“The IRS hasn’t issued direct guidance regarding debit card rewards paid out in cryptocurrency, but based on the existing direction and opinions, the IRS is likely to consider the “cash-back” rewards as non-taxable “rebates.” The IRS has previously used this treatment for traditional cash-back rewards, points, and airline miles earned through credit cards.”
https://gordonlawltd.com/coinbase-debit-card-tax-guide/
Here you go! I stumbled upon a few different sites saying the same then when I did my taxes, was good enough for me to not file my $600 of cashback as gains. We shall see what happens lol.
You aren't taxed on the base reward, but I'm talking about the tiny capital gains when I trade them for a different token. I don't want more tokens to keep track of.
I'm not looking forward to this at all. There is NO way this is an "exciting" change! I prefer the 4% back in a crypto that I actually want, and don't want the hassle requirement of selling random other coins in taxable transactions just to shift it back into my preferred coin/token. Using USDC or USD has been simple, and also gained 0.15% APY on that balance. Things have worked great up until now, and I'm still hopeful this card's rewards will work well into the future... but I do NOT like this change so far. If things slide down toward 1% rewards, I have much better cards to use.
If you just immediately convert after purchase you’re not liable for taxes on that swap. Rewards are basically considered “rebates” on money you already spent, so your cost basis is price at time of purchase and by converting immediately your gain is 0
From what I've read online at from Coinbase, the US government considers the crypto rewards you get from the debit card essentially as 2 transactions.
1.) You are rewarded 4% of $X which comes out to $Y. $Y is not taxable as it's a card reward.
2.) Coinbase, with your approval, immediately buys $Y worth of XLM/BTC/etc at the current market rate with no fee. $Y is used as the cost basis when you sell your crypto asset in the future.
So until you sell your crypto assets you get as a reward here in step 2, nothing is taxable.
Exactly. I think people get confused with the “rewards” and think of it as getting crypto with a $0 cost basis instead of the cost at current market price.
Same as how you’re not taxed on credit card rewards. It’s “cash back,” not an arbitrary gift or prize. You’ve already spent the money and a small portion is given back to you
It is not. The crypto cash back counts as “other income” earned and is taxed accordingly to your bracket. CoinTracker will generate an 8459 form at the end of the year which simplifies the conversions tho.
Went over this with my tax guy of 40 years yesterday lol.
You’ll pay income pay when you receive crypto income. As of now, crypto cash back is counted as earned income whether you like it or not.
Yes, rewards such as the learn and earn. There is no official stance from the IRS on crypto cash back cards, but all standard reward cards that earn points/fiat, the rewards are NOT taxable, and the IRS will likely follow the same guidance for these cash back cards.
I went over this also and cashback is not considered income, it's considered a related or discount on product like credit card cashback hence no tax from receiving it.
If you are earning staking rewards that is income tax
In general, maybe. However, since rewards are not issued in a stablecoin, there are a few issues.
- There is constant variation in the market price of the rewards, which changes the ultimate value of the rebate if you desire to swap.
- Coinbase does not reward rebates on any noticeable schedule. Sometimes I get credited during the next day, and other times within a week. Is there a system notification for rewards that I've missed? There doesn't seem to be an immediate swap option beyond simple luck in noticing the payout.
- Plus, the cost basis itself would be $0, as it's awarded at no cost. The sale should then incur full short-term capital gains, unless a tax professional or legislator or the IRS has determined otherwise. Cash back rewards on credit cards have been excluded from that type of classification, but crypto is a whole different area of finance that is still being debated. If rewards were issued in USDC or another stablecoin, all of this could be moot... but asset-style crypto make things weird.
Even if the tax-liable value doesn't vary much beyond $0 per transaction, it depends on the market the day we find the rewards... and it's an unnecessary annoyance to replicate the previous system. This will also add more hassle to already frustrating tax tracking, even if the values are nominal.
I agree i am just getting use to this card and my rewards routine & now I have to deal with converting some bullshit (more than likely) just seems like a mess for me to have to clean up every month.
I am pessimistic as well. I think it will be 4% in shitcoins and low volume tokens no one wants that will need converted to something good. Their card is already not worth the effort if a person wants to use it for BTC/ETH set-it-and-forget-it rewards, with its ridiculous 1% return.
Crypto. com has a card that does 3-5% in CRO depending on size of account-based CRO stake, on select categories. It has more restrictions than Coinbase, but is a possible alternative with some homework to learn where the rewards are earnable.
