Coinbase vs. Cash App: Which Is the Best Platform for Buying Crypto in 2023?

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Are you looking for a simple way to buy cryptocurrency? Two top contenders stand out: Cash App and Coinbase. While both platforms offer easy access to digital currencies, they cater to different needs beyond basic crypto transactions.

What Is Cash App?

Cash App is a peer-to-peer (P2P) payment app that also offers Bitcoin trading and stock investments. Launched in 2013 by Block, Inc. (formerly Square), it provides:

👉 Discover how Cash App compares to other crypto platforms

How to Use Cash App

  1. Download the App – Available for iOS and Android.
  2. Link a Bank Account – Required for sending/receiving funds.
  3. Send/Request Money – Use a unique $Cashtag, phone number, or email.
  4. Buy Bitcoin – Navigate to the Bitcoin tab for transactions.
  5. Transfer Funds – Instant (with fees) or standard (1–3 business days).

What Is Coinbase?

Coinbase is a leading crypto exchange supporting over 150 cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). Key features:

Account Requirements

Fees Comparison

| Platform | Fee Structure |
|---------------|---------------------------------------|
| Cash App | ~2%+ on small purchases (<$100) |
| Coinbase | 0%–0.60% (Advanced) or flat fees up to ~1.5% |

Cash App doesn’t publish fees upfront, while Coinbase offers lower rates for high-volume traders.

Available Cryptocurrencies

👉 Explore Coinbase’s full crypto list

Wallets & Security

Security Measures

| Platform | Protections |
|--------------|--------------------------------------|
| Cash App | FDIC-insured balances, cold storage for BTC |
| Coinbase | 2FA, 98% cold storage, FDIC insurance (up to $250K) |

Both platforms have faced breaches but offer robust recovery options.

FAQs

1. Can I buy altcoins on Cash App?

No—only Bitcoin is supported.

2. Which has lower fees for crypto trading?

Coinbase’s advanced trading offers the best rates.

3. Is Coinbase better for beginners?

Yes, with its intuitive interface and educational resources.

4. Does Cash App report crypto taxes?

Yes, via IRS Form 1099-B for Bitcoin sales.

5. Can I stake crypto on Cash App?

No—staking is only available on Coinbase.

Conclusion

Cash App excels for P2P payments and Bitcoin simplicity, while Coinbase is ideal for diverse crypto investments and trading. Choose based on:

Always research and secure your investments!