When you first grew fond of cryptocurrencies, the first question that made to your mind would be— “how do I sell crypto”? After all, getting your money is as important as investing.
Selling your cryptocurrencies is much like buying them, save for the fact that it is a reversed process. Cryptocurrencies have been around for more than ten years, and the industry has already caught up, offering great options for converting bitcoins into cash. Nonetheless, you will first require a crypto wallet with your cryptocurrencies in it.
There are many methods through which you can buy and cryptocurrencies, including online cryptocurrency exchanges, direct peer-to-peer (P2P) transactions, and cryptocurrency ATMs.
This article will walk you through the various methods of cashing out your cryptocurrencies and the essential things you should remember when converting crypto to cash.
Before we begin,
Are There Non-Selling Alternatives to Cashing Out Cryptocurrency?
With cryptocurrency becoming increasingly growing with every passing day, there are various ways you can pay your transactions with your crypto. Consider asking yourself these questions.
- Will selling crypto protect me from price fluctuations?
Price fluctuations make it hard to sell cryptocurrencies quickly. So, one option you can leverage is converting your crypto to Stablecoins help protect your cryptocurrencies’ fiat valuation without the need to cash out and pay the fees during the process.
- Can I pay for products and services using crypto?
Oftentimes, paying for products and services using crypto will end up costing you less than the entire process of converting crypto into fiat. One ideal way to use crypto for transactions is the Binance Card—you can use it to pay for your bills globally using the crypto in your Binance account.
Now, if you still feel the need to exchange crypto for your local currency, here are three ways to help you.
- Sell Crypto into Cash on Exchanges
Suppose you wish to smoothly sell crypto for cash. In that case, the numerous crypto exchanges out there offer a simplified and secure way that will help you directly convert cryptocurrency into your preferred currency—USD, EUR, and you name it.
- Convert Crypto into Cash with P2P Trading
P2P trading platforms will allow you to sell your cryptocurrencies directly to other users in exchange for your local fiat currency. You typically get to go through a list of various listings to choose the best offers on your crypto from other users. In order to place an order, you will have to first transfer your cryptocurrencies into your P2P wallet linked to your account.
- Bet on Sports Using Your Crypto
Over the last few years, many online sportsbooks like Bookmaker have started accepting cryptocurrencies. So, if you are into sports betting, all you need to do is link your crypto wallet to your betting account and transfer the funds as necessary. Once you earn profits, you can withdraw them to your bank account through any of the methods listed on the betting website.
Things to Remember When Converting Crypto to Cash
Before you exchange all your cryptocurrencies for cash, you should know about the following drawbacks.
- Taxes – Taxes are inevitable, even for a crypto investor. Though a few states haven’t made their stance on crypto and taxes clear, most tax authorities make it mandatory that you pay taxes on profits you earn from selling cryptocurrency for cash. And unless you choose to ignore these rules, remember that a few cryptocurrency exchanges will report your earnings to the tax authorities when you cash out.
- Fees – Most of the crypto-to-bank-account methods listed in this article comes with an exchange fee. Nevertheless, selling crypto to your friends and acquaintances might be an exception, assuming they might decide not to charge you transaction fees.
Once you are ready to convert cryptocurrency to cash, you need to think about the various factors like the cost associated with the conversion, the ease of cashing out, the fiat currency you plan to convert your crypto to, and the waiting period before the amount will be shown in your bank account. Regardless of your needs, there is always a method that will fit your preferences. What’s more, the options are continuously growing as cryptocurrency becomes more common and embraced across the world.