How to Withdraw Money from Coinbase: The Complete Guide

Hey there!

So you‘ve invested in some cryptocurrency on Coinbase and now you want to withdraw your funds and cash out your investment. Don‘t worry, I‘ve got you covered!

Withdrawing money from Coinbase back to your bank account is easy and straightforward, especially if you follow this comprehensive guide. I‘ll walk you through everything you need to know, step-by-step.

In this guide, we‘ll cover:

What Coinbase is and the key features
Understanding Coinbase accounts
Linking your bank account
Coinbase withdrawal fees and limits
Step-by-step withdrawal instructions
Estimated withdrawal timeframes
Troubleshooting common withdrawal issues
Alternative withdrawal methods
Tax implications and reporting

I‘ll also provide some pro tips, additional resources, and answers to frequently asked questions along the way.

So buckle up and let‘s get started! This is going to be fun and simple – I promise.

What is Coinbase and Why Use It?

For those new to the world of crypto, Coinbase is one of the most popular places to buy, sell, and store cryptocurrency. It makes crypto investing accessible to everyday people.

Founded in 2012 in San Francisco, Coinbase has grown tremendously over the past decade:

Over 73 million verified users worldwide
Supported in over 100 countries
Trading volume over $327 billion per quarter
Holds over $180 billion in assets

Some key features that make Coinbase a good option:

Easy to use interface and mobile app
Supports popular cryptos like Bitcoin, Ethereum, Litecoin
Built-in crypto wallet to store assets
Industry standard security
Full insurance coverage for currency stored online
Comprehensive identity verification
Robust customer support options

For both beginner and experienced investors alike, Coinbase is a one-stop shop to buy, sell, and manage your cryptocurrency portfolio.

Their digital currency wallet provides secure storage for your assets. When you‘re ready to withdraw funds, Coinbase makes the process simple and seamless.

Now let‘s dive into the details…

Understanding Coinbase Accounts

It‘s important to understand Coinbase operates two core products:

Coinbase Consumer – The beginner friendly exchange designed for casual investors. Simple interface with higher fees.
Coinbase Pro – Advanced exchange built for active crypto traders. Advanced tools, lower fees, and more complex interface.

You can withdraw funds from both Coinbase Consumer and Coinbase Pro accounts. The process is mostly the same with a few minor differences we will cover.

The key requirement is linking a valid bank account or payment method to withdraw your funds to.

Linking Your Bank Account

To withdraw cash from your Coinbase account, you first need to link a bank account, credit card, or PayPal account. This gives Coinbase somewhere to send your funds to.

Here are the steps to link a bank account:

Login to your Coinbase account and click Settings (gear icon).
Select "Linked Accounts" under Payment Methods.
Click "Link New Account" and choose your bank.
Enter your bank account and routing number to link it.

Coinbase will make two small test deposits within 1-3 business days to confirm your bank account. Once validated, you‘ll be able to select the bank account as a withdrawal option.

Debit cards and credit cards can also be linked as a payment method for purchases, but they have much lower withdrawal limits and cannot be used for cashing out larger amounts.

For Coinbase Pro accounts, the linking process is the same. Just go to Settings > Payment Methods and link your bank.

Easy enough so far right? Now let‘s talk about withdrawal fees and limits…

Coinbase Withdrawal Fees and Limits

When withdrawing money from Coinbase, there are some fees and limits you should be aware of:

Withdrawal fees – Coinbase does not currently charge a fee for withdrawals. However, the normal blockchain network transaction fees apply if withdrawing crypto. These are usually small, less than $5 equivalent.
Weekly limits – Withdrawal limits depend on your account verification level. See the table below for details:

Verification Level	Weekly Withdrawal Limit
Level 1 (Email only)	$1,000
Level 2 (ID Verified)	$25,000

Daily limits – In addition to weekly limits, daily limits are also enforced. These range from $5,000-10,000+ depending on risk factors.
Coinbase Pro Limits – For Coinbase Pro accounts, limits go up to $50,000 per week for basic verification, and $500,000 per week for premium verification.

The limits reset at midnight each Sunday, and are based on a rolling 24 hour window.

If you need your limits increased, you can request a raise through Coinbase customer support. They will ask about your trading activity and may require further ID verification to approve higher limits.

Alright, now that you understand the fees and limits situation, let‘s walk through exactly how to withdraw funds step-by-step…

Step-by-Step Guide to Withdrawing Funds

Ready to cash out your crypto? Here is the complete process for withdrawing money from Coinbase:

Go to coinbase.com or open the Coinbase app and login to your account.

For Coinbase Pro, go to pro.coinbase.com.

2. Sell Your Crypto

Go to the Trade menu and select the cryptocurrency wallet you want to withdraw e.g. Bitcoin.

Click "Sell" or "Trade" and enter the dollar amount you wish to withdraw. Complete the sell order.

3. Go to Your USD Wallet

Head to your Portfolio page and select your USD wallet (or EUR/GBP etc). This is where your funds from the sale now are.

4. Select Withdraw Funds

On the right side, click "Withdraw Funds".

Enter the amount (in dollars) you want to withdraw. Make sure you account for any fees.

5. Choose Your Linked Bank Account

Select the bank account you wish to withdraw the funds to. Double check the details.

6. Review and Confirm Withdrawal

Carefully review the withdrawal details and confirm everything looks correct.

Submit the withdrawal request and your funds will start processing!

For Coinbase Pro:

Go to your USD wallet (or EUR, GBP etc)
Click Withdraw next to the wallet name
Enter amount, select bank, and submit request

That‘s the basics! Pretty easy overall.

