How to Withdraw Money Stuck in a DeFi Wallet

Decentralized finance (DeFi) wallets give you control over your money without relying on banks or intermediaries, but it’s not without challenges. Money stuck in DeFi wallets is an issue commonly encountered. I will walk you through the step-by-step to resolve that, whether you’re using a hot wallet like the Binance Web3 Wallet or a cold one like Ledger Flex.

In a nutshell, there are many possible scenarios that lead to such an incident, but worry not; there are many ways to recover access to DeFi wallets. As long as you follow the right steps, you'll be fine. Potentially, you won't even have to be paranoid about losing your device or falling victim to a scam.

At times, another necessary action to withdraw money to your back account is by thoroughly understanding how to sell from your DeFi wallet, which I'll also explain how. Spoiler alert: the only ways to do so are either through third-party crypto-to-fiat withdrawal assets or by moving your assets to a crypto exchange and cashing them out.

Let's find out everything you need to know!

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How to Withdraw Money Stuck in DeFi Wallets

Your money can get stuck in a DeFi wallet for a number of reasons. Let's take a look at the common issues and fixes right away, so you don’t have to wonder, “How do I get my money out of a DeFi wallet?” for too long.

Step 1: Figure Out the Issues

Your money can get stuck in a DeFi wallet due to problems like incorrect gas fees, a busy network, smart contract issues, a mistyped address, incompatibility, or security breaches. So, you first need to identify what caused the transaction delay.

Issue 1: Gas Fees Too Low

A frequent cause of money getting stuck is incorrect gas fees.^[1] Gas fees are required for blockchain transactions and are usually divided into low, medium, and high.

If you set the fee too low or don't have enough tokens to cover it, your transaction may get delayed. After all, validators prioritize transactions with higher fees, so you need to readjust this setting if your fee is too low.

Issue 2: Wrong Wallet Address

Another possible cause is an invalid wallet address. It might be a typo or omitted characters. So,  double-check before proceeding, as there is no way to recover funds sent to the wrong address. The only solution is to contact the owner of the address you sent the funds to if you know who they are.

Issue 3: Network Too Busy

If the problem is not your configuration, then check whether the network is congested.

When the blockchain is overloaded with too many transactions, delays might happen, especially during peak trading times.

Issue 4: Smart Contract Fail to Deploy

Still can’t get your money out of your wallet? Smart contract failures might be the culprit, as these automated programs sometimes have bugs that lead to transaction errors.^[2] In the event of a platform-wide error or security breach, wallet providers might temporarily freeze assets from being withdrawn as a precaution.

Issue 5: Exchange and Wallet Incompatibility

Additionally, your money could get stuck in your DeFi wallet due to compatibility issues. This happens when the blockchains of your DeFi platform and wallet don’t mesh well.

Issue 6: Potential Fraud

Some scams might also cause your money to “get stuck in a DeFi wallet”. Notice how I used the air quotes there. That’s because there are cases where your funds are not actually stuck but stolen.

Honeypot scams are among the most common scam types responsible for trapping users’ assets, in which scammers develop DeFi wallet apps or browser extensions that closely resemble authentic ones and lure unsuspecting users into using them.

Once installed, the fake software could capture your private keys or seed phrases, allowing scammers to access your funds fully. Once that happens, scammers might extort you for more deposits by promising to release your assets in exchange.

Regardless of which issues you are experiencing, there are ways to resolve or mitigate the risks, which I will cover next.

Step 2: Address the Problem

You may have figured out what caused the holdup, and now you are wondering, “So, how do I get my money out of my DeFi wallet?”.

The first and easiest fix you can do is ensure that your wallet is up to date and connected to the internet. If the problem is neither of those things, it’s possible that the network is currently busy, and all you have to do is wait until peak hours pass. You can also increase the gas fee so your transaction gets prioritized.

Next, check whether the issue is an invalid target address. Double-checking this detail will prevent your money from being sent to the wrong recipient if a typo connects to an unintended address.

If none of those things resolve the issue, the problem could be blockchain incompatibility, smart contract failure, or security-related problems. In that case, I recommend contacting your wallet provider for assistance.

Did you find out that you’ve been scammed? There are steps you can take to minimize further damage. First, immediately disconnect your wallet from the compromised apps or extensions.

If you have any remaining funds and can still access them, transfer them to secure or new storage immediately. Avoid using the compromised wallet again, as scammers might still monitor it for new deposits.

However, if the scam involves phishing, report it to your wallet providers so they can investigate and warn other users. Depending on the severity of the situation, you might be able to recover access to your wallet and possibly some of your assets. Remember that you must re-verify your identity before you can transact on your newly-recovered wallet.