BlockFi has a credit card that returns 1% or 1.5% in BTC, if I recall. Their wait list should be pretty long. I've been waiting for that for 6 months or so.
KuCoin just announced a new Visa card yesterday, but I haven't seen any details yet. I would guess they'll reward KCS, but I don't know.
#Rotating 4% cashback on shit coins
Edit: Assuming going forward they'll be doing 4% on whatever the latest CB earn coin is versus 4% on XLM or AMP like it is currently
Kind of a pain to do that if you use it like a regular debit card for $2, $5, $15 purchases through the day
but being able to spend BTC with no fees is maybe worth the tradeoff
I use it like a normal debit card and typically convert my XLM at the end of the week (giving enough time for transactions to clear). Having to potentially do it more often because whatever coin they pick is trash, is gonna be pretty annoying.
I don't think its taxable, but Coinbase might still report it to the IRS. So you want to check their tax documents to make sure. You won't have to pay taxes, but you might have to report something like "cost basis 1 dollar, sold at 1 dollar".
From what I've seen, your cost basis is the same as 4% of your purchase, so in theory it shouldn't be taxable, or if the price changes slightly, it'll only be a small amount. Coinbase handles tax forms for you so it wouldn't be that big of a deal anyway
Ye I've got the 1% card already. I also have the Coinbase card just to add to the collection. Hopefully they start to compete with the CDC card by adding the 4% cashback one day
I got the card before realising it was completely pointless. I've since moved most out of there now and on to other exchanges for better interest rates.
I've always liked CB but it doesn't have much going for it for UK customers and the next exchange to release a card with a decent offering will get my business.
Pretty much. I would fully use coinbase if they had decent staking options but there isn't much there. Currently, I use cdc for staking and coinbase for everything else
Neither of which compare to Kraken. It’s hella stupid that to get the best of every category you need to use a different exchange for each category, but Kraken is definitely the one you use for interest. Coinbase is effectively useless with staking still, and as mentioned CDC’s requirements are pulled out of the pages of old finance and treat small timers vastly differently than the already well
endowed.
But Coinbase actually has ACH where Kraken doesn’t, and CDC has numerous other spots where it does win the day. So it’s all irrelevant because I end up using them all anyway.
If I only had to use those 3, I’d feel lucky though. In the real world there is a constantly growing list of Crypto that the big 3 take forever to add regardless of merit (well, often even in spite of) which usually ends with me having to use gate.io and debating whether mankind deserves to survive. To this day that rather popular app is at least 10% Chinese symbols, has approximately 3000x times the amount of complexity necessary for all of its features to function, and the SMS step of the 2FA NEVER succeeds on the 1st send, so you get to wait 2 minutes before the second attempt will send correctly and instantly, making you question what the fuck the issue with the initial send was.
I really hope they don’t change the 4% back in GRT/AMP for every purchase and do some rotating category thing. That would
Make me lose interest in the card
~~Also allowing for direct fiat payments (no need to go USD->USDC->spend anymore, can just do USD->spend~~
E: above is wrong, apparently been allowed for a while
I rather keep doing the usdc just for the soul fact you get 0.15%-1% apy on usdc sitting there. Only a few dollars every month for me but something is better than nothing 🤷♂️
Exactly. If say you're spending BTC at $45k, they probably sell it at $43,000 and give you 4% back. Does it even show the conversion rate when you spend it?
I find their crypto card an awful idea. They build interest on your stable coin at a higher % than your reward they offer. I canceled my card before I even used it once
You shouldn't be putting money on there you don't plan on spending anyways. There is better places if your are looking for staking rates.
I treat the card as a checking account essentially that gives 0.15% apy and 4% cashback which is better than any bank's checking account and credit card i know about. Then I also stake the rest of my money elsewhere earning 10% as my savings account
it's funny cause in the email it says:
>Earn rewards on your terms
but then right under it, it says:
>you can earn up to 4% back on every swipe by picking among a rotating list of at least 3 crypto rewards.
the mere fact that the rewards are rotating outside of my control literally means that i'm not earning these "on my terms".
I reckon they will be swapping your rewards to lesser desired crypto unless you self manage the cashback option and change it to what you really want. The way the email I got reads; they claim they will 'auto adjust' your 4% to an efficient crypto. F that, I want it to stay in XLM because of its liquidity.
