Cryptocurrency has become popular as an investment and means of gaining passive profit through multiple methods. Thus, most people focus on how to purchase cryptocurrency rather than selling it. However, cryptocurrency is volatile, and it makes sense when people decide to turn it into cash.
While some see this volatility as a blessing, and they know how to navigate the market, others don’t share their risk tolerance. Almost a year ago, in 2022, the cryptocurrency market experienced a large crash. Bitcoin’s value dropped significantly, although the crash was caused by a different currency. Still, everyone noticed how two stablecoins that were supposed to be stable caused a huge crash.
As a result, many decide to sell their cryptocurrency. Still, it seems that experts believe crypto will bounce back – and most digital currencies managed to regain a bit of previous value. However, many individuals aren’t as eager to keep their digital assets.
There are many reasons to sell crypto assets, not just a lack of belief or lack of risk tolerance. Thus, people want to learn all the methods to exchange cryptocurrency for cash. This article focuses on many methods to convert crypto to cash. We will observe such solutions as using a crypto converter, peer-to-peer platform, Bitcoin ATMs, and others.
Crypto Exchanges
One of the most popular ways to convert your crypto assets into cash is through cryptocurrency exchanges, or, in other words, crypto converts. These platforms allow you to sell your cryptocurrencies in exchange for fiat currencies such as USD, EUR, or GBP.
Once the exchange is done, you can withdraw money to your bank account and get cash at the ATM. There are numerous trustworthy cryptocurrency exchanges to pick from, including WhiteBIT, Coinbase, Binance, Kraken, and Gemini.
To sell your cryptocurrencies on an exchange, you must first register an account and go through the verification process. Once the verification process is complete, you can deposit your crypto assets into your exchange wallet and place a sell order on the exchange platform. The market demand and supply at the time will decide the price of your crypto assets.
Note: cryptocurrency exchanges charge fees for trading and withdrawals. The fees vary based on the exchange and the transaction amount. Before making any trades or withdrawals, you should research the exchange’s fee structure and overall conditions to ensure that you understand the charges involved and won’t be caught off guard.
When selecting a crypto exchange, several factors must be considered. Some of the most critical include:
- Ease of usage.
- Transaction and any other fees.
- Deposit and withdrawal options.
- List of cryptocurrencies and trading pairs.
You should also check to see if the exchange is available in your country or location, and you should follow any applicable rules and regulations.
Peer-To-Peer (P2P) Marketplaces
P2P markets allow you to sell your cryptocurrencies directly to other people who want to buy coins or tokens. These platforms serve as a mediator between the buyer and seller, easing the transaction. Some of the most popular names include Paxful, LocalBitcoins, and HodlHodl.
The entire process requires placing an order and waiting until someone is eager to fulfill it. Interested buyers can contact you to negotiate the transaction conditions. Once you’ve agreed on a price and payment method, the buyer will send you the money, and you can give them the crypto assets. The funds are kept in escrow until the order is fulfilled.
One advantage of using P2P platforms is that you can get a higher price for your crypto assets compared to using even the best crypto converter. However, it is critical to be careful when using P2P platforms, as they are targeted by scammers. Before consenting to any transaction, you should extensively study the platform and the buyer.
Bitcoin ATMs
Bitcoin ATMs (BTMs) are a quick and easy way to turn your digital assets into cash without indirect methods. These devices enable you to instantaneously sell your crypto for cash without the need for a bank account or an online exchange.
To use a BTM, find one near you and use your crypto wallet to scan the QR code on the machine. You can enter the amount of crypto you want to sell, and the machine will either provide you with a cash voucher or instantly dispense cash.
One of the advantages of using a BTM is that the process is quick and simple, and you can obtain cash immediately. However, compared to other methods of converting your crypto assets into cash, crypto ATMs may charge higher fees.
You should also be aware that such ATMs may have daily or transaction limits and prices that are lower than the current market price. Moreover, this method isn’t available everywhere in the world to convert crypto currency.
To find such devices, you may use online services like Coin ATM Radar and CoinFlip. When using a BTM, it is critical to be cautious because scammers may target them. You should thoroughly inspect the machine for signs of tampering and use a trustworthy and secure BTM operator. Note: it’s not the cheapest way to convert crypto to fiat.
OTC: Over-The-Counter Trading
It’s not the most popular option since it’s mainly used when the trader requires to convert a big amount of crypto. OTC trading entails conducting direct trades with another person or organization without the use of an exchange. OTC trading is especially effective for large trades since it avoids price slippage that can occur when selling large amounts of cryptocurrency on an exchange.
OTC trading also provides greater privacy than using an exchange because transaction details are not made public. You must first locate a trustworthy OTC desk or broker. Some of the most popular names include Genesis Global Trading, itBit, and Circle Trade.
Debit Cards
Technically, not a crypto currency converter, but the solution enables users to use their cryptocurrency funds as fiat currency and make purchases online, as they would when using standard credit or debit cards.
Crypto cards allow users to spend their coins or tokens wherever debit cards are accepted, including ATMs and online stores. Some providers that issue such cards are Wirex, BitPay, and Crypto.com. To use these cards, you must connect your cryptocurrency wallet to the card and transfer your assets to the card’s account.
When using a debit card to convert crypto assets into cash, users are usually charged a fee for the transaction, which may include conversion and ATM withdrawal costs. Fees vary based on the card issuer, so it’s critical to examine possibilities and select a card that meets your needs.
