I’ve been seeing people asking questions on how to transfer Bitcoin to a bank account so in this post I’m going to be addressing exactly this and showing you how to do so step-by-step. You can’t actually transfer Bitcoin directly into your bank account, but what I’m guessing you are looking for is how to take Bitcoin in turn it into money in your bank account… Or at least this is what I have found many people are asking about when looking into this.
The process of taking bitcoin that you have and turning that bitcoin back into regular money inside your bank account consists of 3 steps since you can’t just directly send your bitcoin to your bank. What you will first have to do is convert your bitcoin into regular money, such as USD or EUR, and then have that money sent to your bank account.
There is more than one way to go about it but I will be showing you what I consider one of the easiest, cheapest, and definitely one of the safest ways to do so.
The Easy & Cheap Way
The way in which I do this is through the cryptocurrency exchange GDAX. GDAX is an exchange that allows users to purchase cryptocurrencies with bank transfers and on the flipside you can sell cryptocurrencies and transfer the money back to your bank account.
Being based in San Francisco California, GDAX is definitely one of the more trusted exchanges out there. They are subject to laws and regulations within the US and because I know there is the government as well as other third parties looking over their shoulder and making sure they are acting legitimately, I feel a lot more safe using this exchange compared to some other ones out there.
On top of this GDAX also charges zero fees for withdrawing money into your bank account and only charges a 0.3% fee at most when you exchange your Bitcoin for USD, EUR, GBP, or whatever.
But of course before you can use GDAX you have to create an account by going to GDAX.com. There will be a button in the upper right of the screen that you can click to begin creating your account as you can see here….
The next step will be to fill in your name, email, password, and select your state. The sign-up process is pretty simple so I’m not going to be going over how to do this.
The Process of Transferring
Step 1: Send Your Bitcoin to Your GDAX Account
Step one is to first send your bitcoin over to your GDAX account. To do this you want to click on BTC/(your currency) and click on the “Deposit” button…
After clicking on this button you will see the screen shown below. You are going to want to click on BTC Address which will then show you a string of numbers/letters. This is your bitcoin address that you want to send your bitcoin to. So what you have to do is copy and paste this address in the wallet or exchange that you currently have your bitcoin in once you start the withdrawal process there…
And take note that the minimum deposit amount is 0.01 BTC. So you must have at least this much bitcoin to be able to do this.
Step 2: Exchange The Bitcoin for Your Currency (USD, EUR, etc)
Now that you have your bitcoin deposited in GDAX, which may take a while depending on the bitcoin network speeds, you are ready to exchange it for your currency. So make sure you have BTC/(your currency) selected in the drop-down menu and then go click on the red “Sell” button. After that you’re going to enter in the amount of bitcoin that you want to sell. The total money that you will end up with will be calculated below so that you can see it before you place your order.
After placing your sell order the GDAX exchange well match you up with buy orders to execute the transaction as fast as possible.
*Note: right above the sell button there are several different tabs you can click on including “Market” and “Limit”. As you can see right now is on Market which means your sell order will automatically be placed at market price, which will lead to instant execution. If you choose Limit you can set your sell order at any price but there is no guarantee that it will actually sell. This is for people who have predictions for the market, so they might set a sell order at a higher price hoping that the price of bitcoin rises in that they get more money. But if you just want to sell right away and get your money as fast as possible then just leave it on the Market selection.
Step 3: Transfer Your Money to Your Bank Account
Now that you have exchanged your bitcoin for USD, EUR, or whatever currency, it is now time to transfer that to your bank account. To do this you’re going to want to go to the withdraw button which I have circled below…
Once you click on that you will then see the screen that I’ve taken a screenshot of below. You are going to want to click on Bank Account over on the left and since you do not have any bank accounts attached to your GDAX account yet you will have to add one. Your screen might not look exactly like mine because I already have bank accounts linked but there should be someplace you can click to add a new bank account.
When you go to add a new bank account you will be directed to the Coinbase exchange (the url will appear as coinbase.com/…). This may sound a bit fishy if you are unfamiliar with all of this but the reason for this is because GDAX is actually owned by Coinbase. Coinbase is another cryptocurrency exchange that offers many of the same features as GDAX, such as being able to buy and sell cryptocurrency with bank transfers, but the reason I’m not showing you how to use Coinbase to do this is because their fees are much much higher than GDAX’s (you can learn more about GDAX vs Coinbase here).
But anyway… You will be directed to the screen of Coinbase where you can click on the “Link a New Account” button. When you link an account you will have to go through a short verification process to ensure that the account you’re linking is in fact yours.
After linking your account and going through the verification process you will have to head back on over to the withdraw page of GDAX just as you did before being sent over the Coinbase to link your account. On this page you will go over to Bank Account just as you did before, make sure your bank account is selected as the destination, enter in the amount of currency that you want to transfer, and enter in your Two Factor Code which you will set up for security purposes.
After that you are done. Now it’s just time for you to wait for the money to enter your bank account. As you can see on the screen below there is a section titled Processing Time on the bottom right that tells you it will normally take 3 to 5 days but can take up to 10 days that some times.
I hope this is the information you are looking for. (If you meant something else when looking for transferring bitcoin to your bank account then please let me know in the comments section below)
It’s a little bit of a roundabout process but this is just the way it is when converting between bitcoin and regular fiat money and then sending it to your bank account. As I mentioned at the beginning there are different ways you can go about doing this. There are different exchanges out there that allow you to do this, but GDAX is definitely my recommendation and is what I use. It’s safe, it’s easy, and heck they even offer phone support if you have any troubles, which is definitely something that you will not find with the majority of other places.
If you have any questions at all about this process or any comments please leave them below and I’ll get back to you as soon as I can. I hope you found this article helpful and insightful 🙂