The gap between traditional finance (TradFi) and decentralized finance (DeFi) is narrowing day by day. It has got to a point where transferring crypto assets to traditional bank accounts has become a necessary convenience for all digital asset owners.
This article is a detailed explanation of the leading crypto wallets that allow direct bank conversion of digital investments into good old fiat money.
How to Transfer Money From a Crypto Wallet to a Bank Account?
The crypto wallet-to-bank account integration is now supported by different crypto wallets. The process involves first converting your cryptocurrencies into fiat currency, which can then be moved to your bank account.
Though several platforms now offer this feature, the specifics can vary depending on the crypto wallet you are using, the bank you have an account with, and the relevant regulations in your state. The following are some of the most popular crypto wallets that fall into this category.
1. Coinbase Wallet
Coinbase wallet is easy to use, making it a go-to choice for beginners in the crypto space. This hot wallet allows users to buy, sell, and trade cryptocurrencies and then transfer their funds to bank accounts of their choice.
Coinbase wallet has an intuitive interface and strong security features including 2FA, biometric security, and insurance against loss of funds. It supports all major cryptocurrencies and fiat currencies. However, it is also known for exorbitant trading fees.
2. Binance Wallet
Binance wallet is a service offered by Binance, the world’s largest cryptocurrency exchange. It offers some robust features for trading and managing digital assets. The wallet offers plenty of options to choose from for converting cryptocurrencies to fiat currencies and transferring them to a bank account.
Binance wallet offers support for a large number of cryptocurrencies and extremely competitive fees. However, the platform is better suited for professionals and can be overwhelming for beginners. Binance Wallet offers security features like device management, withdrawal whitelist, and anti-phishing code.
3. Kraken Wallet
Kraken provides a safe way to trade and manage cryptocurrencies and allows transferring fiat currencies to bank accounts. The platform is known for its robust security and support for a large number of digital assets.
Kraken offers strong security measures like 2FA, cold storage, and stringent verification. This hot wallet offers dirt-cheap fees however the UI can be a bit daunting for novice traders.
4. Crypto.com Wallet
Crypto.com Wallet is for users who want to take full advantage of their digital assets. The wallet allows easy conversion of cryptocurrencies to fiat currencies and offers other services, like a crypto debit card. Crypto.com also offers low fees on currency conversion although the charges are on the higher side for certain other transactions.
Crypto.com Wallet also offers support for a good number of fiat currencies. The platform offers some robust security features including encryption and multi-factor authentication.
Conclusion
The primary objective of a crypto wallet is to allow users to seamlessly convert their fiat money in their bank accounts into cryptocurrency. With more focus on user security and faster transactions, crypto wallets bridge the gap between the innovations in the crypto world and the practical traditional finance world.
Having the option of transferring crypto assets to a traditional bank account can be one step ahead in realizing the true potential of cryptocurrencies and blockchain technology.
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