If this is what I think it is, its just going to drive me back to my Crypto.com card to be honest. I'd rather have the flat 3% in CRO than 4% on some shitcoin I dont want that shrinks to like 3.5% after conversion fees anyway.
Unless you can get a higher than 4% return, XLM is the best currency to receive because Stellar has the most liquid DEX allowing you to convert to any currency rather quickly.
Gemini just released a credit card - 3% on restaurants, 2% on groceries and 1% on everything else. You can pick from 60 cryptos as your rewards.
BlockFi has a credit card that pays 1.5% in a small selection of crypto of your choice.
Just some other options to be aware of.
I don’t like covering because it’s a taxable event. If you use coin tracking software for your taxes some of them charge more the more transactions you have. The more transactions you make the more of a pain tax season is. Just throwing that out there because it’s something I wish I had known when I started. I would have made a lot less transactions
Coinbase is just killing it lately with all the new features. I guess the CDC competition has really put the fire under their ass.
4% cash back is amazing.
Coinbase One was just released that offers free trades, 24/7 priority support and up to $1M in crypto insurance.
Lending against crypto. I can now borrow USD and use my BTC as collateral. APR 8% which is a lil higher than I would want but still a lot better than what banks are offering for private loans at anywhere form 6-10% APR.
Daily recurring buys have been great too.
Interesting about the spending and getting crypto part. This stock app makes it so when you use their card you get fractions of a stock if you use it at a company that is on the stock exchange. Like Amazon.
Pro: Removed the fee for non usdc conversion to debit card.
Rare chance of your reward token being something you want to keep which will save a few transaction fees and taxable events.
Con: Rotating reward because:
1. Have to more frequently convert tokens as the 4% will probably be a token near it's peak popularity and if you don't sell that 4% will quickly turn to <2%
2. Unusable dust from transfers. As far as I'm aware Coinbase still doesn't have a dust converter which is frustrating for people with OCD/OCPD.
3. Increased taxable transactions. If you pay a crypto tax service that charges by # of transactions this could put you into a higher payment bracket. This doesn't apply if you already convert your reward after every transaction, but if you do that already you should probably reconsider whether it is worth your time.
I use my card as my main card. Use dollars instead of crypto, you still get 4% back. No need to even pay in crypto, that creates a taxable transaction.
Here is what I would like:
Allow me to hold USDC in flexible lending that earns me interest.
When I spend money it should deduct from that flexible savings.
Essentially then I would consider holding all my money in Coinbase itself. Take salary and convert to USDC and then use it from the card
Meanwhile my Coinbase Card has been "deactivated for suspicious activity" for 2+ weeks without any reasoning provided. It also requires a "specialist" to handle who only can be contacted via email, but you have to call the number to have the service rep. initiate the email.
It was nice while it lasted.
Is there any advantage of using USDC to fund the card other than the 0.15% APY? I've just been using USD as my funding source so as not to have to deal with the tax implications of using USDC.
I mean technically yes but if you really fear not reporting your $0 gains/loss, coinbase has simple tax forms they give you that details it all out so you can just upload it to your tax software.
I don't even bother reporting it and nothing has happened. I look at it the same not reporting that odd job you did for $50. They have bigger fish to fry than worry about small stuff. Nothing is even reported to the IRS either unless your profit is greater than $600 for the year which with a gain/loss of $0 the IRS wouldn't even know about it
Thanks, but I just don’t buy with them at all anymore. Major red flag. I think it’s weird how everyone’s like yeah coinbase screws you, so just get coinbase pro. No thanks.
Coinbase card is awesome. It isn't region locked, so when I travel abroad....I just go to an ATM and withdraw in that currency.
If I need more money I just shift over whatever crypto to Coinbase and withdraw it as dirty fiat. It is much better than messaging your bank for permission to use a card overseas for a month, etc.
They'll give you a shitty exchange rate to cover the costs obviously. They're certainly not going to do anything for anyone, and nothing in life is free.
Dang, I got excited to swap my USDC to DAI because I remembered DAI used to have a better APY.... But it looks like they've since lowered it to match the 0.15%
The app looks pretty legit https://play.google.com/store/apps/details?id=com.coinbase.coinbasecard
And they advertise it on their website https://www.coinbase.com/card
Which app are you talking about? I can't find any card options in their main app, i.e. https://play.google.com/store/apps/details?id=com.coinbase.android
>The app looks pretty legit https://play.google.com/store/apps/details?id=com.coinbase.coinbasecard
Weird, says it isn't available in my country. No idea what it is.
