As the increase in popularity of cryptocurrency continues to expand and prices for major digital currencies like Bitcoin or Ether are reaching their historical peaks in this instant, more and more investors are entering the market seeking profit and investing in this powerful financial tool. Experienced traders were once newcomers and had the same concerns and questions about the basics of crypto trading. One of the most common questions is how to withdraw crypto to bank account once you have managed to receive your first gain.
At first glance, it may seem that buying and selling crypto is immensely complex, which is the common misconception that drives away the majority of investors. This detailed guide shows that the process of how to withdraw crypto to bank account is intensely coherent, and we have put together a number of ways you might use to transfer your funds and avoid widespread mistakes.
Why is it important to select the right approach when withdrawing crypto?
The process of how to withdraw crypto to bank account includes both technical aspects and legal intricacies. Crypto trading is all about profit. You are entering the market to make money and upgrade your financial situation. Selecting the wrong withdrawal approach might lead to losses, high commission fees, transaction delays and even blocking of the funds.
- Always make sure to consider the laws and regulations on crypto trading applicable in your region, as many countries have very strict policies regarding crypto income.
- Check the amount of taxes you will have to pay upon the cryptocurrency conversion.
- The choice of a secure and reliable platform reduces the risk of becoming a victim of multiple scamming schemes.
Most conventional ways of how to withdraw crypto to bank account:
- Cryptocurrency exchange platforms: these platforms offer convenient tools for money withdrawal, are secure and often have reasonable transaction fees. Choose the platform based on your financial goals and availability in your country, as sometimes functionality can be limited in particular regions. The largest crypto exchange platforms are Binance, Kraken and Coinbase.
- P2P trading platforms: another typical method of selling crypto in exchange for fiat currency. When you use peer-to-peer trading, you are trading your assets directly with other users, without the meddling of a centralized facility, thus the commissions on P2P platforms can be lower than on exchanges as you are not paying any fees to the third party. Moreover, these platforms are quite flexible in payment methods and some deals can be handled even using cash.
- Cryptocurrency ATMs and online crypto exchangers: two options that are used less for crypto withdrawal as they require high commissions and make the exchange process less profitable. Also, cryptomats are only limited to the world’s biggest cities and most countries do not utilize them at all.
What fees are applicable when exchanging crypto for fiat currency?
Each financial institution you are using for crypto trading has its own commission list that you have to study before opening a trading account. The most common fees include:
- Platform exchange fees: either fixed or percentage charges for currency conversion.
- Bank transfer charges: fixed fees for payment procession and/or international transfers.
- Network fees: typically depend on blockchain congestion and the coin you are willing to trade.
Remember that your key priority is securing your funds, and you are solely responsible for market analysis and the choice of trustworthy financial platforms. Always double-check the information and read real-life reviews to make your trading experience as safe as possible.
Disclaimer:
CBD:
Qrius does not provide medical advice.
The Narcotic Drugs and Psychotropic Substances Act, 1985 (NDPS Act) outlaws the recreational use of cannabis products in India. CBD oil, manufactured under a license issued by the Drugs and Cosmetics Act, 1940, can be legally used in India for medicinal purposes only with a prescription, subject to specific conditions. Kindly refer to the legalities here.
The information on this website is for informational purposes only and is not a substitute for professional medical advice, diagnosis, or treatment. Always seek the advice of your physician or another qualified health provider with any questions regarding a medical condition or treatment. Never disregard professional medical advice or delay seeking it because of something you have read on this website.
Gambling:
As per the Public Gambling Act of 1867, all Indian states, except Goa, Daman, and Sikkim, prohibit gambling. Land-based casinos are legalized in Goa and Daman under the Goa, Daman and Diu Public Gambling Act 1976. In Sikkim, land-based casinos, online gambling, and e-gaming (games of chance) are legalized under the Sikkim Online Gaming (Regulation) Rules 2009. Only some Indian states have legalized online/regular lotteries, subject to state laws. Refer to the legalities here. Horse racing and betting on horse racing, including online betting, is permitted only in licensed premises in select states. Refer to the 1996 Supreme Court judgment for more information.
This article does not endorse or express the views of Qrius and/or its staff.
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