Key Takeaways
- You can convert cryptocurrency into cash by using centralized exchanges (CEXs), peer-to-peer (P2P) platforms, and Bitcoin ATMs, each offering distinct advantages and considerations;
- Identify strong security measures in platforms and choose a reliable service provider to protect your funds;
- Select a method that aligns with your needs while balancing convenience, fees, and other factors.
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As people increasingly invest in various cryptocurrencies, the need to cash them out becomes more and more relevant. Some people don’t want to keep trading coins for the rest of their lives. They need the profit now, but sometimes struggle with how to turn crypto into cash.
Also, cryptocurrencies aren’t a widespread way to pay for goods and services yet. While the adoption of crypto as a payment method is increasing, there’s still much to be desired. Due to these concerns, you’ll need a reliable and efficient way to convert your coins into fiat currencies.
Let’s go over the most popular methods and explore how to convert crypto into cash via Bitcoin ATMs, Binance peer-to-peer (P2P) solutions, and even crypto exchanges like Binance, Kraken, or Bybit! There are pros and cons to consider for each method, so make sure you choose the most suitable approach for yourself.
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Table of Contents
- 1. Use Centralized Exchanges
- 1.1. How to Convert Crypto to Cash With CEXs
- 1.2. Benefits of Using CEXs
- 1.3. Things to Look Out for When Using Crypto Exchanges
- 2. Explore P2P Transactions
- 2.1. How to Make P2P Transactions
- 2.2. Read About the Safety Measures
- 3. Try Bitcoin ATMs
- 3.1. How to Use Bitcoin ATMs
- 4. Get A Crypto Card
- 4.1. Why Use Crypto Cards
- 4.2. Cons of Crypto Cards
- 5. Contact a Cryptocurrency Broker
- 5.1. Why You Should Consider Working With Crypto Brokers
- 5.2. Cons of Having Crypto Brokers
- 6. Delve Into Over-The-Counter (OTC) Trading
- 6.1. Why Choose OTC Trading
- 7. Conclusions
Use Centralized Exchanges
Arguably, the fastest way to turn crypto into cash is by using centralized exchanges (CEXs). Some of the most popular CEXs are Bybit, Binance, and Kraken - these platforms offer numerous features catering to novices and seasoned traders. CEXs are the “middlemen” between buyers and sellers when considering how to turn crypto into cash.
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How to Convert Crypto to Cash With CEXs
Now, for this particular example, I will use Binance. Here are the steps:
Lastly, review and confirm the withdrawal, complete the security verification, and wait for the funds to arrive in your bank account.
Benefits of Using CEXs
The majority of CEXs have user-friendly designs, making your experience intuitive and smooth. When you’re looking at how to turn crypto into cash, you’ll find everything you need on these platforms with a few clicks.
In addition, CEXs are easy to navigate, even with numerous features like trading options or NFT marketplaces. Their design is perfect for people just starting in their crypto journey, so expect eye-catching yet simple websites and interfaces!
Even if you’re a complete beginner, crypto exchanges like Binance provide you with learning material so that you can get information from a reliable source! In case you don’t find an answer there, you can always contact customer support to get a personalized solution when you need to know how to sell crypto for cash.
The most well-known CEXs invest a lot of money and effort in security measures, including two-factor authentication (2FA), KYC processes, and cold storage solutions. Some crypto exchanges offer advanced safety solutions like anti-money laundering checks. These features provide a high level of security.
Centralized exchanges typically have high trading volumes, allowing for quick buying and selling of cryptocurrencies at market rates. This ensures the fastest way to turn crypto into cash without significant price slippage. That’s why users can enjoy an efficient and cost-effective transaction!
Things to Look Out for When Using Crypto Exchanges
When storing cryptocurrency on a CEX, users do not have full control over their private keys.[1] If the exchange experiences financial difficulties, technical issues, or goes bankrupt, user funds could be at risk. Some CEXs offer enhanced security measures to protect users against these risks, but there are no universal guarantees.
