How to Cash Out a Cryptocurrency
No matter if you are an established crypto millionaire or just looking to cash out before losing all your digital currencies, there are multiple methods of withdrawal available to you. It is essential that you become familiar with all available solutions as well as their respective advantages and disadvantages before taking action.
Centralized exchanges, online brokers, and money transfer apps all offer alternative means for cashing out coins; each comes with its own set of fees and restrictions.
1. Sell on an Exchange
Are You New to Crypto or Looking to Cash Out Some Holdings? Among your options for doing this are selling bitcoin on an exchange.
Selling cryptocurrency has never been simpler! Utilize centralized exchanges like Coinbase and Binance to exchange BTC or other cryptocurrency for fiat currency.
To sell on an exchange, simply enter the amount of coins that you would like to sell and this will display their price and any fees applicable.
After selling your crypto, the funds will be deposited directly into your wallet address on the exchange and you can then withdraw them using any method that suits you best.
Sell through a Peer to Peer marketplace (P2P for short), which allows you to deal directly with other individuals. While this method is often easier and can be faster, it may carry risks if you are uncertain who you’re dealing with.
2. Sell on a P2P Marketplace
Peer-to-peer marketplaces differ from traditional exchanges in that they allow you to trade cryptocurrencies directly with other users and select your price of payment, while finding buyers willing to buy your cryptos at that cost.
Peer-to-peer marketplaces also provide more flexible payment methods than exchanges, making selling crypto easier.
Binance’s P2P Trading feature enables KYC-verified customers to trade cryptos for fiat currencies directly with users outside the Binance platform, making the process simple: select your cryptocurrency of interest before placing an order and selecting payment method.
Once your transaction has been completed, the seller will place your cryptocurrency in an escrow account until they receive payment from you and release it into your account via Binance. This process should be fast and safe – however it’s best to always use a trusted third-party payment solution when making transactions of this nature.
3. Sell on a Bank Account
Bank accounts provide an accurate record of spending, an easy way to make payments online, and an effective means of managing utilities and expenses. They can even help apply for loans.
Cryptocurrencies, on the other hand, are digital forms of currency that cannot be used in real life. Those looking to cash out their crypto will either need to sell it on an exchange or convert it to fiat money before withdrawing it from an account.
Binance, the world’s leading cryptocurrency exchange, makes this process simple: when you sell crypto on Binance, its instant conversion to fiat will transfer directly into your PayPal or bank account.
Coinbase’s platform makes cashing out your coins easier, enabling you to transfer funds directly onto a VISA card or spend them at merchant stores accepting it. Please be aware that this process can take several days; be sure to plan accordingly.
4. Sell on a Credit Card
Credit cards provide a convenient way to borrow and spend money without immediate repayment. Each month you will receive an account statement showing exactly how much was spent and your balance, giving you ample time to determine how best to pay it off.
Credit card issuers generally prohibit cryptocurrency purchases, while those that do permit them may treat your purchase as a cash advance (typically charging between 3%-5% in fees) that starts accruing interest the minute it hits your account. As with any cash equivalent transaction, use it wisely and repay it in full as quickly as possible.
Paxful makes cashing out easier for crypto cardholders with its Sell-to-Card feature, enabling users to instantly convert their crypto assets to fiat currency directly onto a credit or debit card without risking personal information and security concerns.