In the 21st internet world, almost 80-90 percent of the users would be aware of the term Crypto-Currency and whoever wants to know more about it, should make themselves well aware of the term “Blockchain” which serves as a record-keeping technology for most of the crypto-currencies currently being transacted throughout the internet community.
Some Basics of the Blockchain
As the name suggests, Blockchain actually means a chain of blocks containing transaction data, a timestamp and cryptographic hash of the previous block, and these blocks are linked together using cryptography (method for secure transactions in the presence of a third party). Although, the concept of blockchain was already brought into being in 1991 (published in an academic paper), but it actually got a breakthrough in 2008 when an anonymous programmer (Satoshi Nakamoto) invented the first ever crypto-currency (Bitcoin) and introduced it into the internet community, completely changing the concept of centralized e-currency. Since then, it has been considered as one of the most secure channels for the regulation of e-currencies without keeping a track of any personal information of any user in the process.
Although, we now have a clear picture of crypto-currencies, blockchains and their flows, the most important thing is to know how we can see those hard earned coins converted into figures that are visible in our bank accounts, ready to be cashed out or used at a mall or at a restaurant of our liking.
Journey from the Blockchain to Bank Account
So the first question is, can you transfer crypto-currency directly from a blockchain to bank account? And the answer is, No. Remember, the purpose of a blockchain is to facilitate and secure the flow of peer-to-peer transactions and not store the coins you earn in the process. If you wish to secure the coins then you would need a blockchain wallet which in most of the cases is prompted when you select a blockchain for mining or earning crypto-currencies. When crypto-currency was not that much trending, these wallets were only limited to the particular blockchain such as bitcoin wallet or ethereum wallet.
But with the growing business of crypto-currencies, many third party wallets (Exodus, Atomic Wallet, Coinbase, etc) have been developed and introduced into the crypto-currency world, offering to store several types of crypto-currencies in the same wallet as well as exchange one crypto-currency to -the one of user’s liking.
Understanding the Current Status of the Banks
Be advised that at present, no bank facilitates the internet community from converting their crypto-currency to cash by transferring directly into the bank accounts. Although, there are a few considering to allow such flows due to the skyrocket growth of crypto-currency reputation and more and more investors adapting to such revolutionary processes, but it’s still far from completion.
Using Reliable Exchanges for the Transfer
For now, the most feasible way of having your crypto-currency to land into your bank account is to convert it into USD, EUR or your preferred local currency through an exchange site. For most of the crypto-currency exchange sites, there are certain verification process which require the user to provide proof of identification document and a utility bill and most likely, would also make it mandatory to make a test transaction into your bank account for verification purposes.
Once the exchange has gone through all the necessary checks and verification processes, you will now be able to create an exchange wallet, which in turn would grant you complete access to several wallet addresses, one for each crypto-currency. From here on, all you need to do is login to your crypto-currency account wallet and then send the money to the wallet you just created on the exchange website.
Sending the Money
In order to send the money to the exchange wallet, you would have to access the “Send” button and press to send the crypto-currency stored in your currency wallet and do not worry, as one of the key purposes of the wallets is to send/receive crypto-currencies, it won’t be difficult to find the “Send” button in the wallet. As soon as you initiate the transaction by pressing the “Send” button, the system will ask you to enter the destination address and that address in this case is none other than the address for the wallet account that you had just created on the exchange portal.
Just be extra careful when entering the address for the desired currency. It should be bitcoin destination address if you have bitcoin or ethereum destination address if ethereum and so on. Once you have double-triple checked the destination address and are satisfied, you can press the “Send” button and the transaction should take only a few seconds to initiate and to be processed. Don’t be worried if it doesn’t get processed in a few seconds as sometimes, it can take longer than that but you always have the option of checking the status of the transaction id in question through the blockchain itself with the right transaction ID.
Now that the transaction has been initiated through your crypto-currency wallet account and received into wallet of your exchange account, you will be able to see it in the respective crypto-currency account balance and additionally, most of the exchanges do send an email confirmation for the successful deposit.
After all this effort and hard work of you mining crypto-currency, adding it your wallet and then transferring it to the exchange wallet, you are now one step away from transferring your money from blockchain to bank account. You can now sell your crypto-currency through the exchange, convert it to your preferred currency and cash it out just like the way you would do it at any money exchange or airport cash changing desk.
Last thing to remember is that these exchanges offer different markets for different crypto-currencies with difference conversion currencies as well so for example, if you have ethereum that you would like to convert to USD, you need to look for ethereum market that converts it into USD or your preferred currency. Once you have it converted into your preferred currency, you can now process the bank transfer from your exchange account which already has the banking details for your preferred verified account.