Cash App has become one of the most popular ways for people to buy, sell, and hold cryptocurrencies like Bitcoin. With over 70 million active users as of 2024, Cash App makes it easy for anyone to invest in Bitcoin and other digital currencies.
One of the most common questions from Bitcoin holders on Cash App is how to cash out or withdraw their Bitcoin into USD or their local currency. This process allows you to realize any gains from Bitcoin price appreciation and convert those amounts into fiat money that can be spent or saved.
This guide will walk through the full details on how to cash out or withdraw Bitcoin from Cash App in 2024. We will cover transfer fees, limits, timing, as well as tips and methods for choosing the optimal cash out option.
Is it Possible to Cash Out Bitcoin on Cash App?
Yes, it is absolutely possible to cash out bitcoin to USD from your Cash App Bitcoin wallet. The general steps to withdraw or cash out bitcoin to real money from Cash App are:
- Verify your identity by uploading personal details to Cash App
- Cash App will link a bank account or debit card to your account
- From your BTC wallet in Cash App, select “Transfer Out” in Banking tab
- Choose Bitcoin as the transfer “Source” of funds
- Enter the amount in USD you wish to cash out
- Confirm the network/miner fee and compete transfer
Once you confirm the bitcoin transfer, Cash App will automatically sell your Bitcoin and deposit the exchanged USD value into your linked bank account or debit card. This usually takes 1-3 business days after you start the transfer out process.
Things to keep in mind:
- Cash App has a weekly limit of $2,000 worth of bitcoin withdrawals
- A miner fee applies (usually under $2) to transfer bitcoin
- Monitor your bank account to confirm when USD funds have settled
Yes, converting your bitcoin to cash within Cash App and withdraw to your bank is straightforward!
Prerequisites for Cashing Out Bitcoin on Cash App
Before diving into the step-by-step process, it is important to note a few requirements and conditions for cashing out Bitcoin on Cash App:
1. Verify Identity and Enable Withdrawals
To withdraw any funds from Cash App, including Bitcoin, you must first verify your identity by providing personal information including your legal name, date of birth, and social security number. Cash App needs this information to comply with anti-money laundering regulations.
You must also enable withdrawals in the app settings and potentially wait several days after initiating a withdrawal before those funds hit your bank account.
2. Linked Bank Account or Debit Card
To cash out Bitcoin into fiat currency, you must have a linked bank account or debit card attached to your Cash App account. It can take 1-3 business days for Cash App to verify a linked bank account or debit card.
3. Sufficient Bitcoin Balance
Obviously, you must have a Bitcoin balance in your Cash App wallet to cash out. You can only withdraw up to your total Bitcoin balance, minus any pending buy/sell transactions.
4. Cash App Bitcoin Withdrawal Limits
Cash App enforces weekly limits on Bitcoin withdrawals, currently set at $2,000 worth of Bitcoin per week. After verifying your identity though, Cash App will slowly raise your limits over several weeks of using their service.
Step-by-Step Guide to Cash Out Bitcoin on Cash App
Once your account meets the prerequisites outlined above, you are ready to cash out your Bitcoin. Here is the step-by-step process:
Step 1. Open your Cash App Bitcoin wallet
Launch the Cash App mobile app and tap the Investing tab on the bottom menu. This will open your investing wallet, including your Bitcoin balance.
Step 2. Tap the Banking tab
From your Bitcoin wallet screen, tap the Banking tab in the middle menu. This will bring you to an overview of your linked bank account or debit card.
Step 3. Select “Transfer Out”
On the Banking overview screen, select the “Transfer Out” option. This will open the transfer screen to move funds from Cash App into your bank account.
Step 4. Choose Bitcoin as the transfer source
On the Transfer Out screen, tap the “Source” field and select your Bitcoin balance as the source of funds you wish to move into your bank account.
Step 5. Enter the transfer amount in USD
With Bitcoin selected as the Source, you now must enter the USD amount you wish to withdraw. Note that Cash App will automatically convert this to the relevant amount of Bitcoin based on the current market price.
