Considering Getting the Coinbase Card? Read This Before You Do

In March 2022, I received the Coinbase (Debit) Card and have been using it every chance I get. Aside from using the Coinbase Card to pay for Amazon purchases and my car bill, it’s been a relatively seamless and hassle-free experience.

When the Coinbase Card was first announced in October of 2020 — users couldn’t sign-up and receive the card immediately. Instead, Coinbase decided to kick the whole thing off with a waitlist to probably drum up anticipation and gauge their customer sign-up rates. Those who got on the waitlist in October received the card as early as Dec 2020. As of writing this, Coinbase customers are no longer subject to a waitlist and any new or existing Coinbase user can sign-up to receive theirs.

Coinbase Card at a glance:

1. You can use the Coinbase Card wherever Visa is accepted
2. For those of you who are more accustomed to using digital wallets like Apple Wallet or Android Pay — you’ll still get notified each time you use the Coinbase Card to monitor each transaction made
3. In the Coinbase App, you’ll be able to review transaction history, view the exact time and day they were made and all your crypto-back rewards earned
4. Through the app, you have the ability to lock and unlock your card whether it’s lost, stolen, or compromised
5. No overdraft penalties exist. If you have insufficient funds for your purchase, the transaction will decline until you top off USD or USDC

Crypto-back Rewards and Rates

• 4% back in Stellar Lumens
• 4% back in The Graph
• 4% back in Amp
• 4% back in Rally
• 1% back in Bitcoin
• 1% back in Ethereum
• 1% back in Dogecoin
• 1% in Dai

Spending Cryptocurrency

Now, there are no fees for spending USD or USDC using the Coinbase Card but if you want to spend using crypto you will be charged a 2.49% transaction fee on all purchases. This fee covers the cost of selling the crypto you used to purchase so Coinbase can pay the merchant in US dollars. You can select hundreds of different cryptocurrencies on the Coinbase app to make your purchases. Whichever cryptocurrency you decide to pay with just make sure you have enough funds or else the transaction will decline.

It’s also worth noting that selling cryptocurrencies triggers a taxable event, so you’ll have to keep in mind the short-term & long-term capital gain ramifications.

My Personal Experience:

I ordered my card in February of 2022 and received the physical card in less than two weeks. Based on the research I did before ordering the card, I knew the experience of using the Coinbase Card wouldn’t be much different compared to a traditional debit card issued by banks. Except with a Coinbase Card, I now receive crypto-back rather than cash back which was my primary motivation for signing up. So far, all the crypto-rewards I received were in Stellar Lumens.

4/21/22 Update:

I have been using the Coinbase Card consistently for the past 1.5 months and haven’t run into any major problems that would make me rethink using it for the foreseeable future. The most unexpected but pleasant aspect of whipping out the card in public are all of the impromptu conversations I’ve had with bartenders and cashiers. They’ll recognize the signature Coinbase Blue imbued on the card and recognize it immediately. Before you know, we’re deep in conversation about a new coin, NFT collection, and the world changing potential blockchain technology has.

These types of joyous but fleeting conversations with strangers reminds me of when I used to smoke cigarettes. For you non-smokers out there, all you need to know is that when you smoke cigarettes in a group.. all social norms go out the window and the conversations you have are down to earth and entertaining to say the least. Same goes for crypto or NFT enthusiasts where it feels like you’re part of the same exclusive group and you’re treated like an acquaintance rather than a stranger. Personally, I have enjoyed every conversation with each and every one of these once strangers because this space can get lonely sometimes (especially during a bear market) and it’s refreshing to talk to a fellow enthusiast.

In 2022, we’re still a rare breed on the fringes of the next digital revolution keeping the door open for the general public to walk in and see what’s going on just under their noses.

Stay golden!

Before you go, here’s a shortened list of all the places that have accepted my purchases using the Coinbase Card

March 2022:

• Mitsuwa — spent $8.08 / $0.32 in crypto rewards
• Gas Station (*make sure you have at least $100 in your account or else it will decline) — spent $42.89 / $1.72 in crypto rewards
• In-In-Out — spent $10.46 / $0.42 in crypto rewards
• Trader Joes — spent $41.96 / $1.68 in crypto rewards
• Albertsons — spent $11.47 / $0.46 in crypto rewards
• Parking Garage — spent $10 / $0.40 in crypto rewards
• TurboTax — spent $148 / $5.92 in crypto rewards

April 2022:

• Banana Republic.com — spent $107.81 / $4.31 in crypto rewards
• Car Wash — spent $8.00 / $0.32 in crypto rewards
• A Bar — using a Square POS — $18.41 / $0.74 in crypto rewards

Total Spent: $407.08 / Total Crypto Rewards: $16.29

Leave a comment if you found this post helpful or if you would like me to tackle another crypto-related subject!