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I'm Dave Birnbaum, VP Product at Coinbits. AMA!
14.7k sats \ 53 comments \ @CoinbitsApp 18 Dec AMA
Hi everyone,
I help lead Coinbits, the oldest bitcoin-only exchange in the U.S. still in operation.
Coinbits got its start with offering Round Ups for bitcoin – link your cards and we'll round up your spare change and save it in bitcoin for you.
Now we offer instant buys, recurring buys, and we connect to hardware wallets like Foundation Passport for auto-withdrawals.
Our platform is all about encouraging low time preference and investing in your future. We've helped thousands of members get bitcoin, even back when it was cheap! It feels great to think about how many people have built bitcoin wealth with our software.
Find Coinbits at https://coinbits.app
Follow me on X at @contrarymo
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155 sats \ 2 replies \ @thebitcoinbugle 18 Dec
Do you think Lyn Alden is hot?
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41 sats \ 1 reply \ @CoinbitsApp OP 18 Dec
Haha. If being ‘hot’ means having an unbeatable grasp of macroeconomics and bitcoin, then Lyn Alden’s basically on fire.
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0 sats \ 0 replies \ @thebitcoinbugle 18 Dec
She also has two ears believe it or not
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21 sats \ 1 reply \ @k00b 18 Dec
What's the most surprising thing you've learned working at Coinbits?
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266 sats \ 0 replies \ @CoinbitsApp OP 18 Dec
How interest in bitcoin seems to almost disappear when the price is down, and then when it gets expensive how people pile into it. I know this is well known but seeing it firsthand, and having to run a business through the doldrums of the extended bear market and then welcoming new people in during the bull run was quite the experience.
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21 sats \ 1 reply \ @k00b 18 Dec
What's something you believe about bitcoin that few bitcoiners agree with you on?
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110 sats \ 0 replies \ @CoinbitsApp OP 18 Dec
In order for bitcoin to change the world radically for the better, it is not necessary for all individuals to be able to own a UTXO.
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21 sats \ 1 reply \ @k00b 18 Dec
What can't these young exchanges appreciate that you all do, having been in the game this long?
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88 sats \ 0 replies \ @CoinbitsApp OP 18 Dec
Differentiation! You can get bitcoin anywhere. It takes a special something, whether that be design taste, education resources, great support, fun features – something that entices people to give you a try.
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10 sats \ 2 replies \ @Coinsreporter 18 Dec
Do you do withdrawal in other fiat currencies than dollars as well?
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10 sats \ 1 reply \ @CoinbitsApp OP 18 Dec
Today we are U.S. only but we plan to expand internationally next year!
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10 sats \ 0 replies \ @Coinsreporter 18 Dec
Thanks.
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10 sats \ 0 replies \ @k00b 18 Dec
You mentioned
It takes a special something, whether that be design taste, education resources, great support, fun features – something that entices people to give you a try.
What are some of your favorite ways that you've seen exchanges acquire and retain customers?
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10 sats \ 1 reply \ @Imyourfed 18 Dec
What is one misconception about Bitcoin that you wish more people understood?
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10 sats \ 0 replies \ @CoinbitsApp OP 18 Dec
Unit bias is real! It's crazy how powerful it is. So many people are missing out on bitcoin because one BTC is so expensive. There's been some good discussion about this on X lately. I do not have a great answer for how to solve this but it's a real problem.
We offer Sats Mode on Coinbits and we notice many of our members prefer to use it. Hopefully that helps at least a little bit.
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10 sats \ 3 replies \ @ek 18 Dec
Do you use your own app to buy bitcoin?
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110 sats \ 2 replies \ @CoinbitsApp OP 18 Dec
Of course!
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10 sats \ 1 reply \ @ek 18 Dec
But doesn't that mean you are buying bitcoin from yourself? 🤔
Or I guess only if it's a market order?
I think I have a lot of fundamental misunderstandings about how exchanges work or what it means to run one.
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110 sats \ 0 replies \ @CoinbitsApp OP 18 Dec
We don't provide bitcoin liquidity directly – we are not an OTC desk.
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10 sats \ 1 reply \ @k00b 18 Dec
Who is the smartest person you've ever met?
