How transfer Bitcoin to bank account
The growth of the cryptocurrency market in 2021 has contributed to the interest of companies around the world in digital assets. Whereas in the past, only companies that sincerely believed in the emergence of the cryptocurrency industry invested in digital assets or incorporated them into their business processes, now it is more of a trend.
However, one should not think that there are incompetent people sitting in the management of large companies investing and using cryptocurrencies just because everyone else is using them.
Crypto assets have become an important part of many companies' and people's lives. Therefore, a question how to transfer BTC to bank account has become relevant.
In this article you can read about how transfer Bitcoin to bank account in Kenya, about ways to transfer BTC to bank account and learn a little more about cryptocurrency and crypto exchanges.
Getting to know Bitcoin
Before getting into the question of how withdraw Bitcoin to bank account, you should first learn more about Bitcoin and how it differs from fiat money.
BTC is a decentralised electronic unit that acts as an alternative to fiat money (dollars, euros) and is designed for instant transfers.
It is essentially a distributed data record - a blockchain - that stores information about all transactions in plain text. Only the sender's and recipient's addresses appear, but there is no personal information about them.
The network works with the Proof-of-Work (PoW) consensus method. A secure SHA-256 hash algorithm is used.
The main function of the project is to carry out fast and secure transactions with minimal fees. Blockchain technology is used for this purpose. To transfer cryptocurrencies, it is sufficient to know the Bitcoin address of the recipient.
Bitcoin (BTC) has these characteristics:
- The first cryptocurrency. Thousands of other currencies have followed suit and dozens of blockchains have been launched.
- Other currencies cannot be generated on the Bitcoin blockchain, as in Ethereum.
- The cryptocurrency is highly liquid. BTC is matched by 99% of the currencies that are available on exchanges (it outperforms other currencies by this measure).
- Bitcoin is a limited currency that is used for transactions.
- Changes in the Bitcoin exchange rate affect the entire market. If its price decreases, most other currencies also lose value. This is because it is the main peer on exchanges and the most popular cryptocurrency among investors. For the same reason, it is easy to convert Bitcoin into cash.
- The currency is accepted by large companies, corporations, websites, marketplaces and apps. The list is constantly expanding. BTC is the main means of payment compared to other cryptocurrencies.
- The coins can be bought in cash at more than 18,000 ATMs (there are more than 13,500 in the United States).
Bitcoin has strict limits on the issuance of new coins. The maximum amount that can be generated is 21 million BTC. Limited issuance should prevent inflation and devaluation, as well as encourage miners to allocate computing power to support the network.
Different possible ways to make transactions with Bitcoin
How to transfer BTC to bank account in Kenya?
Until cryptocurrencies are on a par with national currencies, their holders need fiat money. Since financial regulators remain sceptical about free conversion, the question of how withdraw BTC to bank account is relevant.
There are many methods to transfer Bitcoin to bank account, but the most popular ones are:
- Centralised cryptocurrency exchanges.
- Peer to peer platforms.
- Third-Party Broker Exchanges.
It is also possible to withdraw cryptoassets through Bitcoin ATMs or through known persons. However, these methods are very specific. The following article briefly discusses this issue.
Later in the article there will be more details on ways on how withdraw BTC to bank account in Kenya.
Withdrawing cryptoassets via an exchange
One of the most "civilized" and popular ways to exchange crypto to fiat and vice versa is through professional crypto exchanges. This way, you only deal with the platform, not with other users. The fiat money can also be withdrawn to a bank account.
What are the advantages of this method?
Popularity. Centralised cryptocurrency exchanges such as Binance, CEX.IO or Coinbase handle the most transactions. As a result, buyers do not have to spend time finding buyers.
Transparency. Many cryptocurrency exchanges disclose the details of their operations, providing information about the management company, the location of the servers, etc.
How transfer Bitcoin to bank account through an exchange?
The process is as follows:
- Choose the exchange most convenient for you and register.
- Then you have to pass the verification process. This process is mandatory for withdrawal of funds.
- To sell Bitcoin by bank transfer, you first have to find an offer with payment by bank transfer. You also have to specify the amount to sell and the preferred currency.
There is another way:
To sell cryptocurrencies via bank transfer, you can also create your own offer:
- Immediately set a suitable margin, as you will not be able to change the price during the transaction.
- If you want to use the old bank transfer payment method and set the offer conditions yourself, select "Other bank transfer" as the payment method.
