Easy
How to recover your money on the blockchain?
Wondering how to convert a digital asset into fiat currency in your bank account? The straightforward answer is to convert your tokens on the blockchain into euros or dollars using appropriate platforms. The goal: to obtain fiat currency that you can use every day. In this article, you'll discover the solutions, steps, and precautions for a withdrawal . We'll also delve into the technical aspects to give you a solid understanding of the entire process.
Table of Contents
How to withdraw your money from the blockchain: Understanding the basics of blockchain and fiat currency
Blockchain in a nutshell
The blockchain is a distributed ledger that stores and secures information in a decentralized manner. Each operation, or transaction , is validated by a set of nodes (computers) that verify its authenticity. Thanks to this structure, any fraudulent alteration becomes extremely difficult because it would require simultaneously manipulating the entire blockchain network .
What is fiat currency?
Fiat currency , like the euro or the dollar, is a currency issued by a government or central bank. It is no longer backed by a physical asset (such as gold), but derives its value from the trust that the public and institutions place in it. When you try to withdraw your money from the blockchain , you are actually exchanging digital assets (like a cryptocurrency ) for the national currency held in your bank account.
How to recover your money on the blockchain: Choosing your wallet, custodial or non-custodial
The differences between a custodial wallet and a non-custodial wallet
Before selling or transferring your cryptocurrencies, it is advisable to carefully choose your storage method to ensure the security and accessibility of your funds. There are two main categories of wallets:
Custodial wallet : managed by a third party, which holds your private keys and takes care of security.
Among them are centralized exchanges that hold these funds for you.
Non-custodial wallet : you have complete control over your private keys. For maximum security, we recommend hardware wallets like Ledger or Trezor . Ledger stands out with its Secure Element chip and broad compatibility, while Trezor offers open-source firmware and ease of use.
For more information, we invite you to visit our comparison of Ledger models as well as our comparison between Ledger and Trezor.
The fundamental steps to recover your money from the blockchain
If your funds are on the blockchain, it means you have a digital wallet (Metamask, Ledger, Tangem, Exodus, etc.)
To withdraw your funds, several methods are available. Here is an overview of the most common process:
Select a centralized exchange (CEX) to sell your cryptocurrency for fiat currency.
Convert your tokens into euros, dollars or other currency.
Deposit your fiat currency into your bank account.
Note: It's also possible to use certain non-custodial wallets like MetaMask, Trust Wallet , or Argent, which integrate third-party services such as MoonPay, Sardine, Transak, or Ramp. These providers allow you to buy or sell your cryptocurrencies directly from your wallet (i.e., with your funds directly on the blockchain), with withdrawals or payments in fiat currency via bank transfer or card. This way, you retain control of your private keys while gaining access to a fiat currency exit route. These services are subject to KYCprocedures, and fees may vary depending on the provider, location, and transaction volume.
If you're feeling lost among the different platforms, wallets, intermediaries, etc., I invite you to discover the BSM program . It will help you gain an in-depth understanding of how the monetary system and Bitcoin work, and develop a more comprehensive grasp of the tools, finance, and legal constraints (taxation, inheritance, etc.).
It also includes detailed video tutorials on centralized exchanges, software wallets, hardware wallets, and best practices (reducing fees, security, and what the different tools mean). The program can be accessed from the header or the link above.
How to withdraw your money from the blockchain: Use a centralized exchange to convert your cryptocurrencies into fiat currency
How to withdraw your money from the blockchain: Investing in stablecoin
Stablecoins are stablecoin pegged to a fiat currency (most often the dollar), allowing you to protect yourself against fluctuations and store value without immediately leaving the crypto world. This can be advantageous, particularly for deferring tax obligations in many countries. To withdraw your funds in euros or dollars, you simply follow the same process as with other cryptocurrencies:
- Hold a balance of stablecoins stablecoin your wallet .
- Transfer these stablecoin to a centralized exchange stablecoin -euro or stablecoin - trading .
- Exchange your stablecoin for fiat currency .
- Proceed with the withdrawal .
This approach has several advantages: limiting the risk of volatility and facilitating transactions .
How to withdraw your money from the blockchain: Key points to consider before withdrawing your fiat currency
Transaction fees and processing times
Each transaction on the blockchain incurs transaction fees , also known as "gas fees" in some cases (such as on Ethereum ). Furthermore, centralized exchanges often charge additional fees for withdrawals and conversion to euros or dollars. It is crucial to calculate the total cost to avoid any unpleasant surprises. Finally, SEPA transfers can take between 1 and 5 business days, depending on the bank and the country.
Regulatory compliance and taxation
As soon as you enter the world of fiat currency , regulation becomes essential. Centralized exchanges implement controls: KYC verification , blocking of accounts suspected of fraud , etc. They ensure regulatory compliance to combat money laundering and the financing of terrorism.
Tax laws vary from country to country. In France, capital gains on cryptocurrencies are subject to tax according to a specific scale when converting from crypto to euros. It is mandatory to declare these gains.
Security and private key management
Theft or loss of your assets can occur if you neglect to protect your access. The private key is the secret combination that authorizes the spending or transfer of your cryptocurrencies. With custodial wallets , you rely on the centralized exchange to secure your funds. With a non-custodial , you are solely responsible for safeguarding your keys. A common recommendation is to store a copy offline, possibly on a physical medium (paper, encrypted USB drive, etc.).
Practical scenarios for withdrawing your euros or dollars
Case 1: Direct conversion via a centralized exchange
Imagine you have 1 BTC (Bitcoin) in your wallet . If the BTC is $80,000, you can transfer it to a centralized exchange, sell it at the market price, and receive the equivalent in euros or dollars. Then, you simply need to initiate a bank transfer. The processing time can range from 24 to 72 hours depending on the platform and your bank.
Case 2: Selling crypto from Exodus via MoonPay
Imagine you hold 500 USDC in your Exodus non-custodial wallet, directly on the Ethereumblockchain. To withdraw this money in euros to your bank account, you open the Exodus app and select the "Sell" option. Exodus then offers you the option of using MoonPay, a third-party payment processor integrated into the app. After selecting USDC as the asset to sell, you enter your IBAN, verify your identity through MoonPay's KYC process, and then confirm the transaction. MoonPay deducts the USDC from your Exodus wallet, and within 1 to 3 business days, you receive the equivalent in euros directly into your bank account. The sale is completed without going through a centralized exchange, while maintaining custody of your funds until the transaction is finalized.
FAQ: Answers to frequently asked questions
1. Is it possible to withdraw funds without going through a centralized platform?
In most cases, direct conversion to euros or dollars is done via a centralized exchange. Some wallets offer the possibility of buying and selling directly on the blockchain via intermediary services, but this is not yet the norm.
Alternatively, you can defer your sale by using stablecoin .
2. Is it possible to keep your cryptocurrency on a DEX and withdraw it in fiat currency later?
Decentralized exchanges ( DEXs) generally do not handle direct fiat currency conversion. You will remain within the cryptocurrency ecosystem. To obtain euros or dollars, you will still need to use a centralized exchange or the intermediary service of a wallet ( MoonPay , Sardine, or others).
Conclusion on how to recover your money on the blockchain
To retrieve your funds from the blockchain and convert them to fiat currency in your bank account, you must follow several key steps: choose a wallet , select a centralized exchange or a wallet with intermediary services, convert your security and KYC verification procedures and transaction fees to avoid any unpleasant surprises.
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Yoann
Trained as an engineer, I quickly became interested in the field of finance. Convinced that decentralized finance has a bright future, I am participating in its democratization by developing Crypternon.