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126 sats \ 0 replies \ @CoinbitsApp OP 18 Dec
Two luminaries that I admire and had the privilege to get to know are A. Michael Noll and Bill Verplank ❤️
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10 sats \ 1 reply \ @Imyourfed 18 Dec
If there were no technical or regulatory limitations, what would be your dream feature for Coinbits?
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10 sats \ 0 replies \ @CoinbitsApp OP 18 Dec
There are a lot of opportunities to allow groups of people and communities to self-organize around capital pools and loans, but they are mostly restricted from doing so. It would be great to empower people to find the best, highest use of any money they have sitting around – it would unlock so much productivity and growth.
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10 sats \ 1 reply \ @rikbona 18 Dec
what's the public personality out there that isn't involved in crypto for a living, that you think gets Bitcoin the most?
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10 sats \ 0 replies \ @CoinbitsApp OP 18 Dec
Donald Trump? 😂
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10 sats \ 1 reply \ @0xbitcoiner 18 Dec
Today I shared a link from river with 11 questions. I'd like you to answer them. Thanks!
To help you do your diligence on security and custody, we share 11 questions you should be asking your bitcoin exchange.
  1. How is my bitcoin secured?
  2. How do you help me protect my account?
  3. Do you use third parties for your custody?
  4. Do you lend out client deposits?
  5. Do you have Proof of Reserves?
  6. Has your data or custody ever been compromised?
  7. How do you protect my information?
  8. How are dollar deposits secured?
  9. What happens to my funds if you go bankrupt?
  10. Do you have insurance?
  11. Are you audited, licensed, and regulated?
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153 sats \ 0 replies \ @CoinbitsApp OP 18 Dec
  1. It should be secured by YOU as soon as it settles. We offer hardware wallet integration and automatic withdrawals. We do not want to hold your bitcoin and do not benefit from doing so. Until you withdraw it, it's held with one of the major custodians, Fireblocks, Bitgo, or Coinbase, depending on circumstances.
  2. We require 2FA on all withdrawals.
  3. Yes, see above.
  4. No, in fact we do not hold or access your funds at all. Coinbits is software that allows you to automate fund flows and trades among your custodial accounts.
  5. No, see above; we do not touch the funds of our members.
  6. The short answer is no, though many of our members held accounts with Prime Trust, and that process is still playing out.
  7. User data is encrypted in transit.
  8. Coinbits members open a Cybrid account. Cybrid provides access to fiat rails and bitcoin liquidity. Ultimately any dollars you hold with them sit in a bank account with Cross River Bank.
  9. See above, we do not hold member funds.
  10. See above, deposits might be insured but not by us.
  11. We are strictly a software company that helps you move your money and convert between bitcoin and dollars using accounts at licensed and regulated institutions. Our partner, Cybrid, operates in all 50 U.S. states and is licensed and regulated.
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10 sats \ 1 reply \ @Imyourfed 18 Dec
As someone deeply involved in the Bitcoin ecosystem, what personal philosophies or principles guide your approach to product development and user advocacy at Coinbits?
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10 sats \ 0 replies \ @CoinbitsApp OP 18 Dec
One of our guiding product principles we call "responsible gamification". Everyone knows that creating addictive experiences with gaming elements has developed into a science. It's up to us as product designers to decide WHY to use these powerful tools – to help people better themselves. Stacking bitcoin is like gamifying fitness apps – they help people live up to their own standards and aspirations. As a designer, I would regret creating experiences that were highly engaging but that users felt negatively about how much time they spent with them.
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10 sats \ 1 reply \ @benwehrman 18 Dec
I love the "hands-off" aspect of the automatic round-ups. How have you felt this mentally helps you stack, since you don't have to think about it? Have you heard any good stories from customers on how they feel more mentally "free" from never having to stress about the price/markets while they accumulate?
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10 sats \ 0 replies \ @CoinbitsApp OP 18 Dec
We have talked to several users who think about stacking bitcoin every time they run their card – like accumulating airline miles back in the day, it makes spending fiat less painful because you know you're stacking a little bit of bitcoin each time. Usually our members prefer to also set up a Saving Habit so that they have a consistent recurring buy while they also use Round Ups for a gamified element.
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10 sats \ 2 replies \ @benwehrman 18 Dec
Biggest goal for Coinbits in 2025?