Step 6. Confirm the network fee
Before finalizing your transfer, carefully review the quoted miner fee. Cash App charges a miner fee to process Bitcoin withdrawals. The fee amount will appear in orange text below the withdrawal amount you entered. Miner fees typically range from $0.25 to $1.50 depending on market conditions.
Step 7. Complete the transfer
With the amount entered and fee reviewed, complete the transfer by tapping “Continue” then “Confirm”.
Congrats, you have now successfully cashed out your Bitcoin to USD from Cash App! It may take several business days for the funds to hit your bank account depending on your bank’s processing times.
Tips for Cashing Out Bitcoin from Cash App
When moving Bitcoin from Cash App to your bank, keep these tips in mind:
Transfer in smaller amounts
To avoid any potential hiccups and get your money faster, consider breaking one large Bitcoin withdrawal from Cash App into several smaller transfers. Begin by only moving 25%-50% of your total balance as a test.
Double check bank details
Before confirming your cash out transfer, carefully validate that your bank account details listed in Cash App match the specifics for your bank branch and account number. Any typos can create delays.
Schedule transfers in advance
If aiming to hit a specific date for having cashed out Bitcoin funds available, make sure to plan your Cash App withdrawal 1-3 business days prior based on your bank’s processing time. Scheduling in advance avoids missed expectations.
Track bank transfers
After moving Bitcoin into your bank account from Cash App, be sure to monitor your bank account’s pending transfers tab. This will let you see processing status and catch any potential issues early on. Expect 1-3 business days for completed transfers in most cases.
Alternatives for Cashing Out Bitcoin
While Cash App provides a simple solution for cashing out small amounts of Bitcoin into your bank account, there are other methods to consider for selling larger holdings of Bitcoin.
1. P2P exchanges
Peer-to-peer Bitcoin exchanges like Paxful and Bisq connect individual buyers and sellers to exchange Bitcoin for cash deposits, gift cards and other payment methods without Know-Your-Customer requirements. This allows larger transfers with more privacy than Cash App. However, you must find a reputable buyer on P2P exchanges willing to pay fair rates and fees are often higher.
2. Full exchanges
Larger exchanges like Coinbase, Kraken and Gemini offer the ability to cash out much higher volumes of Bitcoin into your bank. These exchanges cater more to active traders and institutions vs personal investors though. Users must submit extensive identity verification and transfers over $10,000 will be subject to additional paperwork. Fees on these professional exchanges are typically cheaper than Cash App for larger volumes.
3. Bitcoin ATMs
If you need to quickly liquidate Bitcoin into cash, then using a Bitcoin ATM allows for instant conversions into paper money, albeit generally with higher fees around 8%. Bitcoin ATMs have daily cash out caps around $3,000 per person, requiring multiple visits for cashing out large Bitcoin holdings. They are fast and private, but again come with higher average fees than Cash App or exchanges.
How to Withdraw Bitcoin from Cash App to Bank Account
Here is a simplified guide on how to withdraw Bitcoin from Cash App to your bank account:
Prerequisites
- Verify your identity on Cash App
- Link a bank account to your Cash App
- Have a Bitcoin balance in your Cash App wallet
Steps
- Open the Cash App and go to the Bitcoin wallet
- Tap on the “Banking” tab at the bottom
- Tap on “Transfer Out”
- Select “Bitcoin” as the Transfer Source
- Enter the amount in USD you want to transfer
- Review the quoted miner/network fee
- Confirm the Bitcoin transfer
The Bitcoin will be converted to USD at the current market rate, withdrawn from your Cash App Bitcoin wallet, and transferred into your linked bank account as USD funds typically within 1-3 business days.
