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Coinbase Debit Card

223 points by agrinman 7y ago

WhuzzupDomal 7y ago
People saying this is anything but an incredibly positive event for the ecosystem are so hilariously delusional with their anti coinbase circlejerk. This kind of ADOPTION (I.E. REAL WORLD WAYS TO USE CRYPTO)is beyond essential to the greater goals that crypto will eventually accomplish. This alone could drastically increase crypto payments on a daily basis (even if they’re ultimately translating into USD) and will better stress test blockchains abilities to scale and process transactions. It’s a huge step in the right direction. The decentralized world was never going to exist overnight (we’re 11 years into this project, btw) and this is huge.
djpilot 7y ago
I've been piloting this program and I've got to say it's been a convenient way to pay without draining my real bank account. IMO this is a killer product compared to everything else I've experienced with Bitcoin and cryptocurrency this far, it really bridges the gap. Heck, I even used it to pay my back taxes to the IRS.
- headsoup 7y ago
  So the IRS accept bitcoin or is there a conversion behind the scenes? If the latter, how do you ensure you've actually covered the balance exactly?
  - hanniabu 7y ago
    It's converted by Coinbase. Whatever the charge is, they sell that amount worth of your holdings plus fees.
    - headsoup 7y ago
      So in this case rather than just pay cash it's paying cash with a little bit extra for coinbase? Is there any genuine value to justify this extra cost?
      - hanniabu 7y ago
        Everyone charges a fee. This is just a different provider. The proposition is that conversions are seamless so you don't have to worry about manually cashing out assets for payment and you can stay invested until the time of sale.
- isolli 7y ago
  What kind of fees do you pay to exchange coins from your balance into dollars?
- simias 7y ago
  >IMO this is a killer product compared to everything else I've experienced with Bitcoin and cryptocurrency this far, it really bridges the gap. So it solves the usability problem of cryptocurrency by... working like a regular bank, more or less? And mostly getting rid of the actual blockchain to use off-chain transactions while having the convenience of the centralized Visa system? This might be the killer product for cryptocurrency, but in a more literal sense. It shows that the market seems to inexorably converge towards the good old solutions, and the cryptocurrency ecosystem slowly (and rather inefficiently) reinvents the modern banking system. I wonder when Coinbase will start doing fractional-reserve banking with they off-chain "cryptocurrency" accounts. This is no more "cryptocurrency technology" than if I set up a script to sell some of my Bitcoins to replenish my bank account when its balance reaches a certain value.
  - Geee 7y ago
    Cryptocurrency is both a monetary system and a payment system. You don't lose all of the benefits of cryptocurrency if the payment layer is scaled up with centralized solutions.
    - seppin 7y ago
      > You don't lose all of the benefits of cryptocurrency if the payment layer is scaled up with centralized solutions. What are the benefits if you relay solely on existing payment networks for transactions?
      - Geee 7y ago
        Well, a cryptocurrency monetary system is just code rather than a bunch of old guys with nukes.
        simias 7y ago
        It's a bunch of "hodler" whales who, if the currency is successful enough, will become the next "old guys with nukes". If most people use bitcoin off-chain then it means that it's the cryptocurrency exchange cartel who gets to decide what is and isn't bitcoin. Who cares if the node in your basement disagrees if all the exchanges have forked away and nobody can trade with you. The whole "it's just code" shtick is really shortsighted. It's never only just code, it's a complex consensus. Look at all the drama around segwit/bitcoin cash for instance.
formalsystem 7y ago
How does this work exactly? I notice it's a partnership with Visa, are payments converted to dollars or is the payment in Bitcoin directly? Also does Visa or Coinbase then make a server side log of all the transactions?
- robjan 7y ago
  It's a partnership with a stored value card provider (Paysafe Financial Services Limited). Coinbase just liquidates your Bitcoin and then settles in fiat.
berberous 7y ago
This seems like a nightmare if every purchase is a capital gain/loss that needs to be scheduled for tax purposes.
- hanniabu 7y ago
  Yup, the legislature is lagging, but this is typical for when there's paradigm shifts.
  - rtpg 7y ago
    What paradigm shift? It's capital gains. _Maybe_ there would be an argument that this is a currency conversion but in its current state BTC is totally a speculative financial instrument The inverse (_not_ paying capital gains on this) would be very weird
    - beagle3 7y ago
      The turkish lira has been at least as volatile as BTC in the last couple of years; Bitcoin is about as much a currency.
      - oarsinsync 7y ago
        Except the Turkish Lira is legally recognised as currency, and Bitcoin is legally recognised as a commodity (and thus, subject to CGT)
        beagle3 7y ago
        Yes. I read GP’s “current state” to mean volatility, but it could mean legal state.
      - dagw 7y ago
        The turkish lira has been at least as volatile as BTC How are you defining volatility? Because by any reasonable metric that is absolutely not true.
hellllllllooo 7y ago
Bitcoin at this point is purely speculative and this is almost like hooking up a debit card to my Robinhood account and selling stock to pay for it every time I buy something. Seems to completely work around the reasons why Bitcoin etc. were interesting in the first place as a technology.
- djpilot 7y ago
  "Seems to completely work around the reasons why Bitcoin etc. were interesting in the first place as a technology." I respectfully disagree. The original goal of Bitcoin was to create a new financial system and instrument which ultimately enables people to pay for things.
  - point78 7y ago
    *anonymously
    - djpilot 7y ago
      Pseudo-anonymous. Research it a bit if you aren't aware of the implications. https://www.buybitcoinworldwide.com/anonymity/ https://www.buybitcoinworldwide.com/anonymity/
- xlc0212 7y ago
  What is the reason why Bitcoin? It is digital currency and able to use it to buy daily groceries is the whole point of a currency. It become store of value not only because it can be store of value, but more of you can’t use it for daily spendings and people needs another reason to justify exists of Bitcoin.
  - Sahhaese 7y ago
    This is the opposite of using it to buy groceries. This is selling it to coinbase and using the fiat to buy groceries.
LAMike 7y ago
Not available in the US?
- rihegher 7y ago
  Nope « At this time, only residents of the United Kingdom may apply for a Coinbase Card. We’re working on expanding the offer to additional European markets. »
  - n1c0la 7y ago
    Get on the Revolut waiting list, instead. Launching in USA and Canada momentairly :)
    - sschueller 7y ago
      Get transferwise [1] instead. Revolut is not a company you want to support [2]. Plus they will constantly nag you to upgrade to their premium service. [1] https://transferwise.com/ https://transferwise.com/ [2] https://www.theverge.com/2019/3/3/18248826/revolut-workplace-culture-burnout-finance-app-reports https://www.theverge.com/2019/3/3/18248826/revolut-workplace... and https://twitter.com/phillipcaudell/status/1101081229351415808 https://twitter.com/phillipcaudell/status/110108122935141580...
