How Do I Transfer My Crypto to My Bank Account?

You might not be able to transfer your crypto directly to your bank account unless, of course, the bank you use accepts crypto payments, a service that is quite scarce. You can transfer to your bank account by first selling the crypto.

This article will guide you through selling crypto and transferring the proceeds to your bank account. We'll cover the steps involved, including choosing a reliable exchange, verifying your identity, placing a sell order, and withdrawing the funds.

Key Takeaways

  1. You can't directly transfer crypto to your bank account unless the bank accepts crypto payments.
  2. Selling crypto is the first step to transferring funds to your bank account.
  3. Peer-to-peer platforms allow direct sales of crypto for bank transfer payments.
  4. Cryptocurrency ATMs can quickly convert crypto to cash.
  5. Consider the tax implications of selling and transferring crypto to your bank account.

Through Cryptocurrency Exchanges

Cryptocurrency Exchanges.

The most straightforward way to get your crypto into your bank account is through cryptocurrency exchanges

These are platforms that let you trade crypto for regular money. When you want to turn your crypto into cash that goes to your bank, you'll first need to pick a trusted exchange like UEEx that works with bank transfers.

Getting started with an exchange

To begin, you'll need to download the exchange's app and create an account. For example, with UEEx, you download their app and go through the registration process.

UEEx homepage

After that, you'll connect your bank account to the exchange by adding your banking details. This is necessary so the exchange knows where to send your money.

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Making the transfer

Once your account is set up, you can send your cryptocurrency to the exchange's wallet address. The exchange will show you exactly where to send it. After your crypto arrives and the transaction is confirmed, the exchange converts it to your local currency at the current exchange rate.

Bank transfer completion

The final step is the actual transfer to your bank account. The exchange will use a wire transfer platform to send the money to your connected bank account.

Through Peer-to-Peer Trading

Peer to peer lending

Read also: The Rise of Banks in the Crypto Wallet Space

Another option is to sell your cryptocurrency through peer-to-peer trading platforms that connect buyers and sellers directly. 

You'd first need to create an account on one of these platforms like Paxful, and go through their verification process. Then you can list your cryptocurrency for sale, specifying that you want payment via bank transfer.

When someone wants to buy your crypto, the platform acts as an intermediary. They'll hold your cryptocurrency in a secure escrow while you and the buyer complete the bank transfer portion. 

Only after you confirm receiving the bank transfer does the platform release the cryptocurrency to the buyer. This helps protect both parties.

The key is to only use well-known platforms with strong security measures and dispute resolution processes.

Through Cryptocurrency ATMs

ATM Bitcoin Analysis - Isometric Vector.

No waste of time, an easy way to get your crypto money into your regular bank account is through cryptocurrency ATMs, often called Bitcoin ATMs. These are special machines you might find in places like shopping centers or convenience stores. 

While not as common as regular ATMs, they're straightforward to use.

First, you'll need to prove who you are at the machine - this is required by law and can't be skipped. The machine might ask for your phone number, ID, or other information depending on how it's set up.

Once you're verified, choose the "sell" option on the screen. Get your crypto wallet ready on your phone, and you'll see the machine display a QR code. Using your phone's wallet, send your cryptocurrency to that QR code. 

QR (Quick Response) codes are a type of matrix barcode that can store a large amount of data in a small space. QR codes can be scanned to initiate payments, often used in mobile wallets and contactless transactions.

After you've sent your crypto, the machine will process your transaction and give you cash. The final step would be to take the cash you received and deposit it into your bank account at a regular bank branch. 

Through Crypto Banks

Crypto Banks.

As I mentioned earlier, some banks have adopted cryptocurrencies, making it easier to move your crypto into traditional bank accounts. 

When you want to transfer crypto to your bank account, you now have several mainstream options. 

For example, if you're a Morgan Stanley client, you can use their crypto dealing desk to convert your cryptocurrencies like Bitcoin or Ethereum into regular money, which then goes straight into your bank account - all in one place. 

The process is generally straightforward: first, you send your crypto to your account at one of these banks, convert it to regular money using their exchange service, and then transfer it to your regular bank account.

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PayPal has made things even simpler. In certain countries, you can connect your PayPal account to your bank account and use it to convert cryptocurrencies into regular money. Once converted, you can transfer it to your linked bank account just like you would with normal PayPal funds.

Digital banks like Revolut have taken it a step further. They work like a regular bank but are built specifically for handling both crypto and traditional money. 

With Revolut, you can easily switch between crypto and regular money, and then send that money to your main bank account or use it for everyday purchases.

Best Security Practices in Transferring Crypto to Bank Account

Here are some best practices to ensure a smooth and secure transaction:

Check Your Bank's Rules

Some banks don't like working with crypto. Contact your bank first to confirm they accept transfers from crypto exchanges. Some banks might block these transfers or close accounts without warning.

Keep Records of Everything

Save screenshots or documents of all your crypto sales and transfers. Note down dates, amounts, and transaction IDs. These records help with taxes and prove where your money came from if the bank asks questions.

Double-Check All Details

Always triple-check wallet addresses and bank account numbers before sending. One wrong character means your money could be lost forever. Take your time with this step.

Consider Tax Implications

Moving crypto to your bank account usually counts as selling, which means you might owe taxes. Keep good records and consider talking to a tax expert about what you'll owe.

Conclusion

These are the ways to transfer your cryptocurrency to your bank account. Each method has its advantages and disadvantages, so choose the one that best suits your needs and preferences. By following the best security practices, you can ensure a smooth and secure transaction.

Frequently Asked Questions

How Do I Get My Money From Crypto to Bank Account?

First, you'll need to sell your cryptocurrency on an exchange like UEEx. After selling the crypto for your local currency (like USD), you can transfer the funds to your linked bank account through ACH transfer or wire transfer.

How to Transfer Money From Wallet to Bank Account?

To move money from your crypto wallet to a bank account, you'll first need to transfer your cryptocurrency from your wallet to an exchange that supports fiat withdrawals. Once on the exchange, sell your crypto for fiat currency, then withdraw the funds to your connected bank account using the exchange's withdrawal options.

What Is the Best Crypto Wallet to Link to a Bank Account?

Wallets provided by major exchanges like UEEx and Coinabase are typically the most convenient for linking to bank accounts since they offer direct fiat on/off ramps. These platforms are regulated and have established banking relationships, making transfers more straightforward than using non-custodial wallets.

Disclaimer: This article is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence before making any trading or investment decisions.

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