- After publishing your offer, wait for a buyer to open a transaction with you. You will be notified of the new agreement.
Which exchange should I choose?
The platform leads the ranking in terms of number of available instruments and average daily trading volume. Binance was founded relatively recently (summer 2017), but quickly overtook its competitors thanks to an extensive list of services and an impeccable reputation.
On the website there is a link to download the mobile app for Android and iOS smartphones.
The app contains sections such as:
- Markets. List of trading pairs and cryptocurrency charts.
- Buying. Buying tokens and coins for fiat money.
- Wallet. Deposit and withdrawal.
- Personal account. Account settings menu.
One of the main parameters when choosing a trading platform for - reliability and reputation of the project. When it comes to exchanging digital assets, users prefer platforms with a long history.
The cryptocurrency exchange CEX.IO is one of the oldest platforms with a user-friendly interface. This service has been operating since 2013, and in 2014 it was marked as the owner of a mining pool, which came close to controlling 51% of the Bitcoin network calculations.
This marketplace has more than 30 licences and is registered in the UK.
The cryptocurrency exchange Coinbase is licensed and permitted to operate financially in several countries, such as the United States, Germany and Japan. This allows customers to be assured of the security of digital assets and a transparent operating environment.
The exchange offers services to individuals, financial firms and development teams. For regular traders, services available on the Coinbase platform include:
- Buying cryptocurrencies for fiat money.
- Exchanging digital assets in normal conversion mode and via a terminal.
- Wallet for secure storage of tokens and coins.
- Affiliate programme.
These exchanges are among the most reputable and secure. However, it is also recommended to have cold storage without internet access.
Withdrawal of cryptoassets via P2P
How withdraw Bitcoin to bank account in Kenya via P2P?
Another way to exchange another person's currency is through peer to peer platforms, how is it done? Advertisements are posted on the platform to buy or sell. Buyers can negotiate an agreement and set their own terms. Once an agreement is reached, the parties make the exchange and the platform takes a commission for each transaction.
Simplicity and speed are an undeniable advantage. These exchangers are based on a clear exchange and withdrawal mechanism. Moreover, the choice of the seller of fiat money or cryptocurrencies is not limited to a few cryptocurrency exchanges in town or telegram chat participants.
P2P exchanges are suitable if you need to make a transaction as soon as possible and have not been able to negotiate with anyone you know.
Withdrawal of crypto-assets via Third-Party Broker Exchanges
Third-Party Broker Exchanges that match buyer and seller in exchange for a commission. Traders typically trade large sums of money to buy and sell. This method of Third-Party Broker Exchanges is aimed at investors who prefer to use a trusted broker or intermediary for transactions rather than conduct trading operations themselves. The undoubted advantage of this method is that everything is done for you. A broker frees the buyer from the need to understand the exchange mechanisms.
Some cryptocurrency exchanges are creating Third-Party Broker Exchanges tools to attract institutional investors.
Bitcoin ATMs and peer-to-peer exchanges
1. Externally, cryptocurrencies resemble terminals or ATMs. Therefore, they operate on a similar principle.
A cryptocurrency allows a person to buy or cash a cryptocurrency using cash. The basic scheme is the same everywhere. A certain amount of money is deposited, the desired cryptocurrency is chosen (if options are offered), it is put into the wallet and the funds arrive there.
The market of cryptocurrency producers is young and there are very few machines of this type. This is the main disadvantage and drawback of this method.
The rate is linked to the current value of Bitcoin or another cryptocurrency on the most popular exchanges. Some machines work with one exchange, others work with several exchanges at once.
Service fees are trending downwards. While it used to be 10-15%, it has now almost halved.
2. Cryptocurrencies and blockchain are more than technologies or financial instruments. They bring together developers, investors and enthusiastic experimenters. On the Internet, you can find a community to your liking, and outside of it, entire crypto-communities are opening and conferences are being held.
The participants agree on the terms of the exchange - in cash or on a bank card - set the fee, and the cryptocurrency owner transfers the agreed amount to the buyer's wallet.
Acquaintance selling is a good way to "get into fiat" if you really know the other party to the transaction. In any case, it never hurts to take precautions, and it is best to get the cash before transferring the cryptocurrency.
Choose your preferred method and don't forget about security, use the exchanges suggested in the article. It's a reliable and proven option.