Withdrawing your cryptocurrencies to a bank account might seem complicated at first, but it is a simple process once you understand the steps. So, if you have just made some profits in the crypto markets and want to withdraw them, this guide is for you. We will teach you the withdrawal process.
Withdrawing Crypto Through a P2P Platform
Peer-to-peer (P2P) platforms have become popular among digital asset users looking to convert their crypto to fiat. They allow buyers and sellers to transact directly with one another. Furthermore, P2P platforms have escrow that holds the crypto being transacted until the parties involved confirm they have received funds in their bank accounts.
Here are the steps to follow to withdraw crypto via a P2P platform:
1. Register an Account
In this guide, we will use the Binance P2P platform as our example. To become a Binance user, create an account using your email or phone number. After that, complete the Know Your Customer process by uploading your selfie and a government-issued ID.
2. Transfer Crypto to Your Binance Account
Once Binance verifies your account, transfer the digital assets you wish to exchange for cash to that account. To do so, go to “Wallet,” click “Deposit” and then “Deposit Crypto.” Now choose the asset you want to deposit and the correct network. After doing so, a deposit address will appear. Copy and paste it on the external source holding your crypto. Next, initiate the transfer to your Binance account. Once the funds reach the account, move them to the funding wallet and click “Trade.”
Select “P2P Trading” to be directed to the P2P platform, where you will be required to select your preferred fiat currency. Once done, press “Sell” and choose the crypto asset you want to exchange for fiat.
3. Sell Your Crypto
After selecting the digital asset you want to convert to cash, Binance will display various merchants and their exchange rates. Pick one that supports your preferred payment method and has a reasonable crypto-fiat exchange rate.
Next, specify the amount of crypto you want to sell and enter your payment details. Click “Sell Crypto” to initiate the transaction with your ideal merchant. Upon the arrival of funds in your bank account, confirm if the merchant has transferred the correct amount and then press “I have Received Funds” on the Binance P2P platform. The exchange will then deduct crypto from your account and transfer it to the merchant.
Withdrawing Crypto via Exchange
Several centralized exchanges allow verified users to sell their crypto for fiat directly without engaging in P2P trading. For instance, to exchange Bitcoin for USD as a Coinbase user, deposit BTC into your verified trading account and look for the BTC/USD pair. Exchange your Bitcoin for US dollars and then click “Withdraw to Bank Account.” Next, enter your payment details and the amount of USD you want to receive in your bank account. After initiating the transaction, wait for Coinbase to complete it within 5 business days.
Selling Crypto Through Bitcoin ATM
Cashing out your crypto via a Bitcoin ATM is straightforward. First, you need to locate an ATM near you and check whether it supports the digital asset you want to withdraw. Currently, most Bitcoin ATMs allow users to withdraw Bitcoin Cash, BTC, and Litecoin.
But how do you locate these ATMs? Use websites like CoinFlip and CoinATMRadar, which have comprehensive maps to show you the exact location of a nearby ATM.
Note that you must verify your identity before using any legitimate Bitcoin ATM. If an ATM doesn’t comply with KYC policies, consider it illegal.
Here is how you can withdraw your crypto via a Bitcoin ATM and deposit the received fiat to your bank account:
1. Key in your phone number on the Bitcoin ATM to receive a verification code. Enter the code and press “Sell.”
2. Choose the digital asset you want to withdraw and scan the displayed QR code using your cryptocurrency wallet. Specify the crypto amount you wish to convert to cash and make a transfer.
3. When the on-chain transfer is completed, the Bitcoin ATM will dispense cash equivalent to the withdrawn crypto amount. Collect and deposit it to your bank account via a cash deposit machine or by visiting a nearby branch.
And that’s how easy it is to cash out your cryptocurrency.
