How to Withdraw Bitcoin from Cash App to Bank Account

If you’ve been investing in bitcoin through Cash App, you may be wondering how to turn that digital currency into traditional money in your bank account. Withdrawing bitcoin from Cash App to your bank is a straightforward process, but it does require a few steps. Here is how to withdraw bitcoin from cash app to bank account.

1. Link Your Bank Account to Cash App

Before you can withdraw bitcoin to your bank account, you need to make sure your bank account is linked to your Cash App. If you haven’t already done this, don’t worry – it’s a simple process:

• Open Cash App on your iPhone or Android device
• Tap the Banking tab located on the bottom-left corner of the screen
• Tap “Link Bank”
• Follow the given prompts to enter your bank account information and verify the account

Cash App uses Plaid, a secure third-party service, to verify your bank account. You’ll need to log into your bank account through Plaid and grant permission for the Cash App to access your account information. This is a one-time process and your login credentials are not stored by Cash App.

2. Sell Your Bitcoin

Before you can withdraw funds from the Cash App to your bank account, you need to convert your bitcoin holdings to USD. Cash App makes this easy:

• From the Cash App home screen, tap the Investing tab on the bottom-right corner
• Tap Bitcoin
• Press Sell
• Choose the amount of bitcoin you want to sell, or tap “Sell All” to convert your entire bitcoin balance to USD
• Confirm the transaction with your PIN or Touch ID.

3. Withdraw Funds to Your Bank Account

Now that you’ve converted your bitcoin to USD, you can withdraw those funds to your linked bank account:

• Tap the Banking tab on the Cash App home screen
• Press Cash Out
• Choose the amount you want to withdraw and tap Cash Out again
• Select a deposit speed (Instant or Standard)
• Confirm the withdrawal with your PIN or Touch ID

Cash App offers two options for withdrawal speed:

• Instant deposits are credited to your bank account immediately but incur a 1.5% fee
• Standard deposits are free but can take 1-3 business days to post to your bank account

The withdrawal limit for Cash App is $2,000 per transaction and $5,000 per week. If you need to withdraw more, you may need to do multiple transactions over a few days.

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Tips for Withdrawing Bitcoin from Cash App to Bank Account

• Always double-check the amount and the receiving bank account before confirming a withdrawal
• Keep in mind that bitcoin prices can fluctuate rapidly, so the USD amount you receive from selling bitcoin may be different from the original value of your bitcoin purchase
• Cash App may require additional verification for larger withdrawals, such as a government-issued ID
• For tax purposes, keep records of your bitcoin purchases and sales on Cash App.

Key Takeaways

You may find these key takeaways for how to withdraw bitcoin from cash app to bank account helpful:

1. Link your bank account first: Before you can withdraw bitcoin or USD from Cash App, you need to link your bank account to the app. This is a one-time process that verifies your account using Plaid, a secure third-party service.

2. Sell bitcoin before withdrawing: Cash App doesn’t allow direct withdrawal of bitcoin to a bank account. You first need to sell your bitcoin within the app, converting it to USD. This is done instantly, and the resulting USD balance is available in your Cash App account.

3. Choose your withdrawal speed: When withdrawing USD from Cash App to your bank, you have two options – Instant and Standard. Instant withdrawals are credited to your bank immediately but incur a 1.5% fee. Standard withdrawals are free but can take 1-3 business days to post to your bank.

4. Be aware of limits: Cash App has withdrawal limits of $2,000 per transaction and $5,000 per week. If you need to move more money, you’ll need to spread out your withdrawals over multiple transactions or days.

5. Keep records for taxes: Bitcoin transactions, including purchases and sales, may have tax implications. Always keep detailed records of your Cash App bitcoin activity for tax reporting purposes.

6. Double-check details before confirming: Before hitting that final confirm button on a withdrawal, always make sure the amount and the destination bank account are correct. Transactions can’t always be reversed once they’re initiated.

Frequently Asked Questions 

1. How long does it take to withdraw bitcoin from Cash App to a bank account?

The time it takes for a bitcoin withdrawal from Cash App to reach your bank account depends on the withdrawal method you choose:

• Instant withdrawals are credited to your bank account immediately but incur a 1.5% fee
• Standard withdrawals are free but can take 1-3 business days to post to your bank account

2. Is there a limit to how much bitcoin I can withdraw from Cash App?

Yes, Cash App has withdrawal limits of $2,000 per transaction and $5,000 per week. If you need to withdraw more, you’ll need to do multiple transactions over a few days.

3. Do I need to verify my identity to withdraw bitcoin from Cash App?

Cash App may require additional verification for larger withdrawals, such as a government-issued ID. This is part of their security and anti-money laundering measures.

4. Can I withdraw bitcoin from Cash App directly to another bitcoin wallet?

No, Cash App does not currently support direct bitcoin withdrawals to external bitcoin wallets. You can only withdraw bitcoin by first selling it for USD within the app, then withdrawing that USD to your linked bank account.

5. Are there any fees for withdrawing bitcoin from Cash App?

While Cash App doesn’t charge fees for standard withdrawals to your bank account, they do charge a 1.5% fee for instant withdrawals. Additionally, Cash App may charge a small fee when you sell your bitcoin for USD within the app.

6. How do Cash App bitcoin withdrawals affect my taxes?

Bitcoin transactions, including purchases and sales, may have tax implications. In the US, the IRS treats bitcoin as property for tax purposes. When you sell bitcoin on Cash App, you may need to report capital gains or losses on your tax return. Always keep detailed records of your Cash App bitcoin activity and consult with a tax professional for guidance.

7. Is it safe to withdraw bitcoin from Cash App to my bank account?

Yes, withdrawing funds from Cash App to your linked bank account is generally safe. Cash App uses encryption and secure protocols to protect your financial information. However, as with any financial app, it’s important to use strong passwords, enable two-factor authentication, and be cautious of phishing scams or suspicious activity on your account.