How to send Bitcoin > $1 on Coinbase?

user_5729613 0
Viewed 946

When I tried to send $1 equivalent of Bitcoin using the Coinbase API I get this error:

ClientError [ValidationError]: Amount is below the minimum (0.0001 BTC) required to send on-blockchain.

How is it possible to enable microtransactions with Bitcoin? I want users to be able to trade in game items under 1 dollar (Coinbase's daily limit per user). I understand this restriction is due to transaction fees, but I know apps exist like Bitcoin Blast, where users are regularly awarded miniscule amounts of Bitcoin.

How do you think they do it? What could be a solution for using microtransactions with Coinbase API?

coinbase-api
1 Answers

A lot of those apps would tell the users they have earned Bitcoin but require the user to have x amount of Bitcoin before being able to withdraw, with the threshold above the 0.0001 BTC minimum transaction requirement.

I think Robinhood does something similar where you can buy $1 of BTC on Robinhood but you don't have access to the crypto's wallet address. This is because Robinhood owns all your crypto and you're just trading the spot price. They made a large investment in crypto awhile ago and they hold that as collateral allowing users to buy and sell BTC for $1 without paying transaction fees because users are not trading BTC on the blockchain, they are trading Robinhood's supply of crypto.

You could do something similar as well, people can spend $1 worth of BTC on a game item but they're just trading the spot price of BTC and the transaction takes place in your game's digital ledger rather than Bitcoins' blockchain.

If you want your users to withdraw crypto, someone is going to have to pay that fee. You can either pay the fee yourself, have the user pay the fee, or do something like Robinhood where you can only deposit/withdraw in cash but users can exchange that cash for crypto that they don't get wallet access to.

user_146446480
Related