Coinbase and Cash App Crypto Exchanges

Recently there has been news every so often about cryptocurrency scams. People have therefore felt it's a bit intimidating to invest in Bitcoin or other cryptocurrencies. With all this happening, investing safely in cryptocurrency has never been easy as it is today.

My concern when trading Crypto is security. As I intended to trade frequently, I tried two cryptocurrency exchanges that did not disappoint, namely: Coinbase and the Cash app. 

Here is what my experience was with the two:

Coinbase

I researched almost all the cryptocurrency exchanges before I decided on the one to use. Here is a short history of Coinbase and what made me want to try it out. 

Coinbase cryptocurrency exchange was founded in 2012 in San Francisco, California. This was not so long after the release of the Bitcoin code in 2009. Coinbase company being operated from the United States, it has to comply with all the U.S. laws and regulations. This may be lacking from the other competitors in the country with less strict regulations. Even with so many rules being enforced on Coinbase, it is the most widely known and used cryptocurrency in the United States.

According to Coinmarketcap.com, a market research website, it is ranked among the top cryptocurrency globally for trading volumes, liquidity, and traffic.   

As I did my research, I realized that it is a fully regulated and licensed cryptocurrency exchange. It came to my knowledge that it has licenses to operate in over 40 American states and territories. I also learned that Coinbase had avoided controversies even with the cryptocurrency industry being fraught with fraudulent coins and doubtful exchanges.  

Coinbase offers a very easy-to-use exchange that dramatically lowers the barrier to entry for cryptocurrency investment. One cryptocurrency exchange that I know offers insured custodial wallets for investors and traders to store their assets. Amazingly they carry insurance against data breaches and hacking. My money was in a Federal Deposit Insurance Corporation insured bank account.  

Coinbase also gave me a chance to use the Coinbase Pro version. The Coinbase pro has a different and cheaper fee structure and has significantly more options for charts and indicators. 

Some Coinbase features

I discoveredCoinbase has fantastic features that stood out, which include the following:

Cryptocurrencies offered

It offers 56 cryptocurrencies in the United States to customers to trade, 59 on Coinbase Pro. This is a more significant number than many other platforms. For instance, Robin Hood offers less than ten cryptocurrencies, eToro less than 20, and SoFi Active Investing offers just 20. 

Mobile apps

The android and IOS Coinbase App is highly rated by users and includes many of the same functions and features as the desktop sites. 

Coinbase earn

While using Coinbase, I learned about cryptocurrency trading and the 12 cryptocurrencies on offer. The App used video classes and exams. I got to earn around $ 115 worth of cryptocurrencies covered in the ranks. 

Crypto-to-crypto trading

Coinbase offered me more than 60 crypto-to-crypto trading pairs. More than 40 currencies that I traded for Bitcoin. Seven or so coins that I traded for Ethereum. Eleven that I traded for with a Stablecoin whose price is always equivalent to one U.S. dollar. 

Security and insurance

Unlike other cryptocurrencies not being protected by the FDIC, Coinbase has all the digital currency held online insured. The company's insurance covers losses related to Coinbase cyber securities and employee theft. Unfortunately, breaches to individual Coinbase accounts, i.e., compromised passwords, are not covered. 

Coinbase told me that they hold their cash balances in either U.S. custodial accounts, money market funds, or U.S. Treasurys. I choose to have them hold mine at the U.S. banks; hence, $250,000 of my funds was insured by FDIC. 

Those were the features that stood out for me, and I enjoyed using Coinbase. 

Cash App

The Cash app is owned by Square, backed up by Jack Dorsey, the CEO of Twitter and Bitcoin backer. Cash app made Coinbase up their game once they announced that they would support the purchase of Bitcoin through their App. 

It is a peer-to-peer money transfer system, just like Venmo and was formerly known as Square Cash. Sending and receiving money is relatively easy. Coinbase acts like a bank account. I was given my debit card, which I use to purchase things directly. I was allowed to connect the App to my bank account. I also bought Bitcoin through CashApp.

Cash App allowed me to invest in stocks, EFTs, and cryptocurrency similarly as Robinhood does. 

Being a first-time investor, the mobile-first interface that Cash App uses was just ideal. It was so easy to figure out and use.

While sending money via the credit card, Cash App charges 3% of the funds being spent. Cash App only allows Bitcoin investment and no other cryptocurrency. It will enable a limited withdrawal of $2000 of Bitcoin every 24 hours and $ 5000 every seven days. These are the few disadvantages that made me prefer Coinbase to CashApp.

Comparison between the Coin base and Cash app

Coinbase charges around 4% for credit and debit card purchases, while Cash App charges about 3% on the same. 

Cash App has no charges on bank transfer purchases, while Coinbase charges 1.49%.

Wire transfer, debit card, and bank accounts are three payment methods offered by Coinbase. For withdrawal, there is an additional method called PayPal. For Coinbase, it integrates with all major banks letting you transfer money directly to and from the bank. 

Coinbase customer support is via email and responds within 24 hours. I asked general questions in their extensive FAQ. For the Cash App, I accessed their support from the App itself. I once had my account disabled for no reason. I got no customer support to help me sort out the issue. 

Coinbase has a very transparent team. With it being based in San Francisco, it has to abide by all the United States rules and regulations at both federal and state levels. On the other hand, Cash App is licensed under state money transmitter licenses. 

Using Coinbase, my funds were separated from company operational funds. My funds were held in a custodial bank account. My funds were so safe that the company did not use them to operate their business. I was sure that if Coinbase happened to come bankrupt only, I would claim the funds. Not even Coinbase would. Cryptocurrency funds were stored in a very secure hardware wallet. These wallets are then stored in a vault and safety deposit boxes. Hence my funds were protected from being stolen by hackers or even being lost. 

I had a very secure experience with the Cash App. They use cutting-edge security measures to prevent funds and data loss. 

Verdict   

I would recommend both Coinbase and Cash App as cryptocurrency exchanges due to their excellent features. 

Cash App has no bank transfer charges, and they are easy to figure out. App has fantastic features. Their lack of good customer service and limitations in cash withdrawal are the features that put me off. 

I would go for Coinbase due to their excellent stellar customer support. The experience was just unique.

What’s your experience with this or any other Crypto Exchange platform? Let me know.