For cryptocurrency investors, traders, or anyone engaged in the blockchain ecosystem, knowing how to withdraw on-chain earnings is an important area of knowledge. Whether you are earning profits through trading, staking, or whatever other activity in the blockchain space, having an understanding of how to withdraw your earnings safely and quickly will prove useful. In this article, we will describe how to withdrawal your on-chain earnings in a secure fashion, using your personal wallet to safely store your coins. 

What Does Withdraw On-Chain Earnings Mean?

Prior to explaining the steps to withdrawal your on-chain earnings, let's clarify what we are proposing by withdrawing your on-chain earnings. Withdrawing your on-chain earnings means you will transfer your cryptocurrency from a service (such as a centralized exchange or decentralized application) to a wallet that you own and control. We say "withdrawing" your on-chain earnings based on the fact that you are withdrawing or transferring the funds on-chain (on the blockchain), versus keeping the funds within the platform/service. 

This process gives you control of your crypto profits, and access to spend and/or reinvest. It is also an important step to keep your funds as safe as possible, as centralized platforms typically have the potential to be hacked, go offline, or be otherwise impacted.

Process for Withdrawing On-Chain Profits, Step-by-Step

1. Confirm that you own a personal wallet. 

For on-chain profit withdrawals, you must own an on-chain wallet. A hardware wallet (e.g., Ledger, Trezor), software wallet (e.g., MetaMask, Trust Wallet, Exodus), or custodial wallet (provided by some protocols, but often not as safe) will all work.

Additionally, make sure that your wallet supports the particular blockchain of the profit you are trying to withdraw. For example, if you are withdrawing ether, the wallet has to support the Ethereum network. If you are withdrawing against the Binance Smart Chain (BSC), your wallet has to support the BSC.
 
2. Sign Into Your Account 

Next, sign into the platform or exchange where you have earned your cryptocurrency. Note that if you earned your profits via DeFi protocols or staking, then you may have your cryptocurrency in a dApp or a liquidity pool. If you are working in an exchange like Binance, Coinbase, or Kraken, this is the easiest step as you will be able to sign into your account.

3. Go to the Withdrawal Option

After you've logged into the exchange platform, locate the withdrawal or funds section. This is the action where you will start the process of transferring your cryptocurrency from the exchange or platform to your own wallet.

Generally, there will be a "Withdraw" button located under "Wallet" or "Funds". You will choose which cryptocurrency to withdraw here.

4. Provide Your Wallet Address 

The next step is to put in your own wallet address. This is the address where your earnings will arrive. Be sure to double-check this address for accuracy since blockchain transactions are not reversible and can result in losing your funds if you have typed in the address incorrectly. 

5. Select the Correct Network 

If you are bringing the funds to an Ethereum-based wallet, you need to select the Ethereum network (ERC-20). If you are bringing assets from Binance Smart Chain, select BSC. Some exchanges and platforms let you use options (like Ethereum or Polygon for a token for example) so make sure you choose the right one. 

Choosing the right network is very important; sending funds to the wrong blockchain could mean losing or not being able to access those funds.

6. Examine Charges and Endorse the Transfer 

After putting in your wallet address and choosing the network, the platform will usually give you any charges for the withdrawal. Fees change often with which blockchain you are transferring money to, with networks like Ethereum having higher fees during periods of congestion. 

Once you are satisfied with the transaction and charges is confirmed, you authorize the transfer. The platform may ask for further authentication, such a) email confirmation or, b) 2-factor authentication (2FA). 

7. Wait for the Transaction to be Confirmed

When the withdrawal is confirmed, your transaction will be broadcast to the blockchain. The time could take a few minutes or plus to confirm your transaction, depending on the network and the platform chosen. It is vital, during periods of congestion, to expect times longer than these. Blockchain explorers like Etherscan can be used to monitor the status of your transaction in real time. 

8. Verify Fund in Your Wallet

After the withdrawal transaction has been confirmed on the blockchain you want to log in to your personal wallet to check that your on-chain earnings have successfully transferred to your personal wallet. Blockchain explorers can also be used to check if funds transferred to your wallet by looking either your wallet address or transaction ID.

Important Points Need to Know Withdrawing On-Chain Earnings 

• Network Fees: Certain blockchain networks (like Ethereum) have incredibly high transaction fees (also called "gas fees") so be sure to check before you withdraw, especially if your withdrawal amount is small. 
• Transaction Time: Some blockchain networks (like Bitcoin) take longer to confirm transactions. Ethereum and newer chains may process withdrawals faster but delays can happen during high traffic.
• Security: Always enable 2FA (Two-Factor Authentication) when withdrawing from exchanges/dApps. Also, ensure the security of your personal wallet with a strong password and, ideally, a backup of your private keys.
• Withdrawal Limitations: Some platforms hold daily withdrawal limits, especially for new accounts or accounts that haven't completed verification (KYC). Be sure to check the withdrawal limitations for your platform first.

Why Is Withdrawing Your On-Chain Earnings Important? 

There are a few key benefits of withdrawing on-chain earnings:

1. Control and Security: When you withdraw your earnings on-chain, you will have full control of your assets, and reduce the chance of losing them if the exchange has an issue (such as a hack or shut down). 
2. Liquidity: When your earnings are in a personal wallet, you will have the ability to trade or use them freely without restrictions.
3. Transparency and Verification: On-chain transactions are publicly verifiable. This means you can always see your funds moving through blockchain explorers.

Conclusion:

Withdrawing on-chain earnings may feel daunting to you at first, but if you follow this guide in the proposed sequential steps, you can rest easy knowing your crypto profits have been safely and efficiently moved into a wallet you control. Once you understand how to make a withdrawal, it will allow you to have full control of your assets, enabling you to feel comfortable managing your crypto portfolio.