Would you like to get the most of your cryptocurrency? Then you must become familiar with BitPay and Coinbase, and the differences that set these two apart. This way you will be able to choose the solution that offers the highest number of advantages in your case and get the most of coinbase commerce.
Even if you’re new to the world of cryptocurrency, understanding these two options will facilitate an easy entry and will provide the possibility of making informed decisions regarding your available funds.
The basics of BitPay and Coinbase
First and foremost, you must understand the meaning of each option and what features are provided in every case. Despite the fact that they use cryptocurrency, they work by following different principles and provide different features.
What is BitPay?
BitPay is a payment processor for bitcoins and is currently the biggest of the kind in the world. In other words, if you’d like to make purchases by using bitcoins, BitPay will help out.
Since its creation back in 2011, BitPay managed to come a long way because its creators noticed the incredible potential of their solution. Thus, even if there is some competition on the market in this particular sector, BitPay still manages to stay at the top and be the number one choice when it comes to bitcoin payments, encouraging coinbase commerce.
While BitPay is most commonly found online, as a way to transaction various services and products, it is gradually adopted by different industries. So, it is possible to find BitPay as a payment method when you travel, in certain casinos, and even for purchasing events tickets. BitPay undergoes constant improvements, to meet all the requirements of users. Soon, we will enjoy new features, such as smaller fees when mining for bitcoins.
What is Coinbase?
If BitPay is a bitcoin payment processor, Coinbase is a crypto exchange at its basis. If we are to look at the way it works, Coinbase is very similar to a bank. It will allow you to purchase bitcoins as you please, offering you a safe option for storage and managing your cryptocurrency.
Just how safe Coinbase is? It is probably the safest and has not been hacked in all of its seven years of activity. Even if this happens, by absurd, its policy covers a refund so you won’t lose anything. Regulated and monitored by USA’s authorities, you can rest reassured that nothing can go wrong if you choose Coinbase.
Besides buying and storying bitcoins, Coinbase also provides the opportunity for you to sell your cryptocurrency, whenever you consider suitable. You can also send or request bitcoins from other people via e-mail address or bitcoin address. So, it opens doors to a different kind of coinbase commerce, allowing enthusiasts to invest and make transactions as considered. And if you run a business, Coinbase will provide an easy integration of bitcoin payments, so the company becomes accessible to a wider range of customers.
Is bitcoin the only cryptocurrency supported by BitPay and Coinbase?
Most people think about bitcoin when talking about cryptocurrency. However, bitcoin is not the only type of cryptocurrency available at the moment. Ethereum is the second most popular type of cryptocurrency, followed by XRP, Bitcoin Cash, and Litecoin. Of course, at the beginning, BitPay accepted bitcoins only.
But with the rise of Ethereum the increasing demand of users to make BitPay supportive of Ethereum came along as well. So, in present days, BitPay welcomes other types of cryptocurrencies in its wallet. More precisely, you can make purchases by using eight different cryptocurrencies with your BitPay wallet.
Coinbase, on the other hand, supports a smaller number of coins, because of the Digital Asset Framework that governs the platform. The Framework is rather strict and rigid, so only four types of coins can be used with Coinbase, at the moment. They are the four most popular types of coins, as mentioned earlier.
How safe are they?
The worse nightmare of anyone looking to buy, store, exchange, and transaction bitcoins and other cryptocurrency coins is to find out the account or virtual wallet was hacked. Security is one of the most important aspects to consider, without a doubt. Security doubts and issues are the factors that kept some of us away from coinbase commerce.
BitPay utilizes an authentication method based on two factors for transactions verifications. The wallet is also secured by the Bitcoin Payment Protocol. This system is furthermore utilized to validate a transaction and to prevent invoice payments that aren’t correct to get into the network.