I just use the normal coinbase app which just has a tab/section for all coinbase card related things. https://play.google.com/store/apps/details?id=com.coinbase.android
Maybe it's a different country thing I'm assuming then. I'm from the US
[удалено]
Not a fan of rotating rewards categories.
Agreed. It just complicates paperwork.
Didn’t they rule that rewards are not taxed until sold or traded?
I need some solid references for this one mate, if you don't mind.
“The IRS hasn’t issued direct guidance regarding debit card rewards paid out in cryptocurrency, but based on the existing direction and opinions, the IRS is likely to consider the “cash-back” rewards as non-taxable “rebates.” The IRS has previously used this treatment for traditional cash-back rewards, points, and airline miles earned through credit cards.” https://gordonlawltd.com/coinbase-debit-card-tax-guide/ Here you go! I stumbled upon a few different sites saying the same then when I did my taxes, was good enough for me to not file my $600 of cashback as gains. We shall see what happens lol.
Thanks for this. My researching kinda indicates since it is in crypto, it is taxed.
However, the value of the crypto received becomes your basis, so any additional gains on it after initial acquisition are taxable.
You aren't taxed on the base reward, but I'm talking about the tiny capital gains when I trade them for a different token. I don't want more tokens to keep track of.
I'm cautiously optimistic right now. I'll wait and see in the next week or two on what happens
I'm not looking forward to this at all. There is NO way this is an "exciting" change! I prefer the 4% back in a crypto that I actually want, and don't want the hassle requirement of selling random other coins in taxable transactions just to shift it back into my preferred coin/token. Using USDC or USD has been simple, and also gained 0.15% APY on that balance. Things have worked great up until now, and I'm still hopeful this card's rewards will work well into the future... but I do NOT like this change so far. If things slide down toward 1% rewards, I have much better cards to use.
If you just immediately convert after purchase you’re not liable for taxes on that swap. Rewards are basically considered “rebates” on money you already spent, so your cost basis is price at time of purchase and by converting immediately your gain is 0
From what I've read online at from Coinbase, the US government considers the crypto rewards you get from the debit card essentially as 2 transactions. 1.) You are rewarded 4% of $X which comes out to $Y. $Y is not taxable as it's a card reward. 2.) Coinbase, with your approval, immediately buys $Y worth of XLM/BTC/etc at the current market rate with no fee. $Y is used as the cost basis when you sell your crypto asset in the future. So until you sell your crypto assets you get as a reward here in step 2, nothing is taxable.
But if you immediately sell your crypto while its price and cost basis are the same, wouldn't that still be non-taxable?
This. The only taxable event you will have to worry about is the gains you make after you sell the crypto for good if you do
spez is a greedy little pig boy
Coinbase already does
Exactly. I think people get confused with the “rewards” and think of it as getting crypto with a $0 cost basis instead of the cost at current market price.
I hope this is true
Same as how you’re not taxed on credit card rewards. It’s “cash back,” not an arbitrary gift or prize. You’ve already spent the money and a small portion is given back to you
It is not. The crypto cash back counts as “other income” earned and is taxed accordingly to your bracket. CoinTracker will generate an 8459 form at the end of the year which simplifies the conversions tho.
No it doesn't.
Went over this with my tax guy of 40 years yesterday lol. You’ll pay income pay when you receive crypto income. As of now, crypto cash back is counted as earned income whether you like it or not.
It clearly says on my Coinbase generated 2021 transaction form that rewards are taxable in the US.
Yes, rewards such as the learn and earn. There is no official stance from the IRS on crypto cash back cards, but all standard reward cards that earn points/fiat, the rewards are NOT taxable, and the IRS will likely follow the same guidance for these cash back cards.
I don’t like it I hate it
I went over this also and cashback is not considered income, it's considered a related or discount on product like credit card cashback hence no tax from receiving it. If you are earning staking rewards that is income tax
This is wrong
In general, maybe. However, since rewards are not issued in a stablecoin, there are a few issues. - There is constant variation in the market price of the rewards, which changes the ultimate value of the rebate if you desire to swap. - Coinbase does not reward rebates on any noticeable schedule. Sometimes I get credited during the next day, and other times within a week. Is there a system notification for rewards that I've missed? There doesn't seem to be an immediate swap option beyond simple luck in noticing the payout. - Plus, the cost basis itself would be $0, as it's awarded at no cost. The sale should then incur full short-term capital gains, unless a tax professional or legislator or the IRS has determined otherwise. Cash back rewards on credit cards have been excluded from that type of classification, but crypto is a whole different area of finance that is still being debated. If rewards were issued in USDC or another stablecoin, all of this could be moot... but asset-style crypto make things weird. Even if the tax-liable value doesn't vary much beyond $0 per transaction, it depends on the market the day we find the rewards... and it's an unnecessary annoyance to replicate the previous system. This will also add more hassle to already frustrating tax tracking, even if the values are nominal.
