Main Reasons Why Cryptocurrencies Cannot Be Converted to Cash and How to Resolve Them

When using a cryptocurrency exchange, you may encounter issues where you cannot withdraw or cash out your assets. There are various reasons why cashing out might be impossible, and most of these can be prevented with proper preparation beforehand. Here, we introduce the most common reasons why cryptocurrencies cannot be cashed out and how to address each issue.

When Incorrect Wallet Address Input Prevents Cashing Out

If the wallet address entered during withdrawal is incorrect, the withdrawal request will be rejected. Always verify that the selected blockchain network and the address match. Mismatched address and network types can not only cause transaction failures but may also result in asset loss.

It is important to confirm with the recipient’s wallet service to ensure you have the correct address and network type in advance. This is especially crucial for assets supporting multiple networks such as Bitcoin, Ethereum, and Solana, as mistakes are easy to make.

When a Tag or Memo Is Required for the Withdrawal Address

Some cryptocurrencies like XRP and EOS require an additional piece of information called a “tag” or “memo” when sending funds. Without this information, the assets may be sent but not properly reflected on the recipient’s side, or they could be lost forever.

After selecting the relevant network, the withdrawal screen will indicate whether a tag or memo is necessary. If required, confirm the exact value from the recipient and input it accurately. Incorrectly entering the tag or memo means the assets cannot be recovered.

When Assets Are Locked and Cannot Be Cashed Out

Cryptocurrency deposited into a wallet may be temporarily locked until a certain number of confirmations are received on the blockchain. During this period, no transactions, including cashing out, can be performed, and assets cannot be moved. The lock remains until the required number of confirmations is reached automatically.

The number of confirmations needed varies depending on the blockchain, such as Bitcoin, Ethereum, or Layer 2 networks. As the blockchain confirms the transaction, the lock is automatically released.

Additionally, if the exchange’s security system detects a risk in your account, assets may be temporarily locked. Usually, completing security verification will unlock the assets.

When a 24-Hour Withdrawal Restriction Is in Effect

For security reasons, certain operations trigger a 24-hour withdrawal restriction, including:

• Changing or resetting your password
• Changing your registered phone number
• Changing or disabling your email address
• Modifying Google Authenticator settings
• Changing your fund password
• Removing biometric authentication (security key)
• Enabling or disabling withdrawal limits for new addresses

After performing these actions, all withdrawals, including cashing out, will be restricted until 24 hours have passed. If you need to cash out urgently after security changes, plan and complete these operations in advance.

When the Withdrawal Limit Based on Verification Level Has Been Reached

Most exchanges set withdrawal limits according to the user’s KYC (Know Your Customer) verification level. To cash out the desired amount, you must complete the corresponding verification level.

Typical withdrawal limits are approximately:

No verification: Up to about $20,000 USD per day, with monthly limits

Basic verification completed: Up to about $1 million USD per day, no monthly limit

Advanced verification completed: Up to about $2 million USD per day, no monthly limit

These amounts are based on the total value of your assets converted to USD. If planning to cash out large amounts, complete or upgrade your verification in advance.

When the Withdrawal Amount Exceeds Available Balance

The total asset amount displayed and the “available balance” are different. If you have open orders, the funds used for those orders are excluded from the available balance. To cash out, you must cancel all active orders first.

Also, assets received as bonuses or promotional rewards are generally not eligible for cashing out. They can be used for trading but cannot be withdrawn from your wallet. Be aware of this when checking your available balance.

When the Withdrawal Amount Is Below the Minimum Limit

Exchanges set minimum withdrawal amounts for each blockchain to optimize network fees. If your withdrawal amount is below this minimum, the request will be rejected.

Minimum amounts vary depending on the network; major networks like Bitcoin and Ethereum tend to have lower minimums, while less common networks may have higher thresholds. The minimum amount will be displayed when selecting the network on the withdrawal screen, so check carefully.

Temporary Inability to Cash Out Due to Network Maintenance

During maintenance or upgrades of wallets or blockchain networks, withdrawals are temporarily halted. In some cases, switching to a different blockchain network may allow you to cash out your assets.

Maintenance schedules are often announced in advance, so it’s recommended to check official notices. Once maintenance is complete, withdrawal restrictions are automatically lifted. Setting notifications for service resumption can help you stay informed and avoid missing the opportunity.

Preventive Measures for Difficulties in Cashing Out Cryptocurrency

Most issues preventing cashing out can be avoided through proper preparation and verification. Always double-check wallet addresses before withdrawal, plan security setting changes carefully, and complete KYC verification well in advance.

Although withdrawal restrictions may seem complex, understanding the rules makes handling them manageable. Use this guide to ensure safe and efficient asset management.