Safety in Coinbase commerce is no joke for Coinbase
When it comes to Coinbase, we discussed earlier just how safe it is. No hacker managed to break its security layers in over seven years, since it’s been created, and jeopardize the accounts of its users. So, Coinbase is proud to announce that no frauds or thefts have been recorded over time.
How is this even possible, knowing that hackers these days can be quite creative? If you choose to store bitcoins on Coinbase, the platform will store your funds aware from the paths of the Internet. It utilizes special wallets that are separated by the rest of the company’s funds, which are also kept disconnected from Internet connection, making them impenetrable.
Only a very small amount of coins are stored online, about 2%, which is protected by a two-factor authentication just like BitPay’s wallet. Also, all users are covered by the Federal Deposit Insurance Coporation in case of theft, meaning the lost amount will be refunded.
Are there any fees?
Fees do exist when using both BitPay and Coinbase. However, these two calculate fees differently. If we are to look at BitPay vs Coinbase, BitPay will be the most convenient option, as demonstrated in the lines that follow. When using BitPay, the mining fees of your crypto depends of the speed set for transactions and payment processing. Thus, the higher the speed, the higher the fee. The good news is that there are five different settings to choose from, which will influence the fee you will pay in the end. On the other hand, Coinbase uses an algorithm when it comes to calculating fees, which justifies the convenience of BitPay.
Fees apply when looking to make transactions as well. BitPay charges a 1% fee in this case. If you want to use an ATM for withdrawals, the fee will be 2%. In the case of Coinbase, the fee will be calculated based on the selected payment method and amount you want to transaction. Transactions under the amount of $200 will be charged with a flat fee, while those that exceed this sum will support a fee of 1.49%. The fee will be displayed before the transaction or withdrawal is completed.
The degree of user-friendliness
In the BitPay vs Coinbase war over user-friendliness and convenience, the winner is determined based on personal preferences. Each of these has strengths and less convenient aspects, so it all goes down to what you need.
To start using BitPay you will first need to set up a business account. This means that you’ll have to provide some info and documents. Only this way you can create a wallet and obtain the BitPay card, and get in touch with merchants accepting crypto. Users appreciate the card a lot because it works pretty much like any other regular debit card. More precisely, you can use it to make payments with any merchant that accepts a Visa card.
Coinbase provides a card as well, called Shift. But, in comparison with the BitPay card, the Shift card works with crypto only, available in the Coinbase account. This aspect can be a disadvantage because the cryptocurrency market can be unpredictable and quite volatile sometimes. The BitPay card is more stable and preferred because it offers an USD balance that keeps you anchored in reality.
However, the Coinbase app is superior to what BitPay offers because the design and interface of the app was created with regard to inexperienced users. Everything is very simple so that even if you’re a beginner you’ll find your way around it very fast. In case you’re used to cryptocurrency and want more, you can always choose the Coinbase Pro version for additional features and more complex experiences.
The bottom line
When to choose BitPay? BitPay is the best option when you want to:
- Make bitcoin payments and other types crypto coin in a simple and convenient manner;
- Use a card that facilitates the use of bitcoins, while providing an USD balance;
- Enjoy an application that helps you manage cryptocurrency better;
It is worth mentioning that BitPay can be used with PayPal as well and it is a rather straightforward method to make purchases in this system. But, expect to pay higher fees for mining bitcoins and making ATM withdrawals.
When to choose Coinbase? Coinbase is the best option when you want to:
Do more than just pay with crypto, such as buying, selling, transferring and converting various types of digital coins;
- Make sure that your funds are safe at all times;
- Enjoy customer support around the clock;
- Purchase crypto with the help of a debit card and regular bank accounts;
- Enjoy an easy, user-friendly app interface;
But, no matter how complex Coinbase is, it doesn’t support too many types of cryptocurrencies. Thus, if you want versatility, Coinbase can’t offer it right now, as it works only with four types of cryptos. Also, if you run over a problem and submit a ticket, you’ll need to be patient, as it takes a while until you’ll get an answer or resolution.