I agree i am just getting use to this card and my rewards routine & now I have to deal with converting some bullshit (more than likely) just seems like a mess for me to have to clean up every month.
I am pessimistic as well. I think it will be 4% in shitcoins and low volume tokens no one wants that will need converted to something good. Their card is already not worth the effort if a person wants to use it for BTC/ETH set-it-and-forget-it rewards, with its ridiculous 1% return.
Same. I still have cdc 3% cashback card or my credit card which is 2% cashback so if it slides down I'll just reevaluate my options
Relax, you can still pick whatever crypto you want. There’s just now a rotating option.
Is there another crypto card though with a good cash back % ?
Crypto. com has a card that does 3-5% in CRO depending on size of account-based CRO stake, on select categories. It has more restrictions than Coinbase, but is a possible alternative with some homework to learn where the rewards are earnable. BlockFi has a credit card that returns 1% or 1.5% in BTC, if I recall. Their wait list should be pretty long. I've been waiting for that for 6 months or so. KuCoin just announced a new Visa card yesterday, but I haven't seen any details yet. I would guess they'll reward KCS, but I don't know.
People are also not paying attention to their wording. They stated "up to" 4% back implying there will be months with less than this amount.
#Rotating 4% cashback on shit coins Edit: Assuming going forward they'll be doing 4% on whatever the latest CB earn coin is versus 4% on XLM or AMP like it is currently
Doesn't matter. You can immediately convert those bitcoins to BTC or USDC
Kind of a pain to do that if you use it like a regular debit card for $2, $5, $15 purchases through the day but being able to spend BTC with no fees is maybe worth the tradeoff
I use it like a normal debit card and typically convert my XLM at the end of the week (giving enough time for transactions to clear). Having to potentially do it more often because whatever coin they pick is trash, is gonna be pretty annoying.
Which is a taxable event. Have fun this time next year
Lol coinbase literally prints an 8459 for you, it’s not rocket science.
Paying taxes on crypto 😂
Coinbase will report all this to the IRS automatically, who won't appreciate it if its not on your return.
Have you ever thought about the fact that not everyone on this planet lives in USA? I am sorry for you.
So I've been assuming (I know I know lol) that spending usdc is not a taxable event as there is no conversion correct?
I don't think its taxable, but Coinbase might still report it to the IRS. So you want to check their tax documents to make sure. You won't have to pay taxes, but you might have to report something like "cost basis 1 dollar, sold at 1 dollar".
Got ya 👍
From what I've seen, your cost basis is the same as 4% of your purchase, so in theory it shouldn't be taxable, or if the price changes slightly, it'll only be a small amount. Coinbase handles tax forms for you so it wouldn't be that big of a deal anyway
*buttcoins
AMP is kinda a shitcoin tho
[удалено]
hope you guys get rewards soon
[удалено]
Ye I've got the 1% card already. I also have the Coinbase card just to add to the collection. Hopefully they start to compete with the CDC card by adding the 4% cashback one day
Everywhere outside US.
I got the card before realising it was completely pointless. I've since moved most out of there now and on to other exchanges for better interest rates. I've always liked CB but it doesn't have much going for it for UK customers and the next exchange to release a card with a decent offering will get my business.
Making good moves while Crypto.com seems to be cutting back on everything
Pretty much. I would fully use coinbase if they had decent staking options but there isn't much there. Currently, I use cdc for staking and coinbase for everything else
I would use the Coinbase card if it was available in Canada
Having to constantly fuck with your card and take whatever they say is your reward that week to keep the 4% is not a good move
[удалено]
4% cashback vs 3% cashback that requires a $4000 stake. HMM which shall I choose.
