Well in today's article, you will get to know how:
- How can I transfer bitcoin to my bank?
- What services to use?
- What payment methods and currencies are available?
Transferring bitcoin to your bank account can be a bit of a nuisance. What I mean here is cashing out your bitcoin and transferring the money to your bank account. We’re not quite there yet to send actual bitcoin to our bank accounts.
That said, not that far off either. It is technologically absolutely possible to have a bitcoin or crypto wallet linked to your bank account or a part of your bank account. Some FinTech startups are already doing something similar.
What are the steps to get Bitcoin to my Bank?
Most crypto exchanges only deal in crypto to crypto, which means you normally have to use an on or off ramp to turn your fiat into bitcoin and vice versa. There are also platforms and services that do all of this in one place. These are more rare.
Why is it so? Simple business decision – some providers decide to focus on one part of the journey, some aim to be more like a one stop shop. Both ways are totally fine and there’s pros and cons to each as in any business. But let’s explain how it normally works.
Usually, you’d need to send your bitcoin from your wallet to either an exchange that deals in fiat and sell it to transfer bitcoin to your bank account. Then sell it, and withdraw. Most people have to go through various steps to transfer their bitcoin and crypto into their bank account such as:
- Move from cold storage to an exchange
- If it is a more exotic crypto, you’d need to turn it into bitcoin or ether
- Sell the crypto for your preferred currency
- Withdraw to your bank account
Are There Fees to Transfer Bitcoin to My Bank Account?
Depending on which route you’re taking, quite a few fees can be involved. If you are having to use multiple providers to cash out your bitcoin into your bank account, each will take a fee. Also you will encounter your blockchain transaction fees when moving crypto from one wallet to another. These vary a lot depending on the crypto.
So, in this sense you would be saving on fees using as few different middlemen as possible. Sometimes with more exotic cryptos this may not be possible. For example if you’ve invested in a rather new crypto that is not yet listed on exchanges, you could try a peer to peer trade to sell it for another crypto, then turn that into cash. When demand is low it may get tricky.
How can one Transfer Bitcoin to My Bank Account?
1. First, transfer your bitcoin.
If you keep your bitcoin in cold storage or a hardware wallet (good choice by the way, safe). Transfer it to the provider to sell for your desired fiat currency.
This can be done very easily if you follow the steps carefully. It takes just a few clicks and you’ll get a fixed price with no fee. Double check the details & confirm the transaction.
This is known as a limit-order. You can set up an order for bitcoin to be sold at a price you are comfortable with. However, this could take a while and it’s possible the price never reaches your sell point.
Don’t Know When to Sell Your Bitcoin?
The million dollar question. But when should I sell? The simple answer is – no one can know for sure. We don’t have a crystal ball, but what we do have is something pretty close to it. CoinMetro is the only exchange that offers a market sentiment indicator used by hedge funds for their traders. And guess what ? It’s totally free for all of our customers!
What this does is looks at the data from various sources and calculates how the market feels about a particular crypto at the moment. You can see this on your dashboard when logged in. Want to know more about how it works, check out this article on our indicator, featured in Forbes.
What Other Options Are Out There?
Transferring straight to your bank account can be a good option, provided that the fees aren’t too high. CoinMetro has the lowest fees on the market, so you know, we take care of you :). But there are other options. You could also get yourself a crypto debit card and spend the money directly on it. Can bitcoin be converted into cash? Yes, there are ways.
Speaking of crypto debit cards, you can deposit your bitcoin or other cryptocurrencies to your debit card and withdraw it at an ATM. Always check the fees that are linked to this. Some card providers have hefty withdrawal fees, some have bad currency exchange rates.
Another option is to sell your bitcoin directly to someone else, or peer to peer as we call it. If you know and trust the person, this could be a good way. However if not, make sure you are protected. Bitcoin transactions are irreversible which means if you send it to someone that does not send you cash back in return, there is no way to call back that bitcoin transaction. Similarly to cash, when bitcoin is gone, it’s really gone.
If transacting with someone you do not know, make sure to use a third party escrow service. This normally comes with a higher fee than exchanges or crypto to fiat providers though.
Conclusion on final thoughts
There are many different ways to turn your bitcoin or any other crypto into fiat currencies and send it to your bank account. Some ways are more costly, some faster, some a bit of a hassle. But the good news is that it is becoming more and more easier to do so. In fact something like buying food from your local store with bitcoin is a reality rather than what 10 or even 5 years ago seemed like a far off “some day” dream.
Bitcoin is still mostly used for speculation, however you can spend it now just as you would fiat money. Moving large amounts of money in bitcoin today is still vastly cheaper than with banks. And there are many that now transact only in bitcoin or other cryptocurrencies. So, after reading this article, I hope you got an answer for your question – How do I transfer bitcoin to my bank account?