How Can You Turn Ethereum Into Cash? All you need to know
Bitcoin was released in 2009 by Satoshi Nakamoto. Thus, it became the first decentralised cryptocurrency in the world. It paved the way for the appreciation and use of thousands of cryptocurrencies in the fintech space today.
Ethereum is a cryptocurrency like Bitcoin and has become a popular name in the crypto ecosystem. In fact, whenever there is a discussion on the blockchain network and cryptocurrencies are mentioned, Ethereum is often mentioned alongside Bitcoin. Read on to learn all you need to know about Ethereum and how to turn it (Ether) into fiat money, such as dollars (USD), euros (EUR), and pounds (GBP), which you can readily spend online and in physical stores.
About Ethereum and Ether: Clarifying the Difference
The launch of the first cryptocurrency (Bitcoin) quickly attracted the interest of many famous people. One notable name among the earliest crypto enthusiasts is a Russian-Canadian computer scientist, programmer, and businessman who goes by the name Vitalik Buterin. He later co-founded the Ethereum decentralised blockchain network—a digital platform where the Ether (ETH) cryptocurrency is used—and released it in the year 2015.
So, as indicated above, the terms "Ether" and "Ethereum" do not theoretically refer to the same thing. Simply put, Ethereum is a blockchain network, while Ether is the fuel used to power it. However, it has become commonplace to use "Ethereum" to refer to the network and its currency. Therefore, in this article, we will be showing you how to turn Ethereum into cash, referring to cryptocurrency.
How to Cash Out Ethereum
Ethereum can be readily spent on its own blockchain, where you can use it to buy other digital assets. For example, it is used in the purchase of most NFTs. However, to cash it out and spend it outside its network, the simplest way is to sell it using a crypto exchange, which will convert your Ethereum to US dollars, euros, British pounds, or any other fiat currency supported on it.
Four Ways to Cash Out Your Ethereum
Let us show you the essential ways to exchange your Ethereum for cash. You can choose one of four methods: to use a P2P platform, a crypto ATM, a crypto debit card, or convert it via a crypto exchange.
Sell your Ethereum on a peer-to-peer crypto trading platform
Peer-to-peer crypto platforms are decentralised exchanges that enable direct trading between buyers and sellers of cryptocurrencies. Using P2P exchanges, such as Paxful, Binance P2P, LocalEthereum, Bestchange, and EthLocal, you might locate people in your neighbourhood who are interested in buying your Ethereum for fiat money. Remember that selling crypto is a taxable transaction in some countries, so ensure to keep it legal in your location.
Cash-out Ethereum at a crypto-enabled ATM
While still somewhat uncommon, ATMs that allow for Ethereum withdrawals are springing up in different locations across the globe. Using a tool like Coin ATM Radar, which has an “Ether ATM Map,” you may locate an ATM that can be used for cashing out Ethereum close to you.
Use a crypto debit card to spend Ethereum
There are crypto debit and credit cards on the market today. They work like normal payment cards and allow you to use your digital currency balance, in this case, your Ethereum balance, to pay for products and services. Crypto cards operate by deducting from your crypto wallet balance instead of your bank account. Also, they have unique features, perks, and fees. The best providers of crypto cards with cashback (or crypto back) are Binance, Nexo, Wirex, Uphold, Unbanked, Nuri, and Crypto.com.
Use a crypto exchange to convert Ethereum to cash
You cannot cash out Ethereum online using a checking or savings account with a traditional bank or neobank. The apparent reason is that they deal with fiat currencies. Although there are a few crypto-friendly banks, the best you can expect from them at present is support for the use of their debit and credit cards for crypto transactions. Therefore, when it comes to cashing out your Ethereum online, use any of the best, centrally-run crypto exchanges that support this digital currency—you will find them in the next heading.
Generally, when using a crypto exchange, logging into your account, choosing a digital coin (Ethereum), and the amount you wish to sell are all necessary steps to turn cryptocurrency into cash. A page describing the transaction and the associated fees will open, allowing you to choose the desired conversion currency and approve the transaction. When that has been done, you can then send the money to your bank account for wire transfers, online payments to merchants, or cash withdrawals at ATMs.