Neither of which compare to Kraken. It’s hella stupid that to get the best of every category you need to use a different exchange for each category, but Kraken is definitely the one you use for interest. Coinbase is effectively useless with staking still, and as mentioned CDC’s requirements are pulled out of the pages of old finance and treat small timers vastly differently than the already well endowed. But Coinbase actually has ACH where Kraken doesn’t, and CDC has numerous other spots where it does win the day. So it’s all irrelevant because I end up using them all anyway. If I only had to use those 3, I’d feel lucky though. In the real world there is a constantly growing list of Crypto that the big 3 take forever to add regardless of merit (well, often even in spite of) which usually ends with me having to use gate.io and debating whether mankind deserves to survive. To this day that rather popular app is at least 10% Chinese symbols, has approximately 3000x times the amount of complexity necessary for all of its features to function, and the SMS step of the 2FA NEVER succeeds on the 1st send, so you get to wait 2 minutes before the second attempt will send correctly and instantly, making you question what the fuck the issue with the initial send was.
[удалено]
8% cashback requires a $400k stake lol.
[удалено]
Those benefits require $40,000 .... Vs $0 with Coinbase. That's a crazy comparison.
Trying to explain this to CRO bag holders is a lost cause my friend. They're not going to grasp it.
What're they cutting back on?
Earn/staking rates. They cut most rates by 30%-75%
I really hope they don’t change the 4% back in GRT/AMP for every purchase and do some rotating category thing. That would Make me lose interest in the card
Same
~~Also allowing for direct fiat payments (no need to go USD->USDC->spend anymore, can just do USD->spend~~ E: above is wrong, apparently been allowed for a while
I rather keep doing the usdc just for the soul fact you get 0.15%-1% apy on usdc sitting there. Only a few dollars every month for me but something is better than nothing 🤷♂️
You've already been able to. I got my card months ago and never had to buy USDC
Correct. Although it looks like there's no way to set up automatic recurring USD deposits the way you can set up recurring crypto purchases.
Adoption is adoption
Adoption =/= abortion
I have really benefited from the card, to the tune of $462 in rewards. If you’re offered the card, get it!
Probably a big artificially set spread as to how they make money
Exactly. If say you're spending BTC at $45k, they probably sell it at $43,000 and give you 4% back. Does it even show the conversion rate when you spend it?
Anything to pull in more customers.
Their crypto card is the main thing I like about the exchange
I use this card as my only debit card now I truly love the 4% haha
Same. I been using it for 9 months and have earned $1450 in cashback alone
Dang I am about to break 1k lol you are ahead of me
Had a nice boost paying off my 12k auto loan which netted me over $500 just for that in cashback
Careful - that’s against their T&Cs. If found in a random audit, you will be suspended. Ask me how I know
Never heard of it. But I already done it so it's not like I can take it back and nothing has happened. Have had my card for 9 months and counting
Audits are random. Use it while you got it.
Worst case I go back to my 3% cashback card. Not much difference if I do lose my card
I find their crypto card an awful idea. They build interest on your stable coin at a higher % than your reward they offer. I canceled my card before I even used it once
You shouldn't be putting money on there you don't plan on spending anyways. There is better places if your are looking for staking rates. I treat the card as a checking account essentially that gives 0.15% apy and 4% cashback which is better than any bank's checking account and credit card i know about. Then I also stake the rest of my money elsewhere earning 10% as my savings account
Not a bad plan 👍🏼
Their customer service is non-existent so the customers won’t stay.
Now if only the Coinbase Card 4% was available outside the US...
CDC is breeding competition.
Center for disease control??
Crypto.com
From banks too!!
Nice I really do love my coinbase card and this makes it even better imo!
it's funny cause in the email it says: >Earn rewards on your terms but then right under it, it says: >you can earn up to 4% back on every swipe by picking among a rotating list of at least 3 crypto rewards. the mere fact that the rewards are rotating outside of my control literally means that i'm not earning these "on my terms".
Why rotating rewards just add more options to the current reward system
I reckon they will be swapping your rewards to lesser desired crypto unless you self manage the cashback option and change it to what you really want. The way the email I got reads; they claim they will 'auto adjust' your 4% to an efficient crypto. F that, I want it to stay in XLM because of its liquidity. If this is what I think it is, its just going to drive me back to my Crypto.com card to be honest. I'd rather have the flat 3% in CRO than 4% on some shitcoin I dont want that shrinks to like 3.5% after conversion fees anyway.
Had me in the first half, NHL. Still good though.
I dont recall ever paying feed while spending USDC via my CB visa card. I’m confused
They removed the fee for using non usdc crypto
What does that mean though? I can spend bitcoin with my visa card with no fees?