Step 3: Re-Initiate Your Transaction

Once you isolate the problem and do what you can to resolve it, you can now try withdrawing the money stuck in your DeFi wallet again. First, transfer your cryptocurrency from the DeFi wallet to a centralized exchange, as DeFi wallets don’t have direct connections to bank accounts.

You’ll need to select a reputable exchange, like Kraken or Bybit, and transfer your assets from the DeFi wallet to the exchange's wallet address. Once your assets are on the centralized exchange, you can convert your cryptocurrency into fiat currency (such as USD or EUR).

Then, navigate to the [Sell] or [Convert] option on the exchange platform to cash out your crypto to fiat. The process varies slightly depending on the exchange, but it typically involves selecting the crypto you want to sell, choosing the fiat currency you want in return, and confirming the transaction.

You can also convert your crypto to fiat using third-party services that partner with your DeFi wallet. After that, you can withdraw the funds directly to your bank account. The withdrawal process may take a few business days, depending on the exchange and your bank.

How to Change Gas Fees on DeFi Wallet Transactions

More common than not, insufficient gas fees cause your money to be stuck in a DeFi wallet, among the others I’ve shown you. Therefore, I will demonstrate how you can reconfigure your gas fees properly so the blockchain can process your transaction.

I will give examples using popular DeFi wallet options, namely Ledger Flex, Trezor Safe 5, Coinbase Wallet, Crypto.com DeFi Wallet, and Binance Web3 Wallet. While the steps may differ from wallet to wallet, I am sure you can replicate some of the more foundational practices, regardless of the device you’re using.

So, let’s get started!

Ledger Flex

Ledger Flex is a cold wallet known for its top-level security and integration with decentralized platforms. Flex (all Ledger's product line does, actually) has a companion app called Ledger Live, available on both mobile and desktop. It allows users to manage, stake, buy, sell, and swap digital assets from one platform.

The app also supports staking for various cryptocurrencies like ETH, SOL, and ADA, offering attractive rewards along the way. Additionally, Ledger Live connects users to crypto and fiat on-ramps while providing tools to monitor and compare different services and providers.

Furthermore, those wondering, “How do I get my money out of my DeFi wallet?” can rest easy using Ledger because adjusting transaction details like changing gas fees on Ledger Live is easy. All you need to do is follow the steps below:

Step 1: Navigate to the [Send] tab.

Step 2: Select your account and paste the address into the wallet column.

Step 3: On the next screen, adjust the amount you want to send. Switch the tab to [Advanced] under [Max estimated fee].

Step 4: Click [Edit] and adjust the [Max Fee] and [Gas limit].

That’s it! You have successfully adjusted the gas fees for your transaction on Ledger. Although the wallet will automatically estimate gas fees, you can fine-tune them using real-time recommendations from gas price trackers like Etherscan or Ethereum Gas Tracker.

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Trezor Safe 5

Trezor Safe 5 is another cold wallet to consider if you’re looking for highly secure DeFi storage for your assets. It supports over 7,000 cryptocurrencies and integrates with numerous DeFi systems, making cryptocurrency management easy whether you’re a beginner or experienced.

The wallet’s ease of use extends to changing gas fees if your money is stuck in its DeFi wallet. You can use the Replace-by-Fee for Ethereum and Bitcoin transactions or the Child Pays for Parent feature if you’re using your Trezor device with Electrum. I will walk you through both steps.

How to use Replace-by-Fee on Trezor:

Step 1: Under the pending transaction tab, you will see the list of your ongoing transactions. Click [Bump fee] to increase your gas fee.

Step 2: If the transaction is still stuck, you can click [Bump fee] again to open a dialogue box where you can fine-tune the gas fee.

Step 3: Switch the tab to [Custom] and adjust your desired gas price and limit.

Step 4: Click [Replace transaction].

How to Use Child Pays for Parent (Electrum Only):

Step 1: Open the Electrum app, right-click the unconfirmed transaction tab and choose [View Details]. 

Step 2: Navigate to the receive tab and fetch the receive address.

Step 3: Choose [View Menu] and access [Show Addresses]. Press Ctrl+F on your keyboard and paste the previously copied address to the search column. Once you find the specific address, right-click on it and choose [Add to coin control].

Step 4: Backtrack to the send tab next to the receive tab you accessed in step 2 and specify the receiving address. Click [OK].

And that’s how you adjust gas fees on Trezor! Lastly, there’s actually another method to bump gas fees if you’re using Trezor with the third-party wallet MetaMask. You can choose to either speed up or cancel pending ETH transactions. The [Speed Up] and [Cancel] options are located under the pending transaction in the [Activity] tab.

Coinbase Wallet

Coinbase Wallet is a non-custodial software crypto wallet that gives users full control of their assets by storing private keys directly on their devices.

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Best For	Best for Safely Storing Cryptos
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Table: Some general information about Coinbase Wallet

It supports multiple cryptocurrencies and seamlessly integrates with dApps. Featuring an intuitive interface, biometric authentication, and secure enclave technology, the wallet is well-suited for both beginners and experienced users.