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163 sats \ 0 replies \ @CoinbitsApp OP 18 Dec
I should add -- MOBILE APP!
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10 sats \ 0 replies \ @CoinbitsApp OP 18 Dec
Build out financial features to allow the Coinbits team to finally close our regular bank accounts and just use CB for everything :D
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10 sats \ 1 reply \ @benwehrman 18 Dec
Any plans of expanding outside of the U.S.? I imagine it's always a gymnastics-fest working around regulations and whatnot, curious of how the progress is looking there
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10 sats \ 0 replies \ @CoinbitsApp OP 18 Dec
Yes we do – but you're right that it can be a challenge. We have a couple of irons in the fire and hope to have news soon on that front.
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10 sats \ 2 replies \ @grayruby 18 Dec
Welcome. Thanks for joining us.
What is the toughest thing about running a bitcoin centric company?
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50 sats \ 1 reply \ @CoinbitsApp OP 18 Dec
Good question. It can be challenging to manage the day to day of a fintech, which includes compliance and support, alongside thinking about growth and product. It's the kind of business that you should not get into unless you really feel strongly about the mission – being able to wake up every day and truly believe that our talents are helping set up people's lives for the long term is very motivating and helps offset the challenges!
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10 sats \ 0 replies \ @grayruby 18 Dec
Great insights. Thanks
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10 sats \ 2 replies \ @benwehrman 18 Dec
What would be your elevator pitch for what sets Coinbits apart from the other Bitcoin stacking platforms?
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92 sats \ 1 reply \ @CoinbitsApp OP 18 Dec
If you subscribe to Coinbits Plus for $10, you get bitcoin at extremely competitive prices, usually this is a great deal if you are stacking large amounts.
Spending Insights help you spend your money more wisely and stack more sats.
Round Ups make it easy and fun to stack by taxing your high time preference spending.
We are a family run business and have never taken VC money – we are building Coinbits the right way to prepare for a bright orange future!
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103 sats \ 0 replies \ @CoinbitsApp OP 18 Dec
Bitcoin is bitcoin – you can get it many places. Our UX is second to none and we have a strong community – check us out and see what you think!
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0 sats \ 2 replies \ @BitcoinIsTheFuture 19 Dec
I’ve heard of you guys from Saef. May need to look into becoming a customer. What excites you most about your product over the next year?
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21 sats \ 1 reply \ @CoinbitsApp OP 19 Dec
We have a really exciting roadmap – check it out here. You can vote for your favorite ideas, or even submit your own. https://coinbits.productlane.com/roadmap
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0 sats \ 0 replies \ @BitcoinIsTheFuture 20 Dec
Sweet, love the idea. On it!
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0 sats \ 1 reply \ @Skipper 19 Dec
Why do you have all normie socials and no Nostr page? 🚩
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0 sats \ 0 replies \ @CoinbitsApp OP 19 Dec
That's a good question – the main reason is simply that we don't have the marketing bandwidth. We have found that our brand resonates with people who are new to bitcoin, so we are investing more marketing energy in reaching normies than we are to maximizing our exposure to hard core bitcoiners. That said, I expect we'll be doing more with Nostr in 2025. 👀
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0 sats \ 1 reply \ @denlillaapan 18 Dec
Revolut already does this for me. Why would I want a separate app for it, that isn't my main banking app?
Put differently, what is your business moat when banks/fintechs incorporating your main service would improve on your offering?
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10 sats \ 0 replies \ @CoinbitsApp OP 19 Dec
We are bitcoin first – and we prioritize features to help people benefit from bitcoin, which means self sovereignty and flexibility. Revolut is a great app too.
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0 sats \ 1 reply \ @BlokchainB 18 Dec
Why no native app at launch?
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68 sats \ 0 replies \ @CoinbitsApp OP 19 Dec
When we launched back in 2018 we were desktop browser focused, and have just evolved from there. Now that we have a really good mobile app it's been tough to convince ourselves that a native app is worth the time investment, which would be substantial. But we do have it on the roadmap and will likely get started on that soon.
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0 sats \ 1 reply \ @kenanalkan03 18 Dec
Paylaşımınız çok faydalı buldum emeğinize yüreğinize sağlık
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0 sats \ 0 replies \ @CoinbitsApp OP 19 Dec
Buyrun yapın!
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