Sending bitcoin from one wallet to another is one of the most common transactions in the world of cryptocurrency. With the rising popularity of bitcoin and crypto, an increasing number of people are now holding some bitcoin in platforms like SoFi. While SoFi provides an easy way to buy, sell and hold bitcoin, many users eventually want to move their coins to a separate wallet that offers more control and additional features.
In this comprehensive guide, we will walk through the step-by-step process for sending bitcoin from your SoFi account to another wallet in 2024.
Overview of Sending Bitcoin from SoFi
SoFi is a financial services platform that allows users to invest in stocks, ETFs, crypto and more from a single account. The company launched cryptocurrency trading in May 2021, allowing users to buy, sell and hold bitcoin, ethereum and other coins directly within SoFi.
While SoFi provides an easy on-ramp to purchasing crypto, it does have some limitations compared to standalone cryptocurrency wallets:
- Limited control – You cannot withdraw bitcoin to your own wallet and have full control. SoFi holds the private keys.
- Transaction limits – Sending crypto out from SoFi has low limits unless you verify your identity further.
- No advanced features – SoFi lacks advanced wallet features like DeFi apps, NFT support, staking, governance rights, etc.
For these reasons, many users eventually want to graduate from SoFi to a dedicated crypto wallet. This gives them more flexibility, autonomy and functionality with their bitcoin holdings.
The process involves a regular bitcoin transaction – you simply specify the receiving wallet address and broadcast the transaction to the Bitcoin network. But there are some specific steps within SoFi to initiate the withdrawal properly.
We will cover the step-by-step process in detail below.
Prerequisites
Before sending bitcoin from SoFi to an external wallet, you’ll need to make sure you have the following ready:
- SoFi account – You’ll need an existing SoFi account with some BTC in your balance. Only send BTC bought or deposited directly within SoFi.
- Receiving wallet – You’ll need a separate, dedicated cryptocurrency wallet you control the private keys for. Popular options include hardware wallets like Ledger or software options like Exodus.
- Wallet address – The receiving wallet will provide a BTC deposit address, usually a long string starting with “1” or “3”. This is crucial to specify in SoFi to send the funds.
- Identity verification – To withdraw more than $1000 worth of crypto from SoFi daily, you’ll need a verified identity with full KYC. Lower amounts may not require ID verification.
Once you have these prerequisites ready, you can move on to the step-by-step process.
Step 1 – Access SoFi Crypto
First, log into your SoFi account online or via the mobile app. Then access the “Crypto” section of your account.
On SoFi’s website, you can find this under “Invest” → “Crypto”. In the app, tap the crypto icon in the bottom menu or the “Crypto” link at the top.
This is where you can see your full bitcoin balance available to send to an external wallet. Make sure you have sufficient BTC in your SoFi balance for the amount you wish to withdraw.
Step 2 – Initiate Bitcoin Withdrawal
Now that you’re in your SoFi crypto account area, it’s time to initiate the BTC withdrawal.
On mobile:
- Tap the “Send” icon near your BTC balance.
- A “Send Bitcoin” popup will appear. Enter the BTC amount you wish to withdraw.
- Paste or type the receiving wallet address into the “To” field. Triple check this!
On web:
- Click “Send/Receive” below your BTC balance.
- In the popup, select Bitcoin and enter the amount to send.
- Paste or type the receiving wallet address into the address field. Verify the address is correct.
Make absolutely sure the wallet address is right – bitcoin transactions are irreversible! It’s best to copy-paste addresses to avoid errors.
Step 3 – Confirm Withdrawal Details
Before you complete the transaction, carefully review the details:
- Confirm the amount of BTC being sent is correct.
- Double and triple check the receiving wallet address is accurate.
- Verify the estimated network transaction fee that will be deducted from your balance.
If anything looks incorrect, cancel out and start again. Don’t rush this step.
When you’re 100% certain everything is right, complete the withdrawal request by hitting “Continue” or “Preview Withdrawal”.
