Here’s how withdrawing Bitcoin works in Cash App

Cash App is another great way to get started investing in Bitcoin, especially since so many people already have the application. We’ve already covered their new feature of depositing Bitcoin to your Cash App account, but now we’ll talk about how you can withdraw it. This guide will show you exactly how to send Bitcoin from Cash App to any address you’d like.

Last month, one of the biggest platforms for purchasing bitcoin started accepting deposits. So, we can purchase and deposit on Cash App, but just how well do they handle withdrawals? 

One of the appeals to Bitcoin is having the freedom to make transactions without needing a banks approval. Learning just how difficult it can be to move Bitcoin around can be a surprise to newcomers.

Why would you want to withdraw?

If you are purchasing Bitcoin from Cash App, you are essentially purchasing it from an exchange. Crypto exchanges holding large sums of money have been repeatedly hacked. Just this year, 40 million was stolen from Binance.

Sending your Bitcoin to a wallet that supports “cold storage” makes theft less likely. The wallet will provide you an address to deposit at, and create a private link that you will write on paper, and is used to transact. 

Another reason you may want to withdraw is to purchase an alt-coin by sending the Bitcoin to another exchange. This is something that you can already do on Coinbase.

Requirements of withdrawing

  

After adding a method of payment to purchase the Bitcoin, Cash App will ask you to verify your identity. They request your full name, date of birth, and last four digits of social security to make a Bitcoin purchase. This verification process usually takes about 24 hours. 

In order to withdraw bitcoin, Cash App needs a photo ID, source of income and photo of your face. 

Fees and limitations 

Cash App uses a price spread instead of fees for purchasing Bitcoin.

At the time of writing, Bitcoin on Coinbase is worth $9556 and Cash App is offering to sell Bitcoin for $9673. This means you are paying a 1.2% premium to buy Bitcoin on Cash App.

The cost effectiveness of purchasing through Cash App or Coinbase depends on how much Bitcoin you are intending to purchase. 

If you wanted to purchase $10 on Coinbase, there would be a $0.99 fee, or 10%. Purchasing $100 on coinbase would cost you $2.99, or almost 3%. In both of these cases, Cash App is more cost effective.

Another benefit of using Cash App instead of Coinbase is that you can purchase up to $10,000 per week with a debit card, where as Coinbase limits you to $50 per week. 

Coinbase allows you to purchase $1000 per week if your bank account is linked to the exchange, but you will not be able to withdraw for 19 days. Cash App lets you withdraw instantly. 

How to withdraw

  1. Make sure you have a Bitcoin Balance
  2. Find the “deposit” address on the platform you would like to send it to
  3. Find the “withdraw” button on Cash App in the Bitcoin balance section
  4. Tell Cash App how much you would like to send
  5. If the “deposit” address on your preferred platform has a QR code, hold up your camera to the code
  6. If you don’t have a camera or QR code, click “enter manually.” You will have to type in the address or copy and paste it. Make sure you don’t mess up because if it’s wrong you’ll lose the money forever.

Summary 

If you are spending less than $5000 per transaction, the withdrawal Cash App is more cost and time effective than Coinbase. 

Still, Cash App lacks many features that Coinbase offers such as the ability to exchange Bitcoin for alt-coins, setting up automatic payments, and different payment options.