One of the safest ways to store your crypto is by using cold hardware wallets. A few great options are Ledger Stax and Trezor Safe 5.
Furthermore, CEXs often charge various fees, including trading, withdrawal, and sometimes deposit fees. Even though using a CEX is convenient, these fees can add up and reduce the overall amount of cash received from converting cryptocurrency.
Additionally, CEXs usually impose withdrawal limits, which can be restrictive for users looking to cash out large amounts. There can be delays in processing withdrawals, especially during periods of high demand.
In some regions, access to centralized exchanges may be restricted due to local regulations. Therefore, users in these areas won’t be able to use some or any of the features. They’ll need to consider different ways of how to turn crypto into cash in their country.
Keep in mind that you can’t use DEXs for cashing out directly. You’ll need to find a roundabout way to do it via a DEX, but I suggest you simply stick with reliable CEXs like Binance or Bybit! There won’t be a learning curve for you when considering how to cash out crypto in this case.
Explore P2P Transactions
P2P trading offers users the freedom to choose who they make transactions with and set their own prices and payment methods. P2P solves the issue of how to turn crypto into cash and vice versa when other fiat channels are unavailable.
Such a trading method acts based on an escrow, where buyers and sellers make transactions while a third party holds their assets until both of them complete the transaction terms. However, you won’t need to get confirmation from that third party, so there are no real intermediaries in your trading!
How to Make P2P Transactions
There are various popular P2P platforms, including Binance P2P, LocalBitcoins, Paxful, and many more. Now, suppose you need to know how to turn crypto into cash. You can use these platforms to execute transactions in a controlled environment, and most of them function on the same basis.
That said, here are the steps on how to make a P2P transaction on Binance:
At this point, the assets you're selling will be locked in Binance's escrow account until the buyer completes the payment.
After you're done with all of the aforementioned steps, simply wait until the buyer completes his payment to finalize the transaction.
📚 Read More: How to Convert BTC to Cash on Binance P2P
Overall, it’s a cost-effective way when considering how to cash out crypto. Proper P2P platforms offer a lot of flexibility when negotiating with your trading partner. Also, it usually comes at a lower cost to trade crypto for fiat compared to doing it on CEXs.
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Read About the Safety Measures
The increased popularity of P2P trading called for updates in security measures, as there were safety concerns in the past. You can choose secure and traceable payment methods like bank transfers, PayPal, or even cash payments.
However, you need to exercise caution regarding phishing attempts and always access the P2P platform through official websites or apps. Also, beware of fake payment confirmations. Before releasing the cryptocurrency from an escrow, you need to ensure that the fiat payment has been received and verified in your bank account or chosen payment method.
For example, Binance P2P offers robust security measures and continuously informs users to stay vigilant. The platform employs AI-powered monitoring mechanisms that protect users against scammers. Furthermore, Binance P2P requires verification from the user and the merchant to ensure a reliable and efficient transaction model.
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Try Bitcoin ATMs
Bitcoin ATMs are physical machines that allow users to buy or sell BTC for cash. They provide a convenient way for people considering how to turn crypto into cash without the need for an online exchange or a bank account. It’s just like any other ATM in both shape and functionality!
Keep in mind that Bitcoin ATMs usually charge higher fees compared to online crypto exchanges. Fees can range from 5% to 15% or more, depending on the provider and location. Always check the fee structure before initiating a transaction.
How to Use Bitcoin ATMs
Online directories like CoinATMRadar, CoinFlip, or websites of specific ATM providers allow you to find the nearest Bitcoin ATM. These directories provide information on ATM locations, supported cryptocurrencies, and operating hours so you can find crucial information about how to convert crypto to cash.
Alternatively, you can use specialized mobile apps to locate the closest Bitcoin ATM. You’ll find more information about supported currencies and the machine’s current status on such apps. Sometimes, you might even find information about withdrawal fees, so you can choose the cheapest way to convert crypto to cash in your area!
