The basic path: sell your bitcoin, then transfer the cash
To move bitcoin into a bank account, you sell the bitcoin on a cryptocurrency exchange, and the exchange sends the dollars (or your local currency) to your bank. You cannot send bitcoin directly into a bank account — banks do not accept cryptocurrency. The exchange is the middleman that converts your bitcoin to regular money and handles the transfer.
The whole process usually takes between one and five business days, depending on which exchange you use and which bank you use. Some of the delay is the exchange's processing time. Some is your bank's time to receive and clear the incoming transfer.
You will need three things before you start: a cryptocurrency exchange account that lets you sell bitcoin, your bank account details (routing number and account number), and your bitcoin sitting in a wallet or already on the exchange.
Key Takeaways
- Bitcoin cannot go directly into a bank account — you must sell it on a cryptocurrency exchange first, which converts it to dollars and sends those to your bank.
- The exchange you choose affects both the fee you pay and how long the transfer takes, so compare the rates and withdrawal methods of at least two before you sell.
- You will need to verify your identity with the exchange before you can withdraw money, which usually means uploading a government ID and proof of address.
- The exchange sends the money as a standard bank transfer, so your bank may hold it for one to three business days before it shows in your account.
- If your bitcoin is in a personal wallet rather than on an exchange, you must first transfer it to the exchange (which costs a small fee and takes time), then sell it.
Choosing an exchange that lets you withdraw to your bank
Not all cryptocurrency exchanges let you withdraw to a U.S. bank account. Some are designed only for trading between cryptocurrencies, and some operate only outside the United States. Before you open an account, check that the exchange supports bank withdrawals in your state.
The major exchanges that do support U.S. bank withdrawals include Coinbase, Kraken, Gemini, and Crypto.com. Each charges different fees for selling bitcoin and for withdrawing the money to your bank. Coinbase typically charges around 1% to 2% to sell, plus a withdrawal fee that varies by bank. Kraken charges lower selling fees but may charge more to withdraw. Compare the total cost (selling fee plus withdrawal fee) on at least two exchanges before you decide.
Some exchanges also limit how much you can withdraw per day or per month, especially if your account is new. Check the withdrawal limits before you sell a large amount of bitcoin.
Setting up your exchange account and verifying your identity
When you create an account on an exchange, you will need to provide your name, email, and a password. That is not enough to withdraw money. Before you can sell bitcoin and move the money to your bank, the exchange will ask you to verify your identity.
Identity verification usually means uploading a photo of a government-issued ID (driver's license, passport, or state ID) and proof of your address (a recent utility bill, bank statement, or lease). The exchange uses this to comply with federal anti-money-laundering rules. The process is automated and usually takes a few minutes to a few hours, though some exchanges may take longer during busy periods.
Once your identity is verified, you can add your bank account to the exchange. You will enter your routing number and account number. Some exchanges verify the bank account by sending two small test deposits (usually under $1 each) to your account, which you then confirm on the exchange. This adds another day or two to the process.
Selling your bitcoin on the exchange
Once your account is set up and your bank account is linked, you can sell. Log into the exchange, find the "sell" or "trade" section, and select bitcoin. Enter the amount of bitcoin you want to sell (or the dollar amount you want to receive — most exchanges let you choose either way).
The exchange will show you the current price and the fee. Review the total before you confirm. The price of bitcoin moves constantly, so the price shown on screen may be slightly different from the price when you actually complete the sale — exchanges usually show you the price you will actually receive before you confirm.
Once you confirm the sale, the exchange converts your bitcoin to dollars and holds the money in your exchange account. You have now sold the bitcoin. The next step is to withdraw the dollars to your bank.
Withdrawing the money to your bank account
In the exchange's account settings or dashboard, find the "withdraw" or "transfer" option. Select your linked bank account as the destination. Enter the amount you want to withdraw (you can withdraw all of it or part of it). The exchange will show you any fees and the expected arrival date.
When you confirm, the exchange sends the money to your bank as an electronic transfer, usually called an ACH transfer. This is the same type of transfer you would use to send money between your own bank accounts.
The money does not arrive when ready. The exchange usually processes the withdrawal within one business day, but your bank may take another one to three business days to receive and clear it. So the total time from when you request the withdrawal to when the money appears in your account is usually two to five business days. Weekends and holidays can add time.
If your bitcoin is in a personal wallet, not on an exchange
If you hold your bitcoin in a personal wallet (a software wallet on your computer, a hardware wallet like a Ledger, or a mobile wallet), you must first move it to an exchange before you can sell it. This is called a deposit or transfer into the exchange.
To do this, log into the exchange and find the "deposit" section. Select bitcoin. The exchange will give you a bitcoin address (a long string of letters and numbers). Copy this address carefully — if you paste it wrong, the bitcoin goes to the wrong place and you may not be able to recover it.
Go to your personal wallet and send your bitcoin to that address. This transaction costs a small fee (called a network fee or miner fee) that goes to the bitcoin network, not to the exchange. The fee varies depending on how busy the network is. Once you send it, the bitcoin usually arrives at the exchange within 10 minutes to a few hours.
After the bitcoin arrives at the exchange, you can sell it and withdraw the money to your bank using the steps above.
Understanding the costs and timing
Moving bitcoin to your bank account involves several fees and delays. The exchange charges a fee to sell your bitcoin (usually 0.5% to 2% of the amount). The exchange may charge a fee to withdraw to your bank (usually $0 to $25, depending on the exchange). If your bitcoin is in a personal wallet, the bitcoin network charges a fee to move it to the exchange (usually $5 to $50, depending on network congestion).
The total time depends on where your bitcoin starts. If it is already on an exchange, the process takes two to five business days. If it is in a personal wallet, add another 10 minutes to a few hours for the transfer to the exchange, plus the time to sell and withdraw.
Plan for the full timeline before you need the money. If you need the cash by a specific date, start the process at least a week earlier to account for delays.
Frequently Asked Questions
Do I have to pay taxes when I convert bitcoin to dollars?
Yes. The IRS treats bitcoin as property, not currency. When you sell bitcoin, you owe capital gains tax on the profit (the difference between what you paid for it and what you sold it for). You should keep records of when you bought the bitcoin and how much you paid. A tax professional can help you calculate what you owe.
What if the exchange I use gets hacked or shuts down?
If an exchange is hacked or fails, your money may be at risk. Exchanges are not insured by the FDIC the way banks are. To reduce risk, do not keep large amounts of bitcoin on an exchange for long periods. Sell it and move it to your bank as soon as you decide you want the cash. If you hold bitcoin long-term, keep most of it in a personal wallet instead.
Can I withdraw to someone else's bank account?
No. The exchange will only withdraw to a bank account in your own name, which matches the name on your verified ID. This is a legal requirement. If you want to send money to someone else, withdraw it to your own bank account first, then transfer it from there.
Why does my bank account take so long to show the money?
Your bank may hold incoming transfers for one to three business days as a security measure, even after the exchange has sent the money. This is called a hold. You can contact your bank to ask why the hold is in place and whether it can be removed. Some banks clear transfers faster if you have had the account open for a long time or have a good history with them.
What if I want to move bitcoin to my bank account regularly?
If you plan to do this often, consider keeping a small amount of bitcoin on an exchange at all times so you do not have to wait for transfers from a personal wallet. You can also set up recurring sales on some exchanges, though this may trigger higher fees. Compare the cost of frequent small transfers versus fewer large transfers to see which is cheaper for your situation.