      - sridca 7y ago
        I use TransferWise, but their debit cards are not available in Canada.
    - kurtisc 7y ago
      'Momentarily' has a different meaning in North America. To Revolut's British employees, this could sound a bit unpleasant!
ccjnsn 7y ago
How does capital gains tax work with this? For example you've been sitting on a pile of bitcoin with massive gains and spend it straight out of the account.
- TuringNYC 7y ago
  It would likely count as a sale and incur a capital gains tax. You'd spend $5 for that pizza and then another $2.50 on capital gains tax. Probably some more on eating the bid-ask spread.
- tim333 7y ago
  It depends on the regulations where you are and the tax situation you are in. In the UK the first £12k gains are free. The US is kind of complicated with different rates for short term and long term gains. I declared UK crypto gains recently. It can get complicated if you try to follow all the instructions properly.
dead_mall 7y ago
This is great news! I've literally been living off my Bitpay debit card for the past 2 years, they come in clutch as f, but only have 2 pairs (BTC & BCHABC). But Coinbase has a variety coins, especially XLM & XRP which have ridiculous fast sending speeds (like ~3min), and now finally, you can spend them without the whole withdraw coin-to-fiat process. Though, i'm curious about the fees/tax side, and I'm wondering if they will be implementing some sort of rewards program in the future
- foepys 7y ago
  > especially XLM & XRP which have ridiculous fast sending speeds (like ~3min), And here I am with my "old tech" SEPA bank account and Instant Payments that take 15 seconds max...
  - dead_mall 7y ago
    It's not about transaction speeds. It's about the whole point of cryptocurrencies. Try sending fiat money to another country and see if that takes 15 seconds edit* also, checkout other services like Wirex, they're great
londons_explore 7y ago
It seems this encourages users to keep all their money sitting in a coinbase wallet... That doesn't seem great when coinbase gets hacked... What happened to the advice of "don't leave your money in an exchange"
- Cthulhu_ 7y ago
  If they have been able to develop from a hacked-together exchange like MtGox to a financial institution - with all the necessary certifications and licenses - they should be just as secure (or insecure) as any other bank with an online presence.
  - michaelt 7y ago
    they should be just as secure (or insecure) as any other bank So are my deposits FDIC insured, even if held in BTC form? And has a government-backed insurer confirmed their insurance would cover Coinbase getting hacked?
    - DennisP 7y ago
      Not FDIC, but they do have insurance on their hot wallet funds. The bulk of the funds are in cold wallets, with the keys stored on paper, in a large number of safe deposit boxes in various locations. The hot wallet insurance covers Coinbase itself getting hacked, but not someone breaking into your account. For account security you have 2FA, and can require confirmations from multiple email accounts for any withdrawals.
    - jpmattia 7y ago
      > So are my deposits FDIC insured, even if held in BTC form? Fiat is FDIC insured, crypto has different insurance. https://support.coinbase.com/customer/portal/articles/1662379-how-is-coinbase-insured- https://support.coinbase.com/customer/portal/articles/166237...
- lawn 7y ago
  Coinbase is a pretty well established exchange. It's probably much safer than storing it themselves for many non-technical people.
londons_explore 7y ago
The general pattern here is "Keep the balance of your current account 'invested' in bitcoin until the moment you spend it". Can't that model be expanded to include any tradable commodity? Why can't I get a 'Gold debit card' or a 'Nasdaq Debit card'? Would there be a market for this?
- sfotm 7y ago
  I think it's because most vehicles for trading ownership over companies or commodities like gold have a good amount of friction to them, making it impractical to deal with them as if they were money. This might include a minimal value of a sale (e.g. a stock is worth $20 and can't be divided further, although there are systems for owning a fraction of a stock) or trading fees. Bitcoin, on the other hand, is easily divisible into small fractions. Not saying there might not be some way to make it work, but it probably involves a lot of unnecessary risk and high transaction costs. Seems like it's just too much headache without any of the purported benefits that bitcoin has over traditional money.
- chrisco255 7y ago
  Well stocks can't be sold in tiny tiny fractions. If you have 5 shares of Amazon and 6 shares of Apple...which stock does your debit card provider sell to cover your latte? Also stock markets don't operate 24/7, crypto does. Gold is hard to sell in tiny fractions as well.
  - SifJar 7y ago
    > If you have 5 shares of Amazon and 6 shares of Apple...which stock does your debit card provider sell to cover your latte? Presumably this would work the same way Coinbase will choose whether to sell some of your bitcoin or some of your ethereum (i.e. you choose)
  - tybit 7y ago
    It’s not like companies can’t come up with financial instruments to get around this. I’d assume they don’t see a market, more than they don’t see a practical way to make it work.
sdfsdfsdfsdf3 7y ago
Isn't paysafecard the point-and-click-and-become-a-card-provider of the pay card industry along with Wirecard? Used by loads of dodgy no credit check providers, card providers going bust every other week, apparently its harder to spin up an AWS EC2 instance than it is to become a card provider with these jokers. At a functional level - No 3DSecure support, unexplained failures, little insight from the vendor into paysafe infrastructure. I'm very surprised Coinbase launched on this mickey mouse platform. It's like launching a clothing brand with cafepress.com as your product provider Ill stick with Monzo thanks
- tshanmu 7y ago
  interesting that this comment has been voted up :) - you are not the target market - if you can spend the cryto you HODLing on Monzo as easily then your comment is valid.
  - sdfsdfsdfsdf3 7y ago
    The amount of KYC/AML nonsense you have to go through with Coinbase UK is higher than Monzo/Revolut/Transferwise/Starling, so if you qualify for Coinbase UK card you qualify for any number of better solutions. If you refer to the conversion of crypto to fiat, you simply withdraw to your Monzo or whatever and spend, yes it's an extra click but it beats the embarrassment of card rejected as acceptance of these clown cards is very hit and miss (despite the Visa/MC network backing).
    - Matsta 7y ago
      The problem with most banks in the UK is they'll usually lock or even cancel your account if you're dealing with Crypto. Monzo is well known for doing it (Google "Monzo closed account bitcoin"). Barclays is one of the only banks slowly accepting Crypto related transactions. Most people I know dealing with Crypto are using Revolut as they are not a proper bank. However, they recently blocked transactions to Coinbase's account (this is most likely because they are applying for a UK banking license).
    - tluyben2 7y ago
Nanocurrency 7y ago
The greatest thing about it is that it will be like the ThenX card had been, while it worked. Cryptocurrency will be converted in the last moment, when the spending is made.
