Do you use Tether (USDT) for salaries, payments, remittances, or savings? If so and you’re looking to withdraw USDT to your bank account, here’s your step-by-step guide.
6 Things to Consider When Withdrawing USDT to a Bank Account
For your convenience and security, make sure to check the following things before withdrawing USDT from a crypto wallet to your bank account.
1. Fees
Crypto wallets usually charge fees for crypto transfers and withdrawals. On Ka.app, for instance, withdrawals to bank accounts happen through a crypto IBAN account for European Economic Users (EEA) or via Ramp from users from the rest of the world (RoW).
IBAN has an outgoing Single Euro Payments Area (SEPA) fee worth 0.19% of the withdrawal amount or €1, whichever is higher. On the other hand, fees via Ramp will vary depending on the payout method you choose and the blockchain validation or mining costs when you make the transaction.
2. Conversion Rates
USDT is a stablecoin pegged to the U.S. dollar, but when you're converting it to your local currency, the rates can fluctuate. Review your bank’s exchange rates to know what to expect.
3. Turnaround Time
The speed at which you get your funds from a crypto wallet to your bank account largely depends on the platform you’re using. If you’re using Ka.app, it usually takes just a few seconds.
4. Transaction Limits
Crypto platforms may offer different transaction limits based on your verification level. With Ka.app, activating cash will require you to go through KYC, which, when passed, has no transaction limits.
5. Security
Using a reliable platform with strong security measures—both in storage and in transit—is crucial in the crypto market. Other protective measures such as enabling two-factor authentication, avoiding public networks, regularly updating your passwords, and double-checking the details of your transactions can also help you protect your funds against theft and loss.
6. Tax Implications
Withdrawing USDT may have tax implications depending on where you live. Research and consult with tax professionals to remain compliant and avoid potential hassle.
How to Withdraw USDT to Your Bank Account via Ka.app
Now let’s get down to the nitty-gritty. Here’s how to withdraw USDT to your bank account via IBAN and Ramp on Ka.app.
a. Selling USDT via IBAN
As mentioned, this feature only applies to EEA users.
- Sign up on Ka.app or if you already have an account, log in.
- Activate Cash. This enables EUR in the app and generates your own Ka. IBAN.
- Convert USDT to EUR.
- Go back to the home screen and click EUR.
- Click Withdraw.
- Enter your external IBAN details.
- Enter the amount you want to withdraw.
- Confirm the withdrawal with your passcode.
b. Selling and Cashing USDT via Ramp
If you're accessing Ka.app from the RoW, here's how you can sell and cash out USDT to your bank account via Ramp.
- Sign up on Ka.app, or if you already have an account, sign in.
- Once you’re on the home screen, click the Sell icon.
- Select the crypto you want to sell.
- You will be redirected to Ramp. Click Continue.
- Select the currency you want to get (e.g., BTC to EUR).
- Select your payout method. Usually, it’s via bank card.
- Confirm the withdrawal.
Final Thoughts
More and more users are enjoying the benefits of using USDT for regular transactions. In case you need to cash out your stablecoins, the good thing is, it’s easier now than ever with crypto wallets like Ka.app that allows you to withdraw crypto via IBAN or your bank card.
FAQ
What is USDT?
USDT is a digital currency pegged to the value of the U.S. dollar, hence it’s called a stablecoin. As of writing, it’s the most popular and the largest stablecoin by market capitalization. Traders use it to move in and out of different cryptocurrencies without converting back to traditional currency to save money and potentially reduce fees. Many people also use it as a hedge against inflation and a more convenient option for cross-border payments.
How do I pay someone with USDT?
With Ka.app, you can send USDT to a fellow Ka.app user by simply uploading their QR code or entering their mobile number. Meanwhile, you can send USDT to an external account by pasting their wallet address.
How can you cash out USDT?
There are different ways to cash out USDT: through a payment platform like Ka.app, a crypto exchange, a crypto ATM, or through brokers, to name a few. If you’re from EEA and are using Ka.app, you can do it through your personal IBAN on the platform. If you're from the RoW, you can sell crypto via Ramp.
