This guide explains how to withdraw bitcoin to a bank account.
Eventually, crypto holders need to cash out their crypto gains. A bank account becomes the safest option for storing fiat money received from selling your crypto assets.
Banks are safe because they are regulated by the Financial Conduct Authority, or other similar electronic money regulations within your jurisdiction.
In this comprehensive guide, I will show you 5 steps and 9 different ways to withdraw Bitcoin to your bank account.
Also see How to sell your crypto on Trust wallet.
The 5 general steps to withdraw Bitcoin to a bank
Different exchanges have different ways of withdrawing bitcoins to the bank account. Each platform has a step-by-step guide on withdrawing Bitcoin to your bank account. Nonetheless, regardless of the exchange platform, the following are the 5 simple steps to take:
- Choose your preferred method of withdrawing Bitcoin to your bank account
- Visit a platform that offers your chosen method
- Place a sell order specifying the amount of bitcoin you want to sell
- Receive fiat money after a successful order fulfillment
- Make a withdrawal request to send the fiat money to your bank account
The 9 different ways to withdraw bitcoins to a bank
The following are the top 9 main methods of withdrawing Bitcoin to your bank account:
1. Crypto exchanges
A reputable cryptocurrency exchange provides one of the easiest ways to convert your crypto-based digital assets into fiat currencies. This is because you don’t need to transfer your cryptocurrency assets to a third-party broker for the sake of withdrawals.
However, not all crypto exchanges support direct bank transfers. Hence, it is imperative to choose a reputable cryptocurrency exchange that supports direct bank transfers.
The best crypto exchanges for withdrawing bitcoins to bank
In case you are looking for a reputable cryptocurrency exchange, look no further. Here is a list of the best crypto exchanges to choose from:
- Coinbase
- Binance
- Kucoin
- Binance
- Kraken
- Bitstamp
- Gemini
- ByBit
- OKCoin
- Crypto.com
- CEX.IO
- Bitfinex
- OKX Exchange
- Gate.IO
2. P2P exchanges
If you want to enjoy the freedom of keeping custody of your private keys, then centralized exchange platforms aren’t what you are looking for. In this case, Peer-to-Peer (P2P) exchange platforms become the best alternative.
Peer trades on the P2P marketplace are less restrictive compared to those trades carried out on a centralized exchange platform.
Apart from self-custody of your private keys, P2P exchanges have a wide range of payment options. Furthermore, you get to choose your preferred P2P payment method when placing a sell order. A buyer must accept your chosen P2P transfer method for P2P transactions to take place.
The best P2P exchanges for withdrawing bitcoins to your bank account
While there are many P2P exchanges in the crypto space, choosing a reputable one can save your digital assets from being breached by scammers.
The following is a curated list of some of the best P2P platforms in the crypto space today:
- Kucoin P2P exchange
- OKX P2P exchange
- Binance P2P exchange
- ByBit P2P exchange
- Gate.IO P2P exchange
- Huobi P2P exchange
3. Online payment gateways
Generally, payment gateways act as intermediaries between the sender’s platform and the recipient’s platform. In the case of crypto transactions, they act as intermediaries between a crypto wallet and the bank account. Thus, they facilitate bank transfers on behalf of their clients.
Nonetheless, some online payment gateways, such as PayPal and Skrill also act as exchange intermediaries that buy and sell crypto on behalf of their clients. Thus, on the PayPal platform, you can buy bitcoins using cash or sell bitcoins for cash without having to go to a crypto exchange platform.
The best online payment gateways for withdrawing bitcoins to your bank account
In case you prefer not to deal with crypto exchanges directly, then an online payment gateway could be the best way for you to withdraw your Bitcoin to your bank account.
The following are some of the best crypto-friendly online payment gateways to choose from:
- Coinbase Commerce
- Stripe
- PayPal
- Skrill
- BitPay
- Shopify Gateway
- Crypto.com Pay
- CoinGate
- SpicePay
- NOWPayments
- CryptoPay
- DePay
- CoinsPaid
- B2BinPay
- CoinsBank
- Alfa Coins
4. Virtual online crypto banks
A crypto bank operates like a conventional bank. In addition to providing crypto wallets, these virtual online crypto-friendly banks have a facility for traditional bank accounts. Hence, they provide a mechanism for one to convert one form of digital currency to another without exiting the bank. For example, one can convert bitcoins from the crypto wallet to the US dollars in the main bank account without the need for bank transfers.
These traditional bank accounts have other conventional facilities such as traditional debit cards for processing fiat currency. On the other hand, crypto wallets have crypto debit cards for processing cryptocurrency.
Having a crypto bank account enables you to enjoy the best of both worlds – traditional banking and fintech banking – on a single platform.
The best crypto banks for withdrawing your bitcoins to your bank account
In case you find that using a crypto bank is the best way for you, here are some of the best virtual online crypto banks to choose from:
- Simple bank
- Wirex
- Revolut
- Ally
- Quontic
- Tangerine
5. Crypto wallets
When dealing in crypto assets and crypto transactions, you will inevitably need a crypto wallet.
