Yes, you can withdraw crypto to a bank account, but the path depends on which exchange you use and what type of account you have
Moving money from a cryptocurrency exchange to your bank account is a straightforward process at most major platforms — but it requires a few specific steps and takes longer than moving money between crypto wallets. The exchange holds your crypto, converts it to dollars (or your local currency), and then sends that money to your bank through the standard payment networks your bank uses. The whole process typically takes three to five business days, though some exchanges are faster and some slower.
The mechanics are straightforward: you sell your crypto on the exchange for cash, then initiate a withdrawal to a bank account you've already registered with that exchange. The exchange verifies the account is yours, processes the transaction, and sends the money through ACH (the Automated Clearing House network that moves money between US banks) or an equivalent system in other countries. You'll need to provide your bank's routing number and your account number, and the exchange will usually require you to verify a small deposit first to confirm you own the account.
Key Takeaways
- You must sell your cryptocurrency for cash on the exchange before you can withdraw to a bank account — you cannot send crypto directly to most bank accounts.
- Most exchanges require you to register your bank account and verify ownership by confirming a small test deposit before your first withdrawal.
- Withdrawals through ACH typically take three to five business days, though some exchanges offer faster options for a fee.
- Your bank and the exchange both have daily or monthly withdrawal limits that may restrict how much you can move at once.
- The exchange will report the transaction to the IRS if you made a profit on the crypto sale, so keep records of what you paid for it originally.
How the conversion and withdrawal actually works
When you withdraw crypto to a bank account, you're not moving the cryptocurrency itself — you're selling it on the exchange and moving the resulting dollars. Here's the order: you log into your exchange account, navigate to the sell or trade section, choose how much crypto you want to convert, and confirm the sale at the current market price. The exchange when ready credits your account balance in dollars. Then you go to the withdrawal or transfer section, select your registered bank account, enter the amount, and confirm.
The exchange then submits your withdrawal request through ACH, which is the network that handles most routine bank transfers in the United States. ACH is slow by design — it batches transactions and processes them overnight, which is why you see the three to five business day timeline. Your bank receives the incoming transfer, verifies the amount and sender, and deposits it into your account. If you initiated the withdrawal on a Friday afternoon, it won't start processing until Monday, and won't land in your account until Wednesday or Thursday.
Some exchanges offer faster options. Coinbase, Kraken, and a few others have partnerships with banks that let them process withdrawals the same day or next day, but these usually cost extra — typically $10 to $25 per transaction. Wire transfers are another option at some exchanges, and they move faster (usually one business day) but cost more and require additional information from your bank.
Setting up your bank account on the exchange
Before you can withdraw anything, you need to register your bank account with the exchange and prove you own it. Most exchanges require two pieces of information: your bank's routing number (a nine-digit code that identifies your specific bank) and your account number. You can find both on a check, in your bank's app, or by calling your bank's customer service line.
After you enter this information, the exchange will make two small deposits into your account — usually between $0.01 and $0.99 each — within one to three business days. You then log back into the exchange, go to the verification section, and enter the exact amounts of those two deposits. This proves you have access to the account. Only after the exchange confirms these amounts can you withdraw money.
Some exchanges skip the test deposit and instead ask you to upload a bank statement or a photo of a check. This is faster but less common. A few exchanges, particularly smaller ones, may ask for additional documents like a utility bill or ID to verify your identity before allowing withdrawals.
Withdrawal limits and timing
Both your exchange and your bank may impose limits on how much you can withdraw at once or in a given period. Coinbase, for example, allows most users to withdraw up to $50,000 per day through ACH, though new accounts start lower. Kraken's limits vary by account age and verification level. Your bank may also have its own incoming transfer limits — some banks cap ACH deposits at $10,000 per day or $25,000 per month for security reasons.
If you hit a limit, you have two options: wait for the limit to reset (usually daily or monthly, depending on the exchange and bank) or use a faster method like a wire transfer, which often has higher limits but costs more. Some exchanges let you request a limit increase by providing additional verification documents.
Timing matters too. If you initiate a withdrawal on a weekend or holiday, it won't start processing until the next business day. If you initiate it after the exchange's cutoff time (usually 2 or 3 p.m. Eastern), it may not process until the following day. Check your exchange's help section for its specific cutoff time.
