Coinbase Visa Debit Card Highlights:
> No annual fee.
> No foreign transaction fee.
> You can pay with US Dollar or with one of several Cryptos that you own in Coinbase.
> Pay with USDC (stable coin) and you won’t be charged a fee.
> Pay with Crypto like Bitcoin, Ethereum, Solana etc, you will be charged a transaction fee of 2.49%. This will also lead to a taxable event since you are essentially selling some of the crypto that you own.
Rewards:
You can choose to receive Crypto rewards from one of the following:
4% back in Stellar Lumens (XLM)
4% back in The Graph (GRT)
4% back in Amp (AMP)
4% back in Rally (RLY)
1% back in Bitcoin (BTC)
1% back in Ethereum (ETH)
1% back in Dogecoin (DOGE)
1% back in Dai (DAI)
What to use as mode of payment?
I buy USDC using my connected bank account and then use USDC as the mode of payment. As mentioned earlier, you won’t be charged any fee if you’re paying with USDC or US Dollar.
I don’t use Crypto as the payment method cause I don’t want to incur 2.49% in transaction fees. Even if I get back 4% in Stellar (XLM), I will make a net return of only 1.51%. Not worth it! I’d rather use my Citi Double Cash Card which returns 2% cash back. Also, I’ve kept Crypto as a long-term investment and so I don’t want to sell soon as well as pay taxes on the gains.
What Crypto rewards should I choose?
I’ve chosen Stellar Lumens (XLM) in rewards cause the reward is higher (4%) plus I’m already long in Stellar. You get back only 1% in Bitcoin and Ethereum which are the largest and most popular Crypto currencies. 1% return is way too less. If I’m grocery shopping, I’d rather use my Amex Blue Cash Preferred Card and get 6% in cash back.
Where do I use the card?
I typically use it while paying for items in the credit card OTHER category where credit cards return you just 1% – 2% back. Ex: Walmart, cell phone bills, day care payment, medical bills etc. I’d rather get back 4% in XLM than get 2% in cash back.
Who can benefit?
If you’re like me who uses Coinbase to invest and trade in Crypto then the Coinbase Visa Debit Card might be right for you. As you make purchases, you will accumulate crypto in a dollar cost average mechanism which is an effective way of investing. Note – this is not a Credit Card and so you can’t buy now and pay later. At the time of purchase, you will have to have the funds available to you either in Crypto or in US Dollar.
Crypto is crap. Gonna go to 0.
The ones that offer utility will survive and go much higher. Lets talk in 10 yrs!
4% back in XLM is great! I don’t know of any card that gives back 4% in the other/random category.
That’s the reason why I use this debit card. Why use a credit card that gives you 1% in the other category when you can get back 4% with Coinbase?
Coinbase has stopped giving 4% in XLM since June 2022. The highest reward that they offer is 2% in AMP. Gonna go back to using my Wells Fago credit card (https://www.wellsfargo.com/cgactivecash) which gives flat 2% cashback in the other category.
Yes, that’s unfortunate! I’m going back to using my Citi double cash for purchases in the other category.
Stopped using it after they stopped returning 4%
Same here 🙁 Hope the 4% rewards start again.
4% return in XLM is back for July – Aug 🙂
Yeah, I switched to XLM rewards and I’m using the debit card again 🙂
I used to be a big crypto supporter but looking at what’s currently happening, I turned skeptic. Sold my crypto for nearly a 50% loss. Not sure where it’ll go from here.
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Crypto is picking up steam. Hope it continues that way 🙂
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The Stellar 4% reward is good but I hope that Stellar does something Stellar soon 🙂 It’s price movement is not that great.
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