Since Cash App—owned by Square and backed by Jack Dorsey, one of Bitcoin's most prominent supporters and Twitter's CEO—announced Bitcoin purchases via its platform, Coinbase has faced intensified competition in the crypto exchange arena.
Initially marketed as a "no-fee" Bitcoin purchasing app (though it earned revenue via spreads), Cash App captured a significant market share. However, after revising its fee structure for transparency and remaining limited to select U.S. states, Coinbase retained its dominance in the crypto exchange ecosystem.
This detailed comparison explores both platforms' strengths and weaknesses.
Key Takeaways
- Fees: Cash App generally offers lower costs for Bitcoin transactions.
- Supported Currencies: Coinbase supports multiple cryptocurrencies; Cash App deals exclusively in Bitcoin.
- Security: Both platforms prioritize robust security measures and regulatory compliance.
- Global Reach: Coinbase serves users internationally, while Cash App is restricted to the U.S., Canada, and the UK.
Overview: Coinbase vs Cash App
Coinbase
Launched in 2012 in San Francisco, Coinbase adheres to U.S. financial regulations, including:
- State money transmission laws
- The U.S. Patriot Act
- The Bank Secrecy Act
- Registration with FinCEN as a Money Services Business
Widely regarded as a top-tier crypto exchange, Coinbase combines regulatory compliance with user-friendly features.
Cash App
A peer-to-peer payment app (formerly Square Cash), Cash App expanded into Bitcoin trading in 2018. Its simplicity and integration with traditional banking make it popular for fiat transactions, with Bitcoin as an added feature.
Fee Structures
Coinbase Fees
| Purchase Method | Fee |
|-----------------------|-------------------|
| U.S. Bank Account | 1.49% (min $0.15) |
| Coinbase Wallet (USD) | 1.49% |
| Credit/Debit Card | 3.99% |
Cash App Fees
- Standard Deposits: Free
- Instant Deposits: 1.5% fee
- Bitcoin Transactions: 1.75% service fee + volatility-based adjustments
👉 Compare fees across top crypto platforms
Purchase Limits
- Coinbase: Up to $50,000/week for verified U.S. users; limits vary by region and account status.
- Cash App: $250/week for sending; $1,000/month for receiving. Bitcoin purchase limits: $10,000/week.
Supported Countries
Coinbase: Available in the U.S., UK, Canada, EU nations, Australia, and others.
Cash App: Limited to the U.S., Canada, and the UK.
Cryptocurrency Offerings
Coinbase: Bitcoin, Ethereum, Litecoin, XRP, and 10+ others.
Cash App: Bitcoin only.
Deposit & Withdrawal Methods
- Coinbase: Bank transfers, debit cards, PayPal (withdrawals only).
- Cash App: Bank-linked transfers (standard/instant options).
Customer Support
- Coinbase: Email support (24–72-hour response time) + comprehensive FAQ.
- Cash App: In-app support (mixed user reviews regarding responsiveness).
Trust & Reputation
Both platforms maintain strong reputations:
- Coinbase: VC-backed, publicly audited, FDIC-insured for USD balances.
- Cash App: Licensed under state money transmitter laws, with ACH oversight.
Security Measures
- Coinbase: 98% cold storage, Lloyd’s of London insurance, segregated customer funds.
- Cash App: PCI-DSS Level 1 compliance, PIN/Face ID protections, offline Bitcoin storage.
Additional Features
Coinbase: Institutional services (Custody, Prime), Coinbase Pro for trading.
Cash App: Focus on fiat transactions; Bitcoin as a secondary feature.
Pros and Cons
| Platform | Pros | Cons |
|----------|------|------|
| Coinbase | High liquidity, multi-currency support, strong security. | Higher fees, slower customer support. |
| Cash App | Simple interface, low-cost Bitcoin purchases. | U.S.-only, limited crypto options. |
Final Verdict
Choose Coinbase if you:
- Trade multiple cryptocurrencies.
- Need global access.
Choose Cash App if you:
- Prefer low-cost Bitcoin purchases.
- Primarily use fiat transactions.
👉 Explore alternatives like Kraken or Bitstamp
FAQs
1. Which platform has lower fees for Bitcoin purchases?
Cash App generally charges less (1.75%) compared to Coinbase’s 3.99% for card purchases.
2. Can I use Cash App outside the U.S.?
No—Cash App operates only in the U.S., Canada, and the UK.
3. Is Coinbase safer than Cash App?
Both employ top-tier security, but Coinbase offers broader asset insurance.
4. Which platform supports more cryptocurrencies?
Coinbase supports 15+ coins; Cash App deals exclusively in Bitcoin.
5. How do I increase my purchase limits?
Verify your identity on either platform to raise limits.
For further comparisons, read our in-depth guides on crypto exchanges.
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