Best Crypto Exchanges for Cashing Out Ethereum
If you have Ethereum to sell but are not sure which crypto exchanges are the best to use, we encourage you to choose from any of the top ones we have listed below.
Kraken
Kraken is a popular crypto exchange for buying and selling Ethereum, Bitcoin, and more than 185 other cryptocurrencies. It also allows users to explore and collect NFTs. With as little as US$10, you can start trading in minutes and diversify your portfolio.
Open a Kraken account today and link your bank account to start cashing out Ethereum. It will also enable you to stake your assets and earn rewards of up to 21% annually.
To make crypto-to-cash conversions on Kraken, you simply need to sign into your account, locate the "Funding" tab, and use the "Withdraw" button provided under the "Account Balances" section. Upon clicking on it, you will be required to choose a withdrawal method. Select your linked bank account, enter the necessary details accurately, and authorise the withdrawal to complete the funds transfer.
Keep in mind that, depending on your location, chosen withdrawal method, and the minimum amount, cashing out Ethereum on Kraken can be free or for a fee ranging from US$4 to US$35.
Coinbase
Coinbase is one of the top crypto exchanges and NFT marketplaces in the world. It has over 200 tradable assets, which include Ethereum, more than five networks, and 500+ active trading pairs.
You can create an account on Coinbase and use the "Cash out" tab on the platform to convert your Ethereum into fiat money. Remember that it is necessary to have linked your bank account or preferred payment method to your Coinbase account before cashing out on the platform.
Concerning cashing out costs, in addition to regular network fees, there is a 1% transaction fee for converting and withdrawing your Ethereum, or any other cryptocurrency, into cash on Coinbase.
Gemini
Gemini is a leading crypto exchange that makes buying, selling, storing, and cashing out Ethereum, Bitcoin, and other cryptocurrencies simple within a very secure platform. Aside from offering over 100 tradable assets with insurance, it also provides an NFT marketplace called Nifty Gateway.
A Gemini account is all it takes to get started with the process of buying, storing, selling, and cashing out any cryptocurrency listed on this exchange. To withdraw your Ethereum at any time, you need to use the "Request Withdrawal" option in your Gemini account. Remember to approve the transaction by providing the two-factor authentication code that might be sent to you via SMS.
Keep in mind that Gemini charges a dynamic fee for the withdrawal of Ethereum and ERC-20 tokens to external wallets. The cost is based on Ethereum gas fees that change according to the level of network activity.
Binance
Cashing out Ethereum is one of the most seamless things to do on the world-famous Binance crypto exchange, which has over 350 digital coins for more than 120 million users on its platform. With a trading fee as low as less than 10%, you can be sure of an opportunity to explore endless crypto possibilities, including non-fungible tokens. Therefore, sign up for a Binance account now so that you can use the "Withdraw" tab to cash out your Ethereum balance at a flat fee whenever you want.
FAQ
Generally, it takes a few minutes to cash out crypto using a crypto exchange or a crypto debit card. However, factors such as your chosen wallet, method of payment, and bank transfer time could extend the duration of the transaction to hours or even days. Ethereum's network is fast, so you may not experience a delay with your wallet when withdrawing Ether, but making a wire transfer to your bank could take several days.
It is okay to buy and manage crypto assets using any of the best crypto account providers, which include some EMIs and fintech companies. However, such platforms are rarely suitable for withdrawing Ethereum. So, if you do not have an account with a crypto exchange for this transaction, go ahead and create one now to start converting your Ethereum into fiat money.
You can sell ETH at any of the best crypto exchanges. They include centralised crypto exchanges, such as Coinbase and Gemini, and decentralised P2P crypto trading platforms, such as Paxful and Binance P2P.
Yes, you can sell or transfer your Ethereum to your PayPal wallet account. The platform added support for cryptocurrencies in 2021, enabling its users to buy, sell, and store ETH, BTC, LTC, BCH, and other cryptocurrencies on the in-built wallet.
