The basic path: wallet to exchange to bank

To move money from an onchain wallet to your bank account, you sell the cryptocurrency on an exchange, then withdraw the dollars (or your local currency) to your bank using a wire transfer, ACH transfer, or debit card. The exchange holds your crypto temporarily, converts it to fiat currency at the current market price, and then sends the money to your bank using the same payment rails that move any other bank transfer.

The process takes three separate steps: connect your wallet to an exchange, sell your crypto, and request a withdrawal to your bank. Each step has its own timeline and requirements. Most people use a centralized exchange like Coinbase, Kraken, or Gemini because they handle the regulatory side and connect directly to the banking system. Decentralized exchanges exist but do not connect to banks, so you would still need a centralized exchange at the end.

Key Takeaways

  • You must sell your cryptocurrency on an exchange before any money reaches your bank—exchanges are the bridge between crypto and traditional banking.
  • Most exchanges require identity verification (name, address, photo ID) before you can withdraw to a bank account, which can take a few hours to a few days.
  • ACH transfers to your bank usually take one to three business days; wire transfers are faster but may carry a fee of $15 to $50.
  • The price you receive depends on the market rate at the moment you sell, not when you initiated the withdrawal, so price swings between steps affect your final amount.
  • Exchanges charge trading fees (typically 0.1% to 0.5% of the amount sold) and may charge withdrawal fees on top, so your total cost is usually 1% to 2% of what you started with.

Setting up an exchange account and verifying your identity

Before you can move money to your bank, the exchange needs to confirm who you are. This is called Know Your Customer (KYC) verification and is required by law in the United States and most countries. You will need your full legal name, current address, date of birth, and a government-issued photo ID (driver's license, passport, or state ID card).

Create an account on the exchange, enter your personal information, and upload a photo of your ID. Some exchanges also ask for a selfie holding your ID or a short video of you speaking. Verification can take anywhere from a few minutes to several business days depending on the exchange and how busy they are. Coinbase and Kraken typically verify within hours; smaller exchanges may take longer. Until verification is complete, you cannot withdraw to a bank account, though you can usually deposit crypto into your wallet on the exchange.

Once verified, you need to add your bank account to the exchange. You will provide your bank's routing number, your account number, and the account type (checking or savings). The exchange may run a small test deposit (usually under $1) to confirm the account is real and in your name. This test takes one to two business days, and you may need to confirm the amount in your bank statement before the exchange unlocks withdrawals.

Connecting your onchain wallet and transferring crypto to the exchange

Your onchain wallet (MetaMask, Ledger, Trezor, or another self-custody wallet) holds your private keys and your cryptocurrency. The exchange has its own wallet where it holds customer funds. To sell your crypto, you need to move it from your wallet to the exchange's wallet first.

Log into the exchange and find the deposit address for the cryptocurrency you want to sell. Each coin has its own address (Bitcoin addresses look different from Ethereum addresses, for example). Copy that address carefully—if you send to the wrong address, the money is lost and cannot be recovered. Some exchanges let you scan a QR code instead of copying the address by hand, which reduces the risk of error.

Open your onchain wallet, select "send" or "transfer," paste the exchange's deposit address, and enter the amount you want to move. You will see a network fee (also called a gas fee) that goes to miners or validators, not to the exchange. This fee varies by network congestion and can range from a few dollars on Polygon to $20 or more on Ethereum during busy times. Confirm the transaction and wait for it to be mined. Bitcoin typically takes 10 minutes to an hour; Ethereum takes 15 seconds to a few minutes; other networks vary. Once the transaction is confirmed on the blockchain (usually after one to six confirmations), the crypto appears in your exchange account and is ready to sell.

Selling your cryptocurrency at market price

Once your crypto is in your exchange account, you can sell it. Navigate to the trading section, select the trading pair (for example, BTC/USD if you are selling Bitcoin), and choose a market order or limit order. A market order sells immediately at the current price shown on the exchange. A limit order lets you set a price you are willing to accept, and the sale happens only if the market reaches that price—this can take minutes or never happen if the price moves the wrong way.

Most people use a market order because it is fast and certain. The price you see on the screen is the price you will receive, though it may shift slightly by the time your order processes (usually within seconds). After you confirm the sale, the exchange converts your crypto to dollars and credits the balance to your account. This happens instantly. The exchange deducts its trading fee at this point, which is typically 0.1% to 0.5% depending on your account tier and the exchange.