guessmyname 7y ago
Apple Card [1] and now Coinbase Card [2] hmmm… I have thought about this many times in the past: How are big companies able to steal these ideas so fast? Actually, “steal” may not be the correct word, but I don’t think this was a coincidence. Knowing how secretive Apple is, I am surprised that Coinbase was able to work on this project (also in secret?) without them noticing. Or maybe they noticed but didn’t care? Which is even more bizarre considering how sensitive Apple lawyers are with their unreleased projects. There must be some underground market of corporate secrets that I am not aware of because I cannot explain how two companies can work in the same project more or less at the same time without it being the product of a stolen idea. I had the same train of thought just a few weeks ago when Google announced project Stadia [3] and then Apple announced Arcade [4]. I know what you are going to say, “These two projects are very different”, well yes, they are, but they seem to have the same ingredients: big-4 creates platform for games. Maybe these are really simple coincidences, and I’m just paranoid. [1] https://www.apple.com/apple-card/ https://www.apple.com/apple-card/ [2] https://www.coinbase.com/card https://www.coinbase.com/card [3] https://stadia.dev/ https://stadia.dev/ [4] https://www.apple.com/apple-arcade/ https://www.apple.com/apple-arcade/
- Krasnol 7y ago
  Or...it's just no conspiracy at all because neither Apple not Coinbase reinvented the wheel but put just another card into your wallet? It's not like this is something ground breaking to do if you handle cash in the US.
  - arsenico 7y ago
    With Apple it is different due to the depth of integration with the ecosystem, and also it is a credit card, not a debit card.
    - Krasnol 7y ago
      In the end it doesn't really matter for my argument. I mean, accusing Coinbase of stealing the idea is ridiculous.
ilaksh 7y ago
In a way this is great but in another way it's the worst. It's nice to have a practical way to use Bitcoin (or other cryptocurrencies) to buy things in the vast majority of places that don't take Bitcoin. On the other hand, I have always considered one of the main concepts with cryptocurrency to be the potential ability to avoid third parties taking a cut of all of your digital transactions. This turns it into just another way for big companies like Visa or Coinbase to get rich just on the basis that people need to exchange money. The basic idea for me with cryptocurrency is that since it's our money we shouldn't have to give control of it to third parties just for basic usage. We have math, the internet, and plenty of computers. We should not need Visa or Coinbase.
- greenleafjacob 7y ago
  > the potential ability to avoid third parties taking a cut of all of your digital transactions Other than mining fees?
  - sekai 7y ago
    Mining fees are needed for securing the network, pretty reasonable.
    - kristianc 7y ago
      By providing KYC and regulation, Visa/Coinbase also secure the network.
      - Karunamon 7y ago
        You know better than that. He was referring to information security, not legislative compliance.
        kristianc 7y ago
        They're one and the same thing. Compliance is a way of demonstrating that you have met certain data and information security standards.
jfk13 7y ago
Seems like this would introduce an unwelcome element of pricing uncertainty into every transaction. Instead of knowing at the point of purchase that my latte will cost me $3.95, it's going to cost me some unknown amount of bitcoin depending on the rate Coinbase happens to use at the moment it processes the transaction. I accept this kind of uncertainty when I use my existing card abroad (although in some cases, the POS terminal offers to do the currency conversion up front); but I don't much care for the idea of introducing such price volatility into all my everyday purchases.
- tim333 7y ago
  If you have Bitcoin you have price volatility, Visa card or not.
  - tantalor 7y ago
    Not if the thing you're buying is priced in bitcoin.
- oarsinsync 7y ago
  > I accept this kind of uncertainty when I use my existing card abroad (although in some cases, the POS terminal offers to do the currency conversion up front) Sounds like you're a price-conscious kind of person. Be aware that POS terminal conversions are usually the worst rates you can get, with the POS terminal taking a large % cut on each transaction in exchange for your peace of mind knowing exactly how much it's going to cost you. If it helps you to see that conversion amount, that can be useful, but generally speaking, you don't want to accept that price and instead be charged the local currency. The amount you get charged will always be significantly less (subject to you not having absurd fx fees on your card, of course)
dalbasal 7y ago
The fact that this is being introduced now, is kind of telling if this crypto/bitcoin story this far. High valuations has been a double edged sword. On one hand, it brought attention, interest and such. OTOH, it sucked all the energy into trading/speculation and all but forced the like of coinbase to specialise in it, neglecting everything else. I have to say, crypto has been (and still is) an interesting look into what money is and how it might evolve. It seems that possibly inevitably, getting paid for work and paying for goods and services is "naturally" an extreme iceberg... The tiny piece of the whole that's visible. Below the surface is most of the "ice," the enormous volume of currency trading and other high finance uses.
n1c0la 7y ago
Get instead a Revolut multicurrency app and card with https://revolut.com/r/nicolav7 https://revolut.com/r/nicolav7 without paying for the shipping fees.
- WA 7y ago
  Or don’t, because Revolut is a toxic place that shouldn’t be supported. https://www.theverge.com/2019/3/3/18248826/revolut-workplace-culture-burnout-finance-app-reports https://www.theverge.com/2019/3/3/18248826/revolut-workplace...
  - n1c0la 7y ago
    What about your traditional bank instead. Don't believe all the press. https://blog.revolut.com/weve-made-mistakes-but-were-learning/ https://blog.revolut.com/weve-made-mistakes-but-were-learnin...
  - sschueller 7y ago
    Exactly: https://twitter.com/phillipcaudell/status/1101081229351415808 https://twitter.com/phillipcaudell/status/110108122935141580...
mtw 7y ago
How much is this ?
- n1c0la 7y ago
  5£. Get a free Revolut card instead.
edpichler 7y ago
Really cool! The barrier to me to adopt it is the high floating prices of bitcoins. I already use it to do transactions overseas, to receive payments, etc., but I never let bitcoins on my wallet for more than some hours. A hedge strategy could help me on this, but this is more work. It's easy to transform it into a more stable currency.
wiggler00m 7y ago
Backwards compatibility is a good thing for a technology with (a) potential to dramatically improve an industry and (b) insufficient adoption. For example: Square.
gregoryrueda 7y ago
How is this different than the Coinbase Shift card? I had a shift card and the fees on purchases made it prohibitively expensive so I stopped using it after a few purchases.
- Shank 7y ago
  Shift just shut down, apparently. So that’s at least one difference. From their website: > We hope you enjoyed using the Shift Card and truly thank you for your loyalty. We, unfortunately, will be retiring the program in April of this year. All Shift Cards will be officially deactivated on April 11, 2019.
