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3 min read 19.04.2022 169
Ese Precious
Ese Precious
Fintech writer at AskWallet.io
How to convert crypto to cash?

How to convert crypto to cash?

Having a cryptocurrency like Bitcoin (BTC) and not being able to use it to pay for groceries, clothing, or any other item you would want to purchase could be frustrating sometimes. Although most merchants only accept fiat money for payment, there are many ways to convert cryptocurrency into cash. Yes, you can cash out your crypto and spend the money merrily anywhere. Read on to learn how to do this safely.

How Can You Cash Out Cryptocurrency?

Apart from the need to spend your crypto paying for tangible products and services, you may want to convert your digital asset to cash to avoid a foreseen fall in the market value of your investment. So, to cash out crypto safely, you should follow two reliable general steps; meanwhile, be ready to pay any required fees and taxes. 

So, the first stage of cashing out cryptocurrency is to use an exchange to sell your BTC or any other digital token. But if your cryptocurrency wallet is not linked to an exchange, you may need to first of all transfer your crypto to Binance or any other exchange before you take the step previously mentioned. Next, you will have to transfer the money from your crypto account to your bank account.

In addition, there is the possibility of easy and safe withdrawal of cash from cryptocurrency ATMs. A list of these kinds of ATMs can be found, for example, on the Paxful website, which offers a handy interactive map of ATMs around the world.

This method is suitable for those who need to exchange cryptocurrency assets for fiat money, especially given that international payment systems do not work with citizens of certain countries. It is also ideal for those who make anonymous payments and are cautious about the disclosure of personal data.

How to Cash Out Crypto on Different Exchanges

The process of cashing out crypto is quite similar across several of the best crypto exchanges used by millions of people worldwide. Starting with Binance, we will describe how this works in different exchanges in brief.

Binance

You can use Binance P2P to convert your crypto to fiat money and deposit it into your account with a traditional bank or neobank. It requires four simple steps. 

Firstly, you need to set up your advertisement on the platform, choosing your preferred method of payment, the currency in which you want to receive the money, and the amount of BTC (or any other cryptocurrency) you want to sell. 

Secondly, you must place an order after having reviewed all the advertisements and chosen your preferred one. Then, Binance P2P will escrow your crypto.

Thirdly, you need to confirm the payment by checking your payment account for the transaction record. 

Lastly, when you have confirmed the receipt of the buyer’s payment to your account, you have to release your crypto to the buyer from the escrow system on the platform. Now, the escrow service helps to prevent you from making sales to scammers. In case you are unable to confirm receipt of the buyer’s money, what you will do next is to fail to release the crypto so that your digital asset can be returned to your crypto wallet. Mind you, the escrow system has its way of ensuring that neither you nor the buyer is able to cheat each other.

Note: Residents of most European Union countries can use their Binance cards to withdraw money from ATMs that support the withdrawal of cash. Also, there are electronic money institutions that allow their customers to make P2P trading at Binance. Examples are PayPalCash App, Apple Pay, and Google Pay (Gpay).

Coinbase

The process of cashing out crypto on Coinbase involves two steps. The first is to convert your crypto to fiat money, such as USD or EUR, while the second is to withdraw your cash. Currency conversion can be done in your Coinbase account.   

So, to sell your crypto for cash, you must click on the button that says “Buy/Sell” while in the Coinbase mobile app or on your web browsers. Next, you need to select “Sell” and set the amount of crypto you want to put up for sale and the fiat currency you intend to withdraw the funds in. Now you will have to click the preview button to have a look at your transaction and click the “Sell now” button to complete the process. Needless to say, you will pay the necessary fee. 

After a short while, open your EUR or USD digital wallet to confirm that the money has been credited to your account. Next, you can transfer the funds to your bank account. 

Note: Unlike Binance, Coinbase does not use escrow. Instead, it allows all your transactions to be direct peer-to-peer payments, thus, everything happens between you and the buyer. Transactions here are irreversible. However, on Binance, the escrow system helps you to reverse any transaction made to a dishonest third party.

Coinmama

 

Coinmama allows you to buy only Bitcoin and Ethereum (ETH). However, it allows you to sell only BTC. Plus, it charges relatively high crypto trading fees compared to other cryptocurrency exchanges.

To sell your Bitcoin on Coinmama, you must have a European bank account that supports SEPA transfers or a US bank account. This is mandatory because Coinmama allows you to sell Bitcoins using bank transfers. 

When you are ready to sell your Bitcoin, the first step is to log in to your Coinmama account and choose the option “Sell” from the page of your main account.

Second, you will choose the amount of Bitcoin you would like to sell and take note of the rate for converting it to your preferred currency.

Third, create your order by following the prompts on your screen. You will need to enter the country of your bank, your bank details, and your personal information.  

The last stage is to send your coins. To do this in a single transaction, send the amount of Bitcoin you want to sell to the address of the wallet provided or scan the QR code from your app (e-wallet).  As soon as Coinmama receives your crypto, the equivalent amount in your chosen fiat currency will be paid out to your bank account.

eToro

eToro allows users to buy and sell several cryptocurrencies on its exchange platform in a very fast and easy way. 

The steps you must follow to sell crypto on eToro are as follows: first, log in to your account and click on Portfolio; second, pick the crypto you want to sell; third, click on a red cross icon to close the trade. Upon sending a request to “close trade” on eToro, you have agreed to sell that crypto. In other words, you have requested to terminate that investment. Look out for an option to close some or all of it. 

What next? eToro will notify you that your portfolio is empty and send the current value of your closed investment in crypto back to the available fiat money balance in your account. 

How can you cash out your electronic money on eToro? You can use the main menu on the eToro app or platform to withdraw part or all of your balance to your bank account. In the app, you click on “Withdraw Funds” and follow a few simple steps that will be provided. When done, it might take up to 2 business days for eToro to credit your bank account.

