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I'm Dave Birnbaum, VP Product at Coinbits. AMA!
14.4k sats \ 45 comments \ @CoinbitsApp 7h 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 3h
Do you think Lyn Alden is hot?
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20 sats \ 1 reply \ @CoinbitsApp OP 2h
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 34m
She also has two ears believe it or not
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10 sats \ 2 replies \ @Coinsreporter 6h
Do you do withdrawal in other fiat currencies than dollars as well?
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10 sats \ 1 reply \ @CoinbitsApp OP 5h
Today we are U.S. only but we plan to expand internationally next year!
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10 sats \ 0 replies \ @Coinsreporter 5h
Thanks.
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10 sats \ 0 replies \ @k00b 6h
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 6h
What is one misconception about Bitcoin that you wish more people understood?
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10 sats \ 0 replies \ @CoinbitsApp OP 6h
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 6h
Do you use your own app to buy bitcoin?
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110 sats \ 2 replies \ @CoinbitsApp OP 6h
Of course!
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10 sats \ 1 reply \ @ek 6h
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 6h
We don't provide bitcoin liquidity directly – we are not an OTC desk.
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21 sats \ 1 reply \ @k00b 6h
What's the most surprising thing you've learned working at Coinbits?
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266 sats \ 0 replies \ @CoinbitsApp OP 6h
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 6h
What's something you believe about bitcoin that few bitcoiners agree with you on?
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110 sats \ 0 replies \ @CoinbitsApp OP 6h
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 6h
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 6h
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 \ 1 reply \ @k00b 6h
Who is the smartest person you've ever met?
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126 sats \ 0 replies \ @CoinbitsApp OP 6h
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 6h
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 6h
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 6h
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 6h
Donald Trump? 😂
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10 sats \ 1 reply \ @0xbitcoiner 7h
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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133 sats \ 0 replies \ @CoinbitsApp OP 6h
  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 7h
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 6h
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 7h
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 7h
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 7h
Biggest goal for Coinbits in 2025?
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163 sats \ 0 replies \ @CoinbitsApp OP 6h
I should add -- MOBILE APP!
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10 sats \ 0 replies \ @CoinbitsApp OP 7h
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 7h
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 7h
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 7h
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 7h
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 6h
Great insights. Thanks
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10 sats \ 2 replies \ @benwehrman 7h
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 7h
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 7h
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 \ 0 replies \ @denlillaapan 2h
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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0 sats \ 0 replies \ @BlokchainB 2h
Why no native app at launch?
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0 sats \ 0 replies \ @kenanalkan03 3h
Paylaşımınız çok faydalı buldum emeğinize yüreğinize sağlık
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