8 Reasons Your Crypto Withdrawal Is Stuck (and how to fix it)

Incorrect wallet addresses and not satisfying withdrawal limits are two of the biggest reasons why transfers of crypto from one exchange to another wallet don’t proceed. 

If a withdrawal of digital assets hasn’t been completed or is stuck, check to see if one of the below reasons applies, and the relevant solution.

1. KYC hasn’t been completed
2. The withdrawal amount is below the minimum limit
3. Violation of the exchange policies
4. The wallet is undergoing maintenance
5. The user has exceeded the day’s withdrawal limits 
6. The destination wallet address is incorrect
7. The blockchain network is congested
8. Trusted address book protection

‍

Reasons Why A Crypto Withdrawal Fails 

1. KYC hasn’t been completed

For most cryptocurrency exchanges, users must satisfy Know Your Customer (KYC) checks before depositing and withdrawing digital assets. This is for security reasons; exchanges must verify the user's ID to mitigate against crimes like money laundering. 

👉How to fix it: The simple solution to this issue is to complete the KYC process that the exchange requires. This involves responding to specific identity verification questions and uploading documents such as a driver’s license, passport, or government-issued ID.

‍

2. The withdrawal amount is below the minimum limit

Although the minimum withdrawal amount is sometimes hard to find, a minimum amount usually needs to be transferred from a wallet.  

The transaction can't be processed if the user intends to withdraw an amount of crypto assets not equal to or greater than the exchange’s minimum limit. In fact, the withdrawal transaction won’t progress at all. 

👉How to fix it: If the amount of crypto to be withdrawn is low, check that it is higher than the exchange’s minimum amount. This information is usually stated on the traction page. Otherwise, the Help Centre can be helpful. 

‍

3. Violation of the exchange policies

A lot of factors fall under this umbrella.

First, crypto exchanges are required to adhere to certain regulations in their jurisdictions to maintain operational compliance. When users sign up, they will also adhere to policies relating to cryptocurrency withdrawals. 

A violation of these policies previously agreed upon by the user can result in the individual being prohibited from trading on the platform. This might include withdrawals of crypto.

👉How to fix it: If this occurs, there probably isn’t much that can be done except for users to plead their case to the relevant exchange. Prevention, by adhering to the exchange’s policies, is the best method.

4. The wallet is undergoing maintenance

Crypto exchange wallets undergo maintenance from time to time. This is largely for security reasons, but upgrades may be planned as well. 

During these times, withdrawals (and deposits of crypto) may be temporarily suspended until maintenance, or whatever works are being conducted, have concluded. Almost all digital asset changes will advertise wallet or server shutdowns to their customers so they may time their asset management tasks properly. 

Wallet and server shutdowns usually last tens of minutes to a few hours. 

👉How to fix it: Watch for exchange messages or announcements. These may come in emails, notifications on the interface, or social media platforms. The time of maintenance commencement and cessation will be presented, as well as a brief explanation of why withdrawals are suspended.

‍

5. The user has exceeded the day’s withdrawal limits

Some crypto exchanges impose a maximum limit on the number of withdrawals completed in a day. Exchanges do this to limit the potential effects on their liquidity should multiple users conduct mass withdrawals. Not only is there a limit to the number of withdrawals, but also the volume of crypto that can be cashed out. For example, Coinbase has a limit of $50,000.

👉How to fix it: Consider withdrawing funds in smaller increments and ensure the number of withdrawals doesn’t exceed the limit. 

‍

6 .The destination wallet address is incorrect

Incorrectly entering the destination wallet's address will surely result in a failed crypto transfer. Mistakes usually arise when the selected blockchain network doesn’t match the address mentioned. Some exchanges will prompt the user if this is the case, however, some don’t. 

If crypto has been sent to the wrong wallet address, the chances of its recovery are slim. 

👉How to fix it: The best solution is prevention. Double-check that the wallet address is correct. Use the copy function or QR code to eliminate manual entry errors. Next, make sure the blockchain network is supported by both wallets.

‍

7. The blockchain network is congested

This is a common reason for crypto withdrawals to be rejected. A congested blockchain is usually caused by an immense number of transactions on the respective network. 

For example, the Bitcoin network is one of the most popular and widely used networks in crypto. Sometimes, there may be a huge number of transactions on the platform, which does not leave space for new transactions to take place for a certain period. This is a common reason for Bitcoin transactions to become stuck and unconfirmed until the network traffic is cleared.

Withdrawals undertaken during these times might take a significant time, such that the exchange has no choice but to reject the transaction. 

👉How to fix it: Sending the crypto on a different blockchain network is the obvious solution. Otherwise, waiting until the congestion clears is an alternative.

‍

8. Trusted address book protection

There is a huge variety of features on exchanges to personalize or make navigation easier. One of the many features available on the platform is Trusted Address Book Protection. In this, users are only allowed to withdraw funds to wallets that are already fed to the exchange. If this feature is turned on, then a withdrawal request for a different destination may be rejected.

👉How to fix it: The solution to avoid this is to turn off the Trusted Address Book Protection feature or simply add the new recipient details and save it on the Address Book.

‍

Learn more about transfers

Learn more specifically about Bitcoin transfers, or find out what crypto are the fastest and cheapest to send with here.

‍

***

‍

We aim to publish factual and accurate information as of the publication date. For specific information about a cryptocurrency exchange or trading platform please visit that provider's website. This information is general in nature and is for educational purposes only. We do not provide financial advice, nor does it take into account your personal financial situation. We encourage you to seek financial advice from an independent financial advisor where appropriate and make your own inquiries.

‍

--

‍

Want to start your own exchange? Find out how at HollaEx.com