apo 7y ago
Read the fine print, for example: > Crypto Liquidation Fees: 2.49% https://support.coinbase.com/customer/portal/articles/2969910-coinbase-card-faq https://support.coinbase.com/customer/portal/articles/296991...
- seppin 7y ago
  Is that higher or lower than Visa ?
  - everfree 7y ago
    That's on top of what Visa charges the merchant.
    - seppin 7y ago
      hot dang
seattle_spring 7y ago
So I can take my currency, trade it for crypto, then spend it at stores? Do you know what would be even more crazy and innovative? If I could skip the middle part and just exchange my dollars directly for goods and services!
- sucrose 7y ago
  You can, but your sarcasm seems to assume people are just simply converting dollars into bitcoin just to use this debit card. This feature may not be for you, but for those who trade or accept it as a payment for their goods/services. It essentially eliminates the process of selling the bitcoin and/or waiting a few days to transfer the funds to your bank.
  - mathgeek 7y ago
    The fees listed in the FAQ (https://support.coinbase.com/customer/portal/articles/2969910-coinbase-card-faq https://support.coinbase.com/customer/portal/articles/296991...) are important when considering the trade-off between convenience and cost. You're paying 2.49% on every transaction, and the fee rises for certain kinds and volumes of transactions.
  - brokensegue 7y ago
    So a debit card for criminals?
- bufferoverflow 7y ago
  But then you're not storing your money in a deflationary currency.
anthony_barker 7y ago
There has been cards doing this for at least 5 years.. Revolut allows you to trade at midpoint with no fees. Not innovative.
- willio58 7y ago
  I’ve never heard of revolut or midpoint. So I think that’s the point, for something to really be “innovative”, it also needs significant reach.
NoblePublius 7y ago
It’s like a checking account except your balance is subject to the whims of the Chinese mafia. I’ll take two!
- seppin 7y ago
  I love these comments
ancymon 7y ago
So, it basicaly makes easier to avoid taxes? For example you earn in bitcoin and you now have easy way to spend it. That's probably not applicable for US citzens, but would IRSes around the world be able to get your data from coinbase?
- bpicolo 7y ago
  > but would IRSes around the world be able to get your data from coinbase? Yes, they already do. (https://support.coinbase.com/customer/portal/articles/2924446-irs-notification https://support.coinbase.com/customer/portal/articles/292444...)
  - ancymon 7y ago
    I can't find that it is about forign IRSes, can you point me to more specific place?
    - bpicolo 7y ago
      The wouldn't typically ask directly unless they expected people are committing tax fraud, but you can bet that any country Coinbase is operating in can ask them similar. They have to abide by a wide range of financial regulations. It would be more typical for such a thing to come up during the audit for a singular customer
amingilani 7y ago
6.9 MB on the play store? I'm impressed. Although I can't really what's going on in there because of Geo restrictions.
jeletonskelly 7y ago
So, Coinbase's market makers (possibly itself) are seemingly providing the liquidity for this product. How do they avoid over-exposure if this debit card is successful?
zelly 7y ago
The idea is to preferentially spend cryptocurrency over dollars. This only works on the assumption that dollars are ``better money''[1] than cryptocurrencies. People spend worse money before their good money. Coinbase is making a bet that there will be a lot of people sitting on piles of depreciating cryptocurrency that they don't mind liquidating. They're making a very bearish bet, or maybe just hedging their business model to survive a little longer. [1] https://en.wikipedia.org/wiki/Gresham%27s_law https://en.wikipedia.org/wiki/Gresham%27s_law
- dajohnson89 7y ago
  You're implying that the current bear market is permanent. Most cryptocurrencies are deflationary in nature, so it's hard to accept the premise that there's "piles of depreciating cryptocurrency" in general.
  - zelly 7y ago
    Yeah, I agree. I don't think this debit card is a good business idea. But Coinbase thinks cryptocurrency will be in a bear market for much longer since they thought this product would be a good play. No one wants to spend their crypto. It's better money than dollars.
    - dajohnson89 7y ago
      It's worse money than dollars, at the moment. There's work being done to make crypto better money, and efforts like this debit card are a step in that direction. People aren't spending their crypto because it isnt' as easy/economical to use, and yeah it's more likely to retain/grow in value than a stack of cash. And that's probably what you meant :-)
platz 7y ago
To even get bitcoins you have to pay a 1.5% fee. Credit cards don't even charge you that
- mathgeek 7y ago
  A fair point, but remember that credit cards leverage their fees towards outstanding credit (and incentivize you to access that credit). This is more like a debit card, where the fees are leveraged on transactions where you access your own holdings (incentivizing you to leave your funds in the account).
dawhizkid 7y ago
Isn't it a tax event every time you spend crypto? I'm guessing that's a reason why something like this won't arrive in the U.S. anytime soon...at least one blessed by U.S. regulators.
kbody 7y ago
This is one of the worst crypto-debit cards I've seen. Coinbase's card has a "Crypto Liquidation Fee": 2.49% of transaction. (Even Gemini, the most expensive cryptoexchange has 1% exchange fees, while the median is probably around 0.2%) You are better off selling manually on an exchange (0.1-0.25% fees) and transferring to a sane bank with debit cards and minimal fees like N26(EU) or Charles Schwab(US). Have a fiat buffer, but control your holdings and don't get milk by fee-vampires like Coinbase.
- briatx 7y ago
  Or you could skip a step and just use a regular credit card with cash rewards and receive 1-2% of transaction amounts cash back. I'm not sure why people want to make it harder (and more expensive) than necessary.
  - ozzyman700 7y ago
    I personally have not been able to use a credit card on coinbase for a while now seemingly this is a US thing [1] [1]https://support.coinbase.com/customer/en/portal/topics/796531-payment-methods/articles https://support.coinbase.com/customer/en/portal/topics/79653...
  - bufferoverflow 7y ago
    But then you're missing the whole point - storing your money in a deflationary currency. I moved 95% of my savings into cryptocurrencies years ago, and it's been orders of magnitude better than the silly 1-2%.
    - BoorishBears 7y ago
      And some people moved their savings into cryptocurrencies half a year ago and it's been orders of magnitude worse than the silly 1-2%. Kind of like advising putting your savings in naked options plays because it worked for you that one time.
      - 7y ago
atarian 7y ago
As some people have already mentioned, spending crypto in the US is classified as a taxable event. So I think it's questionable to market crypto as a replacement for traditional spending when you have additional overhead that is not being accounted for and would definitely come up in the event of an audit.
xrd 7y ago
When I go to Google Play to install the app it says "not available in your country." I'm in the US. Isn't Coinbase only for US citizens? Who is the target of this card?

