How to Transfer Crypto to a Bank Account: A Simple Step-by-Step Guide

Cryptocurrency has changed the way we handle money but at some point many crypto holders need to convert their digital assets into fiat. Whether you need cash for personal expenses or to fund a traditional bank account, understanding how to send crypto to a bank is key. This guide will take you through the process, covering exchanges, wallets, fees and security.

How to Send Crypto to a Bank: Fiat Transfers 101

Before you send crypto to a bank, you need to understand how crypto coins are traded and stored as digital assets. Most transfers involve selling crypto on an exchange, withdrawing funds in fiat and depositing into a bank account. Each step has its own requirements and considerations.

Exchanges are the middlemen that convert cryptocurrencies into fiat money so users can withdraw to traditional bank accounts.

What is Crypto to Fiat Converting?

Crypto to fiat converting is the process of converting cryptocurrencies (Bitcoin or Ethereum) into traditional fiat (USD or EUR) and sending to a bank account. This is exchanging digital assets for physical currency so you can access your funds in a more traditional and widely accepted form. By converting your crypto into fiat you can use your funds within the traditional financial system and make everyday transactions easier and more accessible.

Crypto vs Fiat

Cryptocurrencies and fiat have different underlying technology, usage and acceptance. Cryptocurrencies are decentralized digital assets that use cryptography to secure financial transactions, fiat is a centralized physical currency issued by governments. Unlike fiat which is backed by the creditworthiness of the issuing government, cryptocurrencies are not backed by any government or institution. This lack of backing can make cryptocurrencies more volatile and unpredictable than fiat. Also cryptocurrencies are not subject to the same regulations and laws as fiat which can add to the volatility.

Why Send Crypto to a Bank?

Strictly speaking, you hardly can send crypto to a traditional bank account as of 2024-2025. But by converting crypto to fiat and then sending to a bank you can access traditional financial systems (banks) and use your funds for everyday transactions, access your funds faster and easier, have less risk of losses due to market fluctuations, and comply with tax laws and regulations as it provides a clear record of transactions and income.

By sending crypto to a bank you can have the stability and convenience of fiat while still benefiting from your crypto investments.

Choose the Right Exchange

First choose a reliable and secure exchange that supports converting crypto to fiat. Popular exchanges like Coinbase, Binance and Kraken have bank transfer options. Make sure the exchange is available in your country and supports your fiat currency. These exchanges also make it easy and fast to transfer funds from crypto wallets to bank accounts.

Create an Exchange Account

If you don’t have an account yet, sign up on the exchange. This will involve submitting personal details and going through a verification process to comply with anti-money laundering (AML) and know-your-customer (KYC) regulations.

Link Bank Account

Next link your bank account to the exchange. This will allow you to transfer funds directly between your bank and the exchange. Make sure you link an account that supports SWIFT transactions and international transfers if needed.

Send Crypto to Exchange Wallet

To sell your crypto, send it from your personal wallet to your exchange wallet. Copy the exchange wallet’s address and double check before sending. Private keys will secure your crypto funds during this process.

Sending funds from your crypto wallet to your exchange wallet is a key step in converting crypto to fiat and sending to bank accounts.

Crypto Wallets in Blockchain Transactions

Crypto wallets play a big role in blockchain transactions by providing a secure and convenient way to store, send and receive cryptocurrencies. A crypto wallet is a software program that allows you to interact with the blockchain, so you can:

• Store Crypto: Crypto wallets provides a secure storage for crypto, from unauthorized access and theft.
• Send and Receive Crypto: Send and receive crypto with your wallet, using peer-to-peer transactions.
• Manage Crypto Assets: Crypto wallets also allow you to manage your crypto assets, balance, transaction history and wallet addresses.
• Interact with Blockchain: A nice user friendly interface of a walle allows you to to interact with the blockchain, to execute transactions, check balance and monitor network activity.

By providing a secure and convenient way to manage crypto, crypto wallets is a big role in blockchain transactions and crypto adoption.

Sell Your Crypto Assets

Once you have the crypto in your exchange wallet, go to the trading section. Choose the crypto you want to sell, like Bitcoin and choose your fiat currency. Execute the trade to sell your coins and convert to fiat through various platforms, ease of use, security and convenience.

Withdraw Fiat to Bank Account

After selling crypto, withdraw the fiat funds to your linked bank account. Confirm the withdrawal amount and check for withdrawal fees before proceeding. Most exchanges do direct transfer to traditional bank accounts.

Fees and Higher Fees for Specific Methods

Exchanges charge different fees for transactions, withdrawals and deposits. For example higher fees for instant bank transfer or international bank account transfer. Always check the fee structure of your chosen platform.

Bitcoin ATMs for Cash Withdrawal

Bitcoin ATMs is another way to convert Bitcoin to cash. Find a Bitcoin ATM near you, send Bitcoin to the ATM’s wallet and get cash instantly. Note that Bitcoin ATMs charge higher fees.

Peer to Peer Transactions

For those who want flexibility, peer to peer (P2P) platforms allows you to sell Bitcoin or other cryptocurrencies directly to buyers. After the buyer sends funds to your bank account, release the crypto. P2P method is private but requires trust and caution.

Security During Transactions

Always secure when sending crypto. Enable 2FA, use secure wallets and never share private keys. Be aware of phishing and double check transaction details.

Tax Implication of Selling Crypto

Selling crypto may trigger tax in many countries. Keep record of your crypto transactions and consult a tax professional to know the local laws.

International Bank Accounts and Crypto Transfer

For crypto holders with international bank accounts, make sure your chosen exchange supports international withdrawal. This is especially convenient for those who have multiple fiat currencies.

Crypto Debit Cards for Easy Transaction

Crypto debit cards is another way to access your funds. These cards allows you to spend crypto or withdraw fiat at ATMs. Some cards support both Bitcoin and fiat currency.

Check if Your Transaction is Complete

After sending a transfer, check if it’s complete. Most exchanges and banks will send notification once a transaction is done. Monitor your account to see if the funds are received.

Common Problems and Solutions

Delays, fees or failed transfers can happen during transfer. To avoid issues, follow the platform’s guidelines, verify all details and use customer support when needed.

Sounds really difficult? Try Volet.com

A simple beginner-friendly way of turning your crypto assets into money in your bank account is using a crypto-enabled e-wallet platform like Volet.com. 

You will need to load your USD or EUR wallet with crypto (sell crypto) at platform's trademark prices that are very close to what you get on exchanges. Then, just send the resulting amount to your Visa or Mastercard using their withdrawal to Visa/MC feature. You will need to use a credit or debit card linked to your bank account, and the USD or EUR transfer you send will arrive really fast, in most cases, within minutes.

In terms of bank payments, Volet.com also lets you send cross-border SWIFT and local transfers in a choice of national currencies that come in handy when you want to send $ to a friend or family member abroad. Explore the Send Funds area of your Volet.com account to learn more.

Future Crypto to Fiat Transfer

As the crypto landscape evolves, new tools and platforms to transfer crypto to bank accounts emerge. Stay updated with industry trends to find the most efficient and cost effective way.

Conclusion

Hopefully, now you know how to transfer crypto to a bank account. It might seem complex at first but with the right knowledge, security measures and tools, it's a matter of habbit. Whether you sell crypto through centralized exchange, Bitcoin ATM or P2P, understanding each step will make the process smooth. By securing and stay informed about fees and tax implication, you can manage your crypto and access your funds when you need it.