With the growing popularity of Bitcoin and other cryptocurrencies, many individuals are eager to convert their digital assets into traditional fiat currency. For beginners, the process of withdrawing Bitcoin to a bank account can seem daunting. However, it is relatively a straightforward process. Understanding the nuances of selling Bitcoin, navigating fees, and ensuring security is crucial for a smooth transaction. This article aims to simplify that journey by outlining the essential steps involved, from choosing a reputable cryptocurrency exchange to successfully transferring your funds. Whether you are looking to cash out your investments or access funds for everyday expenses, this guide will provide you with the knowledge and confidence needed to withdraw Bitcoin to your bank account effectively. Let’s dive in.
How to Withdraw Bitcoin to a Bank Account?
There are many options available to withdraw your Bitcoin to your bank account.
Crypto Exchanges
Crypto exchanges are one of the most used methods to withdraw Bitcoin. You can simply buy, sell, and trade different cryptocurrencies. Their user-friendly design allows you to convert your crypto to fiat currency within a few clicks.
Peer-to-Peer (P2P) Trading
Peer-to-peer trading allows you to trade your digital currency with another one by eliminating the need for exchanges. You have to find the perfect buyer or seller to trade your cryptocurrency. It is one of the cheapest ways to convert your Bitcoin to real currency due to its lower fees.
Bitcoin ATMs
Bitcoin ATMs allow you to withdraw your Bitcoin into real money within a few minutes. The rapid emergence of physical ATMs made it convenient for individuals who need cash in a hurry. However, there is a daily limit of $25,000 for these Bitcoin ATMs.
Over-the-Counter (OTC) Trading
For high-volume crypto holders, OTC trading is a great option. These allow large transactions and typically have customizable terms. They have high minimum amounts to withdraw, which is difficult for small investors.
Over-the-counter trading allows direct securities to be traded between parties, offering access to capital markets for smaller and larger crypto-fiat trades.
Steps to Withdraw Bitcoin to Bank Account
Let’s look at the steps to withdraw your Bitcoin using the Binance P2P method
Create an Account
- Go to the official website of Binance.
- Sign up using your phone number or email address.
- Verify your account by verifying your email and phone number.
- There will be a KYC verification process, that requires you to submit a government ID document and a photo of yourself.
Transfer Bitcoin to the Exchange Wallet
- Now send your Bitcoin to the exchange’s wallet address.
- To send your Bitcoin, click the ‘Deposit’ button.
- A pop-up window will appear. Click on the ‘Deposit Crypto’ button.
- Choose the BTC option from the list and select the right blockchain network. The exchange will then show the address.
- Send your Bitcoin from an external wallet to this address.
- Once your Bitcoin is transferred to the Binance wallet, move it to the funding wallet within Binance to activate the transfer process.
Set up Withdrawal
- Tap the ‘Withdraw Fiat’ option.
- Choose the currency and preferred withdrawal option.
Set up the P2P Platform
- Tap the ‘Deposit’ button and choose ‘P2P Trading’.
- In the upcoming P2P platform window, you have to set up your preferences, like you want to purchase or sell digital currency, your preferred fiat currency, and more.
- The window also shows the list of advertisers including their features such as the number of orders they have completed, the rate of completion, and the price they offer.
Sell your Bitcoin
- Choose your preferred advertiser.
- In the next window, you will see the details of your advertiser, including payment time and average payment time. This advertiser will be the person who buys your Bitcoin.
- You can now specify the amount of Bitcoin you want to sell. It also shows the amount you will get.
- Click on the ‘Sell BTC’ button. Once you click the button, a confirmation window will appear. Confirm it when the amount reaches your bank account successfully. Binance will then transfer your Bitcoin to the buyer’s wallet.
Selling Bitcoin by Using a Crypto Exchange
You can sell your Bitcoin in exchange for fiat currency using a crypto exchange. The crypto exchange will transfer your fiat currency to your bank account directly using the preferred method. The process usually takes a few minutes to complete.
The exchange leverages an order book model to handle all the transactions. The order book regularly updates the list of buy and sell orders for digital currencies, determining the prices at which transactions are initiated.
However, not every exchange allows direct selling of Bitcoin due to geo-specific restrictions. So, it is crucial to check the regulations associated with the exchanging of Bitcoin for fiat currencies.
Conclusion
While the cryptocurrency industry allows the distribution of your crypto assets and their management, withdrawing funds into your bank account will be necessary. There are numerous cashout methods available such as online exchanges, peer-to-peer trading, Bitcoin ATMs, over-the-counter trading, and crypto debit cards. You can use any one of these methods to withdraw your Bitcoin to your bank account. However, when choosing an exchange, it is important to choose a reputable and legitimate one.