If you use Coinbase, you may have experienced issues regarding your Coinbase funds being on hold. If you have not, this article will save you for that period and help you answer the question, “Why are My Coinbase Funds on Hold?”

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Experiencing your Coinbase funds on hold can be very frustrating. However, they happen for a reason. Hence, knowing why your Coinbase funds are being put on hold will be less frustrating. 

What Does “Coinbase Funds on Hold” Mean?

First, let us find out the meaning of the term “Coinbase Funds on Hold.” The term refers to your recent cash value in your local currency and any crypto assets you bought with the cash being held for some time. Your Coinbase funds on hold will be represented in your local currency, whether you purchased cryptocurrency or added fiat to your balance.

The Coinbase funds on hold period is not static. For every user, it is dependent on some factors like:

  • Payment activities
  • Account history
  • Transaction history

Furthermore, it is essential to note that it is not within the capacity of the Coinbase Support team to reduce the “funds on hold period.” It means that even if you reach out to them to complain about your Coinbase funds on hold and ask them to reduce the time, you will not get any positive response. 

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Reasons Why You May Have Your Coinbase Funds on Hold

Now you know what the term means, let us explore why you have your Coinbase funds on hold. The most common reason is that Coinbase performs a KYC (Know Your Customer) or AML (Anti Mony Laundering) check.  Coinbase wants to be sure that you are who you said you were on its platform. In addition, you are not using Coinbase to conduct illicit transactions. The law requires Coinbase to perform these KYC and AML checks to protect itself and its users. 

Furthermore, you can experience your Coinbase funds on hold if the platform spots suspicious activity requiring further investigation into your account. Examples of this activity include massive withdrawals and deposits or concerns about where the funds come from.

It is essential to mention again that Coinbase cannot reduce your funds holding period if you ever experience or are experiencing it. The reason is that they are following legal obligations and being KYC and AML checks compliant. Hence, they cannot exempt anyone who gets involved.

Frequently Asked Questions About Coinbase Funds on Hold 

What is “An Available Balance?”

Your available balance refers to the amount of cash you can withdraw or cryptocurrency you can transfer from your Coinbase account after buying crypto or adding fiat money to your Coinbase account from your local bank account. 

Before an add cash or crypto purchase confirmation, Coinbase will let you know when your money or cryptocurrency will be available for withdrawal to your local bank or sent out of Coinbase. 

Coinbase does not allow immediate cash out of funds by users to their linked bank account or send out crypto immediately after they purchase it for security purposes. The purchased crypto or added cash is called “Cashout Availability.”

When you buy crypto through wire transfers or debit cards, it will not affect your Cashout Availability. However, the purchased crypto will be subject to any Coinbase funds on hold restriction on your account.

How Do I Calculate My Available Balance?

You can calculate your available balance by subtracting your Coinbase funds on hold from your account’s total worth of funds. 

Does the Holding Period Affect Crypto Value Increase?

The truth is that any cryptocurrency value increase will not affect your cashout availability. 

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Is My Cashout Availability Affected by Wire Transfers of Debit Card Purchases?

Yes! If there are certain restrictions on your Coinbase account, for instance, limitations or holds. No matter the payment method you use, the restrictions will apply. 

On the other hand, if there is no restriction on your account, crypto purchases via wire transfers and debit cards will be sent to your Coinbase account. The assets will be reflected in your US dollar balance, and you can use the funds to buy crypto or send them out of Coinbase instantly. 

What Do I Do When I Want My Funds Immediately and My Cash-Out Availability Time Frame Has Not Expired?

As we mentioned earlier, the only thing you can do when you see your Coinbase funds on hold is wait until the holding period expires. You can only cash the funds into your account or send out the crypto assets. However, the Coinbase funds on hold message does not stop you from doing other activities on the platform. You can buy, sell, and trade assets on the platform while waiting for the Coinbase funds on hold period to elapse. 

Typically, withdrawals for accounts experiencing Coinbase funds on hold start at 4 p.m. PST on the listed expiry date.

If you are experiencing the Coinbase funds on hold issue, the best thing to do is exercise patience. Allow Coinbase to finish its AML and KYC checks. Remember, it is a legal practice that allows Coinbase to protect itself and its users.