How To Withdraw Bitcoin to Bank Account

posted in: Banking Tips | 0

Bitcoin, the groundbreaking cryptocurrency, has steadily gained mainstream recognition. Its decentralized nature and potential for investment returns have fueled its popularity. Users can get Bitcoin through mining, trading, or accepting Bitcoin payments. But while it’s effective in online payments, you can convert it into traditional currency and deposit those funds directly into your bank account.

Every day, billions of Bitcoin are withdrawn from different exchanges. A recent report showed that over USD$ 2 billion worth of Bitcoin was withdrawn on March 1st, 2024 alone. But, how do you go about this withdrawal process? This article will guide you through the most effective methods, covering popular cryptocurrency exchanges, peer-to-peer marketplaces, and even Bitcoin ATMs.


#1 Using Cryptocurrency Exchanges

Crypto exchanges are online platforms that act as intermediaries between buyers and sellers of cryptocurrencies. Reputable exchanges offer secure and often regulated environments for trading Bitcoin. They also allow you to withdraw your Bitcoin directly to your bank account.

Alternatively, you can look for exchanges that offer over-the-counter (OTC) transactions. This option is ideal for managing large Bitcoin withdrawals without worrying about online withdrawal limits. Additionally, it comes with perks such as lower fees, personalized customer experience, and security.

Here’s how to withdraw Bitcoin using an exchange:

  • First, create an account on your chosen exchange and complete the required identity verification processes.
  • Link your bank account securely to the exchange platform.
  • Next, navigate the exchange’s trading interface and sell your Bitcoin for a fiat currency like U.S. Dollars or Euros.
  • Once the sale is complete, you can initiate a withdrawal of the fiat currency to your linked bank account. It typically takes a few business days for the funds to appear.

This is one of the most straightforward ways to withdraw your Bitcoin to a bank account. It eliminates the need for third-party deals and also increases the level of transaction security.


#2 Peer-to-Peer (P2P) Marketplaces

P2P marketplaces directly connect buyers and sellers of Bitcoin. These platforms allow you to find individuals willing to buy Bitcoin using your preferred payment method, often including bank transfers. Here’s how the process works:

  • Find a reliable P2P platform where you can sell your Bitcoin. It should support bank payments and have a solid reputation for security and transparency of transactions.
  • Find a reputable buyer on the P2P marketplace who accepts your chosen payment methods.
  • Negotiate and agree on an exchange rate for your Bitcoin.
  • You can set up a trade with the buyer, and your Bitcoin will be held in an escrow by the P2P platform that you use.
  • The buyer will then release the money to your bank account.
  • Upon confirmation of the money transfer, you can complete the trade, and the Bitcoin will be released to the buyer’s wallet.

While P2P is a convenient and effective way of withdrawing Bitcoin, there are some downsides that you should be aware of. It requires careful vetting of buyers to avoid scams, and the responsibility for security is greater.


#3 Bitcoin ATMs

Bitcoin ATMs, despite their name, function differently from traditional bank ATMs. Instead of connecting to your bank account, they connect to the internet and facilitate interaction with cryptocurrency exchanges or the Bitcoin blockchain itself. The withdrawal process usually works as follows:

  • You may need to verify your identity depending on the ATM’s requirements.
  • Scan your Bitcoin wallet’s QR code or input your wallet address at the ATM.
  • Insert the cash amount you want to withdraw and confirm the transaction. The Bitcoin equivalent will be sent from your wallet, and you’ll receive the cash from the ATM.

After withdrawing the money in an ATM, you can deposit it in your bank account. However, Bitcoin ATMs have several limitations. First, they’re not readily available. As of January 2024, there were only 34,000 Bitcoin ATMs worldwide. This means that they’re not easily accessible for use.


Considerations for Withdrawing Bitcoin

When withdrawing Bitcoin to your bank account, several factors must be considered. They include the following:


Understanding the costs of different withdrawal methods is essential for maximizing your returns. Centralized exchanges typically charge transaction fees for withdrawals – make sure you compare these fees across various platforms. Peer-to-peer marketplaces can have more variable fees based on the buyer and their chosen payment method. Additionally, Bitcoin ATMs are notorious for their high transaction fees, so factor that in if you consider this option.
Remember the fluctuating network fees on the Bitcoin blockchain itself. During times of high network activity, these fees can increase, affecting the overall cost of your withdrawal. Some exchanges allow you to set custom network fees, giving you some control over the speed and cost of the transaction.


Choosing a reputable platform is crucial for protecting your Bitcoin and the fiat currency you withdraw. The amount of crypto lost due to security issues grew nine times between 2020 and 2021. Therefore, security should be among your top priorities whenever crypto is involved.
Before using a centralized exchange or P2P marketplace, thoroughly research its security history and the measures it has to safeguard user assets. Look for platforms with a proven track record and implement robust security features.
Beyond platform choice, personal responsibility plays a vital role. Use unique, complex passwords that you don’t use elsewhere. Enable two-factor authentication (2FA) whenever possible to add an extra layer of protection for your accounts. Be wary of suspicious emails or websites that might imitate legitimate exchanges or platforms – these are common phishing tactics aimed at stealing your login information.


The time it takes to withdraw your Bitcoin to a bank account depends on the chosen method. Centralized exchanges often have processing times that range from a few hours to several business days. Peer-to-peer transactions can sometimes be faster but rely on finding a buyer and coordinating the transaction. Bitcoin ATMs provide the most instant way to access cash, but they might not be as readily available as online options.



Figuring out how to withdraw Bitcoin can seem a bit overwhelming at first. There are lots of options, each with its own quirks and things to consider. But by doing your research and figuring out what matters most to you, whether it’s speed, low fees, or ease of use, you’ll find the method that lets you get the most out of your Bitcoin.

Leave a Reply

Your email address will not be published. Required fields are marked *