That said, here are the basic steps you would need to perform to cash out using a Bitcoin ATM:
Finally, wait for the blockchain to process and verify your transaction, then collect your cash.
That said, before going to the closest Bitcoin ATM, check its status and your crypto wallet’s balance to avoid any inconveniences.
📚 Read More: How Does a Bitcoin ATM Work?
One last thing, don’t disclose any transaction details to anyone, and keep your wallet balance to yourself. Drawing unnecessary attention to your financial details can attract scammers and fraudsters without you realizing it, so stay safe.
Get A Crypto Card
Crypto cards can be both physical and virtual, which allows users to complete transactions in the real world with their digital assets. These cards are linked to your crypto wallet, so you can see and manage your assets in your wallet with ease. It’s one of the most convenient ways if you need to know how to turn crypto into cash.
These cards are similar to traditional debit cards because they convert cryptocurrency to fiat currency at the point of sale or an ATM. They’re ideal for using crypto in daily purchases or cash withdrawals. So, when a user makes a purchase or withdrawal, the crypto card converts the equivalent amount of cryptocurrency to fiat currency at the current exchange rate.
Some of the most popular crypto card providers are Bybit, Coinbase, KuCoin, and others. However, you’ll need to consider the number of supported cryptocurrencies, fees, and withdrawal limits before choosing your crypto card! Otherwise, the fastest way to turn crypto into cash might cost you a lot of money.
📚 Read More: Popular Crypto Cards
Why Use Crypto Cards
Crypto cards make it easy to spend cryptocurrency directly because you won’t need to convert your crypto into fiat beforehand. It’s a great strategy if you need to know how to cash out crypto almost instantly.
Moreover, these cards do automatic conversions in a short amount of time! Knowing how to turn crypto into cash instantly allows for seamless purchases and withdrawals.
If you’re a fan of discounts and reward programs, some crypto cards offer them too! For example, Crypto.com has a multi-tier reward program where some crypto cards have integrated Netflix and Spotify subscriptions. It might be the cheapest way to convert crypto to cash and have monthly subscriptions for the same price!
Additionally, some major networks like Visa or Mastercard issue crypto cards, making them functional worldwide. If your card issuer is one of them, you’ll have a versatile payment method at your fingertips!
Cons of Crypto Cards
You should, however, be aware of the fee structure regarding them. You’ll incur regular transaction and withdrawal fees if they apply to your card. Keep in mind that each card issuer has a unique fee structure, so check it out before committing!
Also, some crypto cards offer a limited number of supported cryptocurrencies. So, you won’t be able to complete transactions with some lesser-known coins. It can be inconvenient for users who have a diverse portfolio and need to find alternative ways how to cash out crypto.
Contact a Cryptocurrency Broker
Cryptocurrency brokers can be a straightforward way for you to learn how to turn crypto into cash, offering personalized services to buy and sell your digital assets. They’re intermediaries in such transactions and handle everything on your behalf. Thanks to brokers, you can get more privacy and tailored support than trading on your own!
Why You Should Consider Working With Crypto Brokers
Once you choose a crypto broker to do all the buying and selling, you’ll probably get a dedicated account manager who will personalize your experience. They’re a great solution for people who need to know how to sell crypto for cash in large amounts or in some other unusual circumstances.
Also, you’ll need to tell them your risk preferences and relay any financial information connected to your crypto wallets. After all, they’ll be the ones responsible for finding the cheapest way to convert crypto to cash in your specific case!
However, make sure to communicate any boundaries or limitations you have so that the broker doesn’t take risks that you’d be uncomfortable with. Providing extensive information to your broker prevents any future misunderstandings, so don’t take your negotiation lightly!
Your transactions won’t be publicly listed on order books due to the nature of working with a broker. Brokers aren’t typically the middlemen between you and crypto exchanges. Instead, they act as your representatives and protect your confidential information to the best of their ability.
Additionally, brokers have deep market knowledge because they usually deal with several clients daily. Once they get familiar with your situation and preferences, they often adapt their trading strategies and customize them accordingly. Also, you can get valuable insights and advice from your broker.
