How to cash out crypto in the US

To cash out crypto in the US, you normally sell it for dollars on a regulated exchange or app, then withdraw that cash to your own bank account by ACH or wire transfer. If your coins sit in a self-custody wallet, you first send them to the platform where you will sell. Expect possible holds and limits, and remember that the sale is something you report to the IRS.

How do you convert crypto to cash?

Cashing out has two separate steps, and it helps to keep them apart in your head:

1. Sell. You trade the crypto for US dollars inside an account at a centralized exchange or a finance app. The dollars land in your cash balance on that platform.
2. Withdraw. You move those dollars from the platform to a bank account in your name, usually by ACH (cheap, slower) or wire (faster, often a fee).

On Coinbase, for instance, the help center says (opens in a new tab) a sale to your cash balance is instant, while the time to cash out depends on the payment method. Its cash-out steps (opens in a new tab) end with a preview screen where you review the withdrawal details and fees before confirming. Most platforms follow the same pattern, so look for that preview and read it.

How do you withdraw crypto to a bank account?

Fees and timing vary by platform and method, so check your platform's own schedule. As one example, as of November 2026 Kraken's support page (opens in a new tab) lists these US options:

Kraken also notes that intermediary banks can sometimes take their own fees in transit. Other platforms set different prices, so treat this as an illustration, not a benchmark. Two things matter more than the fee itself: the total you will actually receive, and the estimated arrival date shown before you confirm.

What if your crypto is in a self-custody wallet?

A self-custody wallet, such as a hardware wallet or a phone wallet where you hold the seed phrase, cannot pay dollars into a bank account. To cash out, you first send the coins to your account at the platform where you plan to sell.

• In your exchange account, open the receive or deposit screen for that exact coin and network, and copy the deposit address from there.
• Check the network matches on both sides, include any memo or destination tag the exchange shows, and send a small test first.
• Wait for the deposit to be credited, then sell and withdraw as above.

Our guide on how to send crypto safely walks through each of these checks. Moving coins between wallets and accounts you own is not itself a sale, but the IRS treats any network fee you pay in crypto as a disposal of that small amount.

Can you cash out on PayPal, Cash App or Robinhood?

Several finance apps let US users sell crypto inside the app. What their own help pages say, as of November 2026:

• PayPal: PayPal says (opens in a new tab) sale proceeds arrive as US dollars in your PayPal balance, which you can then move to a linked bank account or debit card. It also says it may need valid tax information before you can sell.
• Cash App: its help page (opens in a new tab) shows selling bitcoin from the Bitcoin tile on the Money tab, confirmed with your PIN or Touch ID.
• Robinhood: Robinhood states (opens in a new tab) that standard ACH bank transfers carry no fee, while instant withdrawals can cost 1.75%, with a $1 minimum and $150 maximum per transaction.

These apps are convenient if you bought there. If your coins are elsewhere, check that the app accepts deposits of that coin on that network before you send anything.

Why are crypto withdrawals held or limited?

Holds are normal, and they usually trace back to money that has not fully cleared. Some examples from the platforms themselves:

• Kraken (opens in a new tab) applies a 72-hour withdrawal hold after ACH, PayPal, card or digital wallet purchases, and a 7-day hold on ACH deposits made through Plaid.
• PayPal (opens in a new tab) can hold sale proceeds until the bank payment for the original purchase clears, which it says can generally take up to 8 days.
• Coinbase (opens in a new tab) says hold periods depend on account, payment and transaction history, and that its support team cannot shorten them.
• Robinhood (opens in a new tab) says crypto withdrawal limits depend on recent account activity and can change daily.

Can you sell crypto at a crypto ATM?

Some can. The National Association of Attorneys General (opens in a new tab) explains that only bidirectional kiosks support both buying and selling; to sell, you send crypto to the machine's address, often by scanning a QR code, and it pays out cash. That article, written several years ago, put typical kiosk fees at 9% to 12% of the transaction, with a range from about 4% to more than 20%, and said online exchange fees are generally much lower.

Some states cap these machines. California law limits kiosk transactions to $1,000 per customer per day, and since January 1, 2025, kiosk charges there cannot exceed the greater of $5 or 15% of the transaction, according to California's DFPI (opens in a new tab). Since July 1, 2026, operators there must also be licensed.

Is it safe to sell crypto to a person?

Selling directly to an individual, online or in person, carries risks an exchange absorbs for you. Payments made by bank transfer, payment app or check can sometimes be reversed or turn out to be fraudulent after you have already sent coins you cannot pull back; the FTC (opens in a new tab) describes crypto scams built on a fake check that later bounces, leaving the victim to repay the bank. Meeting a stranger with cash or a phone full of crypto is a personal safety risk too.

There is a legal angle as well. FinCEN has stated (opens in a new tab) that peer-to-peer exchangers are "money transmitters" that must register with it and follow anti-money-laundering rules, and in 2019 it fined an individual exchanger for failing to do so. Someone who regularly buys crypto for cash without asking for ID may not be operating legally.

Is cashing out crypto a taxable event?

Yes. The IRS treats digital assets as property (opens in a new tab), and selling them for US dollars is a disposal you must report, whether it produces a gain or a loss. Coins held for one year or less produce short-term gains or losses; held for more than a year, long-term.

US brokers now report these sales on Form 1099-DA. According to the IRS, brokers report gross proceeds for transactions on or after January 1, 2025, and must also report basis for certain transactions from January 1, 2026. The 2026 form instructions (opens in a new tab) limit required basis reporting to "covered securities", meaning assets acquired after 2025 in an account where the broker held them for you. Coins you bought years ago or moved in from a personal wallet may show proceeds with no basis, so keep your own records.

The IRS also says you must report every digital asset gain or loss whether or not a 1099-DA arrives, and that foreign exchanges may not send one. Our crypto tax guide explains cost basis, lot methods and the forms involved.

Where to go next

Comparing platforms? Start with how to choose a crypto exchange in the US. If you are moving coins from a hardware wallet first, re-read how to send crypto safely, and if anyone is pressuring you to cash out or move money quickly, check them with our Scam Check tool before you act.

Updated November 9, 2026 by Dave McNaught. Educational content, not financial, legal or tax advice. Spot an error? Request a correction.

About the author

Dave McNaught

Dave McNaught has worked in IT since 1999 and founded All Business Technologies (ABT) in 2003, a Boston-area firm providing Managed IT, Cybersecurity, Managed AI, Web Design and App Development. He publishes The Crypto Guide.

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