for most currencies. USDC is fee-free, but all other supported cryptocurrencies carry the fee.

What is the Coinbase card limit? The Coinbase card is a debit card, not a credit card, and thus does not have a preset limit. The limit you will be able to spend up to will entirely be determined by your Coinbase balance, just like cash in a bank account with a traditional debit card.

Pricing & Fees

Coinbase's Visa Debit Card has no monthly or annual fees. Additionally, there are no foreign transaction fees when using the Coinbase card abroad. The Crypto.com Visa, on the other hand, charges a $50 annual fee for the card. Additionally, users are charged a 3% for credit card top-ups.

However, you still need to report your earnings to the IRS even if you earned less than $600, the company says. The IRS can also see your cryptocurrency activity when it subpoenas virtual trading platforms, Chandrasekera says.

Do I have to pay taxes on crypto if I don't cash out? ›

If you buy crypto, there's nothing to report until you sell. If you earned crypto through staking, a hard fork, an airdrop or via any method other than buying it, you'll likely need to report it, even if you haven't sold it.

Cryptocurrencies such as Bitcoin are treated as property by the IRS, and they are subject to capital gains and losses rules. This means that when you realize losses after trading, selling, or otherwise disposing of your crypto, your losses offset your capital gains and up to $3,000 of personal income.

You are seeing a charge on your statement because someone connected your bank account on our website and used it to purchase bitcoin (a digital currency). If you don't recognize this charge, it's possible that someone has connected your bank account without your permission.

Another reason your Coinbase debit card limit might be set to $0 is that your bank has not yet been added to the Coinbase system. To add your bank to Coinbase, you must first provide your routing number and account number. Until you do so, your Coinbase debit limit will remain at $0.

Now that the demand for bitcoin has increased exponentially, Coinbase will be reducing that limit to 1 bitcoin per day for level 2 accounts, and 0.1 bitcoins per day on level 1 accounts (accounts are measured by level depending on how much personal information has been supplied to verify one's identity).

Select Add cash. Select your bank account. Enter the amount of cash you'd like to deposit. Select Continue then choose Add cash now.

Client funds are stored in omnibus FBO accounts and - similar to longstanding practices at banks - we maintain internal ledgers as an official record of how much cash each client holds. These records enable us to secure pass-through FDIC insurance for our customers (up to $250,000 per customer, per bank).

Coinbase also charges a spread-based fee of 0.50%, while other fees depend more on which method of payment you're using — ACH transfers are free, whereas using a bank account or USD Wallet adds a 1.49% fee, using a credit or debit card adds a 3.99% fee and wire transfers rack up an extra fees of $10 incoming and $25 ...

No overdraft/credit feature. Contact Coinbase Customer Service by calling 1-888-908-7930, by mail at 100 Pine Street, San Francisco, CA 94111, by email at card@coinbase.com​or visiting ​https://help.coinbase.com/en/coinbase/trading-and-funding/other/coinbase-card-faq.htm​l​.

Why do I have to wait 7 days on Coinbase? ›

If you cannot complete the ID verification process, you will have to wait 72 hours for the send to initiate. Please contact us if you ever see any suspicious activity on your account.

Coinbase One costs USD 29.99 a month, and the company plans to bring it to more countries in the coming months as part of an international expansion strategy. Frequent traders can benefit from this service by executing more trades on hundreds of assets without worrying about trading fees on every transaction.

Coinbase Card

Credit transactions are charged a flat fee of 2% in total if you are borrowing USD from Coinbase or another affiliate of Coinbase. There is a 2.49% fee for Coinbase Wallet currency conversions. If you use your Coinbase card at an ATM, you may be charged operational fees.

Why Can't You Withdraw From Coinbase? As noted earlier, sometime you'll find the Cash Out feature grayed out. Coinbase disables Cash out availability for security reasons. You won't be able to use the feature to send money to your local currency.

You can still buy, sell, and trade within Coinbase. However, you'll need to wait until any existing Coinbase account holds or restrictions have expired before you can cash out with your bank account. Withdrawal-based limit holds typically expire at 4 pm PST on the date listed.

Coinbase account limits are determined by an algorithm which takes a variety of factors into account, including but not limited to, account age, location, transaction history, payment method, and verification steps completed. Unfortunately this means that limits can sometimes go down for customers.

How Coinbase Makes Money? Major Revenue Sources. Coinbase generates revenue via staking, transaction fees on the Coinbase debit card, spread when converting cryptocurrency to fiat currency, and spread on cryptocurrency trades conducted on its platform.

Spending with the Coinbase Card has no transaction fees. Coinbase does include a spread in the price to buy or sell cryptocurrencies. This allows us to temporarily lock in a price for trade execution while you review the transaction details prior to submitting your transaction.

You are seeing a charge on your statement because someone connected your bank account on our website and used it to purchase bitcoin (a digital currency). If you don't recognize this charge, it's possible that someone has connected your bank account without your permission.

Coinbase also charges a number of fees, including a 2.49% cryptocurrency liquidation fee.

What's the best way to make money on Coinbase? ›

They use the platform to buy, sell, secure, invest and spend their digital assets. But do people make money using Coinbase? The answer is that they do — and you can get started earning coins and tokens, even without any experience.

Yes, you can make money on Coinbase Earn by completing tasks and earning rewards. The amount of money you can make will depend on the task you complete and the reward you receive. Some tasks may only give a few dollars worth of rewards, while others may give hundreds or even thousands of dollars worth of rewards.

Does Coinbase Refund You If You're Scammed? No, Coinbase will not refund you if you're scammed. If you take part in the fraudulent activity that led to you getting scammed, Coinbase will not refund you. You need to do due diligence before sending your digital assets to anyone.

If you already have a credit card linked, your bank may charge additional fees for credit card purchases on Coinbase. We encourage affected customers to switch to a debit card or linked bank account instead.

Answer: It is easy to set up an account although you will need some information. Some information needed includes legal name, address, date of birth, SSN last digits, and plan for using Coinbase.

There is a 1% fee to convert and withdraw your crypto to cash in addition to standard network fees. A network fee is necessary in order to have your transaction processed by the decentralized cryptocurrency network.