Key Tips
- Transfer smaller amounts to avoid delays
- Double check your bank account details are accurate
- Schedule the transfers a few days in advance to ensure funds are available when needed
How to Send Bitcoin on Cash App to Another Wallet
Here is a step-by-step guide on how to send Bitcoin from your Cash App wallet to an external Bitcoin wallet address:
Prerequisites:
- Have the necessary Bitcoin balance in your Cash App wallet
- Have access to an external Bitcoin wallet address to send funds to
- Open your Cash App and navigate to the Bitcoin wallet tab
- Tap the paper airplane icon in the top-right to access send/receive options
- Select “Transfer” then “Scan QR or Copy Address”
- Scan a Bitcoin wallet QR code or paste the address manually
- Enter the amount in BTC or value in USD to send out
- Double check the recipient’s wallet address and sending amount
- Confirm the transfer and network fee, then select Confirm to complete sending Bitcoin
The Bitcoin amount will be debited from your Cash App wallet and transmitted over the blockchain to the receiving external Bitcoin address. Monitor the pending transaction details to ensure sufficient network confirmations.
Key Tips:
- Triple check the address entered before sending
- Start with smaller test amounts first
- Allow extra time for transactions when the network is busy
When can I withdraw my bitcoin on Cash App?
You can withdraw your bitcoin from Cash App as soon as:
- Your account is verified – Cash App requires you to complete identity verification by providing personal details including your legal name, date of birth and social security number. This is to comply with anti-money laundering regulations.
- Withdrawals are enabled – In the Cash App settings, you need to enable the ability to withdraw funds from your account. This may also come with a waiting period before being able to take money out.
- Your bitcoin transaction is confirmed – After initiating a bitcoin withdrawal from Cash App, you need to wait for the network confirmations to complete before the funds are available to you. Most exchanges require 3-6 confirmations.
- Bank transfers are completed – Once the bitcoin network confirms your withdrawal, the money moves from Cash App into your connected bank account. Bank transfers can take 1-3 business days to fully process.
Once identity verification has been completed, withdrawals are enabled, the bitcoin network has confirmed the transaction, and bank transfer times have elapsed – you have full access to withdrawn bitcoin in your bank balance. Track your withdrawal status within Cash App to monitor progress.
Can I Cash Out Money from Bitcoin to Cash App?
Yes, you can cash out money from bitcoin to your Cash App balance. Here is an overview of how to convert your bitcoin to cash within Cash App:
- Open the Cash App and go to the Investing tab and tap on bitcoin.
- Select the paper airplane icon to go to the bitcoin transfer screen.
- Choose the option to ‘Sell’ bitcoin. This will convert your bitcoin to USD at the current market exchange rate.
- Enter the amount in USD or quantity of bitcoin you wish to sell from your wallet.
- Confirm the previewed exchange rate and complete the transaction.
The equivalent USD amount from selling your bitcoin will then be available in your Cash App balance. You can then easily transfer this money to your connected bank or withdraw it at an ATM via the Cash Card.
A few key points:
- You can only sell up to your total bitcoin balance minus pending transactions.
- There are no fees for selling bitcoin and converting money within Cash App.
- Conversion from bitcoin back to USD wallet happens instantly upon sale.
- Transferring the funds to your bank can take 1-3 business days after initiating.
How to Add a Payment Method to Bitcoin?
Here are the main steps to add a payment method to fund Bitcoin purchases on Cash App:
- Open Your Cash App Log into your Cash App account on your mobile device. Go to the “My Cash” tab that shows your Cash App balance.
- Select “Add Bank” or “Add Debit Card” From the My Cash tab, scroll down and select either the “Add Debit Card” or “Add Bank” option.
- Enter Your Details If adding a bank account, you’ll enter your account number and routing number. For a debit card, enter the card number, expiration date, and CVV code.
- Confirm the Payment Details Cash App will connect to your bank or card issuer to confirm your identity and validate account ownership. Just follow any prompts during this verification process.
- Enable Transactions Once linked, you can enable either your connected bank account or debit card as a method to purchase Bitcoin within Cash App.
After following those steps, your chosen payment method will be ready to fund Bitcoin buys from the Investing tab in Cash App. Just select the payment method when you add money to purchase more bitcoin.
Can you Cash Out Bitcoin for Real Money?