Fees and what they cover
Most exchanges charge a withdrawal fee for moving money to your bank account — typically $0 to $10 for standard ACH transfers, though some charge a flat fee and others charge a percentage of the amount. Coinbase charges $0 for ACH withdrawals. Kraken charges $0.15 to $0.75 depending on your account tier. Gemini charges $0 for the first withdrawal each month, then $10 for additional withdrawals.
Your bank may also charge a fee for receiving an incoming ACH transfer, though this is rare — most banks don't charge for deposits. If you use a wire transfer instead of ACH, expect to pay $15 to $30 at the exchange, plus potentially another $10 to $15 at your bank for receiving the wire.
The fee covers the exchange's cost to process the transaction and submit it to the ACH network. It does not include any taxes you owe on the sale. If you sold crypto at a profit, you owe capital gains tax on that profit, and the exchange will report the transaction to the IRS. You'll owe the tax when you file your return, not when you withdraw the money.
What happens if your bank rejects the deposit
Occasionally a bank will reject an incoming transfer from an exchange, usually because the account number or routing number was entered incorrectly, or because the bank's fraud detection system flagged the transaction. If this happens, the exchange will typically reverse the transaction and credit the money back to your exchange account within one to three business days. You can then initiate a new withdrawal with the correct information.
Some banks are more cautious with crypto exchange transfers and may hold the deposit for review before crediting it. This is not a rejection — the money is coming, but the bank is verifying it's legitimate. This can add a few extra days to the timeline. If you're concerned, call your bank's customer service line before initiating the withdrawal and let them know you're expecting a transfer from a specific exchange. Some banks will note your account and process it faster.
If your bank repeatedly rejects transfers from your exchange, you may need to contact the exchange's support team to troubleshoot. Occasionally the issue is on the exchange's side — they may have the wrong routing number for your bank, or they may be using an outdated ACH format. The exchange can usually fix this in one or two business days.
Tax reporting and record-keeping
When you sell crypto on an exchange and withdraw the proceeds to your bank account, you've triggered a taxable event. The IRS considers this a sale, and you owe capital gains tax on any profit you made. If you bought Bitcoin for $20,000 and sold it for $30,000, you owe tax on the $10,000 gain, not on the full $30,000 you withdrew.
The exchange will report the transaction to the IRS on Form 8949 if the sale meets certain thresholds (the rules vary by exchange and change year to year). You'll receive a Form 1099-K or similar document from the exchange showing the gross proceeds of the sale. You'll need to report the cost basis (what you paid for the crypto originally) separately on your tax return to calculate the actual gain or loss.
Keep records of every crypto purchase and sale: the date, the amount, the price, and the total value in dollars. If you bought crypto over several years and sold only some of it, you need to track which specific coins or tokens you sold — this matters because different coins may have different cost bases. Many exchanges provide a transaction history you can read, but it's your responsibility to keep accurate records for tax purposes.
Frequently Asked Questions
How long does it actually take to see the money in my bank account?
Standard ACH withdrawals take three to five business days from the moment you initiate them on the exchange. If you withdraw on a Friday, expect the money Tuesday through Thursday of the following week. Faster options like same-day ACH or wire transfers can cut this to one business day, but they cost extra. Check your exchange's help section for its specific timeline — some are faster than others.
Can I withdraw to someone else's bank account?
No. Exchanges require the bank account to be registered in your name and verified with test deposits. This is a compliance requirement — exchanges must know who owns the account receiving the money. If you need to send money to someone else, withdraw to your own account first, then transfer it from your bank to theirs.
What if I enter the wrong bank account number?
The withdrawal will likely be rejected by the ACH network or your bank, and the money will be returned to your exchange account within one to three business days. You can then initiate a new withdrawal with the correct account number. Double-check your routing number and account number before confirming any withdrawal.
Do I have to pay taxes on the withdrawal itself?
No, but you do owe taxes on the profit from selling the crypto. If you sold at a loss, you don't owe tax on that transaction — you may even be able to deduct the loss. The withdrawal itself is just moving money you already earned; the tax event happened when you sold the crypto on the exchange.
Can I withdraw more than my daily limit?
Not in a single transaction, but you can initiate multiple withdrawals on different days to work around the limit. If your exchange has a $50,000 daily limit and you want to withdraw $100,000, you can withdraw $50,000 today and $50,000 tomorrow. Some exchanges let you request a limit increase by providing additional verification documents.