To remove money stuck in the DeFi wallet on Coinbase, you can adjust the network fee based on speed. The faster you want your transaction to proceed, the higher the fees. Here’s how to edit the speed of your pending transactions on the Coinbase Wallet:

Step 1: Choose the pending transaction from the ongoing transaction tab.

Step 2: Click on the [Speed Up] button.

Step 3: Confirm that you want to speed up your transaction.

And that’s it! You can also manually adjust the fees by selecting the gear icon next to your transaction’s network fee amount and adjusting the speed from there.

Crypto.com DeFi Wallet

The Crypto.com DeFi Wallet is a secure, user-friendly Web3 wallet that supports various cryptocurrencies. It offers features like swapping, staking, and yield farming and has strong security measures like multi-factor authentication and cold storage.

If your money is stuck in the DeFi wallet version of Crypto.com’s digital storage, you can adjust the gas fees by doing the following:

Step 1: On the Explorer page, find your unconfirmed transaction.

Step 2: Click on the gear icon on the upper right of the page.

Step 3: Adjust the gas price, limit, and nonce value, the unique number that tracks your wallet’s transactions.

Step 4: Choose [Save Changes] once you’re happy with your adjustment.

Step 5: Review the change and click [Confirm to Send] to finalize it.

If you have additional security measures enabled, such as passcode or 2FA, you will need to authorize the new transaction with the relevant information.

And that’s pretty much it. Now you know how to edit your gas fees on Crypto.com to remove your money stuck in its DeFi wallet in no time.

Pros

• User-friendly design
• Robust security
• Long battery life

See All Coupons of Best Wallets

Pros

• A brand-new design
• Industry-leading security
• Coin, token and NFT storage

See All Coupons of Best Wallets

Pros

• Supports over 7,000 crypto assets
• Easy navigation
• Open-source

See All Coupons of Best Wallets

Binance Web3 Wallet

The Binance Web3 Wallet is a DeFi wallet that connects to various decentralized exchanges and apps, such as BinaryX, CyberConnect, and Gala Games, while also supporting crypto swaps and bridges.

Much like the other platforms I talked about, you can also change the gas fees of an ongoing transaction on Binance if your money is stuck in its DeFi wallet. Just follow these steps:

Step 1: Click [More] from the main menu of Binance’s page and choose [Mining Pool].

Step 2: Choose [BTC Transaction Accelerator].

Step 3: Enter your transaction ID in the available column. Click [Check].

Step 4: A pop-up screen will appear with your pending transaction details and estimated cost. Confirm all details are correct and select [Pay to Accelerate] to proceed.

Step 5: Make the payment by scanning the QR Code using your Binance mobile app or selecting [Continue on browser] to continue using the desktop.

Step 6: Select your payment method and currency. [Confirm] that all the details are in order. 

And you’re done. To check the status of all your speed-up transactions, you can go to the [Acceleration History] page.

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How to Sell Crypto from DeFi Wallets

Okay, now you’ve figured out what caused your money to get stuck in DeFi wallets, great! However, this tutorial will be incomplete if I don’t tell you how to sell from your DeFi wallet so you can cash out your assets to your bank account.

I will show you how to do so on popular DeFi wallets, namely:

Ledger Flex

Here’s how to sell from your DeFi wallet if you’re using Ledger Flex (or other Ledger wallets, for that matter):

Step 1: Open Ledger Live. Connect your device to your computer and unlock it with your PIN. Check the [Apps Installed] tab for the Bitcoin and Exchange apps. Install any missing apps from the App Catalog.

Step 2: Click [Buy/Sell] in the left menu, then select [Sell]. Choose the cryptocurrency and amount.

Step 3: Click [Continue]. Add or select your bank account, then review the order details. Agree to the terms and conditions and click [Confirm Order].

Step 4: Open the Exchange app on your device, scroll to [Accept and Send], and press both buttons if everything looks good.

And that's it! Your sale is complete. Afterward, you can check your order summary either on the transaction page or in your email.

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Trezor Safe 5

Here is how to sell from your DeFi wallet if Trezor Safe 5 is your storage of choice:

Step 1: Open the [Buy & Sell] button in the menu drop-down on your Trezor Suite app.

Step 2: Select the [Sell] tab on your trade menu.

Step 3: Set up your sale details by specifying the amount of cryptocurrency to sell and the preferred method to receive the fiat currency. You can also select the region for which you want to view offers. Since different providers operate in various regions, choosing your local area will help ensure a smoother verification process.

Step 4: After you find the offer you’re happy with, click [Sell].

You will then be taken to the checkout page of the chosen service provider. If prompted, provide any required AML/KYC documents to finalize your purchase.