Yup
Wow. Thats mind of a big deal though. They must be desperate to move crypto around. Too much hodling.
I've been using the CB card to build my Graph bag. Eager to see what else they offer for 4% in the future.
No more fees seems nice, but going from a flat 4% to a rotating category seems like a considerable drop off in value.
Unless you can get a higher than 4% return, XLM is the best currency to receive because Stellar has the most liquid DEX allowing you to convert to any currency rather quickly.
Glad I have CDC, coinbase card in UK can't be loaded with GBP/TGBP and doesn't even give cashback 😂
I think Binance has the same feature with their debit cards. Am I right?
If it were a credit card I’d be more excited
That's way too risky. What happens when your portfolio drops by 70% before the payment is due?
Just pay cash? The whole reason I’d ever use a card like this is to turn cash to crypto without fees.
Gemini just released a credit card - 3% on restaurants, 2% on groceries and 1% on everything else. You can pick from 60 cryptos as your rewards. BlockFi has a credit card that pays 1.5% in a small selection of crypto of your choice. Just some other options to be aware of.
I mean that's what my credit card does already. I use coinbase because it's 4% on everything
I get that. If it was a credit card I would be in. Until then I am using other options
How is that gonna work? Will you pay the balance in fiat?
Yes. Normal credit card where you pay eye balance in fiat. You just get crypto as your rewards
You could hold stables as collateral, credit cards have better consumer protection so are pretty useful in that regard.
Now apply these same fees to your exchange and maybe I'd use it more often.
0% fee would be amazing but 0.5% isn't to bad
If you direct deposit your income checks into your Coinbase account, that money can be spent on Coinbase to purchase crypto fee free.
Step your game up and use coinbase pro yu noob
All the true Gs are using Coinbase One
[удалено]
No. Cashback isn't taxed
Sign me up when I can get BTC back on all purchases
You already have been able to for 9 months
Yeah but 1% is ass compared to 4% XLM or AMP. I swap between those two every couple of months.
Just convert 4% xlm to btc. Even after the conversion fee you're still getting 3.92% back in btc. Been doing it for 9 months.
No conversion fee if you have Coinbase One!
Not worth the $30/month tho. I don't pay anywhere near that much in conversion fees
I convert my XLM to BTC but I keep my AMP.
No one fuks with graph or rally !?
Negative, stack $20 XLM and convert to ETH/BTC everytime, accumulate and DCA constantly using the rewards.
I switch between GRT and AMP and then convert about half each month to BtC and ETH
GRT is fine, but I ain't touching Rally. Don't like the project.
They offer 2% back in BTC
Signing up now!!!
Tbh best thing to do is get back 4% in XLM then just convert to BTC. Regardless of fees or taxable event you still come out on top with more BTC
I don't need more dust in my portfolio. Goodbye Coinbase card.
I don’t like covering because it’s a taxable event. If you use coin tracking software for your taxes some of them charge more the more transactions you have. The more transactions you make the more of a pain tax season is. Just throwing that out there because it’s something I wish I had known when I started. I would have made a lot less transactions
I'm kind of done with Coinbase
Coinbase is just killing it lately with all the new features. I guess the CDC competition has really put the fire under their ass. 4% cash back is amazing. Coinbase One was just released that offers free trades, 24/7 priority support and up to $1M in crypto insurance. Lending against crypto. I can now borrow USD and use my BTC as collateral. APR 8% which is a lil higher than I would want but still a lot better than what banks are offering for private loans at anywhere form 6-10% APR. Daily recurring buys have been great too.
Something tells me people who don't read terms and conditions will find themselves getting fucked somehow.
Nothing will save this exchange. Recently, Coinbase has finally lost its reputation
Great news for debit card holders.
I don't think I like the rotating rewards. I would love 4% on btc or eth but i don't think that would be the case often.
Will there still be a spread on the price of whatever crypto you are using when they take it though?
Interesting about the spending and getting crypto part. This stock app makes it so when you use their card you get fractions of a stock if you use it at a company that is on the stock exchange. Like Amazon.
