Coinbase vs Cash App — Head-to-Head Custody Comparison

An independent, data-driven comparison of Coinbase and Cash App across security, insurance, fees, regulatory compliance, and more.

Verdict

Quick Verdict

Coinbase scores 7.8 vs Cash App's 6.7. Coinbase leads in 6 of 8 categories.

Coinbase is better suited for Beginners, US-based investors, Passive holders. Cash App is better suited for Mainstream users, Beginners, Small investors.

7.8

GoodCustody Score

Coinbase

6.7

FairCustody Score

Cash App

Scores

Score Comparison

Weighted scores across all 8 custody criteria.

Criterion	Weight	Coinbase	Cash App	Winner
Security	20%	8.0	7.0	Coinbase
Insurance	15%	7.0	5.0	Coinbase
Regulatory	15%	9.5	8.0	Coinbase
Fee Transparency	10%	6.0	5.5	Coinbase
Track Record	15%	8.5	7.5	Coinbase
Withdrawal Flexibility	10%	8.0	8.5	Cash App
Reporting & Audit	10%	9.0	7.0	Coinbase
Counterparty Diversification	5%	2.0	2.0	Tie
Overall Score	100%	7.8	6.7	Coinbase

Visual

Score Radar

Visual overlay of Coinbase and Cash App across all categories.

CoinbaseCash App

Deep Dive

Category-by-Category Analysis

A deeper look at how each provider performs in every scoring criterion.

Security (8.0 vs 7.0)

Coinbase uses Institutional cold storage system key management with 98%+ in cold storage and regular penetration testing. Compliance: SOC 2 Type 2. Incident history: 2021 account takeover attacks (phishing, not platform breach).

Cash App uses Block Inc. managed custody key management with Majority cold in cold storage and regular penetration testing. Compliance: Block Inc. SOC 2. Incident history: 2022 employee data breach (Cash App Investing, not Bitcoin).

Insurance (7.0 vs 5.0)

Coinbase offers Crypto insurance for hot wallet portion. FDIC on USD (up to $250K). via Crime insurance policy. Publicly traded company. FDIC insurance on cash. Crypto hot wallet insured.

Cash App offers Block Inc. corporate insurance via Via Block Inc.. Publicly traded parent company (Block Inc. / SQ).

Regulatory (9.5 vs 8.0)

Coinbase holds NASDAQ listed (COIN), FinCEN MSB, NY BitLicense, State licenses, Multiple international licenses and is a qualified custodian operating in United States / Global. Most regulated US exchange. Publicly traded. Custodian for multiple Bitcoin ETFs.

Cash App holds NY BitLicense, State money transmitter licenses, FinCEN MSB and is not a qualified custodian operating in United States. Block Inc. (NYSE: SQ) — publicly traded fintech company.

Fee Transparency (6.0 vs 5.5)

Coinbase charges None in annual custody fees with ~1.5% (Simple) / 0.05-0.6% (Advanced) per transaction. Simple interface has higher fees. Advanced trading has competitive fees.

Cash App charges None in annual custody fees with ~1.5-2.5% (spread) per transaction. Convenient but higher spread than dedicated exchanges. Free withdrawals.

Track Record (8.5 vs 7.5)

Coinbase was founded in 2012 and is headquartered in San Francisco, CA. AUM: $130B+ assets on platform. Incident history: 2021 account takeover attacks (phishing, not platform breach).

Cash App was founded in 2013 and is headquartered in San Francisco, CA. AUM: Not publicly disclosed. Incident history: 2022 employee data breach (Cash App Investing, not Bitcoin).

Withdrawal Flexibility (8.0 vs 8.5)

Coinbase withdrawal fees: Network fees. Minimum account: No minimum ($1). Supported assets: Bitcoin, Ethereum, 250+ cryptocurrencies.

Cash App withdrawal fees: Free Bitcoin withdrawals. Minimum account: No minimum ($1). Supported assets: Bitcoin only.

Reporting & Audit (9.0 vs 7.0)

Coinbase: SOC compliance is SOC 2 Type 2. As a qualified custodian, it meets SEC reporting requirements.

Cash App: SOC compliance is Block Inc. SOC 2. Not classified as a qualified custodian.

Counterparty Diversification (2.0 vs 2.0)

Coinbase is a exchange custody provider. Key management: Exchange-managed custody with institutional-grade cold storage infrastructure..

Cash App is a exchange custody provider. Key management: Bitcoin buying within Cash App payment ecosystem. Block Inc. custody..

Fees

Fee Comparison

Side-by-side fee breakdown for Coinbase and Cash App.

Fee Type	Coinbase	Cash App
Setup Fee	Free	Free
Annual Custody	None	None
Transaction	~1.5% (Simple) / 0.05-0.6% (Advanced)	~1.5-2.5% (spread)
Withdrawal	Network fees	Free Bitcoin withdrawals

Coinbase: Simple interface has higher fees. Advanced trading has competitive fees.

Cash App: Convenient but higher spread than dedicated exchanges. Free withdrawals.

Features

Feature Comparison

Checklist of features across both providers.

Feature	Coinbase	Cash App
50M+ monthly users	✗	✓
98%+ cold storage	✓	✗
Auto-invest (DCA)	✗	✓
Beginner-friendly interface	✓	✗
Coinbase Vault for extra security	✓	✗
ETF custodian (BlackRock IBIT)	✓	✗
FDIC on USD	✓	✗
Free Bitcoin withdrawals	✗	✓
Lightning Network support	✗	✓
Mainstream accessibility	✗	✓
Proof of reserves	✗	✓
Publicly traded (NASDAQ)	✓	✗

Recommendation

Who Should Choose Which?

Coinbase is better if you…

✓Are a beginners
✓Are a us-based investors
✓Are a passive holders
✓Are a mainstream adopters
✓Want: Publicly traded — maximum transparency
✓Want: Custodian for BlackRock and other ETFs
✓Want: 98%+ cold storage

Cash App is better if you…

✓Are a mainstream users
✓Are a beginners
✓Are a small investors
✓Are a cash app existing users
✓Want: Most accessible Bitcoin on-ramp — 50M+ users
✓Want: Free Bitcoin withdrawals
✓Want: Publicly traded parent (Block/SQ)

FAQ

Frequently Asked Questions

Is Coinbase or Cash App better for Bitcoin custody?

Coinbase scores 7.8 vs 6.7 in our weighted Custody Score. Coinbase leads in 6 of 8 scoring categories. However, the best choice depends on your specific needs: Coinbase is best for Beginners and US-based investors, while Cash App suits Mainstream users and Beginners.

What is the difference between Coinbase and Cash App?

Coinbase is a exchange custody provider, while Cash App is a exchange custody provider. Coinbase excels in Regulatory, whereas Cash App is strongest in Withdrawal Flexibility.

How do Coinbase and Cash App fees compare?

Coinbase charges None annual custody fees with ~1.5% (Simple) / 0.05-0.6% (Advanced) transaction fees. Cash App charges None annual custody fees with ~1.5-2.5% (spread) transaction fees.

Which is more secure, Coinbase or Cash App?

Coinbase scores 8.0/10 for security while Cash App scores 7.0/10. Coinbase uses Institutional cold storage system key management, and Cash App uses Block Inc. managed custody.