Now let‘s talk about how long withdrawals take…

Estimated Withdrawal Times

Coinbase estimates bank withdrawals take between 1-3 business days to complete. However, many users report faster processing times – often just 1-2 days.

Here are some factors that impact the withdrawal time:

Weekends and bank holidays can add delays
ACH bank transfers process in batches which takes time
Withdrawals over $10,000 often take the full 1-3 days
Debit card withdrawals are usually instant
PayPal withdrawals complete within 24 hours
First time withdrawals face longer delays for security
Coinbase Pro withdrawal times are generally faster

I recommend anticipating anywhere from 1-5 days for your withdrawal to complete depending on those factors. Be patient, and contact Coinbase support if it‘s been over 5 business days.

Pro Tip: Transferring funds on Friday? Expect the withdrawal Monday at the earliest due to the weekend. Schedule it earlier in the week for faster processing.

Troubleshooting Withdrawal Problems

Coinbase withdrawals are usually quick and painless. But sometimes issues come up resulting in delays or failed transfers.

Here are some potential problems and fixes:

Wrong bank details – Double check your account and routing numbers entered are 100% accurate. A minor error will cause a failure.
Two factor authentication failure – If your 2FA code doesn‘t go through correctly during withdrawal, the process will fail. Contact support to reset 2FA.
Blocked by bank – Some banks block deposits from crypto exchanges. Call your bank to authorize the transactions.
Pending crypto transactions – Ensure all crypto buys and sells are fully completed before withdrawing fiat funds.
Account frozen – Coinbase may freeze withdrawals if suspicious activity is detected. Work with customer support to resolve any flags.
Accidental wrong address – Double, triple check the wallet address! Sending funds to a wrong address will likely result in permanent loss.

If you do have any trouble, you can contact Coinbase customer support for assistance directly in the app. I always find them friendly and helpful.

Now let‘s discuss some alternative withdrawal methods beyond bank transfers…

Alternative Withdrawal Methods

Bank accounts aren‘t the only way to withdraw funds from Coinbase. Here are some other good options:

PayPal withdrawals – Instant transfers to your linked PayPal account. Usually completes in under 24 hours.
Debit card withdrawals – Funds will appear instantly on your card, but limits are much lower ($10,000 per week).
Crypto withdrawals – Withdraw directly to an external crypto wallet address you control rather than cashing out.
Wire transfers – Same 1-3 day timeframe, but higher fees. Wires allow transfers up to $100,000.
Peer-to-peer sales – Tools like LocalCryptos allow you to directly sell crypto to buyers for cash deposits. More complex but higher limits.
Gift cards – Some third party services let you swap Bitcoin for gift card credit from places like Amazon. Fees apply.

For quick access to your funds, PayPal or debit card withdrawals are great options. But bank accounts generally provide the highest limits. Choose the option that best fits your needs.

Alright, we‘re in the home stretch here! Just a few more important topics to cover…

Tax Implications and Reporting

When withdrawing crypto profits to your bank account, it‘s important to be aware of potential tax liabilities depending on where you live.

In the US, cryptocurrency is treated as a capital asset, so you may be subject to capital gains tax when cashing out. Talk to a tax professional about your specific situation.

Coinbase is required to issue you a 1099-MISC or 1099-K form if you have over $20,000 in gross transactions or over 200 transactions.

Make sure to keep proper records of your cost basis, sales, and profit/losses for tax reporting. Crypto tax software like CoinTracking can help track this.

Final Words of Wisdom

Phew, we covered a lot of ground here! You‘re now a withdrawal expert. Here‘s a quick recap of my top tips:

Link your bank account ASAP so you‘re ready when it‘s time to withdraw
Double check your withdrawal address to avoid accidental loss of funds
Be patient as bank transfers can take 1-5 days to clear
Save on fees by withdrawing directly to PayPal or crypto wallets
Check your withdrawal limits and get verified to raise them
Set aside some crypto profits for any potential tax obligations

I hope this guide gave you all the tools and details needed to withdraw from Coinbase like a pro. Now you can cash out your portfolio with confidence. Let me know if any questions come up!

Frequently Asked Questions

Here are answers to some of the most common questions:

How long do Coinbase withdrawals take?

Bank withdrawals take 1-3 business days on average. PayPal and debit cards are usually faster within 24 hours. First withdrawals often take longer while your bank account is verified.

What is the max withdrawal amount I can take out?

For fully ID verified accounts, your weekly limit is $25,000. Daily limits are roughly $10,000. Higher limits up to $500,000 per week are possible with enhanced verification.

Does Coinbase charge fees for withdrawals?

Coinbase does not currently charge a fee themselves for withdrawals. You only pay the standard crypto network transaction fees if withdrawing crypto. These are usually under $5.

Can I withdraw crypto directly from Coinbase?

Yes, you can withdraw crypto directly to an external crypto wallet address you control rather than cashing out to your bank account.

Why is my bank rejecting Coinbase deposits?

Some traditional banks block deposits or transfers from crypto exchanges due to perceived risks. You may need to call your bank to authorize transactions from Coinbase.

How do I report Coinbase withdrawals on my taxes?

In the US, cryptocurrency withdrawals may be subject to capital gains tax depending on your profits. Coinbase will issue you tax documents like a 1099-K if you meet reporting thresholds.

What happens if I withdraw to the wrong address?

If you accidentally withdraw funds to the wrong wallet address, the chances of recovery are extremely slim. The transactions are irreversible. Triple check your addresses!

And that‘s a wrap. I hope this guide helps you withdraw your hard-earned crypto gains with ease. Let me know if you have any other questions!