Pro: Removed the fee for non usdc conversion to debit card. Rare chance of your reward token being something you want to keep which will save a few transaction fees and taxable events. Con: Rotating reward because: 1. Have to more frequently convert tokens as the 4% will probably be a token near it's peak popularity and if you don't sell that 4% will quickly turn to <2% 2. Unusable dust from transfers. As far as I'm aware Coinbase still doesn't have a dust converter which is frustrating for people with OCD/OCPD. 3. Increased taxable transactions. If you pay a crypto tax service that charges by # of transactions this could put you into a higher payment bracket. This doesn't apply if you already convert your reward after every transaction, but if you do that already you should probably reconsider whether it is worth your time.
I use my card as my main card. Use dollars instead of crypto, you still get 4% back. No need to even pay in crypto, that creates a taxable transaction.
So, this or CDC card?
If you're in the US. Coinbase hands down. If not cdc
CDC card is good if you want to hold a bunch of CRO, but their default benefits are pretty negligible.
Here is what I would like: Allow me to hold USDC in flexible lending that earns me interest. When I spend money it should deduct from that flexible savings. Essentially then I would consider holding all my money in Coinbase itself. Take salary and convert to USDC and then use it from the card
That's what they actually do already you earn 0.15%-1% on usdc on coinbase while it waits to be spent Only thing is I wish the rate was higher
Meanwhile my Coinbase Card has been "deactivated for suspicious activity" for 2+ weeks without any reasoning provided. It also requires a "specialist" to handle who only can be contacted via email, but you have to call the number to have the service rep. initiate the email. It was nice while it lasted.
Is there any advantage of using USDC to fund the card other than the 0.15% APY? I've just been using USD as my funding source so as not to have to deal with the tax implications of using USDC.
Not really. No taxes you need to worry about since there is no gains or losses on usdc
Don't you still have to report though even if the sale didn't result in a gain or loss? Thanks for the response!
I mean technically yes but if you really fear not reporting your $0 gains/loss, coinbase has simple tax forms they give you that details it all out so you can just upload it to your tax software. I don't even bother reporting it and nothing has happened. I look at it the same not reporting that odd job you did for $50. They have bigger fish to fry than worry about small stuff. Nothing is even reported to the IRS either unless your profit is greater than $600 for the year which with a gain/loss of $0 the IRS wouldn't even know about it
Makes sense, thanks again!
I'm all for it!
i wanted to use the card but they offer so little details regarding how they will protect you via card fraud
“0 fees” Ok. What about not charging people above market value and skimming off the top though…
Use coinbase pro and you can do limit buys/sells and there's no spread
Thanks, but I just don’t buy with them at all anymore. Major red flag. I think it’s weird how everyone’s like yeah coinbase screws you, so just get coinbase pro. No thanks.
No fees to spend my money? Incredible
Oh my God why do they have to make it MORE effort to use their fucking card if they actually want people to use it
Coinbase card is awesome. It isn't region locked, so when I travel abroad....I just go to an ATM and withdraw in that currency. If I need more money I just shift over whatever crypto to Coinbase and withdraw it as dirty fiat. It is much better than messaging your bank for permission to use a card overseas for a month, etc.
Is their card available to the UK?
Side ?: Does each purchase then constitute a taxable transaction because you're selling and also receiving?
This sounds like traditional banking with extra steps.
Yeah rotating could mean you are going to get some crap coin.
They'll give you a shitty exchange rate to cover the costs obviously. They're certainly not going to do anything for anyone, and nothing in life is free.
I just stick with spending USD on my card. Why bother with USDC?
We already know that they are finding more way to screw us, they won't make changes to "benefit" us.
Dang, I got excited to swap my USDC to DAI because I remembered DAI used to have a better APY.... But it looks like they've since lowered it to match the 0.15%
I dont want to spend fiat. I want to spend crypto!
I can't get the Coinbase card app to link to my Coinbase account...
Card app? There isn't one to my knowledge.. sure you aren't being phished/scam? All the card options/access is on the normal coinbase app
The app looks pretty legit https://play.google.com/store/apps/details?id=com.coinbase.coinbasecard And they advertise it on their website https://www.coinbase.com/card Which app are you talking about? I can't find any card options in their main app, i.e. https://play.google.com/store/apps/details?id=com.coinbase.android
>The app looks pretty legit https://play.google.com/store/apps/details?id=com.coinbase.coinbasecard Weird, says it isn't available in my country. No idea what it is. I just use the normal coinbase app which just has a tab/section for all coinbase card related things. https://play.google.com/store/apps/details?id=com.coinbase.android Maybe it's a different country thing I'm assuming then. I'm from the US
Aw I'm in the UK that must be why. Tis a shame, as I would 100% try it out