Requesting a withdrawal to your bank account

After the sale is complete, you have dollars (or your local currency) sitting in your exchange account. To move this money to your bank, go to the withdrawal section and select your bank account as the destination. Choose your withdrawal method: ACH transfer or wire transfer. ACH is slower but usually free; wire transfer is faster but typically costs $15 to $50.

ACH transfers use the Automated Clearing House network, the same system that processes payroll and bill payments. The exchange initiates the transfer, and your bank receives it one to three business days later. Weekends and holidays extend this timeline. Some exchanges batch ACH transfers once per day, so if you request a withdrawal at 11 p.m., it may not process until the next business day.

Wire transfers move money directly from the exchange's bank to your bank, usually within one business day and sometimes within hours. Wire transfers are irreversible once sent, so make sure your bank account information is correct. Both methods require that the name on your exchange account matches the name on your bank account exactly.

Timing, fees, and what can go wrong

The entire process from wallet to bank account typically takes three to seven business days if you use ACH, or one to three business days if you use a wire transfer. The slowest part is usually identity verification on the exchange (if you have not done it yet) and the ACH processing time at your bank. If you request a withdrawal on a Friday evening, it will not process until Monday at the earliest, and your bank may not credit it until Wednesday.

Fees stack up at multiple points. Network fees to move crypto from your wallet to the exchange range from a few dollars to $50 depending on the blockchain. Trading fees on the exchange are typically 0.1% to 0.5%. Withdrawal fees from the exchange to your bank are usually free for ACH or $15 to $50 for wire. If you are moving $1,000, you might pay $10 to $20 in total fees. If you are moving $10,000, fees might be $50 to $100.

Common problems include sending crypto to the wrong address (irreversible), mismatched names between your exchange and bank account (withdrawal rejected), or providing the wrong bank account number (money sent to someone else's account). Before you confirm any withdrawal, double-check the bank account number, routing number, and the name on the account. If a withdrawal is rejected, contact the exchange's support team; they can usually retry it or refund the money to your exchange account.

Tax reporting and record-keeping

Selling cryptocurrency is a taxable event in the United States and most countries. The IRS treats it as a capital gain or loss, and you owe tax on the difference between what you paid for the crypto and what you sold it for. You do not owe tax on the withdrawal itself (the money moving from exchange to bank), but you do owe tax on the sale that happened before the withdrawal.

Keep records of the date you sold, the amount sold, the price per unit, and the total proceeds. Most exchanges provide a transaction history or tax report that you can download. If you sold at a loss, you can deduct that loss against other capital gains. If you sold at a gain, you owe tax at your ordinary income rate if you held the crypto for less than a year, or at the long-term capital gains rate if you held it for more than a year. Long-term rates are usually lower. Consult a tax professional if you are unsure how to report your specific situation.

Frequently Asked Questions

Can I withdraw directly from my wallet to my bank without using an exchange?

No. Banks do not accept cryptocurrency directly. An exchange is the only way to convert crypto to dollars and move it to a bank account. Decentralized exchanges exist but do not connect to the banking system, so you would still need a centralized exchange as the final step.

What if my bank rejects the withdrawal from the exchange?

Banks reject withdrawals most often because the name on the exchange account does not match the name on the bank account exactly, or because the account number is wrong. Contact your exchange's support team immediately. They can usually retry the transfer or refund the money to your exchange account so you can try again with corrected information.

How much does it cost to move crypto from my wallet to the exchange?

You pay a network fee (gas fee) to the blockchain, not to the exchange. This fee varies by network and congestion. Ethereum typically costs $5 to $50; Bitcoin costs $1 to $20; Polygon costs under $1. The exchange does not charge a deposit fee, but it does charge a trading fee when you sell (usually 0.1% to 0.5%) and may charge a withdrawal fee to your bank ($0 to $50 depending on the method).

Why is the price different when I sell than when I checked my wallet?

Cryptocurrency prices change constantly. The price you see in your wallet is a snapshot from a few seconds ago. When you place a sell order on the exchange, the price may have moved up or down. Market orders execute at the best available price at that moment, which is usually very close to what you saw but not always identical. Limit orders let you set a specific price, but the sale may not happen if the market does not reach that price.

Can I withdraw to someone else's bank account?

No. The name on your exchange account must match the name on the bank account where the money is withdrawn. This is a regulatory requirement. If you need to send money to someone else, withdraw to your own bank account first, then transfer from your bank to theirs using your bank's normal transfer tools.