Crypto wallets have transitioned from just being a place to store cryptocurrency assets to becoming a one-stop platform for exchanging various types of digital currencies. Software wallets such as Trust Wallet have built-in crypto exchanges where you can buy and sell various types of digital assets without visiting external crypto exchanges.
A multicurrency digital wallet, such as Trust Wallet, lets you exchange your bitcoins for fiat money without leaving the wallet. They are also linked to a payment gateway that lets you withdraw your fiat money straight to your bank account.
The best crypto wallets for withdrawing bitcoins into your bank account
Should find using a crypto wallet as the best way to withdraw your bitcoins to your bank account, the following are some of the great crypto wallets to use:
- Kraken Wallet
- Coinbase Wallet
- Binance Wallet
- Crypto.com Wallet
6. Brokerage firms
Large-scale crypto holders such as financial institutions prefer Online brokerage firms to carry out their bitcoin transactions. This is because third-party brokers can offer customized solutions that are not provided by mainstream crypto exchanges.
Such customized solutions include swift transfers, SEPA transfers, and instant bank transfers, among others.
At additional fees, they can manage the entire process of executing Bitcoin transactions. Furthermore, they can provide managed accounts services such as portfolio management, advisory management, and risk management, among other services.
The best online brokerage firms for withdrawing bitcoins to your bank account
The following is a list of the best online platforms for crypto brokerage:
- Interactive Brokers
- eToro
- Webull
- Robinhood
7. Swap Apps
The most popular choice for crypto enthusiasts entering the crypto space for the first time is the swap apps. This is because of their simplicity. Since they can easily be installed on a mobile device, a user can simply use the QR Code app on the mobile device to capture and scan private keys which simplifies and fastens the Bitcoin transactions process.
Swap apps are linked to online payment gateways that process crypto-to-fiat conversions.
The best swapping apps for withdrawing bitcoins into your bank account
The following are some of the popular options used by crypto holders to swap their bitcoins for cash:
- Cash App
- Changelly
- Simplex
- Swapin
8. Crypto Debit Cards
Like traditional debit cards and credit cards, crypto debit cards allow crypto holders to shop, withdraw, and make payments. However, unlike traditional debit cards, their primary currency is cryptocurrency. Thus, when you are making payments or bank transfers, the underlying cryptocurrency is converted into fiat currency. These cards are pegged to your crypto exchange account wallet – in this case, to your Bitcoin wallet.
The best crypto debit cards for withdrawing bitcoins into your bank account
The following are some of the best crypto debit cards:
- Coinbase crypto debit card
- Wirex crypto debit card
- Binance crypto debit card
- Crypto.com crypto debit card
- ByBit crypto debit card
- Nexo crypto debit card
- Kukoin (KuCard) crypto debit card
- Monolith crypto debit card
- Venmo crypto debit card
9. Bitcoin ATMs
Like traditional ATMs, Bitcoin ATMs can dispense fiat money. However, Bitcoin ATMs also allow you to make bank deposits. Thus, instead of directly withdrawing fiat money, you can use the ATM interface to deposit the same money into your bank account. All you need is to choose the ‘Deposit’ option and provide your bank account details so that your Bitcoin can be deposited to your bank account as fiat money.
Factors to consider in choosing your withdrawal method
I have highlighted some of the best methods for withdrawing Bitcoin to your bank account.
A good way to choose one method over another is to conduct thorough research. The following key factors are going to aid you in your research process:
1. Good reputation
Choose a reputable exchange. A good reputation should be based on proven and successful security measures, positive customer reviews, professional conduct, adherence to industry standards, and regulatory compliance. Avoid those platforms that have adverse security concerns.
2. Processing time
Go for a withdrawal method whose processing time complies with your urgent requirement.
3. Exchange rates
Choose a platform whose exchange rates are competitive and satisfactory.
4. Withdrawal limits
Most online platforms have minimum and maximum crypto withdrawal limits. Choose a crypto trading platform whose withdrawal limits fit your needs.
5. Regulatory compliance
Make sure that your chosen platform complies with the Financial Conduct Authority, electronic money regulations, or other regulatory compliance requirements within your jurisdiction.
6. Withdrawal process
Each chosen platform has detailed instructions on executing various transactions during the withdrawal process. It is important to understand these instructions before choosing a platform.
7. Privacy protection
Banks have various KYC and AML provisions. In addition to bank account details, you may be required to disclose your personal information for the purposes of identity verification. However, some platforms go overboard to require sensitive information that may compromise your personal security. Establish in advance the kind of personal information that you are willing to reveal so that you can choose those platforms that do not unnecessarily infringe on your privacy.
8. Tax implications
In some jurisdictions, including the United States, crypto gains are subject to capital gains tax. As such, you may be required to file income tax returns. Hence, it is important to determine whether your crypto withdrawals include crypto gains or not.
9. Transaction costs
Network fees, transaction processing fees, and other additional fees make up your transaction costs. These transaction costs vary depending on your chosen platform and withdrawal method. Some platforms charge high transaction fees compared to others. Thus, other factors being the same, go for a platform that charges a lower price for processing Bitcoin transactions.