Step 4 – Wait for Blockchain Confirmations
Once you confirm the BTC withdrawal in SoFi, the transaction will be broadcast to the Bitcoin blockchain.
You’ll see a pending transaction show in your SoFi activity with a TXID you can look up on any blockchain explorer.
Now it’s a waiting game for the transaction to receive confirmations on the blockchain. A single confirmation takes roughly 10 minutes, but most wallets require 2-6 confirmations before crediting your account, which can take 20 minutes to an hour.
Just sit back and wait for the blockchain network to process the transaction. There’s nothing else you need to do on SoFi’s end at this point.
Step 5 – Verify Balance in Receiving Wallet
Once enough blockchain confirmations have occurred for the transaction, the bitcoin balance will automatically show up in your receiving wallet.
You can verify the funds arrived safely by checking the balance and transaction history within your destination wallet.
Make sure the BTC amount sent matches what was withdrawn from your SoFi account. If the amounts match, congratulations – you’ve successfully transferred your bitcoin!
If the balance hasn’t updated after 6 confirmations, check the TXID and address again versus SoFi’s records. Contact SoFi support if there are any issues.
Tips for Successfully Sending Bitcoin from SoFi
To ensure the smoothest experience sending your bitcoin from SoFi to an external wallet, keep these tips in mind:
- Start with small test transfers first to validate you entered the address correctly.
- Be patient after initiating the withdrawal for the blockchain confirmations to complete.
- Always copy-paste wallet addresses to avoid typos. Triple check before sending.
- Verify your identity fully with SoFi if you need to withdraw larger amounts beyond the basic limit.
- Check transaction fees before sending to ensure you pay the expected mining fee amount.
- Bookmark your wallet’s deposit page so you can easily monitor when funds arrive.
- If needed, reach out to SoFi support for assistance with crypto withdrawals.
Frequently Asked Questions
Can I withdraw bitcoin from SoFi to any wallet address?
Yes, SoFi allows you to withdraw bitcoin to any valid BTC address you provide. You can send to exchanges, hardware wallets, mobile wallets, DeFi protocols and more.
What are SoFi’s bitcoin withdrawal limits?
Basic accounts can withdraw up to $1,000 worth of crypto daily without ID verification. With full KYC, the limit is $10,000 daily. Higher tiers go up to $100,000+ daily with extra verification.
How long does a bitcoin withdrawal from SoFi take?
It depends on how quickly the transaction gets blockchain confirmations. Usually this takes 20-60 minutes, but can vary. SoFi processes the withdrawals quickly.
Is there a fee when withdrawing bitcoin from SoFi?
Beyond the network mining fee, SoFi does not charge an additional withdrawal fee for sending bitcoin to an external wallet.
Can I reverse a bitcoin transaction if I sent it to the wrong address from SoFi?
No, bitcoin transactions are irreversible by design once broadcast to the network. Double check your addresses!
What if my bitcoin withdrawal never arrived in my receiving wallet?
First, check the transaction ID and blockchain confirmation status. If it confirmed but never arrived, the address you entered was likely incorrect and the BTC is lost.
Will SoFi support Lightning Network withdrawals in the future?
Nothing concrete yet, but Lightning may be on SoFi’s radar as adoption increases. This would provide faster bitcoin withdrawals.
Conclusion
Sending bitcoin from your SoFi crypto account to an external wallet you control is straightforward. Just make absolutely certain you enter the correct receiving address, initiate the withdrawal, and wait for blockchain confirmations. Within an hour, your bitcoin should be secured in the destination wallet.
Be sure to start with small test amounts first and verify addresses. Storing bitcoin in a private wallet instead of an exchange like SoFi gives you greater autonomy and access to more advanced features.
SoFi makes getting started with bitcoin easy and intuitive. But for more seasoned users who want full control of their private keys, transferring BTC holdings to a separate wallet is recommended. Just follow our guide and enjoy the wealth of options your bitcoin is now unlocked for!
