How to Turn Crypto to Cash?
You bought some cryptocurrency and are now trying to figure out how to turn crypto to cash. Although the process is a little more complex than swiping a card at a cash-out machine, it has become much simpler.
Considering the crypto market’s downturn, the good news is that traders have a variety of methods for converting crypto assets into cash. However, if you believe crypto will recover, it may be best to hold and wait for more profits. I have listed below eight ways to cash out your Bitcoin whenever you need it.
8 Best Cash-out methods
- Use a Reputable Exchange to Sell & Cash-out
- Try a P2P Trade Platform/Exchange
- Use a crypto debit card like the Binance Card
- Cash-out at a Bitcoin ATM
- Utilize your Picked Broker to Sell Crypto
- Trade Crypto & then Cash-out
- Sell From Your Wallet
- Use Money Transfer Apps
Best Ways to Cash-out Cryptocurrencies Explained
1. Use a Centralized Exchange to Sell Crypto
Using a centralized exchange is the fastest way to turn crypto into cash. For example, Coinbase is one of the simplest ways to cash out your cryptocurrencies.
You’ll swiftly convert cryptocurrency into cash, which you can access from your Coinbase cash balance. Simply click the “buy” or “sell” button on Coinbase, then select the crypto you wish to sell, and enter the specific amount. If you want, you can then transfer the funds to your bank account.
You can also use popular crypto exchanges like Binance, Gemini, and Kraken to convert crypto to cash. It can be an easy way to do it if you already use any of these exchanges and keep your crypto in a custodial wallet. Select the coin and amount you want to sell, agree on the rates, and your cash will be ready.
One common concern about exchanges, however, is the fees associated with transactions. Since the crypto exchange is a service, you will have to pay both the crypto transaction fee and a service fee that the exchange charges to cover its business costs. You will also require a bank account to deposit your funds.
2. Try Peer to Peer Platforms/Exchanges
Exchanges such as Coinbase, and Gemini are centralized exchanges in which one entity controls the cryptos, whereas a peer-to-peer exchange is one in which the transaction takes place between two individuals. You can also refer to it as direct trade, which means selling your crypto directly to someone without the use of an intermediary (like a bank or company).
A P2P online platform allows sellers to find the best options through an exchange and sell their crypto. The transactions are facilitated by many exchanges. For example, Binance operates a popular online peer-to-peer platform known as Binance P2P. You can find the best P2P platforms that suit your needs in our detailed article.
P2P transactions can be profitable for crypto cashouts. You can also get a better exchange rate from an individual buyer than from a third-party brokerage. You can request that the buyer deposit cash into your bank account or make a bank transfer payment to you. This may be a nice approach to convert crypto into cash if you don’t need it right now.
The platform holds your crypto in escrow once you accept a trade. Binance releases the crypto to the buyer after verification and receives the buyer’s funds.
Paxful is also popular. Sellers can set their rates and accept over 300 payment methods, including cash, gift cards, and digital currencies. The platform’s website says clients may sell directly to over 3 million customers.
3. Use a Crypto Debit Card
Crypto debit cards operate just like traditional debit cards. The card, however, draws money from a crypto wallet rather than a bank account.
The BitPay Card is one of the famous crypto cards for U.S. residents. It allows you to convert Bitcoin to USD with ease (also many other top cryptos). It can be used to withdraw Bitcoin, Ethereum, Dogecoin, Shiba Inu Coin, Bitcoin Cash, Litecoin, Dai, USD Coin, Binance USD, and other cryptocurrencies. You can also check out more about the best crypto debit cards.
Load the card with funds from your Wallet or connect it to your exchange account. You can use the card to make in-store purchases, shop online, and even withdraw cash from an ATM. In minutes, you can apply and be approved. After that, you can use cryptocurrency as quickly as cash.
4. Cash out at a Bitcoin ATM
Another payment method is cashing out at an ATM which is similar to selling your Bitcoin. Bitcoin ATMs are a way to get immediate access to cash using your bitcoins.
Bitcoin ATMs are not like traditional ATMs. These ATMs are specialised banking machines that allow you to buy and sell cryptocurrency. The ATM displays a QR code to which you can send your Bitcoin to withdraw cash and sell your Bitcoin.
However, the commissions on Bitcoin ATM trades can be extremely high, so it’s important to be aware of how much you’re paying.
Bitcoin ATMs are global and most big cities have Bitcoin ATMs. Moreover, not every Bitcoin ATM provides both buy and sell functionality, which is important to remember when looking for a Bitcoin ATM to sell BTC. Some Bitcoin ATMs allow you to convert Bitcoin from your wallet into cash. They make it easy and quick to get cash in exchange for cryptocurrency without a bank account.
