Knowing how to convert your cryptocurrency back into traditional currency is a fundamental part of managing your digital assets. Cashing out on Coinbase is a straightforward process designed to get your funds securely to your bank account.
This guide will walk you through the entire process, from selling your crypto to initiating a bank transfer.
Before You Start: What You’ll Need
To successfully cash out, ensure you have the following set up
- A Verified Coinbase Account Your identity must be confirmed, and your account must be in good standing.
2. A Linked Bank Account You must have a valid bank account connected to your Coin base account. This is typically done through instant verification with PLAID or a manual process.
3. Cryptocurrency to Sell Obviously, you need a positive balance in a cryptocurrency like Bitcoin, Ethereum, or others that you wish to convert to cash.
The Two-Step Cash Out Process
Cashing out is not a single action but a two-stage process:
- Sell your cryptocurrency for U.S. Dollars (or your local currency).
2. Transfer the cash from your Coin base account to your linked bank account.
1: How to Sell Your Cryptocurrency
This step converts your digital assets into fiat currency, which is held in your Coinbase cash balance.
- Log In Access your Coin base account via the website or mobile app.
2. Select Your Asset From your portfolio, choose the cryptocurrency you wish to sell (e.g., Bitcoin, Ethereum).
3. Click “Sell” On the asset page, click or tap the “Sell” button.
4. Enter the Amount Specify the amount you want to sell. You can choose a preset amount or select “Max” to sell your entire holding.
5. Choose Destination Ensure the “Cash out to” destination is set to your USD Wallet (or your local currency wallet).
6. Review and Confirm Carefully check the details, including the sale price and any applicable fees. Once you are satisfied, confirm the transaction.
Your sale is now complete. The cash from the sale will be available in your Coinbase fiat wallet.
2: How to Transfer Cash to Your Bank
Now, you will move the cash from your Coinbase balance to your linked bank account.
- Navigate to Your Cash Balance On the website, go to “Assets” and select your USD balance. On the app, tap on “My Assets” and select your USD balance.
2. Select “Cash Out” You will see an option to “Cash out.”
3. Choose Your Bank Select your linked bank account as the destination.
4. Enter the Amount Input the amount of cash you wish to transfer.
5. Complete the Transfer Review the details one final time and confirm the transaction. You will receive an email confirmation.
Understanding Transfer Timelines and Fees
Standard Bank Transfer (ACH) This is the most common method. Transfers are usually free but are not instant. It typically takes 1-3 business days for the funds to appear in your bank account.
Instant Transfer For a fee (e.g., 1.5%), you may have the option for an instant transfer to an eligible debit card. This is significantly faster but comes at a cost.
Important Considerations Before Cashing Out
Transaction Fees Remember that Coin base charges a fee for the “Sell” transaction in Step 1. This is separate from any transfer fees.
Tax Implications Selling cryptocurrency is a taxable event in many countries, including the U.S. You are responsible for reporting capital gains or losses on the sale when you file your taxes.
Market Volatility Crypto prices can change rapidly. The price you see when you initiate the sale is not locked in until you confirm the transaction.
Conclusion: A Simple Path to Your Funds
Cashing out on Coinbase is a secure and user-friendly process when you follow the correct steps. By first selling your crypto to your cash wallet and then transferring those funds to your bank, you can efficiently access your money.
Always double-check the destination accounts and be aware of the timelines and fees associated with your chosen transfer method to ensure a smooth experience.
Disclaimer This guide is for educational purposes only. Fees, timelines, and features are subject to change by Coin base. Always refer to the official Coin base help center for the most current information and consider consulting with a tax professional regarding your specific situation.