223 points by agrinman 7y ago

People saying this is anything but an incredibly positive event for the ecosystem are so hilariously delusional with their anti coinbase circlejerk. This kind of ADOPTION (I.E. REAL WORLD WAYS TO USE CRYPTO)is beyond essential to the greater goals that crypto will eventually accomplish. This alone could drastically increase crypto payments on a daily basis (even if they’re ultimately translating into USD) and will better stress test blockchains abilities to scale and process transactions. It’s a huge step in the right direction. The decentralized world was never going to exist overnight (we’re 11 years into this project, btw) and this is huge.

djpilot 7y ago

I've been piloting this program and I've got to say it's been a convenient way to pay without draining my real bank account. IMO this is a killer product compared to everything else I've experienced with Bitcoin and cryptocurrency this far, it really bridges the gap. Heck, I even used it to pay my back taxes to the IRS.

headsoup 7y ago
So the IRS accept bitcoin or is there a conversion behind the scenes? If the latter, how do you ensure you've actually covered the balance exactly?
- hanniabu 7y ago
  It's converted by Coinbase. Whatever the charge is, they sell that amount worth of your holdings plus fees.
  - headsoup 7y ago
    So in this case rather than just pay cash it's paying cash with a little bit extra for coinbase? Is there any genuine value to justify this extra cost?
    - hanniabu 7y ago
      Everyone charges a fee. This is just a different provider. The proposition is that conversions are seamless so you don't have to worry about manually cashing out assets for payment and you can stay invested until the time of sale.
isolli 7y ago
What kind of fees do you pay to exchange coins from your balance into dollars?
simias 7y ago
>IMO this is a killer product compared to everything else I've experienced with Bitcoin and cryptocurrency this far, it really bridges the gap. So it solves the usability problem of cryptocurrency by... working like a regular bank, more or less? And mostly getting rid of the actual blockchain to use off-chain transactions while having the convenience of the centralized Visa system? This might be the killer product for cryptocurrency, but in a more literal sense. It shows that the market seems to inexorably converge towards the good old solutions, and the cryptocurrency ecosystem slowly (and rather inefficiently) reinvents the modern banking system. I wonder when Coinbase will start doing fractional-reserve banking with they off-chain "cryptocurrency" accounts. This is no more "cryptocurrency technology" than if I set up a script to sell some of my Bitcoins to replenish my bank account when its balance reaches a certain value.
- Geee 7y ago
  Cryptocurrency is both a monetary system and a payment system. You don't lose all of the benefits of cryptocurrency if the payment layer is scaled up with centralized solutions.
  - seppin 7y ago
    > You don't lose all of the benefits of cryptocurrency if the payment layer is scaled up with centralized solutions. What are the benefits if you relay solely on existing payment networks for transactions?
    - Geee 7y ago
      Well, a cryptocurrency monetary system is just code rather than a bunch of old guys with nukes.
      - simias 7y ago
        It's a bunch of "hodler" whales who, if the currency is successful enough, will become the next "old guys with nukes". If most people use bitcoin off-chain then it means that it's the cryptocurrency exchange cartel who gets to decide what is and isn't bitcoin. Who cares if the node in your basement disagrees if all the exchanges have forked away and nobody can trade with you. The whole "it's just code" shtick is really shortsighted. It's never only just code, it's a complex consensus. Look at all the drama around segwit/bitcoin cash for instance.

formalsystem 7y ago

How does this work exactly? I notice it's a partnership with Visa, are payments converted to dollars or is the payment in Bitcoin directly? Also does Visa or Coinbase then make a server side log of all the transactions?

robjan 7y ago
It's a partnership with a stored value card provider (Paysafe Financial Services Limited). Coinbase just liquidates your Bitcoin and then settles in fiat.

berberous 7y ago

This seems like a nightmare if every purchase is a capital gain/loss that needs to be scheduled for tax purposes.

hanniabu 7y ago
Yup, the legislature is lagging, but this is typical for when there's paradigm shifts.
- rtpg 7y ago
  What paradigm shift? It's capital gains. _Maybe_ there would be an argument that this is a currency conversion but in its current state BTC is totally a speculative financial instrument The inverse (_not_ paying capital gains on this) would be very weird
  - beagle3 7y ago
    The turkish lira has been at least as volatile as BTC in the last couple of years; Bitcoin is about as much a currency.
    - oarsinsync 7y ago
      Except the Turkish Lira is legally recognised as currency, and Bitcoin is legally recognised as a commodity (and thus, subject to CGT)
      - beagle3 7y ago
        Yes. I read GP’s “current state” to mean volatility, but it could mean legal state.
    - dagw 7y ago
      The turkish lira has been at least as volatile as BTC How are you defining volatility? Because by any reasonable metric that is absolutely not true.

hellllllllooo 7y ago

Bitcoin at this point is purely speculative and this is almost like hooking up a debit card to my Robinhood account and selling stock to pay for it every time I buy something. Seems to completely work around the reasons why Bitcoin etc. were interesting in the first place as a technology.

djpilot 7y ago
"Seems to completely work around the reasons why Bitcoin etc. were interesting in the first place as a technology." I respectfully disagree. The original goal of Bitcoin was to create a new financial system and instrument which ultimately enables people to pay for things.
- point78 7y ago
  *anonymously
  - djpilot 7y ago
    Pseudo-anonymous. Research it a bit if you aren't aware of the implications. https://www.buybitcoinworldwide.com/anonymity/ https://www.buybitcoinworldwide.com/anonymity/
xlc0212 7y ago
What is the reason why Bitcoin? It is digital currency and able to use it to buy daily groceries is the whole point of a currency. It become store of value not only because it can be store of value, but more of you can’t use it for daily spendings and people needs another reason to justify exists of Bitcoin.
- Sahhaese 7y ago
  This is the opposite of using it to buy groceries. This is selling it to coinbase and using the fiat to buy groceries.

