In the complicated world of cryptocurrency, you’d expect every process to be intimidating. Yet, fear not, for that’s not the case in cashing out your crypto savings.
You can exchange cryptocurrency for cash in surprisingly easy ways! In this guide, we’ll walk you through how to do just that in simple steps.
Key takeaways:
- There are several simple ways to exchange cryptocurrency for cash. You can use different sites or apps.
- The process per platform may vary, but it usually doesn’t take too long to remember and execute.
Why Convert Digital Assets into Cash?
Investors, traders, and casual crypto users typically want to exchange cryptocurrency for cash for several reasons:
- capitalizing on market gains
- cashing out before prices fluctuate
- covering real-world financial needs
- wanting a more stable form of finances
How Can I Exchange Cryptocurrency for Cash?
In this guide, we’ll tell you the 4 most common methods to convert your crypto money to real-world cash. We’ll also walk you through the steps on how to do it for each one.
Centralized Cryptocurrency Exchanges
This is the most popular way to exchange cryptocurrency for cash. There are a lot of centralized exchanges like Coinbase, Binance, and Kraken. You can decide which one is best for you, as the process doesn’t really differ much for each platform. Here’s how to do it:
- Create and verify an account.
- Transfer cryptocurrency to your exchange wallet.
- Sell the crypto tokens for your preferred fiat currency.
- Withdraw your earnings directly to your bank account.
Peer-to-Peer (P2P) Platforms
If you don’t want the traditional method of exchange platforms, you can go to P2P platforms as an alternative. In P2P, you will be directly connected to buyers and sellers of crypto. As a result, you have more flexible transaction options.
The only risk that comes with it is less security, especially since the transaction will mostly be done online. You may be susceptible to scams, so be wary of potential schemes.
To make an exchange on P2P platforms:
- Decide on your sale terms beforehand and set it clearly (it may help doing some research on how this works for other people first to have a basis for yourself)
- Find a reliable buyer
- Use the platform’s escrow service
- Confirm the payment receipt
Cryptocurrency ATMs
If you want a more instant approach, you can try looking for cryptocurrency ATMs, which will do the converting for you without much hassle. They are convenient, indeed, but use them only if you’re fine with being charged higher than the first two options.
The quick process goes like this:
- Finding a nearby or preferred crypto ATM
- Completing the identity verification or other initial steps required by the machine
- Selecting amount of cryptocurrency to sell
- Withdrawing the cash instantly and directly
Crypto Wallet Apps
Finally, you can use crypto wallet apps to exchange cryptocurrency for cash. Mobile apps like Trust Wallet and MetaMask offer features and functions that enable you to do that conveniently. This can be really useful for on-the-go transactions.
Additional Tips
Before you go deciding to exchange cryptocurrency for cash, here are some tips you may want to remember:
- It’s better to be safe than sorry, so choose trusted platforms and opt for two-factor authentication whenever possible.
- Transaction fees vary across platforms, so find rates that are reasonable for you.
- Prices and conversions will fluctuate naturally, so watch the market condition and find the right timings.
- Some methods may have withdrawal limits. Do research about this so you won’t regret anything later.
- Regulatory requirements vary per location. Know the rules for crypto in your locality.
Conclusion
Ready to exchange cryptocurrency for cash? These are just the basic steps, but it will be better to start getting a deeper understanding, like finding the best available platforms and following the best practices.
You can manage your digital assets better with this and secure your investments. How helpful did you find our article? Let us know!
