Coinbase Card – Full Review

Great Card If

• You want to earn crypto rewards.
• You hold crypto with Coinbase and want to be able to spend some.
• You prefer a debit card to a credit card.

Don’t Get If

• You don’t use Coinbase.
• You have no interest in crypto.
• You prefer to use a credit card.

Ideal Cardholder

The ideal cardholder for the Coinbase card is someone who is already a Coinbase customer and wants to earn crypto rewards on their day-to-day purchases by spending their current crypto holdings on the platform or a stablecoin like USDC.

In addition, if you’re looking to dip your toe into the world of crypto, both the Coinbase platform and the Coinbase card provide a beginner-friendly experience that allows you to purchase crypto, learn about it, and spend some of it relatively easily.

How To Use Your Crypto for Maximum Value

Staking

If you’re looking to grow the crypto rewards you receive from your Coinbase card as fast as possible, one of the best ways to do so is by staking those rewards on Coinbase.

For the uninitiated, staking lets you earn passive income with your crypto by contributing to the Proof of Stake (PoS) network of the asset you are staking. Staking your crypto makes the blockchain that powers that asset more secure and more efficient. In exchange, you get rewarded with more assets from the network.

Currently, Coinbase offers staking rewards for dozens of assets, allowing you to earn up to 13.93% annual percentage yield — though this rate and eligible assets are subject to change.

Staking is a great way to further benefit from your crypto holding because if you’re planning to hold onto it as a long-term investment anyway, staking allows you to take advantage of compound interest by receiving reward payments for doing so.

Finally, note that staking regulations vary from state to state.

Trading

Once you receive your rewards payment from your purchases with the Coinbase card, those rewards are yours to do as you wish. As you may know, Coinbase originally started as a cryptocurrency wallet and trading platform, and while you used to be able to trade just 3 assets on the platform, that figure has now ballooned to over 100.

So, if you ever want to trade your rewards for another asset that allows you to stake or for another that you believe has better growth potential, you can easily do so on the Coinbase platform.

Selling for Cash

Lastly, you can easily sell the crypto rewards you receive from your Coinbase card for cash at any time you’d like. Doing so is quick and easy, and then you can withdraw the cash to your physical bank account.

How To Earn More Crypto

Everyday Purchases

Since the Coinbase card offers you the opportunity to earn rewards on every purchase you make with the card, the easiest way to earn as many rewards as possible is to use it for all of your purchases. You can earn up to 4% back on your purchases, depending on which crypto you choose to earn your rewards in.

When you spend any balance you have of the over 100 supported assets on Coinbase, don’t forget that you’ll be charged a 2.49% transaction fee when doing so. This is the fee that Coinbase charges for converting that asset to dollars to allow you to complete the transaction. In our view, this significantly limits the usefulness of the card, as there is no sense in paying a 2.49% fee to earn rewards at or lower than that value.

There is an easy way around this fee, though, that we highly recommend. If you hold a balance of the USDC stablecoin (a coin pegged to the price of the U.S. dollar) and set this as your crypto payment method, you won’t be charged the 2.49% crypto conversion fee! Plus, by spending a stablecoin instead, you leave a larger balance of your other assets that ideally will benefit from price appreciation.

Alternative Cards to the Coinbase Card

Gemini Credit Card

If you’re keen to earn crypto rewards and prefer a credit card to a debit card, the Gemini card could be a great choice.

For starters, the card offers bonus categories to help you earn even more rewards, giving you 3% back on dining purchases (on up to $6,000 in spend annually), 2% back on grocery purchases, and 1% back on all other purchases.

The card has a $0 annual fee, your crypto rewards post instantly after your transaction is completed, and you can choose to earn your rewards in one of over 40 supported assets.

Hot Tip: For more suggestions, check out our guide to the best credit cards that earn crypto rewards.