LAMike 7y ago

Not available in the US?

rihegher 7y ago
Nope « At this time, only residents of the United Kingdom may apply for a Coinbase Card. We’re working on expanding the offer to additional European markets. »
- n1c0la 7y ago
  Get on the Revolut waiting list, instead. Launching in USA and Canada momentairly :)
  - sschueller 7y ago
    Get transferwise [1] instead. Revolut is not a company you want to support [2]. Plus they will constantly nag you to upgrade to their premium service. [1] https://transferwise.com/ https://transferwise.com/ [2] https://www.theverge.com/2019/3/3/18248826/revolut-workplace-culture-burnout-finance-app-reports https://www.theverge.com/2019/3/3/18248826/revolut-workplace... and https://twitter.com/phillipcaudell/status/1101081229351415808 https://twitter.com/phillipcaudell/status/110108122935141580...
    - sridca 7y ago
      I use TransferWise, but their debit cards are not available in Canada.
  - kurtisc 7y ago
    'Momentarily' has a different meaning in North America. To Revolut's British employees, this could sound a bit unpleasant!

ccjnsn 7y ago

How does capital gains tax work with this? For example you've been sitting on a pile of bitcoin with massive gains and spend it straight out of the account.

TuringNYC 7y ago
It would likely count as a sale and incur a capital gains tax. You'd spend $5 for that pizza and then another $2.50 on capital gains tax. Probably some more on eating the bid-ask spread.
tim333 7y ago
It depends on the regulations where you are and the tax situation you are in. In the UK the first £12k gains are free. The US is kind of complicated with different rates for short term and long term gains. I declared UK crypto gains recently. It can get complicated if you try to follow all the instructions properly.

dead_mall 7y ago

This is great news! I've literally been living off my Bitpay debit card for the past 2 years, they come in clutch as f, but only have 2 pairs (BTC & BCHABC). But Coinbase has a variety coins, especially XLM & XRP which have ridiculous fast sending speeds (like ~3min), and now finally, you can spend them without the whole withdraw coin-to-fiat process. Though, i'm curious about the fees/tax side, and I'm wondering if they will be implementing some sort of rewards program in the future

foepys 7y ago
> especially XLM & XRP which have ridiculous fast sending speeds (like ~3min), And here I am with my "old tech" SEPA bank account and Instant Payments that take 15 seconds max...
- dead_mall 7y ago
  It's not about transaction speeds. It's about the whole point of cryptocurrencies. Try sending fiat money to another country and see if that takes 15 seconds edit* also, checkout other services like Wirex, they're great

londons_explore 7y ago

It seems this encourages users to keep all their money sitting in a coinbase wallet... That doesn't seem great when coinbase gets hacked... What happened to the advice of "don't leave your money in an exchange"

Cthulhu_ 7y ago
If they have been able to develop from a hacked-together exchange like MtGox to a financial institution - with all the necessary certifications and licenses - they should be just as secure (or insecure) as any other bank with an online presence.
- michaelt 7y ago
  they should be just as secure (or insecure) as any other bank So are my deposits FDIC insured, even if held in BTC form? And has a government-backed insurer confirmed their insurance would cover Coinbase getting hacked?
  - DennisP 7y ago
    Not FDIC, but they do have insurance on their hot wallet funds. The bulk of the funds are in cold wallets, with the keys stored on paper, in a large number of safe deposit boxes in various locations. The hot wallet insurance covers Coinbase itself getting hacked, but not someone breaking into your account. For account security you have 2FA, and can require confirmations from multiple email accounts for any withdrawals.
  - jpmattia 7y ago
    > So are my deposits FDIC insured, even if held in BTC form? Fiat is FDIC insured, crypto has different insurance. https://support.coinbase.com/customer/portal/articles/1662379-how-is-coinbase-insured- https://support.coinbase.com/customer/portal/articles/166237...
lawn 7y ago
Coinbase is a pretty well established exchange. It's probably much safer than storing it themselves for many non-technical people.

londons_explore 7y ago

The general pattern here is "Keep the balance of your current account 'invested' in bitcoin until the moment you spend it". Can't that model be expanded to include any tradable commodity? Why can't I get a 'Gold debit card' or a 'Nasdaq Debit card'? Would there be a market for this?

sfotm 7y ago
I think it's because most vehicles for trading ownership over companies or commodities like gold have a good amount of friction to them, making it impractical to deal with them as if they were money. This might include a minimal value of a sale (e.g. a stock is worth $20 and can't be divided further, although there are systems for owning a fraction of a stock) or trading fees. Bitcoin, on the other hand, is easily divisible into small fractions. Not saying there might not be some way to make it work, but it probably involves a lot of unnecessary risk and high transaction costs. Seems like it's just too much headache without any of the purported benefits that bitcoin has over traditional money.
chrisco255 7y ago
Well stocks can't be sold in tiny tiny fractions. If you have 5 shares of Amazon and 6 shares of Apple...which stock does your debit card provider sell to cover your latte? Also stock markets don't operate 24/7, crypto does. Gold is hard to sell in tiny fractions as well.
- SifJar 7y ago
  > If you have 5 shares of Amazon and 6 shares of Apple...which stock does your debit card provider sell to cover your latte? Presumably this would work the same way Coinbase will choose whether to sell some of your bitcoin or some of your ethereum (i.e. you choose)
- tybit 7y ago
  It’s not like companies can’t come up with financial instruments to get around this. I’d assume they don’t see a market, more than they don’t see a practical way to make it work.

sdfsdfsdfsdf3 7y ago

Isn't paysafecard the point-and-click-and-become-a-card-provider of the pay card industry along with Wirecard? Used by loads of dodgy no credit check providers, card providers going bust every other week, apparently its harder to spin up an AWS EC2 instance than it is to become a card provider with these jokers. At a functional level - No 3DSecure support, unexplained failures, little insight from the vendor into paysafe infrastructure. I'm very surprised Coinbase launched on this mickey mouse platform. It's like launching a clothing brand with cafepress.com as your product provider Ill stick with Monzo thanks

tshanmu 7y ago
interesting that this comment has been voted up :) - you are not the target market - if you can spend the cryto you HODLing on Monzo as easily then your comment is valid.
- sdfsdfsdfsdf3 7y ago
  The amount of KYC/AML nonsense you have to go through with Coinbase UK is higher than Monzo/Revolut/Transferwise/Starling, so if you qualify for Coinbase UK card you qualify for any number of better solutions. If you refer to the conversion of crypto to fiat, you simply withdraw to your Monzo or whatever and spend, yes it's an extra click but it beats the embarrassment of card rejected as acceptance of these clown cards is very hit and miss (despite the Visa/MC network backing).
  - Matsta 7y ago
    The problem with most banks in the UK is they'll usually lock or even cancel your account if you're dealing with Crypto. Monzo is well known for doing it (Google "Monzo closed account bitcoin"). Barclays is one of the only banks slowly accepting Crypto related transactions. Most people I know dealing with Crypto are using Revolut as they are not a proper bank. However, they recently blocked transactions to Coinbase's account (this is most likely because they are applying for a UK banking license).
  - tluyben2 7y ago