Coinbase Wallet

If you use Coinbase Wallet, you must move your cryptocurrency assets from the wallet to the Coinbase exchange to sell them. Here’s how to do so:

Step 1: Open the Coinbase Wallet app on your mobile device.

Step 2: Tap [Send] and enter the amount you want to transfer.

Step 3: Choose the supported coin and tap [Next].

Step 4: Then, go to the Coinbase app, copy the wallet address for the asset, and paste it into the recipient field in Coinbase Wallet.

Step 5: Finally, follow the remaining prompts to complete your transfer.

Afterward, you can sell your crypto assets to fiat and withdraw them into your bank account as usual. In case you don’t know how to do it, follow the steps below:

Step 1: Choose [My Assets].

Step 2: Pick your cash balance.

Step 3: Click [Cash Out] and enter the desired amount.

Step 4: Select the destination for the transfer.

Step 5: Click [Review] and select [Withdraw].

Depending on the clearance of your bank account, it might take some time for your funds to appear in your bank balance.

Crypto.com DeFi Wallet

With the Crypto.com DeFi wallet, here’s how to sell your crypto:

Step 1: Open the DeFi wallet and go to [Settings], scroll down to [Permissions] and make sure you already have your Crypto.com DeFi wallet connected to the exchange.

Step 2: Navigate to the [Trade] tab. Confirm that you’re not located in a geo-restricted area.

Step 3: Choose the [From and To] networks and tokens. Based on the chosen token pair, the DeFi wallet will automatically determine whether your transaction is a swap, bridge, or cross-chain swap.

Step 4: Enter the amount you want to transact. By default, the DeFi wallet selects the protocol that offers the best exchange rate for your chosen token pair, ensuring you get the most value from your transaction.

Step 5: Tap on [Review Transaction] to check the details of your transaction. 

Step 6: Then, tap [Swap] and authorize the transaction using your passcode and 2FA code (if enabled).

After successful verification, your transaction will be sent on-chain. To monitor its status, you can tap the ‘clock’ icon in the top-right corner or select the in-app notification after confirming it.

Pros

• User-friendly design
• Robust security
• Long battery life

See All Coupons of Best Wallets

Pros

• A brand-new design
• Industry-leading security
• Coin, token and NFT storage

See All Coupons of Best Wallets

Pros

• Supports over 7,000 crypto assets
• Easy navigation
• Open-source

See All Coupons of Best Wallets

Binance Web3 Wallet

Last but not least, let’s look at how to sell your crypto assets if you’re storing them in the Binance Web3 Wallet.

You first need to transfer your assets from your Binance Web3 Wallet to your Binance account. For that:

Step 1: Select [Send] after you open your wallet app.

Step 2: Specify the transaction details, like the cryptocurrency and the amount to send.

Step 3: You either click on the shortcut button to transfer the funds to your linked Binance account or manually paste the address on the provided column.

Before proceeding, make sure that all transaction details are correct. Deposits and withdrawals must be in the same currency and on the same blockchain.

Once your asset is in your Binance wallet, you can sell it as usual:

Step 1: Go to the [Buy and Sell Crypto] page, which you can usually find on the main dashboard or under the [Buy Crypto] menu.

Step 2: Choose [BTC] in the transaction panel.

Step 3: In the bottom field, select the currency you want to receive.

Step 4: The platform will show you the current exchange rate and any applicable fees. Review this information, and if you agree with the terms, confirm the transaction. The fiat amount will then be credited to your Spot wallet.

If possible, you can also use the [Withdraw] function to transfer funds directly to your chosen withdrawal payment method.

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Conclusion

There is no one-size-fits-all to solving the issue of your money getting stuck in DeFi wallet apps. However, by knowing the common causes and fixes, you will be able to pinpoint the problem and act accordingly.

So, why does your money get stuck? Your money might be held up by insufficient gas fees, incompatibility problems, network congestion, or security issues. Most of these are solvable by changing your transaction settings, waiting for a busy network to clear up, or reaching out to your wallet provider’s customer support, especially in the event of security-related problems.

Using highly secure DeFi wallets like Ledger Flex or Stax is an excellent long-term investment to keep your digital assets safe. After all, there is no such thing as too much precaution when it comes to protecting your funds.

The content published on this website is not aimed to give any kind of financial, investment, trading, or any other form of advice. BitDegree.org does not endorse or suggest you to buy, sell or hold any kind of cryptocurrency. Before making financial investment decisions, do consult your financial advisor.

Scientific References

1. Pacheco M., Oliva G. A., Rajbahadur G. K., Hassan A. E.: 'What makes Ethereum blockchain transactions be processed fast or slow? An empirical study';

2. Zhang Z., Zhang B., Xu W., Lin Z.: 'Demystifying Exploitable Bugs in Smart Contracts'.