TL;DR- there are two types of withdraws: cryptocurrency withdrawals and bank account withdrawals. Crypto withdrawals don’t carry and fees other than the crypto’s network fees. Crypto withdrawals happen within an hour, depending on the coin. Bank account withdrawals on Kraken (if using ACH) are free and usually take 1-2 business days to hit your account.
See below for a step-by-step how-to for withdrawing funds from Kraken to your bank account.
Fun fact: Withdraw vs. WithdrawalWithdraw: verb. i.e. ‘I withdraw my funds.’Withdrawal: noun. i.e. ‘I made a withdrawal.’I’m in my mid-thirties and just now learned that.
How long do Kraken withdrawals take?
Look at the charts below for the US, EU, and UK. Withdrawal times range from instant to 5 business days. The median time for ACH in the US is usually 1 business day, and on the sections where it says ‘0-5 business days’ I’ve gathered from Reddit it’s usually 3 business days. I’ve found that if I do an ACH at the beginning of a business day, I’ll often have my funds by the end of the day.
What does your withdrawal status mean?
You can check the status of your withdrawal on Kraken, something I’ve found you can’t do elsewhere. To do this, click the funding tab on the top menu. Underneath the recent transactions bar front and center you’re able to see your deposits and withdrawals. To the right of your withdrawals you’ll see a status. Below is a guide for the different statuses. Hopefully you don’t get the yellow exclamation triangle!
Kraken withdrawal fees
Kraken charges you cash withdrawal fees based on the method of transfer you need. In the below example, I use ACH bank transfer in the US, which is free. However if you’re doing wire transfers or otherwise you’ll pay fees that can go up to 35 Euros or USD. The average fee for wire transfers looks to be about $1-$5 though. If you’re withdrawing cryptocurrency you’ll just pay the network fee. Network fees can get pretty expensive for cryptos like Ethereum, although Kraken eats some of that cost. ERC-20 token transfers won’t be quite as expensive as they are on MetaMask.
How to withdrawal to your bank account on Kraken
0. Make sure you’ve converted your crypto to the fiat currency you’d like to have deposited to your bank account.
1. Go to the funding tab. You’re met with the deposits and withdrawals screen. If you have a bank account on file, you’ll see it in the bottom left. As seen below, I haven’t connected my bank account yet.
2. If you don’t have a bank account connected, select continue on the bottom left. You’re met with the add new bank account screen. If the screen is grayed out, it’s like because you haven’t completed the Know Your Customer (KYC) process. Fill in your bank account details such as your routing number and bank account number. When finished select add bank account.
3. Next, you’ll select the withdrawal service in the drop down menu. This will vary based on your location. If possible, go with the ACH transfer over a wire transfer, as the fees are lower. Select the withdrawal amount from the percentages buttons or enter the amount you’d like to withdrawal in the box.
4. At the bottom of the form, hit withdraw USD or whatever your local currency is. You’re greeted with a pop-up with the details of the transaction. Click confirm.
If successful, you’ll get a green ‘withdrawal successfully submitted’ push notification at the top of your browser.
Since exchanges like KuCoin don’t have the ability to connect a bank account, you’ll need a ‘home exchange’ that you can use to purchase crypto and take profits with a bank account. Kraken is a great option for this, especially given that their fees are much lower than Coinbase’s.
The same thing goes for all the wonderful DeFi and NFT platforms like UniSwap or OpenSea- you have to bring in your crypto from elsewhere to start playing the game.
Another good thing to know is that Kraken plays by the rules and cooperates/works with local governments. In the US, it’s very likely that at year’s end Kraken sends a tax form with your profits/losses to the IRS. This is usually only if your trading activity has exceeded $600. Kraken also provides you with this form-the 1099E.
Not financial advice, but I always recommend you get set up on as many exchanges as possible. Often in crypto the windows of opportunity are short, and you’ve got to be ready to buy or sell specific cryptos when you need to. Getting on all the exchanges helps you with this.