How to Withdraw Crypto Investment Profit On-Chain: A Simple Guide

Look, brother, investing money in crypto is one thing, and withdrawing profits is a different kind of comfort. What exactly is investing? You took a small risk, made a profit, and are now thinking about how to put that profit into your pocket.

But here’s where the problem arises – people get confused about the process of withdrawing crypto investment profits, which method is correct, and what the scenario is for on-chain withdrawal process.

So, whether you call it withdraw on chain crypto profit, on-chain profit withdrawal, or simply cashing out your crypto earnings, the goal is the same – to secure your profit safely into your own pocket.

Let me explain step-by-step how you can easily understand your crypto investment profit withdrawal process and safely withdraw on-chain earnings.

Read Also : Crypto.com Tax Guide: How to Pay Taxes on Crypto Investments and Assets

What is On-Chain Withdrawal?

First, understand what on-chain withdrawal process means.

1. On-chain: When you withdraw on-chain crypto profit from an exchange (like Crypto.com, Binance, etc.) directly to the blockchain. This means the transaction is public, transparent, and you receive a transaction ID. This can be a bit slow and incurs fees, but is secure.
2. Off-chain: The transfer occurs within the exchange itself, which is faster but not recorded on the blockchain.

Now, if you want to cash out crypto on-chain, it means you are withdrawing your money from the exchange to your own wallet (MetaMask, Trust Wallet, Ledger, etc.).

Why Should You Make an On-Chain Withdrawal?

You might be thinking, “Your money is sitting on the exchange, why do you need to withdraw it?” But the reality is this:

1. Security: What if the exchange gets hacked? On-chain funds remain under your control.
2. Full Ownership: Your wallet, your keys. “Not your keys, not your coins” – a basic rule of crypto.
3. Flexibility: Transfer whenever you want, or cash out crypto on-chain and send it to your bank.

Step-by-Step: On-Chain Withdrawal Process

Now let’s get to the main point – how to complete your crypto investment profit withdrawal process.

1. Decide How Much Profit to Withdraw

Let’s say you made a profit of $2,000. Now it’s up to you whether you want to withdraw all or a little. Smart traders usually withdraw profits from cryptocurrency trading and leave the principal investment there. This means keep the profit safe, and let the rest grow.

2. Choose Your Wallet

First, you need to decide where to send your profits:

1. Hardware Wallet (Ledger/Trezor) – Safest
2. Software Wallet (MetaMask/Trust Wallet) – Best for active use
3. Exchange Wallet – Convenient but not as secure

3. Select the Network Carefully

This is the biggest mistake people make here. If you’re withdrawing USDT, the options will be ERC-20, BEP-20, or Tron chain. Selecting the wrong network could result in lost funds. So always double-check.

4. Initiate Withdrawal

1. Open the Exchange app
2. Click “Withdraw”
3. Paste the address (always copy-paste, don’t type)
4. Select the network
5. Enter the amount
6. Confirm

5. Confirm Transaction On-Chain

Now check the transaction hash on a blockchain explorer (Etherscan, BscScan, etc.). The money will be deposited into your wallet upon confirmation.

6. On-Chain Profit Transfer to Bank

If you want to convert profits directly into cash:

1. Send from wallet to exchange (which allows fiat withdrawals)
2. Convert crypto to USD/INR
3. Withdraw to bank account

This is the process for on-chain profit transfer to bank.

Cash Out Crypto Investment Earnings – Real Example

Imagine a guy named Ravi. He bought $1,000 worth of Bitcoin in 2022, and by 2025, its value had reached $5,000.

1. Ravi decided to withdraw on-chain earnings of $2,000.
2. He sent his BTC to his Ledger wallet.
3. He then sent $1,000 to an exchange, cashed out crypto on-chain, and transferred it to his bank.
4. He held the remaining $2,000 of BTC for the future.

This way, Ravi secured his profit and also kept some chance for future growth.

Common Mistakes You Should Avoid

• Wrong Network: Sending BEP-20 instead of ERC-20 means you’re out of money.
• Wrong Address: Paste the address once and make sure the last 4-5 digits match.
• Withdrawing All Profits at Once: Sometimes it’s better to withdraw in small increments.
• Ignoring Fees: Gas fees on Ethereum are sometimes very high, so withdraw at the right time.

Tips for Smooth On-Chain Withdrawal Process

• Always Double-Check: Check both the address and the network.
• Use Low Fee Times: Fees are lower at night or on weekends.
• Keep Records: Take a screenshot of every transaction; it’ll come in handy at tax time.
• Stay Updated: Exchanges are sometimes under maintenance, so don’t withdraw during that time.

Final Thoughts

Brother, making a profit is an achievement, but securing that profit and getting it to your bank or wallet is even more important. When you withdraw on-chain crypto profit, you need to keep one thing in mind: patience and accuracy.

A small mistake (like the wrong network or wrong address) can cost you all your money. But if you follow the steps step by step, the on-chain withdrawal process is extremely simple.

So the next time the market is up and you feel like “now is the time to pocket some profit,” withdraw on-chain earnings without any tension, cash out crypto on-chain, secure your share and leave the rest for growth.