How to Cash Out Crypto Using P2P Payment Platforms and IBAN

There are e-wallets and peer-to-peer payment services that you can use to withdraw money from your crypto account to your bank account (such as your European IBAN or SEPA account).

Generally, the procedure for cashing out your crypto when using a P2P platform is similar to what we have described for crypto exchanges. Nevertheless, your preferred e-wallet might offer a process that is slightly different or even simpler.   

Below is a list of the best digital wallets and apps for the simple, secure, and safe selling of your crypto in exchange for fiat currencies like USD and EUR.

Advcash

Sell BTC, LTC, ETH, XRP, BCH, and ZEC using Advcash.

Payeer

Use Payeer to cash out BTC, USDT, XRP, ETH, LTC, Dash, BCH, and other coins.

Ibandirect

Sell BTC, LTC, and BCH directly to your European IBAN account and withdraw cash at any ATM using your prepaid Visa card from Ibandirect.

Mercuryo

Convert BTC, ETH, TRC, and more to EUR, USD, GBP, or RUB and transfer it to your Mastercard card in 5 minutes using the Mercuryo widget.

OWNR Wallet

Use OWNR to sell BTC, ETH, BCH, LTC, and more and transfer fiat money to your Mastercard, Visa, and UnionPay cards. Withdrawals can be made in many fiat currencies.

ZenGo

When you sell BTC, XTZ, ETH, USDT or any other crypto on ZenGo, it uses third-party exchanges (such as Coinmama) to convert your digital coin to fiat money and initiate the transfer to your bank account.

Revolut

Use the “Wealth” section of Revolut’s Hub or the “Home” tab of its app to sell BTC, BCH, ETH, LTC, ADA, or any other cryptocurrency and transfer the fiat money to your external e-wallet.

Atomic Wallet

Though Atomic Wallet does not allow direct crypto-to-fiat conversions yet, it supports the use of Coinbase and other services for this task. You can sell BTC, ETH, XRP, LTC, and many other coins using Atomic Wallet’s supported exchanges.

Blackcatcard

The cryptocurrency services of Blackcatcard are provided by DigiNord, through a partnership. Thus, DigiNord is integrated into the Blackcatcard app to help hold your crypto and allow you to sell it.

Do You Need to Pay Tax for Withdrawing Crypto?

Buying and selling crypto can be a profitable investment like stocks and bonds. Hence, in the United States of America, the United Kingdom, Canada, and some other parts of the world, you are required to pay tax on the profit you make from selling crypto. Some of the apps for trading crypto can give you information about the tax on your transactions. 

Nonetheless, some countries do not require you to pay any tax for selling your crypto within certain terms and conditions. Examples are Singapore, El Salvador, and Belarus.

How to Cash Out Your Crypto Safely

To avoid getting scammed, you need to know how to safely cash out your returns from selling your crypto assets. Therefore, we recommend that you only trade on trustworthy exchanges and P2P platforms like the ones we have listed above. They comply with anti-money laundry policies and implement strong security measures to protect your assets and secure your transactions. Furthermore, never share your passwords and other security codes with anyone. Moreover, ensure that you withdraw your digital tokens to only the bank accounts you connected to the platforms yourself. Lastly, if the use of VPN is legal in your location, try to use them for anonymous transactions.

Closing Thought

Now you know how to conveniently convert your Bitcoin, Litecoin, Ethereum, Tether or other cryptocurrencies to the euro, US dollars, pounds sterling, or other fiat currencies. Therefore, waste no time in trying the options we have provided for you to withdraw your cryptocurrency to your e-wallet or bank account. Whether you choose to store your money in banknotes or digital coins, always remember that you can spend them on anything you want anytime, thanks to FinTech and the digital transformation in banking today.

FAQ

Can I convert Bitcoin to fiat money?

Yes, it is possible to convert your Bitcoin or other crypto investments to USD, EUR, GBP, or any other fiat currency and transfer it to your bank account or digital wallet. But first, you must sell your crypto in exchange for fiat money. You can find our guide on how to do it in the text above.

Is crypto taxable?

Yes, some countries require you to pay tax on the profit you make from selling your crypto assets. Examples are the UK, USA, Italy, Canada, and India. However, based on some terms and conditions, crypto is tax-free in Singapore, Malaysia, Belarus, Malta, El Salvador, and a few other countries.

How can I cash out crypto?

We have described how to cash out your crypto in the above text. The first thing you must do is use a crypto exchange or P2P payment platform to convert your token to fiat money, and then transfer it to your e-wallet or bank account. You can now withdraw the cash at any ATM or bank.

How can I safely cash out crypto?

Trade on only trusted exchanges and P2P platforms like the ones we have listed above. Also, do not share your password with others.

Can I convert Bitcoin to fiat money?

Yes, it is possible to convert your Bitcoin or other crypto investments to USD, EUR, GBP, or any other fiat currency and transfer it to your bank account or digital wallet. But first, you must sell your crypto in exchange for fiat money. You can find our guide on how to do it in the text above.

How can I cash out crypto?

We have described how to cash out your crypto in the above text. The first thing you must do is use a crypto exchange or P2P payment platform to convert your token to fiat money, and then transfer it to your e-wallet or bank account. You can now withdraw the cash at any ATM or bank.

Is crypto taxable?

Yes, some countries require you to pay tax on the profit you make from selling your crypto assets. Examples are the UK, USA, Italy, Canada, and India. However, based on some terms and conditions, crypto is tax-free in Singapore, Malaysia, Belarus, Malta, El Salvador, and a few other countries.

How can I safely cash out crypto?

Trade on only trusted exchanges and P2P platforms like the ones we have listed above. Also, do not share your password with others.