Nanocurrency 7y ago

The greatest thing about it is that it will be like the ThenX card had been, while it worked. Cryptocurrency will be converted in the last moment, when the spending is made.

guessmyname 7y ago

Apple Card [1] and now Coinbase Card [2] hmmm… I have thought about this many times in the past: How are big companies able to steal these ideas so fast? Actually, “steal” may not be the correct word, but I don’t think this was a coincidence. Knowing how secretive Apple is, I am surprised that Coinbase was able to work on this project (also in secret?) without them noticing. Or maybe they noticed but didn’t care? Which is even more bizarre considering how sensitive Apple lawyers are with their unreleased projects. There must be some underground market of corporate secrets that I am not aware of because I cannot explain how two companies can work in the same project more or less at the same time without it being the product of a stolen idea. I had the same train of thought just a few weeks ago when Google announced project Stadia [3] and then Apple announced Arcade [4]. I know what you are going to say, “These two projects are very different”, well yes, they are, but they seem to have the same ingredients: big-4 creates platform for games. Maybe these are really simple coincidences, and I’m just paranoid. [1] https://www.apple.com/apple-card/ https://www.apple.com/apple-card/ [2] https://www.coinbase.com/card https://www.coinbase.com/card [3] https://stadia.dev/ https://stadia.dev/ [4] https://www.apple.com/apple-arcade/ https://www.apple.com/apple-arcade/

Krasnol 7y ago
Or...it's just no conspiracy at all because neither Apple not Coinbase reinvented the wheel but put just another card into your wallet? It's not like this is something ground breaking to do if you handle cash in the US.
- arsenico 7y ago
  With Apple it is different due to the depth of integration with the ecosystem, and also it is a credit card, not a debit card.
  - Krasnol 7y ago
    In the end it doesn't really matter for my argument. I mean, accusing Coinbase of stealing the idea is ridiculous.

ilaksh 7y ago

In a way this is great but in another way it's the worst. It's nice to have a practical way to use Bitcoin (or other cryptocurrencies) to buy things in the vast majority of places that don't take Bitcoin. On the other hand, I have always considered one of the main concepts with cryptocurrency to be the potential ability to avoid third parties taking a cut of all of your digital transactions. This turns it into just another way for big companies like Visa or Coinbase to get rich just on the basis that people need to exchange money. The basic idea for me with cryptocurrency is that since it's our money we shouldn't have to give control of it to third parties just for basic usage. We have math, the internet, and plenty of computers. We should not need Visa or Coinbase.

greenleafjacob 7y ago
> the potential ability to avoid third parties taking a cut of all of your digital transactions Other than mining fees?
- sekai 7y ago
  Mining fees are needed for securing the network, pretty reasonable.
  - kristianc 7y ago
    By providing KYC and regulation, Visa/Coinbase also secure the network.
    - Karunamon 7y ago
      You know better than that. He was referring to information security, not legislative compliance.
      - kristianc 7y ago
        They're one and the same thing. Compliance is a way of demonstrating that you have met certain data and information security standards.

jfk13 7y ago

Seems like this would introduce an unwelcome element of pricing uncertainty into every transaction. Instead of knowing at the point of purchase that my latte will cost me $3.95, it's going to cost me some unknown amount of bitcoin depending on the rate Coinbase happens to use at the moment it processes the transaction. I accept this kind of uncertainty when I use my existing card abroad (although in some cases, the POS terminal offers to do the currency conversion up front); but I don't much care for the idea of introducing such price volatility into all my everyday purchases.

tim333 7y ago
If you have Bitcoin you have price volatility, Visa card or not.
- tantalor 7y ago
  Not if the thing you're buying is priced in bitcoin.
oarsinsync 7y ago
> I accept this kind of uncertainty when I use my existing card abroad (although in some cases, the POS terminal offers to do the currency conversion up front) Sounds like you're a price-conscious kind of person. Be aware that POS terminal conversions are usually the worst rates you can get, with the POS terminal taking a large % cut on each transaction in exchange for your peace of mind knowing exactly how much it's going to cost you. If it helps you to see that conversion amount, that can be useful, but generally speaking, you don't want to accept that price and instead be charged the local currency. The amount you get charged will always be significantly less (subject to you not having absurd fx fees on your card, of course)

dalbasal 7y ago

The fact that this is being introduced now, is kind of telling if this crypto/bitcoin story this far. High valuations has been a double edged sword. On one hand, it brought attention, interest and such. OTOH, it sucked all the energy into trading/speculation and all but forced the like of coinbase to specialise in it, neglecting everything else. I have to say, crypto has been (and still is) an interesting look into what money is and how it might evolve. It seems that possibly inevitably, getting paid for work and paying for goods and services is "naturally" an extreme iceberg... The tiny piece of the whole that's visible. Below the surface is most of the "ice," the enormous volume of currency trading and other high finance uses.

n1c0la 7y ago

Get instead a Revolut multicurrency app and card with https://revolut.com/r/nicolav7 https://revolut.com/r/nicolav7 without paying for the shipping fees.

WA 7y ago
Or don’t, because Revolut is a toxic place that shouldn’t be supported. https://www.theverge.com/2019/3/3/18248826/revolut-workplace-culture-burnout-finance-app-reports https://www.theverge.com/2019/3/3/18248826/revolut-workplace...
- n1c0la 7y ago
  What about your traditional bank instead. Don't believe all the press. https://blog.revolut.com/weve-made-mistakes-but-were-learning/ https://blog.revolut.com/weve-made-mistakes-but-were-learnin...
- sschueller 7y ago
  Exactly: https://twitter.com/phillipcaudell/status/1101081229351415808 https://twitter.com/phillipcaudell/status/110108122935141580...

mtw 7y ago

How much is this ?

n1c0la 7y ago
5£. Get a free Revolut card instead.

edpichler 7y ago

Really cool! The barrier to me to adopt it is the high floating prices of bitcoins. I already use it to do transactions overseas, to receive payments, etc., but I never let bitcoins on my wallet for more than some hours. A hedge strategy could help me on this, but this is more work. It's easy to transform it into a more stable currency.

wiggler00m 7y ago

Backwards compatibility is a good thing for a technology with (a) potential to dramatically improve an industry and (b) insufficient adoption. For example: Square.

gregoryrueda 7y ago

How is this different than the Coinbase Shift card? I had a shift card and the fees on purchases made it prohibitively expensive so I stopped using it after a few purchases.

