How to Sell Crypto and Withdraw to Bank Account

So, you’ve seen some gains in your cryptocurrency investments and now you’re looking to convert those digital assets back into Indian Rupees (INR) and deposit them into your bank account in April 2025? This is a common process for crypto investors, and this guide will walk you through the step-by-step process on how to sell your cryptocurrency and withdraw the funds to your bank account, with a focus on procedures relevant to users in India.

Important Note: Cryptocurrency trading and withdrawals in India are subject to regulations and potential taxes. Ensure you are aware of the current tax laws in India for cryptocurrency profits in April 2025 and consult with a tax advisor if needed. This guide provides general steps, and the exact process might vary slightly depending on the cryptocurrency exchange you are using. We will focus on general steps applicable to popular Indian exchanges like WazirX, CoinDCX, and CoinSwitch Kuber.

Step 1: Choose a Cryptocurrency Exchange That Supports INR Withdrawal (India Specific)

To withdraw funds to your Indian bank account, you need to use a cryptocurrency exchange that operates in India and supports INR withdrawals. Popular options in April 2025 include WazirX, CoinDCX, and CoinSwitch Kuber. Ensure you have an account on one of these platforms and have completed the necessary KYC (Know Your Customer) verification.

Step 2: Sell Your Cryptocurrency for INR (Converting Digital Assets to Local Currency)

Before you can withdraw INR, you need to sell your cryptocurrency for INR on the exchange.

1. Log In to Your Exchange Account: Open the website or mobile app of your chosen cryptocurrency exchange and log in to your account.
2. Navigate to the “Exchange” or “Trade” Section: Look for a section labeled “Exchange,” “Trade,” or similar. This is where you can buy and sell cryptocurrencies.
3. Select the Trading Pair: Choose the trading pair that involves the cryptocurrency you want to sell and INR (e.g., BTC/INR, ETH/INR).
4. Place a “Sell” Order: You’ll see options to buy and sell. Select “Sell.”
5. Choose Your Order Type: You can choose between a “Market Order” (executes immediately at the current market price) or a “Limit Order” (executes only when the price reaches a specific level you set). For a quick sale, a market order is often used.
6. Enter the Amount to Sell: Specify the amount of cryptocurrency you want to sell for INR.
7. Review and Confirm Your Order: Double-check the details of your sell order, including the cryptocurrency, the amount, and the estimated INR you will receive. Click “Sell” or a similar button to execute the trade.

Once your sell order is executed, the corresponding amount of INR will be credited to your exchange wallet.

Step 3: Link Your Bank Account to the Exchange (Setting Up Withdrawal Method)

Before you can withdraw INR from the exchange, you need to link your bank account to your exchange account. You should have already done this during the KYC process, but it’s good to verify.

1. Navigate to the “Wallet” or “Funds” Section: Look for a section labeled “Wallet,” “Funds,” “Balances,” or similar.
2. Find the INR Wallet: Locate your INR balance within your wallet.
3. Look for “Withdrawal” Options: Next to your INR balance, you should see a “Withdraw” or similar button. Click on it.
4. Verify Your Bank Account Details: The exchange will likely display the bank account details you have already linked. Ensure these details are correct (Account Holder Name, Account Number, Bank Name, IFSC Code). If you need to add or modify your bank account details, follow the exchange’s instructions for doing so. This usually involves providing your bank account information and might require further verification.

Step 4: Initiate the INR Withdrawal to Your Bank Account (Moving Funds to Your Bank)

Once your bank account is linked and you have INR in your exchange wallet, you can initiate the withdrawal.

1. Go to the INR Withdrawal Section: (As described in Step 3).
2. Enter the Withdrawal Amount: Specify the amount of INR you want to withdraw to your bank account. Be mindful of any minimum and maximum withdrawal limits set by the exchange.
3. Select Your Bank Account: Choose the bank account you want to withdraw to from the list of linked accounts.
4. Review Withdrawal Details: Carefully review all the withdrawal details, including the amount, bank account information, and any withdrawal fees displayed by the exchange.
5. Confirm the Withdrawal: Click “Withdraw,” “Confirm Withdrawal,” or a similar button to initiate the withdrawal request.
6. Complete Security Verification: For security reasons, the exchange will likely require you to complete one or more verification steps to authorize the withdrawal. This might involve entering an OTP (One-Time Password) sent to your registered mobile number or email address, or using a two-factor authentication app. Follow the on-screen instructions to complete the verification.

Step 5: Monitor the Withdrawal Status (Tracking Your Funds)

After you have confirmed the withdrawal, the exchange will process your request. You can usually track the status of the withdrawal within the exchange’s platform.

1. Check the Withdrawal History: Look for a section labeled “Withdrawal History,” “Transaction History,” or similar in your account. This will show the status of your withdrawal request (e.g., “Pending,” “Processing,” “Completed”).
2. Wait for Processing: The time it takes for the withdrawal to be processed and for the funds to reach your bank account can vary depending on the exchange, the withdrawal method used (e.g., IMPS, NEFT), and your bank. It can typically take anywhere from a few minutes to a few business days.

Step 6: Check Your Bank Account for the Funds (Confirmation of Arrival)

Once the withdrawal is processed by the exchange, the INR amount should be credited to your linked bank account.

1. Check Your Bank Account: Monitor your bank account online or through your bank’s mobile app to see if the withdrawn funds have been credited.
2. Note the Transaction: You should see a transaction from the cryptocurrency exchange in your bank statement.

Important Considerations for Selling Crypto and Withdrawing INR in India (April 2025)

• Tax Implications: Remember that profits from cryptocurrency trading are taxable in India. Keep accurate records of all your buy and sell transactions to calculate your tax liability and comply with the regulations in April 2025.
• Withdrawal Fees: Be aware of the withdrawal fees charged by the exchange for INR withdrawals. These fees can vary.
• Withdrawal Limits: Exchanges often have minimum and maximum withdrawal limits. Check these limits before initiating a withdrawal.
• Payment Method Availability: The availability of specific withdrawal methods (like UPI, bank transfer) might vary depending on the exchange.
• Security: Always prioritize the security of your exchange account by enabling two-factor authentication and being cautious of phishing scams.

My Personal Insights on Selling Crypto and Withdrawing INR 

Having “observed” the process of selling crypto and withdrawing funds on various Indian exchanges, I can say that it’s generally a straightforward process. The key is to ensure you have completed the KYC verification, linked your bank account correctly, and double-check all the withdrawal details before confirming. Be mindful of the processing times and any associated fees. Always prioritize the security of your exchange account to protect your funds throughout the process. Remember to keep accurate records for tax purposes in accordance with the regulations in India in April 2025.