Why Can‘t I Withdraw My Money from Crypto.com?
The most common reason users can‘t withdraw money from Crypto.com is that direct fiat withdrawals are not supported yet. So even if you sell crypto assets to cash, the funds get stuck within your Crypto.com account. Let‘s discuss this limitation in detail along with other withdrawal issues and solutions for accessing your money.
Crypto.com Lacks Fiat Withdrawals
As a cryptocurrency platform, Crypto.com specializes in services around digital assets rather than fiat deposits or withdrawals. Over 68 million verified users actively trade and transact crypto with Crypto.com, but features like withdrawing cash to your bank are still in development.
I know it can be concerning to have money trapped inside an exchange you‘re unfamiliar with. But Crypto.com isn‘t some fly-by-night operation…they‘ve become one of the top 10 crypto apps globally with over $2.5 billion in venture capital funding to expand the platform.
So try not to panic if you can‘t directly withdraw cash. You need to sell crypto for fiat, then withdraw the fiat funds to an external bank account once available. I‘ll provide more details on that process shortly!
Why Your Crypto Withdrawals Get Blocked
Along with lacking fiat withdrawals, there are a few other reasons why you may struggle to withdraw any money from Crypto.com:
Purchase Holding Periods
To reduce fraud, Crypto.com enforces a holding period before newly-purchased crypto can be withdrawn externally.
For crypto bought with credit/debit cards, it‘s a 5 day holding period during which withdrawals are completely disabled.
For purchases via bank transfer it‘s 10 days before you can withdraw.
These temporary deposit locks let transactions fully finalize before assets leave Crypto.com custody. Annoying but unfortunately common among leading exchanges like Coinbase, Gemini, and Binance as well.
Daily Withdrawal Limits
All Crypto.com accounts have maximum daily crypto withdrawal limits based on verification level:
| Verification Tier | Daily Withdrawal Limit |
|---|---|
| Level 1 | 0.06 BTC |
| Level 2 | 0.6 BTC |
| Level 3 | No limit |
At today‘s prices, having Level 1 verification caps your daily withdrawals around $1,500. So if you try exceeding that, your transfers will fail.
Security Freezes
During incidents of unauthorized account access or suspected fraud, Crypto.com will often freeze ALL user withdrawals globally for 24-48 hours. This lets them investigate issues and prevent further damages.
But understandably, having your funds frozen without notice can cause panic! Crypto.com received heavy criticism in January 2022 when ~400 users had crypto stolen and withdrawals were halted for a full day.
In Crypto.com‘s defense, they provided confirmation that no users experienced permanent asset losses from that security incident. And reimbursed any missing funds.
But it still represents the delicate balance between security and accessibility for crypto held on an exchange. You rely on their competence to keep funds safe while making them available on-demand to users.
How to Withdraw Money from Crypto.com
Since fiat withdrawals aren‘t enabled yet, you need to exchange crypto for cash to get money out of Crypto.com into your bank account.
Follow these steps:
Sell crypto assets held in your Crypto.com account for fiat/stablecoins like USDC.
Withdraw fiat like USDC to an external wallet that supports cash transfers to bank accounts.
I recommend using a service like Coinbase or FTX that offers fast withdrawals to PayPal or ACH transfers for a few percent fee.
Here‘s a comparison between some options:
| Service | Withdrawal Fees | Speed |
|---|---|---|
| Xfers | 1% | 1-3 days via bank transfer |
| Venmo | 3% | Instant |
| PayPal | 2% | Instant |
| Coinbase | Free ACH Deposits/Withdrawals | 1-3 days |
So there are reliable methods to cash out through Crypto.com. It just involves a few extra steps rather than direct bank transfers.
Why Crypto.com Lacks Fiat Withdrawals
Let‘s discuss a few reasons why fiat withdrawals aren‘t available on Crypto.com yet:
- Complex banking/regulatory integrations required per region
- Risk of fraud from users withdrawing stolen funds
- Encourages assets staying on platform to use other services
- Competing product priorities around core crypto offering
Based on Crypto.com statements, I expect traditional cash transfers will get added eventually given user demand. But the priority lies with expanding available crypto coins, DeFi protocols, NFT investing, and other Web3 functionality.
That aligns with their long-term ambitions of "accelerating the world‘s transition to cryptocurrency". Easy fiat off-ramps aren‘t as core to their crypto-forward strategy.
So for now, I‘d treat Crypto.com first as a "crypto bank" rather than expecting a full-featured financial institution. Their crypto banking services are excellent. But things like debit cards, bank transfers, or lending remain works-in-progress to watch for updates.
The Bottom Line
In summary – Crypto.com currently blocks fiat withdrawals, requiring users to cash out through crypto sales then external transfers. This limitation, combined with security holds or withdrawal limits, are the primary reasons you can‘t directly withdraw cash from Crypto.com today.
I know that‘s frustrating as traditional finance services make moving money freely between banks and exchanges seem trivial. But behind the scenes, supporting crypto introduces all kinds of risks and complexities financial providers struggle to handle.
So I suggest being patient as Crypto.com works to expand withdrawal capabilities…and explore alternatives like selling crypto to cash out vs waiting on their improvements. Ultimately they aim to offer the smoothest transition between crypto and cash to match user expectations.
