In recent years, digital currencies like Bitcoin and Ethereum have become increasingly mainstream, attracting investors worldwide. As a result, exchange platforms such as Coinbase have risen. However, while purchasing digital assets on Coinbase is easy, some users are looking for an answer on how to cash out on Coinbase.
‘Cashing out’ means converting your crypto into fiat currency — such as dollars or euros — that can be transferred to your bank account.
Whether you’re a beginner looking at how to cash out on Coinbase for the first time or an experienced trader seeking to streamline your withdrawal process, this guide aims to provide the information you need to withdraw money from Coinbase successfully.
Understanding Coinbase: A brief overview
Coinbase is one of the most popular cryptocurrency exchanges, providing a platform for buying, selling, transferring, and storing digital assets like Bitcoin, Ethereum, and many others.
Coinbase was founded in 2012 and since then has become an industry leader. In October 2022 it had over 89 million verified users globally.
The San Francisco-based company operates an intuitive online platform and mobile app designed to provide a seamless experience for crypto trading and transactions.
Crypto investors can fund their accounts using bank transfers, and a credit or debit card and easily buy and sell major cryptocurrencies.
A key feature of Coinbase is support for fiat currencies. Users can deposit funds in their local currency, USD or EUR, and seamlessly exchange them for cryptocurrency.
The fiat balance and crypto assets show in the user’s account. Users can simply withdraw crypto back and convert it to fiat to cash out holdings and withdraw money from Coinbase.
Coinbase aims to provide an accessible on-ramp for first-time crypto traders while catering to advanced traders through its Coinbase Pro platform. Users praise its user-friendly interface and educational resources that help demystify the cryptocurrency world.
Setting up your Coinbase account
To start cashing out on Coinbase, you must set up an account first. Here are the steps to follow:
Sign up for Coinbase
- Go to the Coinbase website or download the Coinbase app.
- Click Sign Up, enter your name and email address, and create a password.
- Verify your email address by clicking the link sent to your inbox.
Complete identity verification
- Coinbase requires identity verification for all account holders. To do so, click on your profile icon and select Settings.
- Under Account, you must provide personal details, including your date of birth, address, and phone number.
- You may also need to upload a photo ID for complete verification. This is required before you can add a payment method.
Link your bank account
- From your Coinbase account, go to Settings > Linked Accounts > Link New Account.
- Select your bank and input your bank login credentials. This connects your bank account to Coinbase.
- Micro-deposits will be made to your bank account within 1-3 days to confirm ownership.
Add a payment method
- Under Settings, go to Payment Methods and select Add Payment Method.
- You can link a debit card, credit card, or PayPal account.
- Adding a payment method lets you cash out your funds from Coinbase.
Once your identity is verified and you have connected a bank account and payment method, your account setup is complete. You can now easily withdraw funds by cashing out your crypto.
Withdraw from Coinbase: A step-by-step guide
Here are instructions to withdraw funds from Coinbase:
1. Log into your Coinbase account and navigate to your assets page. This will display your account balances.
2. If you want to withdraw fiat like USD, you must first sell your cryptocurrency holdings and convert them into fiat. To do this:
- Click on Trade or Buy/Sell and select the Sell tab.
- Choose the crypto asset you want to sell, enter the amount, and select the fiat currency you want to convert to (e.g. USD).
- Review and confirm the transaction details. This will convert your crypto to fiat.
3. Withdraw fiat currency:
- Go to your fiat wallet (e.g. USD wallet). Click Withdraw.
- Enter the amount you want to withdraw and select Withdraw All to withdraw the entire balance.
- Choose your preferred payment method – bank account, PayPal, debit/credit card, etc.
- Review and confirm the transaction details.
- Click Withdraw Now. This will process the withdrawal request.
4. If you want to withdraw crypto, you can transfer directly from your Coinbase crypto wallet to an external wallet:
- Go to the wallet of the crypto you want to withdraw. Click Send.
- Enter the amount to withdraw and the address of the external crypto wallet you’re sending it to.
- Review and confirm details. Click “Send now” to complete the transfer.
5. Be aware of Coinbase withdrawal fees and limits:
- Fiat withdrawals usually have minimal fees, but bank transfers are slower. Debit/credit card withdrawals are faster but have higher fees.
- Crypto withdrawals have network fees that vary by blockchain. Coinbase will display the network fee before you confirm withdrawal.
- Specific payment methods have withdrawal limits per transaction or monthly limits. Check Coinbase support for the latest limits.
