How to Transfer Money from Blockchain to Bank Account?
Blockchain will change the way we live. This is not going away.
- Jamie Dimon, CEO of JPMorgan Chase
Two words that go together in unison in the cryptosphere are cryptocurrency and blockchain.
Blockchain is the underlying technology that supports cryptocurrencies. It is distributed, suburbanized, public ledger and record-keeping technology.
This blog will offer easy to understand definitions and analogies of blockchain technology. Besides, it will explain the method to transfer money from blockchain to bank account.
What is Blockchain?
Just like the name sounds, blockchain is a chain of blocks. The ‘blocks’ and the ‘chain’ are terms used for the digital information and public database respectively. In the blockchain, the blocks are made up of digital pieces of information that are stored in a public database. These blocks are linked together using cryptography. They consist of three parts:
- Blocks hold all the information about the transactions such as date, time, and amount.
- They consist of all the information of the user participating in transactions.
- Each block has different information that segregates them from other blocks using a stored unique code known as ‘hash’.
On the whole, Blockchain improves information security as well as transparency by sharing encrypted data amid peer-to-peer networks.
Advantages of Blockchain
Given below are the reasons why a user should consider blockchain:
- Secured Cryptographically
- Enhanced security
- Automation
- Decentralized
- Faster processing
Due to the mentioned advantages, blockchain is globally accepted by businesses and organizations. Besides, the technology stands head and shoulders than others due to its security feature which makes it difficult for hackers to meddle with its data and activities.
To Know More: What is Bitcoin and its Benefits?
Disadvantages of Blockchain
Given below are some of the ‘anti-reasons’ to consider blockchain:
- Uncertain regulatory status
- Power consumption in the Blockchain is comparatively high
- Entries don’t last forever or are not immutable
- A limited distributed computing system
- Mining does not provide network security
- Scalability
However, the advantages of blockchain technology surpass its downsides. Besides, the unique advantages clearly exhibit that it is definitely here to stay. The upcoming years are likely to see businesses experimenting by adding blockchain technology into its applications.
How to transfer money from blockchain to bank account?
The bitcoin transaction is entirely an online process, no one including government officials
can check it. There is no tax on it the amount can be easily transferred.
One cannot transfer money from the blockchain to a bank account because the money inside the blockchain wallet is in the form of virtual currency. First, you would have to sell the bitcoin, exchange it and then get it transferred.
If you try to withdraw it directly, the results may not be much favorable. Once you have moved the digital assets to a wallet, you can transfer them to your bank account. Since there are certain limits, you will be able to transfer only a certain amount in a day. It typically takes more than an hour to initiate the transfer.
To Transfer Money from a Blockchain Account to a Bank Account, You Need to Follow These General Steps:
- Sign in to your blockchain account and navigate to the “Send” or “Withdraw” section.
- Choose the cryptocurrency you want to transfer and enter the amount you wish to send.
- Provide your bank account details, including the account number, routing number, and the name on the account.
- Review the transaction details and confirm the transfer.
- Wait for the blockchain network to verify the transaction. This can take anywhere from a few minutes to several hours, depending on the network congestion.
- Once the transfer is complete, the funds should be deposited into your bank account.
It’s important to note that the specific steps and requirements for transferring funds from blockchain to a bank account may vary depending on the platform and the country you are in. Make sure to check the fees and processing times before initiating any transfer, and only use reputable and secure platforms for your transactions.
Final thoughts
The peer-to-peer financial system, Blockchain, offers security, potential cost reduction, is free from any centralized control and offers infinite possibilities.
Given that many companies are thinking to hop on the blockchain bandwagon.
What are your views on the same? Share with us in the comment section below.
