Withdrawing your money from an exchange is as important as any investment decision you make. After all, what is the purpose of investing in the first place if you can’t get your money in your pocket? Crypto exchanges are the go-to solution when it comes to trading and cashing out cryptocurrency and Coinbase is one of the most popular centralized cryptocurrency exchanges (CEXs), together with platforms like Gemini and Binance.
Coinbase offers swift cryptocurrency transactions with a friendly user interface suitable for even the complete beginners. Plus, it also offers a Pro version if you want to try some more advanced options and avoid the regular Coinbase fees that are above the average crypto exchange fees. On Coinbase, you can trade Bitcoin (BTC) and more than 50 altcoins such as Ethereum (ETH), Litecoin (LTC), and Monero (XMR), as well as different stablecoins such as USD Coin (USDC). It also has a convenient mobile app that is supported by both Android and iOS devices.
Under normal circumstances, selling Bitcoin on Coinbase occurs almost instantly. However, the length of the withdrawal process depends on your region and banking regulations. Here we prepared a guide on how you can sell Bitcoin and withdraw your earnings from Coinbase.
How to Create a Coinbase Account
In order to use Coinbase, you need to set up an account as you would do on any other crypto platform. You can do this on your web browser on coinbase.com or on the Coinbase app. As part of this process, you need to verify your identity by uploading a scan of your passport, government-issued photo ID, or National Identity Card if you are residing outside of the US. For US residents, Coinbase requires a state-issued ID. After that, you can link your debit card or credit card that is connected to your bank account in order to make deposits and withdrawals from your crypto account.
How to Buy Bitcoin on Coinbase
For starters, let’s take a look at how you can buy Bitcoin (BTC) on Coinbase using both the web browser and the Coinbase mobile app. Keep in mind that the minimum amount you can buy is 2 units denominated in your local currency. For example, the amount of Bitcoin that’s equivalent to 2 AUD or 2 USD, etc.
Buying BTC From a Web Browser
To buy cryptocurrencies using a web browser you need to sign into Coinbase, click on the Buy/Sell button on the upper right corner of the screen, and select the Buy tab. Enter the amount on Bitcoin or any other cryptocurrency you would like to buy and select your payment method. After that click on the Preview Buy button to make sure everything is correct and click Buy to complete the purchase.
Buying BTC on the Mobile App
To buy Bitcoin on the Coinbase mobile app, click on the button with two opposite arrows on it at the bottom of your screen. Select Buy and then enter the amount of Bitcoin you would like to purchase and select Preview Buy to check if everything is correct. If so, tap on Buy to complete the purchase.
How to Sell Bitcoin on Coinbase
Now let’s see how you can sell Bitcoin on Coinbase and its advanced trading platform, Coinbase Pro.
In order to sell cryptocurrencies on the regular Coinbase interface, you need to place a sell order. To do that, go to Overview and select the Sell tab over the right side of the screen. Enter the amount of Bitcoin you want to sell and select your local currency wallet. Then click on Sell Bitcoin.
Selling on Coinbase Pro is not as straightforward as selling on the regular Coinbase platform. However, going through the trouble saves you some extra costs on transaction fees.
First, you need a Coinbase Pro account to use its features. After you create your account, click on the Trade button on the top left corner of the screen. Under Select Market, select the pair you want to trade (e.g. BTC-AUD).
You will see three sell options. The “MARKET” sell option lets you sell your assets at the current market price and happens instantaneously. The second option is the “LIMIT” sell option, where you set the price you want to sell your Bitcoin for and wait for someone to make a matching buy order. The third and last option, the “STOP” sell, lets you set a stop loss trigger, selling your digital currencies once they fall below the price you choose.
After choosing the sell option you want to use, enter the amount of BTC you want to sell and click Place Sell Order.
How to Withdraw BTC Using the Coinbase Wallet
The most convenient way to cash out on Coinbase is to use the Coinbase local currency wallets. Local currency wallets let you convert your Bitcoin or other crypto assets into the supported local currency instantly. After that, you can withdraw your funds using a suitable banking method depending on your location.
These wallets are currently only available for US dollars (USD), Euros (EUR), and British pounds (GBP). If you reside in one of the states or countries that support these currencies, your sell orders will be filed instantly into your local currency wallet. For example, if you are residing in the US, your sell orders are issued in your USD wallet in real-time.
Unfortunately, Coinbase currently doesn’t offer this service in Australia, New Zealand, and Singapore. If you are residing in one of these countries, you won’t be able to sell Bitcoin through your Coinbase account either because Coinbase doesn’t support transfers to a debit/credit card. What you need to do is to transfer your funds to another exchange or wallet service and sell them from there.
If you are residing in the US but not residing in one of the eligible states, you can use PayPal to take your funds out of Coinbase instantly. If you don’t have a PayPal account either, you need to use traditional banking to withdraw your fiat currency. If you would like to use traditional banking systems, Coinbase provides two different options based on your location and the banking network zone you are in.
How to Withdraw Money Using Different Banking Networks
ACH stands for Automated Clearing House. It is an electronic, bank to bank money transfer network that is used in the US. If you are using this method, you should be aware that many banks have a limit on how much money you can send daily, weekly, or monthly. What’s more, unlike crypto exchanges, banks do not operate 24/7. So, if you miss your bank’s ACH processing period for the day, your transaction will take place the following day.
When you want to cash out US dollars (USD) to your US bank account, Coinbase states that the usual amount of time for the transaction is within 1-5 business days. Before you place your withdrawal order, you can check the estimated arrival date on the Trade Confirmation page. After placing your order, you can check the History Page to see when to expect your money in your bank account.
SEPA stands for Single Euro Payments Area. It is an electronic network within European Banks that allows you to send and receive Euros (EUR) between banks that are not in the same country. In Coinbase, cashing out Euros (EUR) to your eurozone bank account usually takes 1 or 2 business days, while a wire transfer only takes one business day.
GBP Bank Transfer
For the customers in the UK, the sell orders will instantly drop your GBP to the GBP wallet. However, if you would like to withdraw your money to your bank account, you need to use a GBP bank transfer that is usually filled in only one business day.
A Few Words Before You Go…
Coinbase is a very popular exchange thanks to its secure service, user-friendly interface and high trading volumes. If you are living in the US, the Eurozone or the UK, it is fairly easy to withdraw your funds within several working days.
Unfortunately, Coinbase doesn’t support a withdrawal method for Australian customers yet. However, if you are an Australian resident and have digital assets on your Coinbase account, you can transfer your funds to an exchange or wallet of your choice for free and withdraw your holdings from there.