Coinbase is a digital platform that allows you to buy and sell cryptocurrencies such as ethereum, bitcoin, and litecoin, among others. You can sell your coins as much as you want since there are no limits on the amount you can sell. Moreover, the app allows you to convert one cryptocurrency to the other. You can even send and receive cryptocurrencies from other people on the platform. Today, I will major on how to transfer money from Coinbase to a bank account.
Since you cannot use the cryptocurrencies in their nature, you have to transfer them to a bank account for various kinds of transactions such as payment of bills, cash withdrawals, sending to other bank accounts, and saving for future use. That means you have to convert the coins to your local currencies to move them to a bank account. Fortunately, Coinbase supports various currencies of the world, and thus you will not find it challenging converting.
Coinbase is available in more than 100 nations of the world, including the United States, Australia, and Canada. The platform is now more secure than ever before since the company has added a vault feature to protect and secure the coins from hackers. Before, there were incidents of people losing their earnings in mysterious ways that raised many concerns about the safety of the platform. There was a time when criminals hacked the Vidovics’ Coinbase account using SIM Swap and transferred all the money to their account.
How does Coinbase work?
Coinbase allows you to buy and sell cryptocurrencies. You must first of all add funds to your account to purchase a certain amount of cryptocurrency. You will then be able to sell your available coins at a higher price. Alternatively, you will meet other buyers selling their coins and wait for a higher price to sell.
To sell cryptocurrency, follow the procedure below.
- Hit on Buy/Sell on your web browser.
- Tap on the Coinbase mobile app.
- Hit on Sell.
- Choose the crypto you want to sell.
- Select Preview sell.
- Select Sell now to complete this action.
Coinbase places a short holding period for the amount of money you plan to cash out. Despite the holding, you will still be able to sell more and more as long as your balance allows you to do so.
If you need some money in your bank account, you can then transfer money to your account and withdraw it. When you have money in your bank account, you can send money with a checking account number instantly to other account holders or even move it to your savings account, among other kinds of transactions. You can also send your coins to other people in Coinbase. Also, others can send you coins to your account.
How do you open a Coinbase account?
First of all, you must open an account to get started. Opening an account is purely online via the Coinbase app or using the web. The first thing you should do is enter your legal name, email, state, and your preferred password. Afterward, you have to verify your email address via a link you receive as soon as you create an account /signup. When you hit on the link, you will go directly to Coinbase.com and then sign back using the password and email address you used when registering.
After signing in to your Coinbase account, you will need to select your country and add your phone number. Click on Send Code on your computer or tap Continue (mobile). Enter the code you receive to verify your phone number. Click on submit or continue to complete the process. Click on resend to receive the code if it fails to arrive.
At this point, you still need to add more information. Enter the personal information on your government ID and submit a photo of the ID later on. You need to enter;
- First Name
- Last Name
- Date of Birth
- Address
You also need to answer questions such as;
- What do you use Coinbase for?
- What is your source of funds?
- Current Occupation
- Your employer
- Last four digits of the SSN
After that, hit on Continue to finish the process. Wait for further instructions at your email address. You will also have to verify your identity by signing in to your Coinbase account. Complete the ID verification process and then link your payment method. You should choose your country to know the available payment options.
How do I transfer money from Coinbase to my bank account?
It is essential to understand how you can transfer money from your Coinbase to your bank account. If I am a trader at Coinbase, I can always move funds from my account to my bank account and perform various transactions. I can withdraw money with my account number over the counter when I present my ID card and sign the relevant papers.
If you want to transfer money to your bank account, you should follow the procedure below. The process is the same as when selling your coins on the platform.
- Tap on Buy / Sell on your web browser or hit on the Coinbase mobile app.
- Hit on Sell.
- Choose the crypto you want to sell.
- Enter the amount to cash out.
- Select Preview sell.
- Select Sell now to complete this action.
What are some of the terminologies on Coinbase?
There are various aspects you should understand when navigating around Coinbase. You cannot trade if you do not know around the site since you will find yourself confused. The most common terminologies include the following.
i) Available balance
The available balance refers to the amount you can cash out of your account anytime you need to. That means that you can cash out to a bank account or use it to buy more coins. Any amount on hold does not include the available balance since it will eventually disappear from your account to the target destination. In short, your available balance equals the total account value, minus the funds on hold.
ii) Funds on hold
The funds on hold refer to the local currency value of your recent cashouts and any crypto you purchase with the cashouts. The amount is usually represented in the local currency. When performing cash out, Coinbase always tells you when the concerned funds will be available in the concerned destination, which might be your bank or another Coinbase customer.
iii) Collateral
Collateral refers to a borrower’s BTC funds which are equal to the USD value of the loan during the time of loan origination, which Coinbase ‘locks up’ to secure the loan. Coinbase sells off enough of this BTC collateral to repay your missed payment if you miss a monthly payment.
How do I add money to my Coinbase account?
Once you create a Coinbase account, it is essential to understand how you can add money to your account for various kinds of transactions. If you live in the US, you can easily fund your Coinbase account with USD via wire or ACH transfers using your bank account. Before making any transfer from your bank to your Coinbase account, you must verify your bank account as follows.
- Open trading view at pro.coinbase.com/trade
- Select the Deposit option on the left-hand column under Wallet Balance
- In the Currency Type field, choose USD
- Hit on the Bank Account tab, select ‘From’ then hit on Add Account
- Once redirected to Coinbase.com, you will then have to complete the bank account verification process
Once Coinbase verifies your bank, you can add money to your Coinbase account as follows.
- At pro.coinbase.com/trade, open the trading view.
- Under Wallet Balance, select Deposit
- In the Currency Type space, select USD
- Select the Bank Account tab. Your verified bank account will be listed in the ‘From’ list.
- Select the verified bank account to deposit from
- Specify the amount to transfer
- Select the Deposit USD option to confirm
Can I spend my money in the Coinbase account without withdrawing to a bank account?
It is not a must you withdraw money to your bank account to use it for your transactions. Coinbase has a debit card that lets you spend money in your wallet. Just like other payment cards, you can purchase goods online, pay at physical stores when you swipe as well as withdraw at an ATM when the need arises.
You can even transfer money to someone else’s bank account online. The card is the easiest way to spend your Coinbase balance and avoid the lengthy process of transferring money to your bank account. Interestingly, you can use the card worldwide, unlike other debit cards that limit your card usage to the US.
Is Coinbase safe to use?
Coinbase is safe to use since your funds are FDIC insured up to $250,000. If the platform collapses, your money will be safe. Moreover, Coinbase also has a Valt feature that protects account holders from hackers.
Bottom line
Coinbase is a digital platform that allows you to trade in cryptocurrencies. You can open an account online using a computer or smartphone. The platform allows you to send and receive money from other Coinbase account holders. You can use your bank account to add money to your Coinbase account. Interestingly, Coinbase has a debit card that allows you to spend money in your balance. It is safe to use Coinbase.
