There Are Many Ways to Transfer Crypto to Your Bank Account — Here's How
Transferring cryptocurrencies to your bank account can be an easy process. We’ll show a variety of ways to achieve this.
Aug. 27 2021, Published 8:12 a.m. ET
Cryptocurrency has become more common as a currency of choice, whether it’s trading, investing, or buying goods and services. Some of the most popular cryptocurrencies include Bitcoin, Ethereum and Litecoin. Even Dogecoin, which was thought of as a “meme coin,” is being taken more seriously and there are companies that will accept payments with Dogecoin—the Dallas Mavericks being among them.
As more people become familiar with crypto, banks are starting to become more comfortable with offering crypto services to their customers. Banks across the world have purchased crypto themselves, including JP Morgan. There are various ways to transfer crypto depending on your bank, with the possibility of simply selling your crypto assets and put the money on your debit or credit card.
The way you ransfer crypto to your bank account depends on where you keep your assets.
Crypto can be stored in multiple ways including a crypto exchange, crypto wallet, and various online accounts. It’s not possible with most banks to directly transfer crypto to a bank account, so the common process of transferring involves selling the crypto for your local fiat currency, then transferring that money to your bank. When transferring bitcoin and other crypto, be aware of fees associated with the transfer. The types and amounts of those fees will depend on the company.
Crypto exchanges
With crypto exchanges such as Coinbase, Kraken and Binance, you have to sell the desired amount of crypto for fiat currency such as U.S. dollars. After you sell, you can then transfer the fiat currency to a bank account. Depending on the crypto exchange, if you want to sell cryptos other than bitcoin, you’ll have to exchange that crypto for bitcoin first, then sell the bitcoin for fiat. Selling crypto on an exchange tends to be the fastest method in transferring money over to the bank account.
Crypto wallets
Crypto wallets are much more secure for storing crypto than exchanges, but the process of transferring crypto can be more tedious and time consuming. Many wallets require you to transfer crypto to an exchange first, and then you can sell on the exchange and transfer the fiat currency to your bank account.
How to transfer crypto from PayPal to your bank account.
Although PayPal is not a bank, it shares very similar roles in allowing you to hold money, have a debit or credit card, and even a credit line. In early 2021 they allowed users to buy, sell, and hold crypto as well as make select purchases with crypto using a PayPal account. It’s not possible to transfer crypto out of a PayPal account, but it’s very easy to just sell the crypto and keep the dollars in your PayPal account, or transfer it to a bank account. Robinhood is similar to PayPal, except you can only buy, sell, and hold crypto, so you’d have to sell the crypto and transfer the money to your bank account.
How to transfer crypto from Cash App to your bank account.
Bitcoin is the only cryptocurrency that you can buy, sell, hold, and transfer on Cash App. But it can be useful if you need a wallet address to send your bitcoin. If you have your bitcoin on a wallet and prefer not to use a crypto exchange, you can simply send the bitcoin to Cash App and you’ll be able to sell the bitcoin ,then transfer it to your bank account.