The cryptocurrency market is known for its high volatility. Ever since Bitcoin was introduced in 2009, we have observed extreme periods of both bullish and bearish trends. During certain periods, cryptocurrencies have generated immense wealth for individuals, while in other instances, they have caused substantial losses, erasing the life savings of many.
Given this unpredictability, it is understandable that investors are cautious about the future direction of the market and seek to protect their investments. If your assets are held in Coinbase, it is important to understand the ease or difficulty of accessing your investment during turbulent market conditions.
Why You’d Want to Cash Out on Coinbase
In addition to the volatility that characterizes the cryptocurrency market, the collapse of several cryptocurrency companies throughout 2022 has introduced a sense of uncertainty among crypto users. For instance, the downfall of FTX, once valued at $32 billion during its peak, reverberated throughout the crypto community, causing significant concern.
The realization that even prominent players in the crypto industry can face sudden demise overnight is far from reassuring for crypto users and investors.
Coinbase, recognized as one of the top cryptocurrency exchange platforms and often ranking second in terms of daily trading volume after Binance, has taken numerous measures to instill confidence in its customers regarding the security of their assets and the ease of transferring them as needed.
However, in the event that Coinbase encounters difficulties and you wish to withdraw your funds, or if you find yourself faced with a bear market and can no longer endure the uncertainty, it becomes necessary to access your Coinbase account and initiate the process of converting your holdings into cash.
How to Cash Out on Coinbase
In order to withdraw funds from Coinbase, the initial step is to convert your cryptocurrency assets into fiat currency. This can be accomplished by either selling your tokens or utilizing the Cash Out feature for a direct withdrawal. However, if you encounter a situation where the Cash Out option appears grayed out and inaccessible, an alternative approach is to opt for selling your crypto instead.
- Log into your Coinbase account.
- Click on Buy & Sell.
- Select Sell in the pop-up form, choose the cryptocurrency you want to convert, and enter the amount you’d like to receive in fiat currency.Click on Preview Sell. If you haven’t included any payment method, you’ll be required to add it.
- In the order preview section, click on Sell Now to initiate the transaction.
Coinbase will process your transaction and have your funds sent to your payment gateway within a short period. Click on done to withdraw your funds from Coinbase to your bank account.
From Coinbase Mobile App
- Launch the Coinbase app, click on the nine-dot icon at the top left, select Sell, and pick the asset you want to sell, so you can cash out.
- Enter the amount you’d like to receive, click on Review Order, and after confirming the trade, click on Place Order.Similarly, Coinbase will process the transaction and deposit your funds in your bank account
How Long Will It Take to Receive Funds From Coinbase?
The duration for withdrawing funds from Coinbase varies depending on your geographical location. For customers based in the United States, it typically takes 1-5 business days for the funds to be received after initiating the withdrawal. European customers, on the other hand, can expect to receive their funds within 1-2 days. Canadian customers have the option to receive their funds instantly using PayPal and subsequently transfer them to their bank accounts.
Why Can’t You Withdraw From Coinbase?
As previously mentioned, there may be instances where you encounter the Cash Out feature being grayed out on Coinbase. This is a security measure implemented by Coinbase, preventing the use of the feature to convert funds into your local currency.
There are a few potential reasons for this limitation. It could be due to a holding period that has been implemented or the feature may simply be unavailable in your specific location. In such cases, an alternative option is to utilize the Sell feature, which allows you to directly sell your cryptocurrency assets and have the resulting funds deposited into your bank account.
It is important to note that there are certain restrictions on the value of crypto assets that can be exchanged for fiat currency, and these limits vary based on your region and account type.
Should You Store Your Crypto on Coinbase?
Coinbase has made significant efforts to ensure that its platform is user-friendly, catering to both beginners and experienced traders. The ability to cash out crypto assets is especially valuable for traders who rely on cryptocurrency for their livelihood. Therefore, in times when the crypto market indicates a potential crash, you can have confidence in being able to access your assets on Coinbase if the need arises.
A lifelong learner with a thirst for knowledge, I am constantly seeking to understand the intricacies of the crypto world. Through my writing, I aim to share my insights and perspectives on the latest developments in the industry. I believe that crypto has the potential to create a more inclusive and equitable financial system, and I am committed to using my writing to promote its positive impact on the world.