There is no doubt that cryptocurrencies is the future of money. And with these new emerging technologies, it helps us be able to transact freely and make financial decisions on our own. Buying, holding and selling cryptocurrencies are slowly getting the attention of the general population. For anyone who is willing to invest in their future or just here to make a quick trade, the opportunities are just a click or tap on your computer or mobile device .
Since most of the transactions happening in the world is still relying on fiat, there is always the question of how to convert crypto to cash.
Things to Consider
Here are some things that you need to be aware of when cashing out:
- Is the crypto I have tradable to Bitcoin? We will focus on cashing out Bitcoin, because it is already trading on major cryptocurrency exchanges like Binance, Bittrex and Poloniex.
- Fees to send and convert you crypto. Different methods warrants different transaction fees.
- Processing time. How long will the transaction take? It could take minutes, hours or even days. So it is a must to plan ahead.
- Local currency you need. Do you want USD, EUR, or JPY? This depends on where you are right now.
- Do you want the money deposited into your bank account or PayPal?
Exchanging Your Crypto Into Bitcoin?
The most popular cryptocurrency, Bitcoin, has the most liquidity when it comes to converting back to fiat. You can sell Bitcoins in person for cash or you can sell it on exchanges and get the money directly deposited into your bank account. So how to do it? Simple answer, Centralized Exchanges.
Now that you have exchanged your assets to Bitcoin, you are ready to cash out.
What Are My Cash Out Options?
Option 1 - Convert Bitcoin via Exchanges
This would be the easiest method and the most accessible for everyone. If you are lucky, the exchange where you traded your crypto might already have a cash out option.
Here are some examples of these exchanges with their fiat options:
- Coinbase - Cash out USD or EUR
- BitFlyer - Cash out USD or JPY
- CoinSpot - Cash out AUD
- WazirX - Cash out INR
- Binance Fiat Gateway - Cash out to several Fiat currencies
Option 2 - Convert Bitcoin via Peer to Peer
If the first option is not available, you can try exchanging peer to peer. If you know someone who is willing to make the exchange for you, then you can meet up face to face and make the trade. Luckily, there is also an online platform that you can use for this purpose. The platform is called, LocalBitcoins.
People from different countries can exchange their local currency to Bitcoins and vice versa via LocalBitcoins. According to their site, you can trade Bitcoins in 7,915 cities and 248 countries. They allows users to post advertisements where they state exchange rate and payment methods for buying or selling Bitcoins.
Option 3 - Convert to a Stablecoin (Optional)
Stablecoins are cryptocurrencies designed to minimize the volatility of the price of the stablecoin, relative to some “stable” asset or basket of assets. A stablecoin can be pegged to a cryptocurrency, fiat money, or to exchange-traded commodities.
There are different Stablecoins to choose from, like USDT, USDC and DAI. This option is recommended for those who want to avoid volatility as they always maintain parity with actual US dollars, hence maintaining its value of $1. You can just convert them later to cash via the above stated options.
In order to convert to Stablecoins, you can utilize major exchanges that have them as trading pairs. Keep them on the exchange for later or withdraw them to your own wallet.
Not every cash out option is the same. It goes down to the matter of preference or what is locally available based on your geographic location. For some countries, you may have a multitude of options. However, this is not always true in some regions. Most importantly, be always wary of governing laws of your country and do not break them.
There may be other exchanges that allows converting to fiat that is not covered here. Eventually, more and more exchanges will have this option. And even some merchants are starting to accept cryptocurrencies as payments. As always, do your due diligence and research first before you make a transfer or do a trade. It is your funds and it is your sole responsibility.