Cryptocurrency is becoming more and more popular over the years. That is because it is a versatile way of doing cashless transactions online. Cryptocurrency has many different types, but it follows a particular principle. If you are just a beginner in this industry and want to know how to transfer cryptocurrency to a bank account, then you are at the right spot.
Knowing how to transfer cryptocurrency means having an easier way of time. However, cryptocurrencies can’t be directly transferred to a bank. You must follow certain things for your type of crypto to be transferred into the bank. If you want to learn further how to transfer cryptocurrency to a bank account, read further down below.
Why Should You Transfer Cryptocurrency to Your Bank Account?
Almost all people who are investing in cryptocurrency think sooner or later. It will eventually replace all the currencies. Theoretically speaking, you may be able to your favorite gadget, appliance, or other things using cryptocurrencies.
But, for now, only a few companies and businesses accept cryptocurrencies as a payment mode. And for that, most people have to convert their cryptocurrencies to cash to make their purchase. Another reason for learning how to transfer cryptocurrency to a bank account is the cryptocurrency market.
The cryptocurrency market is very volatile, and you may want to sell your bitcoin if you think the price is reasonable enough to sell it. Otherwise, you will be at the receiving end of a bitcoin exchange gone wrong. That’s why it may be ideal for converting while it is at its highest peak and transfer it to the bank while waiting for the exchange rates to go higher.
Can You Transfer Cryptocurrency Directly to Your Bank Account?
Only a few banks accept bitcoin. However, there’s a standard way you go about it. Bitcoins can’t be withdrawn from the bank directly. One of the basic ways to transfer cryptocurrency to a bank account is by selling your bitcoin to a bitcoin exchange company and withdrawing the converted bitcoin from there then onto the bank. Or you can sell your bitcoin to a trusted person and let the converted bitcoin be transferred to your bank account as cash.
Steps on How to Transfer Cryptocurrency to Bank Account
There are numerous ways on how to convert cryptocurrency to cash and transfer it to your bank account.
As mentioned earlier, for you to transfer cash from bitcoin, sell your bitcoin first to a reliable bitcoin exchange company or through a peer to peer transaction. Knowing how to transfer cryptocurrency to a bank account is important because not all banks accept cryptocurrency. Instead, always have it converted to exchanges, withdraws the cash, and transfer it to your bank account.
There are many bitcoin exchange companies such as Kraken and Coinbase, to name a few. This is the easiest way of converting your bitcoin to cash and your bank account. However, the caveat is, you must deposit and withdraw from the same bank for the brokers not to break the money laundering laws. Although this might be the easiest way, it takes around 4 to 7 days before your money arrives at your bank account, but this is highly dependent on which bank you are in. One of the most popular bitcoin exchange brokers is Coinbase.
The other method is by a peer to peer transaction if you don’t like waiting. There are also multiple peers to peer selling platforms that are also trusted, such as LocalBitcoins. The peer-to-peer transaction is one of the fastest ways on how to transfer cryptocurrency to a bank account.
When selling your bitcoin through peer to peer transaction, you can decide which mode of payment to use. These include:
- Bank transfer: when you are trying to sell your bitcoins from a certain individual, it would be wise to ask for a bank transfer payment, proof of ID, and other valuable information. And once payment is confirmed, you can release the bitcoins that will be immediately sent by the peer to peer company through their wallet.
- Cash deposit: another easy way is telling your buyer to deposit the agreed-upon cash exchange for your bitcoin and deposit it directly to your bank account. Before releasing your bitcoins, always ask for proof of payment and ID.
- Meetup: If your buyer is near you, arrange a meetup, accept cash as payment and give them your bitcoins.
Convert Your Bitcoin into Cash Using Coinbase (Broker Exchange Method)
Now that you know the two most common ways to convert bitcoins to cash and then to the bank, you will now learn how to convert your bitcoin using Coinbase and transfer it to your bank. Here are the steps:
- First, you may need to register to a Coinbase account. Once you are registered, link your bank account and deposit to ensure it is verified.
- Once your account is already set, you need to have a Coinbase bitcoin address for your bitcoin to be sent from there. To do this, go to the accounts tab menu from the Coinbase site and click “Receive.” After that, you will be redirected to the address of your Coinbase bitcoin wallet. This Coinbase bitcoin address is the address you need to send your bitcoin.
- Now that everything is already set up, sell your bitcoin from the buy/sell menu tab.
- Your bitcoin wallet should contain fiat currency. The currency will change depending on your location.
- Before withdrawing your bitcoin, first, it must be converted to your local currency. If you are exchanging to EUR, then select EUR. Now, place the amount of bitcoin you are willing to sell, and after that, a fiat currency equivalent will be soon updated.
- Now, press on the Sell Bitcoin Instantly. Once sold, your current amount is in its fiat currency wallet.
- To transfer your cash out from selling bitcoin and to your bank account, click on the fiat currency wallet and look for ‘withdraw.’ From then on, your cash will be immediately transferred from your fiat currency wallet to your bank account as you have already linked your bank account.
Learning how to transfer cryptocurrency to a bank account is quick and easy. There are a few things you must remember in doing so. Lucky for you, everything is already layered out above for you to have an easier time. Cryptocurrencies are becoming popular these days; that’s why you should know the ins and outs of this industry. Discover more about cryptocurrencies here!