TL;DR- With instant withdrawal (3% fee), you can get funds immediately. With traditional withdrawal (no fee), I’ve gotten funds on the same day or the day after (if banks are open that day).
It’s important to be able to exit cryptocurrency as swiftly as you entered, because cryptocurrencies are so volatile there are big swings from hour to hour. Much how I’m a big fan of dollar cost averaging into crypto, I also like to take profits in small increments on the way up.
- Why can’t I withdraw all of my crypto right now? If you bought all your coins at least 48 hours ago, you should be able to cash out everything right away. Keep in mind that when you buy coins on Coinbase, Coinbase lets you start trading those coins before it’s even completed a withdraw from your bank or credit card. You won’t be able to cash out these coins until the transaction with your bank account or credit card is complete.
- How do I sell my crypto on Coinbase? Selling your cryptocurrency on Coinbase is easy. Go to trade or go to portfolio and find the crypto you’re looking to sell. After clicking on that crypto, go to wallet and on the right side of the page you’ll see the buy and sell boxes. -for trading transactions like sending and receiving cryptos to your Coinbase account (i.e. sending a crypto to your hardware wallet), the transaction time depends on how long that specific network takes to validate transactions. For Bitcoin (BTC), this can be up to an hour. For Ethereum (ETH), it’s around five minutes. For some coins like Stellar (XLM), it’s immediate.
- How long does it typically take? In some instances in the US, I have requested a cash out from Coinbase without the instant withdrawal and I’ve gotten my funds in the same day. For this specific example, I was taking out more than $1,000 and initiated the transaction around 9am Pacific. By 1:30PM Pacific on the same day (so 4.5 hours later), my funds were deposited. This has happened to me on more than one occasion, so it might work for you too. It’s an excellent way to avoid the 3% instant transaction fee. Otherwise I have found that my cash withdrawals from Coinbase have been available at the end of the next full banking day. Coinbase’s website says that bank transfers take up to 3 days, but I’ve never had to wait that long.
I’d only use this feature if I were in a bind and absolutely needed cash. Otherwise you’re paying a 3% fee on top of all of the other big Coinbase fees and your returns are seriously diminished. With that said, I can remember several times in my 20s when I was stuck because I had no cash. I wasn’t responsible enough to have a credit card, so I didn’t get one. I would often run out of gas and be stuck at a gas station off a major interstate in the south’s countryside. Another time in 2015 I remember being unable to pay for airport parking at 1 am, and I had to call the person I had only been dating for 3 months and get her to pay since my parents and siblings were asleep. She saved my a**. We’re still happily together.
If you’ve made at least $600 in profit on your cryptos in the US and have ‘realized’ those gains by cashing out, Coinbase will send you a tax form at year’s end. They will also send that same form to the IRS. Coinbase likely does something the same as this to each country the exchange operates within.
Although Coinbase is safer than other exchanges because it is a publicly traded company in the US, that doesn’t mean its customer service can’t suck. Expect longer wait times with the email support- usually 48-72 hours for a response if you have specific issues. You will certainly get help with your issue, it just might not come quickly.