Shank 7y ago
Shift just shut down, apparently. So that’s at least one difference. From their website: > We hope you enjoyed using the Shift Card and truly thank you for your loyalty. We, unfortunately, will be retiring the program in April of this year. All Shift Cards will be officially deactivated on April 11, 2019.

apo 7y ago

Read the fine print, for example: > Crypto Liquidation Fees: 2.49% https://support.coinbase.com/customer/portal/articles/2969910-coinbase-card-faq https://support.coinbase.com/customer/portal/articles/296991...

seppin 7y ago
Is that higher or lower than Visa ?
- everfree 7y ago
  That's on top of what Visa charges the merchant.
  - seppin 7y ago
    hot dang

seattle_spring 7y ago

So I can take my currency, trade it for crypto, then spend it at stores? Do you know what would be even more crazy and innovative? If I could skip the middle part and just exchange my dollars directly for goods and services!

sucrose 7y ago
You can, but your sarcasm seems to assume people are just simply converting dollars into bitcoin just to use this debit card. This feature may not be for you, but for those who trade or accept it as a payment for their goods/services. It essentially eliminates the process of selling the bitcoin and/or waiting a few days to transfer the funds to your bank.
- mathgeek 7y ago
  The fees listed in the FAQ (https://support.coinbase.com/customer/portal/articles/2969910-coinbase-card-faq https://support.coinbase.com/customer/portal/articles/296991...) are important when considering the trade-off between convenience and cost. You're paying 2.49% on every transaction, and the fee rises for certain kinds and volumes of transactions.
- brokensegue 7y ago
  So a debit card for criminals?
bufferoverflow 7y ago
But then you're not storing your money in a deflationary currency.

anthony_barker 7y ago

There has been cards doing this for at least 5 years.. Revolut allows you to trade at midpoint with no fees. Not innovative.

willio58 7y ago
I’ve never heard of revolut or midpoint. So I think that’s the point, for something to really be “innovative”, it also needs significant reach.

NoblePublius 7y ago

It’s like a checking account except your balance is subject to the whims of the Chinese mafia. I’ll take two!

seppin 7y ago
I love these comments

ancymon 7y ago

So, it basicaly makes easier to avoid taxes? For example you earn in bitcoin and you now have easy way to spend it. That's probably not applicable for US citzens, but would IRSes around the world be able to get your data from coinbase?

bpicolo 7y ago
> but would IRSes around the world be able to get your data from coinbase? Yes, they already do. (https://support.coinbase.com/customer/portal/articles/2924446-irs-notification https://support.coinbase.com/customer/portal/articles/292444...)
- ancymon 7y ago
  I can't find that it is about forign IRSes, can you point me to more specific place?
  - bpicolo 7y ago
    The wouldn't typically ask directly unless they expected people are committing tax fraud, but you can bet that any country Coinbase is operating in can ask them similar. They have to abide by a wide range of financial regulations. It would be more typical for such a thing to come up during the audit for a singular customer

amingilani 7y ago

6.9 MB on the play store? I'm impressed. Although I can't really what's going on in there because of Geo restrictions.

jeletonskelly 7y ago

So, Coinbase's market makers (possibly itself) are seemingly providing the liquidity for this product. How do they avoid over-exposure if this debit card is successful?

zelly 7y ago

The idea is to preferentially spend cryptocurrency over dollars. This only works on the assumption that dollars are ``better money''[1] than cryptocurrencies. People spend worse money before their good money. Coinbase is making a bet that there will be a lot of people sitting on piles of depreciating cryptocurrency that they don't mind liquidating. They're making a very bearish bet, or maybe just hedging their business model to survive a little longer. [1] https://en.wikipedia.org/wiki/Gresham%27s_law https://en.wikipedia.org/wiki/Gresham%27s_law

dajohnson89 7y ago
You're implying that the current bear market is permanent. Most cryptocurrencies are deflationary in nature, so it's hard to accept the premise that there's "piles of depreciating cryptocurrency" in general.
- zelly 7y ago
  Yeah, I agree. I don't think this debit card is a good business idea. But Coinbase thinks cryptocurrency will be in a bear market for much longer since they thought this product would be a good play. No one wants to spend their crypto. It's better money than dollars.
  - dajohnson89 7y ago
    It's worse money than dollars, at the moment. There's work being done to make crypto better money, and efforts like this debit card are a step in that direction. People aren't spending their crypto because it isnt' as easy/economical to use, and yeah it's more likely to retain/grow in value than a stack of cash. And that's probably what you meant :-)

platz 7y ago

To even get bitcoins you have to pay a 1.5% fee. Credit cards don't even charge you that

mathgeek 7y ago
A fair point, but remember that credit cards leverage their fees towards outstanding credit (and incentivize you to access that credit). This is more like a debit card, where the fees are leveraged on transactions where you access your own holdings (incentivizing you to leave your funds in the account).

dawhizkid 7y ago

Isn't it a tax event every time you spend crypto? I'm guessing that's a reason why something like this won't arrive in the U.S. anytime soon...at least one blessed by U.S. regulators.

kbody 7y ago

This is one of the worst crypto-debit cards I've seen. Coinbase's card has a "Crypto Liquidation Fee": 2.49% of transaction. (Even Gemini, the most expensive cryptoexchange has 1% exchange fees, while the median is probably around 0.2%) You are better off selling manually on an exchange (0.1-0.25% fees) and transferring to a sane bank with debit cards and minimal fees like N26(EU) or Charles Schwab(US). Have a fiat buffer, but control your holdings and don't get milk by fee-vampires like Coinbase.

briatx 7y ago
Or you could skip a step and just use a regular credit card with cash rewards and receive 1-2% of transaction amounts cash back. I'm not sure why people want to make it harder (and more expensive) than necessary.
- ozzyman700 7y ago
  I personally have not been able to use a credit card on coinbase for a while now seemingly this is a US thing [1] [1]https://support.coinbase.com/customer/en/portal/topics/796531-payment-methods/articles https://support.coinbase.com/customer/en/portal/topics/79653...
- bufferoverflow 7y ago
  But then you're missing the whole point - storing your money in a deflationary currency. I moved 95% of my savings into cryptocurrencies years ago, and it's been orders of magnitude better than the silly 1-2%.
  - BoorishBears 7y ago
    And some people moved their savings into cryptocurrencies half a year ago and it's been orders of magnitude worse than the silly 1-2%. Kind of like advising putting your savings in naked options plays because it worked for you that one time.
    - 7y ago

atarian 7y ago

As some people have already mentioned, spending crypto in the US is classified as a taxable event. So I think it's questionable to market crypto as a replacement for traditional spending when you have additional overhead that is not being accounted for and would definitely come up in the event of an audit.

xrd 7y ago

When I go to Google Play to install the app it says "not available in your country." I'm in the US. Isn't Coinbase only for US citizens? Who is the target of this card?