Yes, it is possible to cash out Bitcoin for real money that can be spent or deposited in your bank account. Here are a few ways to do so:
- Cash out to your bank account: You can sell your Bitcoin on platforms like Cash App, Coinbase, Kraken etc., and withdraw the funds into your bank account. The USD value is credited to your account within 1-3 business days typically. This allows you to spend the money or transfer to debit card for real world use.
- Cash out via Bitcoin ATM: One immediate way to turn your Bitcoin into physical cash is to use a Bitcoin ATM which allows you to convert your digital coins into cash money on the spot. Bitcoin ATMs charge a transaction fee, and have daily withdrawal limits, but can be quick and convenient.
- Cash Out with Peer-to-Peer Platforms: Websites like Paxful and LocalBitcoins connect you directly to buyers to sell your Bitcoin for cash deposits, gift cards, or other real currency options. Peer-to-peer options have higher fees but often offer more privacy, higher limits, and faster access to cash.
- Cash Out to Debit Card: Some Bitcoin wallets and exchanges give you the ability to sell Bitcoin and withdraw your funds to a debit card that can be used anywhere cards are accepted. This gives you spending liquidity instantly, though fees are often higher.
There are now a wide variety of methods to cash out your Bitcoin into real money you can spend or withdraw to your bank – with a range of timeframes, limits, and fees across the various cash out options available.
Frequently Asked Questions on Cashing Out Bitcoin using Cash App
Below we answer some of the most common questions around withdrawing Bitcoin from Cash App.
Does cash app report Bitcoin to the IRS?
Yes. federal tax guidance requires Cash App to issue 1099-B tax forms to users realizing over $600 in total profit from any cryptocurrency transactions during the year, including selling Bitcoin. These reported details are cross-checked with your tax return to ensure accurate reporting of investment gains. Always consult a tax professional for advice.
What is the maximum amount I can withdraw from Cash App?
Cash App allows transferring out up to $2,000 worth of Bitcoin per week, subject to gradual increases over time after verifying your identity. For withdrawals into a bank account via ACH transfer the limit rises to $10,000 per week. Limits reset on Monday each week.
Does Cash App have any fees for Bitcoin withdrawals?
Yes, Cash App charges a miner fee to process Bitcoin withdrawals on the blockchain which shows during the withdrawal process. This network fee varies based on market conditions and transaction volume but averages between $0.25 to $1.50. There is no fee for moving funds from Cash App into your bank account beyond the Bitcoin miner fee.
Can I cancel a Bitcoin withdrawal on Cash App?
Unfortunately no. Once you confirm the Bitcoin withdrawal transfer within Cash App the transaction immediately broadcasts to the blockchain. At that point the withdrawal cannot be cancelled as it is in the hands of the decentralized Bitcoin network propagating your transaction to miners for inclusion in a block.
Are Bitcoin withdrawals from Cash App instant?
Cash App will immediately debit Bitcoin from your wallet once processing a withdrawal transaction. However inclusion into an actual block on the Bitcoin blockchain will depend on market conditions and may take 30-60 minutes on average. Allow extra time for delays if the network is congested. Once enough blockchain confirmations occur denoting immutability then your bank can credit deposited funds from Cash App within their standard 1-3 day ACH transfer times.
Conclusion
With digital currencies continuing explosive growth, Cash App serves as the simplest solution for investing in Bitcoin for tens of millions of people globally. While relatively basic in features compared to full exchanges, Cash App excels at letting everyday individuals easily buy Bitcoin along with equities and quickly cash out small holdings.
Their streamlined mobile interface makes Cash App withdrawing Bitcoin back into your bank account straightforward with their automated USD conversion rates saving newcomers headaches. Just be attentive to transfer limits, network fees that apply, and timing required before seeing fiat funds in your bank to avoid frustrations.
Now armed with this complete guide to cashing out Bitcoin holdings using Cash App, you can confidently invest in Bitcoin, monitor market performance, and seamlessly convert digital holdings into cash locally or globally based on life needs!