Coinbase has become a popular platform for buying, selling, and trading various cryptocurrencies. While many users accumulate digital assets, there may come a time when they want to convert their crypto holdings back to cash. This blog serves as a comprehensive guide on how to efficiently cash out your digital currency on Coinbase, guiding you through the process on both desktop and mobile platforms.
Before You Cash Out:
Understanding Fees: Before initiating a cash out, it’s crucial to familiarize yourself with Coinbase’s fee structure. There are two primary fees associated with cashing out:
- Spread: This represents the difference between the market price of your chosen cryptocurrency and the price offered by Coinbase for selling it. You can preview this spread before confirming your transaction.
- Transaction fee: This fee covers the cost of processing your cash out request. The fee structure can vary depending on the chosen cash out method and your verification level on Coinbase.
Tax Implications: It’s essential to be aware of the tax implications of cashing out your cryptocurrency. Depending on your location and specific circumstances, you may be liable to pay capital gains tax on any profits earned from selling your digital assets. Consulting a tax professional is highly recommended to understand your individual tax obligations.
Payment Method: Ensure you have a linked payment method, such as a verified bank account or PayPal account, where you want to receive your cashed-out funds. Coinbase may require some additional verification steps before allowing you to cash out, so complete these processes beforehand to avoid any delays.
Cashing Out on Coinbase:
Desktop:
- Log in: Head to https://www.coinbase.com/ and log in to your account.
- Access your assets: Click on “My Assets” from the navigation bar.
- Select the desired currency: Choose the cryptocurrency you want to cash out from the listed assets.
- Initiate cash out: Click on the “Cash out” tab next to your chosen currency balance.
- Enter the amount: Specify the amount you want to cash out. You can choose to cash out your entire balance by selecting “Cash out all.”
- Choose your destination: Select the linked bank account or PayPal account where you want to receive the funds.
- Review and confirm: Review the transaction details, including the estimated arrival date and associated fees. Once satisfied, click “Cash out now” to complete the transaction.
Mobile App:
- Open the app: Launch the Coinbase mobile app on your smartphone or tablet.
- Tap “Cash out”: Locate and tap the “Cash out” option on the main screen.
- Select your currency: Choose the cryptocurrency you want to cash out from your portfolio.
- Enter the amount: Enter the desired amount you want to withdraw. Similar to the desktop version, you can choose “Cash out all” for the entire balance.
- Choose deposit destination: Select the linked bank account or PayPal account where you want the funds deposited.
- Preview and confirm: Review the transaction details and fees. If everything is correct, tap “Cash out now” to finalize the process.
Additional Notes:
- Depending on your chosen cash out method, the funds might take 1-3 business days to reach your designated account.
- Coinbase offers an “Instant Cashout” option for eligible users linked to a debit card. However, keep in mind that instant cashouts come with higher fees compared to standard bank transfers.
- You can track the status of your cash out by navigating to the “Transactions” section within your Coinbase account.
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