Today, cryptocurrencies and blockchain technology are a part of our lives. Until recently, many people did not know what Bitcoin and cryptocurrencies were, but now we can pay for goods/services with coins based on blockchain. But why do we still need to withdraw digital assets from crypto wallets?

When dealing with a new type of asset such as cryptocurrency, it is not uncommon to encounter difficulties. This is because cryptocurrency is not a currency that traditional banks accept. Therefore, a cryptocurrency needs to be exchanged for fiat currency before you can deposit it into a bank account. 

Now you will learn how to transfer Bitcoin or another cryptocurrency to a bank account. Of course, it is very tempting to try to withdraw money very fast. However, you should not withdraw digital funds from a crypto wallet without preparation, because you are risking a lot (especially if you need to withdraw money in large amounts).

How to transfer cryptocurrency to a debit card or bank account

As we said above, cryptocurrency first needs to be exchanged for fiat money before it can be transferred to a bank account. All because governments control and monitor traditional banks, but cryptocurrency is decentralized and not supported by the state. As a result, we can’t yet directly transfer Bitcoin or any other cryptocurrency based on blockchain to a bank account. 

For instance, you will need to use special services to convert Bitcoin from your wallet into stablecoins and then into USD or other fiat currencies. After you withdraw crypto from your wallet, it is possible to make a regular transfer to a bank account. 

Several ways to withdraw crypto

If you are interested in how to withdraw cryptocurrency from your crypto wallet into USD or another fiat, pay attention to this part of the article. So, we need to consider several ways to withdraw and cash out Bitcoin or other blockchain cryptocurrencies from your wallet:

• You may exchange or withdraw coins via an exchange service. This is one of the most popular ways for traders to withdraw crypto from wallets. The process of exchange and transfer of cryptocurrency is very fast and you can select the form of payment, including a deposit to your bank account. In online exchanges, one user sells cryptocurrency, and the other buys it for fiat currency (the user can choose USD or any other currency). But may run into scammers, so be careful when you withdraw money this way.
• Using a centralized crypto exchange is one of the fastest ways to withdraw Bitcoin or any other crypto on the blockchain from your wallet. Depending on the crypto exchange you use, you can withdraw money directly from the exchange to your bank account after selling coins. You can choose which crypto you want to withdraw and deposit to your bank account.
• Today, many e-payment systems have introduced support for crypto. This method of withdrawing digital coins to your card can be classified as safe and convenient. You can use WebMoney, Payeer, or AdvCash to withdraw money. All these electronic payment systems and wallets are supported by most exchanges.
• Agree, it’s very convenient if you have a debit card linked to your digital assets (It’s not the same as a crypto wallet). With it, you can withdraw crypto, and pay for services and purchases. So, the user can exchange coins for USD without the participation of exchanges. With the same cards, you can withdraw coins through crypto ATMs and get USD.

There are trading platforms that allow you to withdraw assets from your wallet and deposit them directly to your card or bank account. But more often, the exchange transfers the amount to a third-party service, which then sends it to the user.  

How long does it take to send crypto from a wallet to a bank account?

The bank system usually takes from 3 to 5 days, so you may have to wait (we mean business days). There are also services where the exchange and transfer process is very fast (within 5-15 minutes). Nevertheless, if you want to cash out digital coins from your wallet, always choose the most reliable option with positive reviews and a large audience.

Tax implications of transferring assets from a crypto wallet

If you withdraw assets from a crypto wallet to a traditional bank account, don’t forget about taxes and fees. For instance, the percentage of fees varies from 1 to 10%, sometimes much more. It depends on the type of coin, its stock in the vault of the service, the method of withdrawal, and other parameters. 

Keep in mind that in addition to the commissions taken by the exchangers, the fee will be charged and the external payment systems. Add to this the fee for making withdrawals from these systems to your bank card. All this must be taken into account when you withdraw assets from a crypto wallet.