Yes! You can use a crypto exchange to convert your Ethereum to fiat currency, such as USD, EUR, and GBP, and withdraw the money to your account with a traditional bank or neobank.
Not every store accepts payments in ETH. Nonetheless, some popular merchants allow people to pay for their purchases of jewellery, cards, electronics, gift cards, software, real estate, subscriptions, clothes, food, and travel bookings in Ether. They include SlingTV, Jomashop, Namecheap, Overstock, Dallas Mavericks, AT&T, and Travala.
Factors to Consider Before Withdrawing Ethereum
Here are a few factors to put into consideration before cashing out Ethereum from your crypto account.
- Your plan: Every investor has a plan for their investment. The same should apply to you and your cryptocurrency. So, if converting your Ethereum to cash does not fit into your short- or long-term plan for investing in cryptocurrencies, then do not do it. This is helpful, especially when you have a staking plan.
- Transaction fees: Crypto transactions often attract fees, especially charges for currency conversions between fiat money and digital coins. Therefore, be ready to pay them.
- Taxes: Cashing out crypto is a taxable event in some countries. So, check the regulations on cryptocurrencies in your location to find out whether you will have to make such a payment if you withdraw your Ethereum.
- Speed of cash out: It is much faster to use a crypto card or centralised exchange than to cash out your crypto using a P2P platform or having to locate an Ethereum-enabled ATM near you. So, put this into consideration when choosing to cash out your Ethereum.
- Fraud: Crypto payments are prime targets for hackers because this kind of transaction is relatively new and many users are inexperienced. Hence, you should be careful about the platform and people you deal with when selling your Ethereum. Only deal with credible and trusted entities, and do not share your crypto keys with anyone.
Popular Crypto Wallets to Use for Ethereum
Not every crypto wallet supports holding any cryptocurrency. Some of them are for a particular digital coin, while many are multi-asset tools. For Ethereum, the following are the best crypto wallets to use:
Atomic Wallet
Atomic Wallet is a decentralised (non-custodial) crypto wallet that supports anonymous payments—no KYC verification—while giving you full control of your private keys. It is suitable for buying, exchanging, and staking more than 60 coins. You can use it to earn up to 11% APY from holding Ethereum and other cryptocurrencies.
Bitpay
Bitpay is one of the most secure non-custodial crypto wallets. This digital tool enables you to take full control of your assets by buying, storing, swapping, and spending Ethereum and other digital coins. You can use the Bitpay card to make payments at online and physical stores, earning cash-back rewards.
ZenGo
Due to the vulnerability of private keys, the ZenGo crypto wallet was developed to allow users to have a non-custodial digital wallet that is accessed through facial recognition technology instead. It is a multi-chain wallet for Ethereum, Bitcoin, Tezos, and more than 70 other crypto assets. You can also use ZenGo to unlock NFTs and DeFi products.
Coinbase Wallet
Coinbase created the non-custodial Coinbase Wallet to give users a secure and reliable key to the world of cryptocurrencies. With this digital tool, they can store all their coins and NFTs in one place, swap assets on different decentralised exchanges, and use industry-leading security to protect their crypto assets.
Binance Wallet (Trust Wallet)
The official crypto wallet of Binance is the Trust Wallet. It is a multi-crypto non-custodial wallet app for digital assets, including cryptocurrencies and NFTs. Also, Binance provided an in-built Dapp browser in this wallet to enable users to access a variety of Dapps on the Ethereum network and Binance Smart Chain without having to sign into them.
Conclusion
There are four common ways to cash out Ethereum from your crypto wallet. You can use a centralised crypto exchange, a decentralised P2P platform, a crypto debit card, or withdraw cash from a nearby ATM that supports Ethereum transactions. Remember that whichever platform you chose has its own unique process, and the time it takes to cash out your coin varies. Also, this kind of transaction attracts a fee and is taxable in some countries. So, be prepared for all that while cashing out your Ethereum.