So, brokers are great for handling large-volume trades and providing better rates due to their constant vigilance of the market. Learning how to convert crypto to cash when you’re trading more than a few thousand dollars worth of coins can be challenging. Thus, you can take a shortcut and leave it to your crypto broker!
Cons of Having Crypto Brokers
It’s no surprise that brokers are expensive. They charge a service fee that can differ in structure. Some brokers can charge a monthly fee, while others can take a cut from every profitable trade. You’ll even encounter premium rates for personalized services, so be aware of them and plan your finances accordingly.
Choosing a reputable broker is the most crucial step in the process. You might know how to sell crypto for cash via a broker in theory, but the practical side can be much less reliable. The crypto world has seen instances of fraud, so you need to research each broker individually and read reviews of other clients. It’s better to be safe than sorry!
If you choose to buy the services of a broker, you’ll give them information about your transactions and entrust them with your funds. It can cause discomfort for users who value the aspect of direct control of their assets. In case you know how to turn crypto into cash and can do it yourself, a broker might be a waste of effort and money for you.
Delve Into Over-The-Counter (OTC) Trading
If you’re trading large amounts of cryptocurrencies, Over-the-Counter (OTC) trading might be an attractive option for you! It’s the method for buying and selling crypto directly between parties, so there’s no need for a public exchange. Learning how to turn crypto into cash will lead you to OTC trading if you start trading in higher volume someday!
- Secure and reliable
- Accepts fiat currencies
- Lots of trading options
- Reputable exchange
- Accepts fiat currencies
- Offers various trading options
- Accepts fiat currencies
- Simple to use
- Supports only trusted cryptocurrencies
- A leading cryptocurrency exchange platform
- Best for all type investors
- Accepts fiat currencies
- Beginner-friendly
- Secure
- Decent trading and withdrawal fees
Why Choose OTC Trading
OTC trades are customizable and exercise a level of discretion.[2] You can tailor them to meet the specific needs of both parties. Furthermore, you can negotiate terms, prices, and settlement methods. Make sure to figure out all of the details before committing to demonstrating how to cash out crypto in this way.
Also, your transactions aren’t recorded on public order books. That’s why OTC trading is particularly appealing to institutions and individuals who prefer to keep their trading activities private. High-volume trades can attract a lot of attention, so OTC trading is a great solution to keep your transactions confidential and still know how to sell crypto for cash!
However, you need to be aware of the higher fees when choosing OTC trading. Since you’ll convert crypto into cash in large amounts, you pay a lot more fees than on crypto exchanges.
Furthermore, the personalized service can cost a pretty penny, too. It might not be the cheapest way to convert crypto to cash, but it’s worth the investment if you want to keep your identity off the public transaction history.
If you’re looking for reputable OTC trading platforms, you can check out the Kraken OTC Desk or Fidelity OTC. In some cases, you might negotiate the details of OTC trading directly with the other party, but the trading platforms offer a sense of reliability!
Browse our collection of the most thorough Crypto Exchange related articles, guides & tutorials. Always be in the know & make informed decisions!
Conclusions
If you’re looking for ways how to turn crypto into cash, you need to identify your needs. Whether it’s large transaction volumes or convenience, there are several methods you can use to exchange your coins for fiat!
For example, using a CEX is a popular choice for many traders. It offers reliability and convenience, so it’s a logical choice for people just learning how to cash out crypto.
P2P transactions are gaining popularity, too, as platforms like Binance P2P put a lot of effort into simplifying it for novices.
The content published on this website is not aimed to give any kind of financial, investment, trading, or any other form of advice. BitDegree.org does not endorse or suggest you to buy, sell or hold any kind of cryptocurrency. Before making financial investment decisions, do consult your financial advisor.
Scientific References
1. Evans A.: 'DEXs and CEXs';
2. Babus A., Kondor P.: 'Trading and Information Diffusion in Over-the-Counter Markets'.
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