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Both Cash App and Coinbase make it easy to invest in cryptocurrency, but outside of that, these platforms are polar opposites.
Cash App is a payments app and a stock broker that also lets you buy and sell Bitcoin (BTC). Coinbase is one of the most widely used crypto exchanges, and it works well for everyone from beginners to advanced investors. In our detailed guide to Cash App vs. Coinbase, you'll learn more about their features so you can pick the one that fits your needs.
Coinbase vs. Cash App: At a glance
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Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
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Rating image, 4.00 out of 5 stars.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
| Commissions |
Variable fees (Coinbase), 0%-0.80% (Coinbase Advanced Trade), $29.99 monthly (Coinbase One)
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$0 for stocks, fees vary for cryptocurrencies
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Cash App vs. Coinbase: Fees
Coinbase has lower crypto trading fees than Cash App, which is an important advantage if you're planning to invest in cryptocurrency regularly.
Cash App doesn't publish its fee structure and instead calculates the fee amount during the purchase process. You can see how much it will cost before you confirm the transaction. Fees are normally above 2% on purchases of $100 or less. Fee amounts drop for larger purchases, but are still more than what top crypto exchanges charge.
Fees on Coinbase are a little complicated. That's because Coinbase charges different fees depending on whether you use its simple trading or advanced trading option.
Coinbase's advanced trading tool, which it created to replace its Coinbase Pro platform, is the best deal with fees ranging from 0% to 0.60%. Fee amounts are based on your trading volume and use a maker-taker model. That means Coinbase charges a taker fee if an order is filled immediately by another order on its order books, and it charges a maker fee if an order isn't filled immediately.
Here's how much Coinbase charges on advanced trades for clients with up to $1 million in 30-day trading volume:
| 30-DAY TRADING VOLUME IN U.S. DOLLARS | TAKER FEE | MAKER FEE |
|---|---|---|
| Up to $10,000 | 0.60% | 0.40% |
| $10,000 to $50,000 | 0.40% | 0.25% |
| $50,000 to $100,000 | 0.25% | 0.15% |
| $100,000 to $1,000,000 | 0.20% | 0.10% |
Data source: Coinbase.
With Coinbase's simple trading option, there's no published fee structure. Smaller trades have a flat fee of between $0.99 and $2.99 depending on the exact amount. Trades of $205 and above have a variable fee that's typically a little under 1.5%.
To get an idea of the cost difference, here's how much you'd pay in fees to buy different amounts of Bitcoin with Cash App vs. Coinbase:
| Amount of Bitcoin | Cash App | Coinbase Simple Trade | Coinbase Advanced Trade |
|---|---|---|---|
| $10 | $0.22 | $0.99 | $0.06 (taker) / $0.04 (maker) |
| $100 | $2.26 | $2.99 | $0.60 (taker) / $0.40 (maker |
| $1,000 | $17.59 | $14.68 | $6 (taker) / $4 (maker) |
Data sources: Cash App and Coinbase *Coinbase Advanced Trade fee amounts are based on its lowest pricing tier.
It's also worth mentioning that Coinbase accepts multiple payment methods. Some of them, such as debit cards, incur an extra fee. You can avoid extra fees by sticking to ACH transfers from your bank account.
Cash App vs. Coinbase: Cryptos available
Cryptocurrency selection is an area where Coinbase has a massive advantage over Cash App.
Coinbase is one of the best cryptocurrency exchanges in terms of selection. It offers well over 150 different cryptocurrencies, and it adds new ones regularly. If you sign up for a Coinbase account, then you'll be able to trade a wide variety of cryptos, including the market leaders, stablecoins, and some smaller coins. In addition, Coinbase offers crypto staking, allowing you to earn rewards on several types of cryptocurrency.
Cash App only offers Bitcoin. That's not a big deal if you're looking for a payment app or stock trading app that also lets you buy Bitcoin, but if you're serious about crypto investing, then a dedicated crypto exchange is a better choice. There are many major cryptocurrencies you can't buy on Cash App, including:
Cash App vs. Coinbase: Wallets
Cash App and Coinbase both have custodial wallets where you can send and receive crypto (only Bitcoin, in Cash App's case) using your wallet address. Also known as hosted wallets, these are blockchain wallets controlled by the platform itself. If you want to be in full control of your cryptocurrency, it's recommended to transfer it to your own non-custodial wallet.