5. Use your Broker to Sell Crypto
The simplest option is to stick with the broker who currently holds your crypto coins. If you use Robinhood or Webull, which offer extensive crypto trading, it’s easiest to just trade on their platforms.
After the trade is done, the cash will be in your account and you’ll be ready to trade again.
6. Trade Crypto & then Cash-out
Some exchanges don’t allow the conversion or sale of some cryptos to dollars, so you’ll need to receive your cash indirectly. Depending on the exchange, you may need to convert your Bitcoin to another popular currency like Tether before converting to dollars.
Cryptocurrency exchanges, online brokers, Bitcoin ATMs, and crypto debit cards let you withdraw funds and spend them in ad-supported firms.
7. Sell Crypto From Your Wallet
If you have cryptocurrency stored in a hardware wallet, you may be able to convert it to fiat currency without ever leaving the wallet.
For example, the popular hardware wallet Ledger Live allows you to sell bitcoin for cash. Ledger has partnered with Coinify to allow you to sell your bitcoin to cash, and the entire process is completed through Ledger’s interface.
Similarly, the Trezor hardware wallet has its Trezor Suite that allows you to exchange or sell crypto for fiat. Read more about the best anonymous wallets if you feel interested.
Not many crypto transactions can indeed be completed using hardware wallets. At the moment only the sale of bitcoin for cash is supported by options like Ledger. However, if you aren’t dealing with a large number of altcoins, this option may suffice.
8. Use Money Transfer Apps
Cash App currently only supports buying and selling bitcoin. PayPal, on the other hand, accepts four different cryptos.
However, both can make it extremely simple to withdraw your cryptocurrency. You pay selling fees based on the amount of crypto you sell and network speeds, but Cash App and PayPal both display the transaction fees and final value of your sale before you prove the sale.
Why Transfer Crypto To Your Bank Account?
Things must have cleared up in your mind after knowing how to turn crypto to cash. Interestingly, in the long run, bitcoin is expected to disrupt traditional money. Right now, Bitcoin is attracting investors who think it has high future growth potential as a commodity. For this reason, bitcoin holders may wish to keep their holdings. However, when the demand rises, you can “sell” your bitcoins and receive cash in exchange.
Although bitcoin is gaining in popularity, there are still very few places and people who will accept it as payment. To put your bitcoins to use in the real world, you may wish to exchange them for fiat currency.
How to Move Crypto To A Bank Account?
Transferring bitcoin to a bank account is functionally equivalent to exchanging currency at the airport when visiting a foreign country. To put it simply, you are “going to sell” your bitcoin and “choosing to buy” a dollar amount (or the currency of your choice) equal to its value.
There is no government or central bank involved in determining the “exchange rate” for this currency conversion. Instead, demand determines the bitcoin exchange rate. The value of your bitcoins is based on the current demand for them and the prices that buyers are willing to pay.
It’s just like exchanging currency to transfer bitcoin to your bank account. However, because bitcoin is not under government control, the exchange takes place privately. It is not influenced by international economic structures.
What to Consider when Cashing out Crypto?
As now you know how to turn crypto to cash you should also learn about some considerations.
The majority of bitcoin-to-bank-account transfer methods involve exchange fees.
If you sell your bitcoin for a profit, you will need to pay taxes on that income. Remember this as you plan your tax year. All trustworthy third-party broker exchanges will report their transactions for taxation.
Converting crypto into fiat is taxable. If the transaction is carried out through a bitcoin ATM and the transfer is made using a crypto debit card you will be taxed. Learn to calculate your crypto taxes or contact a tax expert for more information on cryptocurrency transactions.
Usually, third-party broker exchanges may take several days to deposit funds into your bank account, so do consider the process timing.
Market stability & objectives
Some crypto hobbyists are in it for the long run, whereas others may prefer to cash out as quickly as they gain a profit. You should determine which group you fall into and then decide if selling some or all of your cryptocurrency for cash is the best financial move for you to make right now.
These few points above are essential to consider when you cash out your crypto.
To sum up, I would say that there’s no need to make the process of purchasing, trading, and exchanging bitcoin too difficult. With the availability of both centralized exchanges like Coinbase and Peer to Peer trading, selling cryptos is a simple process.
Never rush into a trade without giving it some serious thought. It is also important to do your research and use only reputable crypto exchanges.
Also, keep in mind that any request for your private wallet key or initial payment in crypto is almost certainly fraudulent. Lastly, If you use trusted services to buy and sell cryptos, such as known exchanges and apps, you shouldn’t have any trouble finding a good deal. Hopefully, you got your answer to how to turn crypto to cash, do share your thoughts in the comment section below.