Is It Safe To Use A Debit Card On Coinbase?

Use A Debit Card On Coinbase

Coinbase is one of the most popular cryptocurrency exchanges where crypto traders can buy, sell, transfer and store cryptocurrency. Coinbase operates remote-first and doesn’t have an official physical headquarters. Therefore, many people are concerned about the security of Coinbase and wondering whether it is safe to use a debit card on Coinbase!

Visa and MasterCard debit cards are common payment methods of Coinbase and it is completely safe to use a debit card on Coinbase. However, Coinbase doesn’t support prepaid cards or other cards that don’t have billing addresses associated with them. Coinbase uses bank-level AES-256 encryption on its server to store the account numbers and routing numbers. So, there is nothing to worry about using a debit card on Coinbase.

How Financial Information Is Protected At Coinbase?

Coinbase gives the topmost priority to the security of the information and keeping all the sensitive information safe. Coinbase stores financial information like bank account numbers, credit/debit card numbers, routing numbers, etc. using the bank-level AES-256 encryption. Moreover, all traffic of Coinbase goes over SSL to prevent 3rd parties from eavesdropping on your connection. Employee access is heavily restricted at Coinbase and they do background checks on all employees.

If you are a US customer then you can verify your account in just a few minutes by entering your bank credentials. This process is similar to verifying a bank account on PayPal or similar services. The banking credentials you provide are not shared with Coinbase. This information is shared with an integrated, trusted third-party, Plaid Technologies, Inc., to facilitate instant account verification. This service can store the provided credentials for verification purposes or use them on a per-transaction basis for fraud prevention. Moreover, it uses the information to verify if a sufficient balance is available to process the transaction.    

List Of Coinbase Payment Methods For US Customers

TypeBest forBuySellAdd CashCash OutSpeed
Bank Account (ACH)Large and small investmentsYesYesYesYes3-5 business days
Instant Cashouts to bank accountsSmall withdrawalsNoNoNoYesInstant
Debit CardSmall investments and cashoutsYesNoNoYesInstant
Wire TransferLarge investmentsNoNoYesYes1-3 business days
PayPalSmall investments and cashoutsYesNoYesYesInstant
Apple PaySmall investmentsYesNoNoNoInstant
Google PaySmall investmentsYesNoNoNoInstant

How To Add A Bank Account On Coinbase

You can easily add a bank account on Coinbase. In fact, most banks can be linked instantly and securely by providing the online banking username and password. Here are the full details – 

1. First, log in to your Coinbase account

2. Then go to the Payment Methods

3. Then from the available options select “Add a payment method”

4. After that select Bank Account,> Continue

5. Now you will be presented with a screen where bank logos are displayed

6. Next, type in the name of the bank account you would like to link

7. Then enter your bank’s login credentials and click on the “Link Account” button

After completing the above steps, your bank account will be instantly linked with your Coinbase account.

There is another way you can link your bank account using the deposit verification process. Follow the below steps – 

1. First, log in to your Coinbase account

2. Then go to the Payment Methods

3. Then from the available options select “Add a payment method”

4. After that select Bank Account,> Continue

5. Now you will be presented with a screen where bank logos are displayed

6. Then Scroll down to Don’t see your bank? Search instead

7. Here you will find an option to link your bank manually

8. A new window will appear, select “Get Started”

Now you have to provide your bank’s routing number, your bank account number, the name on the bank account, etc.

Enter your banking details and full name then select “Verify Account” to verify and add the account

How To Add A Debit Card To Coinbase

Adding a debit card on Coinbase requires photo ID verification. To add a debit card, follow these steps:

1. First, log in to your Coinbase account

2. Then go to the Payment Methods

3. Then from the available options select “Add a payment method”

4. Then select Add a payment method > Debit Card

5. Now provide the debit card information

6. While adding the debit card, temporary debits will be applied to your card

7. Next, visit your card online banking statement to find the two amounts

8. Enter those amounts on Coinbase to verify your card and complete adding the card

How To Buy Cryptocurrency On Coinbase Using Credit/Debit Card

You can easily buy cryptocurrency on Coinbase using a credit/debit card. The following steps will get you started – 

1. First, log in to your Coinbase account

2. Now Go to the Buy/Sell Digital Currency page

3. Next, enter the amount you want to buy

4. Then from the drop-down menu Select the card that you want to use for payment

5. Now Confirm the order is correct and select Complete Buy to end the process

FAQs About Is It Safe To Use A Debit Card On Coinbase

Is It Safe To Pay With Coinbase?

It is completely safe to pay with Coinbase. Though cryptocurrency wallets are not protected by the FDIC or the SIPC Coinbase says that all of the digital currency it holds online is insured.

Should I Link My Bank Account To Coinbase?

Yes, you can link a bank account to Coinbase and it is completely safe. Coinbase will only use your bank account when you will buy cryptocurrency or deposit USD to your bank account.

Will Coinbase Refund If Scammed?

No, Coinbase won’t refund if you are scammed. It is not possible to cancel a transaction on Coinbase. So, if you want to get your money back then you have to contact the merchant directly regarding your refund. Coinbase will only issue a refund if there is an error occurred.

What Is The Safest Bitcoin Wallet?

Coinbase is one of the safest Bitcoin wallets currently available. Other wallets that you can use are – 

1. Exodus crypto wallet

2. Electrum crypto wallet

3. OPOLO crypto wallet

4. Mycelium crypto wallet

5. Cobo crypto wallet

6. Wasabi crypto wallet

7. Shift Crypto wallet

8. CoinKite crypto wallet    

What Is The Best Payment Method For Coinbase?

A debit card is the best payment method for Coinbase because a debit card purchase will instantly transfer the cryptocurrency to your account. So, if you want to quickly trade your cryptocurrency then Debit card payment is the best option.

References:

1. https://help.coinbase.com/en/wallet/managing-account/payment-method
2. https://card.coinbase.com/

Last Updated on February 7, 2022 by

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