Coinbase also offers a non-custodial wallet, Coinbase Wallet. Although it's made by Coinbase, anyone can use it, so you don't need to have an account with the exchange. It's a highly rated wallet option, and it can be used to store both cryptocurrencies and other digital assets, such as non-fungible tokens (NFTs).
Cash App vs. Coinbase: Security
Cash App and Coinbase are both considered safe places to buy and sell crypto. Of the two, Coinbase has more protections for its clients, as it offers insurance and keeps most cryptocurrency offline in cold storage. When crypto is stored offline, it's much harder to steal.
According to Cash App, it uses cutting-edge encryption and fraud detection technology to protect the data and money of its users. Here are the most notable security features with Cash App:
- Every time you sign in to Cash App, you're sent a one-time-use login code.
- You can enable a security lock so that Cash App requires your passcode to send funds.
- You can also enable account alerts that notify you by text, email, or push notifications of any account activity.
- Cash App stores at least some of its customers' Bitcoin in cold storage. It doesn't clarify how much is kept in cold storage, though. According to its website, it uses an online/offline wallet system.
It's worth noting that Cash App accounts are a popular target for hackers. If you decide to use it, watch out for phishing and other common scams.
Coinbase is one of the most secure crypto exchanges. Here are a few of the security measures it has in place to protect its customers and their funds:
- Coinbase requires that clients enable two-factor authentication (2FA). With 2FA enabled, two forms of identification, such as a password and a code sent to the account holder's phone, are required to access an account.
- Coinbase keeps 98% of crypto funds in cold storage.
- Coinbase has set up an insurance policy for the crypto funds that it stores in hot wallets (wallets that are connected to the internet).
- U.S. customer accounts on Coinbase have FDIC insurance to cover cash funds. This is the same type of insurance offered by most major bank accounts, and it provides coverage of up to $250,000 per individual.
Both platforms have had security incidents in the past. A former Cash App employee managed to steal sensitive data of over 8 million users in 2021, although no one had any funds stolen. Hackers exploited a vulnerability in Coinbase's SMS account recovery tools to steal funds from at least 6,000 clients in 2021. To its credit, Coinbase fixed the vulnerability and reimbursed those clients.
Final take
Since these platforms are so different, deciding between Cash App and Coinbase is just a matter of what you're looking for.
For crypto investing, Coinbase is the clear choice. It features one of the largest cryptocurrency selections, advanced trading tools, educational content, and top-notch security. Trading fees are competitive, as long as you use the advanced trading tool. Overall, Coinbase has everything you could want in an exchange.
Cash App works well if you want a beginner-friendly stock trading app that also lets you buy and sell Bitcoin. It's much more limited in terms of cryptocurrency, because unlike Coinbase, that's not its sole focus.
Anyone who really wants to dive into crypto should go with Coinbase, but Cash App is fine if you're just looking to dip your toes.
The Ascent's best cryptocurrency apps
There are hundreds of platforms around the world that are waiting to give you access to thousands of cryptocurrencies. And to find the one that's right for you, you'll need to decide the features that matter most to you.
To help you get started, our independent experts have sifted through the options to bring you some of our best cryptocurrency exchanges for 2022. Check out the list and get started on your crypto journey, today.
Our Cryptocurrency Expert
Lyle Daly is a personal finance writer who specializes in credit cards, travel rewards programs, and banking. He writes for The Ascent and The Motley Fool, and his work has appeared in USA Today and Yahoo! Finance. He was born in California but currently lives as a digital nomad with a home base in Colombia.
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Lyle Daly owns Bitcoin, Ethereum, Cardano, and Binance Coin.
Lyle Daly has positions in Binance Coin, Bitcoin, Cardano, Ethereum, Polkadot, Solana, and USD Coin. The Motley Fool has positions in and recommends Bitcoin, Cardano, Ethereum, Solana, and Target. The Motley Fool recommends Maker. The Motley Fool has a disclosure policy.