Coinbase Withdrawals Explained: Fees, Limits, and Step-by-Step Guide

With over 8.8 million monthly users, Coinbase has become one of the most popular and used crypto platforms in the world.

With an interactive exchange, that includes many advanced features, it can be a bit tricky for beginners to withdraw funds.

Whether you want to transfer crypto to your hardware wallet like Material Bitcoin for safe storage or to transfer fiat money to your bank account, it’s crucial to understand the fee structure and the steps for completing a transaction successfully.

In this guide, we will simplify the Coinbase withdrawal process and give you useful tips for moving your crypto quickly and safely.

Your Coinbase Withdrawl Guide

Withdrawing from Coinbase is easy once you know the steps.

From moving your crypto to a hardware wallet, transferring fiat to your bank, or cashing out with PayPal, here’s all that you need to know.

Withdrawing Crypto to an External Wallet

Luckily the process of Coinbase withdrawal for crypto is easy and can be done in just a few clicks.

1️⃣Sign in to your Coinbase Exchange account.

2️⃣From the Home tab, click on Send.

3️⃣Select the cryptocurrency you want to withdraw.

4️⃣Then select who you want to send it to.

• You can enter the phone number, email, or crypto address of the external wallet.
• Click Continue.

5️⃣Enter the amount you want to send of the crypto in your local currency.

• Once entered, hit Preview.

6️⃣Then, review the security checks before sending and tap Continue.

7️⃣Review the details.

• You can also leave a note to the recipient of the crypto (if you are not sending it to your own wallet for safeguarding).

Make sure to review the amount, the cryptocurrency, the network used, network fees, and send time it will take for your withdrawal.

8️⃣At this point, you may be asked to verify with 2FA (If set up originally).

9️⃣Your transaction is now in progress.

Withdrawing Fiat Currency to a Bank Account

Before moving your funds, you must sell your crypto for fiat cash.

1️⃣Tap on My Assets on the bottom tab.

2️⃣Scroll down and tap on the crypto that you want to sell for cash.

3️⃣Tap on Sell.

4️⃣Enter the amount you want to sell.

5️⃣Review order details to make sure that everything is correct and tap on Place Order to begin the transaction.

You have now sold the amount of crypto you want in cash. From here, you can withdraw it and send it to a bank account.

6️⃣From the My Assets tab, scroll down to find your local currency and select it.

7️⃣Tap on Cash Out.

8️⃣Enter the amount of fiat currency you want to cash out and select the account you want to withdraw to. Then tap Preview Cash Out.

9️⃣Review the details and tap Cash Out Now.

🔟You will then receive a notification when your cash-out request is completed.

Withdrawing Funds to PayPal

PayPal withdrawals are only available in selected regions. You can do so in the United States, the United Kingdom, and parts of Europe.

Be sure to confirm if PayPal is supported in your area.

1️⃣Just like withdrawing to a bank account, you must sell an asset to then withdraw to PayPal.

• Follow steps 1-5 from the Withdrawing Fiat Currency to a Bank Account section above.
• Add the amount of fiat currency you wish to sell and withdraw from Coinbase.

2️⃣Link your PayPal account to Coinbase by going to the payment methods section within your settings.

• Select PayPal.

3️⃣Once you sign into your PayPal account via Coinbase, you have successfully added PayPal as an instant withdrawal account.

4️⃣Select PayPal from your withdrawal tab.

5️⃣Review amount and destination. Then, click on Withdraw Now.

6️⃣You will receive an instant message confirming the withdrawal.

Coinbase Withdrawal Fees

Being aware of Coincase withdrawal fees is an important aspect to consider.

For cryptocurrency withdrawals to an external wallet, there are no Coinbase fees, however, network fees are applied based on the current activity on the Blockchain.

This means that the cost can vary depending on the time of the day.

As a rough estimate, current transactions have ranged between $1-$5.

For fiat currency withdrawals, the fees depend on the method.

Coinbase Withdrawal Fees

Coinbase Withdrawal Limits

Coinbase withdrawal has limits and they vary based on your account type, verification level, and region.

For most users, the daily limit for fiat withdrawals is $25,000.

Additionally, crypto withdrawal limits vary, depending on the cryptocurrency asset.

Then, other factors from the exchange also affect your Coinbase withdrawal limits, such as verification status, how long you’ve held an account, and your linked financial accounts, such as a bank account or PayPal.

If you upgrade to Coinbase Advanced Trade or Coinbase One, you get access to higher withdrawal limits.

Why You Must Withdraw Crypto to a Reliable Cold Wallet

Coinbase is a great exchange for buying and selling cryptocurrency, but it’s not ideal for long-term storage.

The safest way to keep your crypto secure is by withdrawing it to a reliable offline crypto wallet.

Cold wallets, such as Material Bitcoin, keep your private keys offline, making sure that your crypto is less vulnerable to online threats.

Withdrawing from Coinbase to a cold wallet is simple.

Just enter the public address of your Material Bitcoin wallet into Coinbase for withdrawal.

This way, you protect your crypto and have full control.

Are Coinbase Withdrawals Taxable?

Crypto is changing quickly as adoption and financial responsibility to government agencies are becoming implemented worldwide.

It is not dependent on the exchange you use like Coinbase, Binance or KuCoin (see linked articles for step-by-step withdrawals), but rather on the crypto transaction you make.

In many countries, you must declare your crypto holdings and indicate any profits.

When you withdraw cryptocurrencies to an external wallet, there usually is no “taxable event” occurring.

But, when you convert crypto to fiat money, then it might be considered taxable depending on your jurisdiction.

For example, if you sell Bitcoin for USD or EUR, it might be subject to a capital gains tax if any profit is earned from the exchange.

Depending on where you live, the gains might be subject to short-term capital gains or long-term capital gains tax.

Many factors, like your income tax bracket and regional laws, can also affect how much you get taxed on this withdrawal.

Make sure to stay up-to-date on crypto taxes to avoid any financial problems.

Useful Tips for Coinbase Withdrawal

To avoid issues when withdrawing and guarantee a safe experience, remember to:

✅Double-Check Everything

• Even a small mistake can cause big issues.
• Always double-check wallet addresses and bank details before confirming withdrawals.

✅Enable Two-Factor Authentication (2FA)

• To add an extra layer of security enable 2FA on Coinbase.

✅Monitor Withdrawal Status

• Keep an eye on the status of your Coinbase withdrawal to know exactly when your crypto or cash arrives at your external wallet or account.

Withdraw From Coinbase With Ease

A Coinbase withdrawal doesn’t need to be a stressful experience.

We hope that our guide can help you each step of the way to make the process smoother.

Keep in mind withdrawal fees, times, and your tax responsibilities to avoid any inconveniences.

And don’t forget to transfer your crypto to a secure cold wallet for the best safety and protection of your assets.

Luckily, there are many types of crypto wallets for beginners that pair easily with Coinbase.

FAQs

What are the withdrawal fees on Coinbase?

• Fees depend on the type of withdrawal. Coinbase withdrawals for crypto have network fees, and fiat withdrawals apply bank or PayPal charges.

How long do withdrawals take?

• Cryptocurrency withdrawals can take anywhere between 10-60 minutes, and fiat withdrawals may take between 1-5 business days.

How can I increase my withdrawal limits?

• Complete identity verification and link your bank account to earn higher limits.

Is withdrawing cryptocurrency to a cold wallet taxable?

• No, withdrawing crypto to an external wallet is not a taxable event. However, selling crypto for fiat currency before withdrawal can be considered taxable.