6. Track the status of your withdrawal in your account transaction history. Fiat withdrawals can take 1-3 business days; crypto withdrawals depend on the blockchain.
📚Related: Why is Coinbase Holding My Funds?
Understanding Coinbase fees and limits
When withdrawing funds from your Coinbase account, you must know the associated fees and limits. This will ensure you can accurately calculate how much you will receive when cashing out.
The fees and limits for withdrawal from Coinbase can vary based on:
- The withdrawal method
- Your account verification level
- Your country/region
- The currency being withdrawn
- Whether you are withdrawing from Coinbase or Coinbase Pro
Some key points about Coinbase withdrawal fees include:
- Fiat currency withdrawals: Coinbase does not charge a fee; your bank or payment service provider may impose charges.
- Cryptocurrency withdrawals: Network fees apply, which vary by blockchain. Coinbase covers these network fees on your first withdrawal per month.
- International wire transfers: US users pay a USD 10 flat fee per transfer. Fees vary for other countries.
- ACH transfers: No Coinbase fee, but $0.25 per transfer charged by the ACH transfer system.
In terms of limits, new Coinbase account holders may face restrictions including:
- Limited withdrawal options (bank transfers only initially).
- Low daily/monthly withdrawal limits that increase over time.
- A minimum withdrawal limit, such as $50 for PayPal withdrawals.
The exact withdrawal limits also depend on your verification level. Fully verified users enjoy higher limits.
It’s advised to check Coinbase’s support pages for your country to determine the fees and limits applicable to your specific situation. Being aware of potential charges and restrictions can help smooth the withdrawal process.
Tips and best practices for using Coinbase
Coinbase makes buying, selling, and storing digital assets easy as one of the most popular cryptocurrency exchanges.
However, to have the best experience on Coinbase, it helps to keep some tips and best practices in mind. Here are some recommendations when using Coinbase.
Enable two-factor authentication
Adding an extra layer of security is crucial when dealing with cryptocurrencies.
Under your Coinbase account settings, enable two-factor authentication using an authenticator app or SMS to require an additional verification code when logging in. This prevents unauthorised access.
Avoid peak times
Coinbase can experience delays during periods of peak traffic.
Avoid buying/selling or withdrawing funds on weekends or when major crypto price swings occur, as network congestion can slow transactions and increase fees. lan your transactions during quieter periods.
📚Related: Bitcoin Withdrawal Delay
Double-check recipients
When sending crypto from your Coinbase wallet, triple-check that the recipient address is correct before confirming any transfers. Transfers on the blockchain are irreversible. Typos can mean lost funds.
Link bank account for buying power
Linking your bank account allows greater buying power than just using a debit card since bank transfers allow higher purchase limits. This enables smoother purchases during volatile markets.
Use Coinbase Pro for lower fees
For frequent traders, Coinbase Pro offers lower trading fees than standard Coinbase. The interface is less intuitive, but lower fees quickly add up for active investors.
Turn on purchase notifications
Go to settings, turn on purchase notifications, and grant permission to your browser to receive notifications. This lets you confirm buying/selling quickly and avoid missing out during volatility.
Avoid customer support scams
Coinbase will never contact you via social media or ask for remote access to your computer. Beware of direct messages claiming to be from Coinbase Support – always initiate contact directly through the Coinbase website or app.
These tips can help you safely navigate Coinbase while avoiding common pitfalls. With a few precautions, you can have a smooth experience buying, selling, and withdrawing cryptocurrency on one of the top exchanges.
Conclusion
Cashing out on Coinbase is an essential process for cryptocurrency owners to understand. This guide has provided a comprehensive overview of the steps involved, helping demystify what can be a confusing procedure for beginners.
The critical steps covered include:
- Understanding how to convert your crypto assets to fiat currency within your Coinbase account
- Withdrawing the funds by adding a linked bank account or other preferred payment method
- Following the withdrawal process carefully and confirming transaction details
- Being aware of any fees or limits Coinbase imposes on withdrawals
With a clear understanding of how to withdraw funds from Coinbase, cryptocurrency owners can easily access their digital assets when needed. While the process involves several steps, Coinbase’s user-friendly interface makes cashing out a smooth experience.
Whether you are a beginner or a seasoned cryptocurrency trader, we hope this guide has shed light on how to withdraw your funds from Coinbase successfully. You can now confidently convert your portfolio assets into spendable cash with the correct information.