Last Updated on November 2, 2022
Although cryptocurrency is significantly more popular than it was a couple of years ago, most businesses still do not accept it as a means of payment. For example, you can’t pick up lunch at McDonald’s using cryptos. In other words, most people have to convert their crypto holdings to cash before they can spend them. The good news is there are many options to convert your crypto to cash securely and easily.
This article will explain the top options you can use to convert your digital currencies to cash and how to go about it. Further, we’ll provide comprehensive information on the factors you should consider before selling your crypto for cash.
Table of Contents
Below are the three options our crypto experts recommend using whenever you are ready to cash out your cryptocurrency.
Using exchanges, also known as crypto trading platforms, is one of the best ways to convert your Bitcoin, Ethereum, and other digital assets to cash easily and quickly. These platforms work like the currency exchanges we have at airports. You send your crypto to the exchange, and, in turn, they credit your bank account with cash.
To sell your crypto for cash using this option, you must create an account on the exchange and complete the verification process. After that, you add your bank account to the platform. Note that some exchanges restrict certain geographical locations, so you should confirm that you can use the exchange for withdrawal before sending your cryptocurrency to them.
Once done, transfer your crypto to the platform and click the sell button. You can trade your crypto immediately at the current market price or set the price you want to sell. The exchange will automatically process your transaction, and once completed, you will receive the cash in your bank account. The drawback with this option is that the service comes at a fee.
Playing at online crypto casinos is another popular way to exchange digital assets for cash. These options have several perks, including privacy, low fees, and free cash. Most crypto casinos welcome new customers with generous welcome bonuses, with some matching up your first deposit with a bonus of up to 1 BTC.
So, when you sign up on a reputable crypto casino and deposit coins into their account, you can expect to earn some free money to enjoy your favorite casino games and win some cool cash. Moreover, you can get started on most bitcoin casino sites with just your email and a random name. Unlike exchanges, you won’t have to undergo an identity verification process.
Further, you can withdraw the cash you win at these casinos into electronic wallets like PayPal and Skrill. You don’t have to connect your bank account with these sites to get your cash out. Lastly, cash withdrawals on most crypto casinos are free and fast.
There are Bitcoin ATMs in major cities across the world that you can use to convert the crypto in your wallet into cash. Withdrawing cash from these ATMs is pretty straightforward. Usually, it involves verifying your identity, scanning your wallet QR Code, and inputting the amount of cash you want to withdraw.
Once done, the ATM will send you a prompt to confirm the amount. After that, the machine will deduct the crypto from your wallet and give you cash. The downside of using this option is that Bitcoin ATM charges withdrawal fees.
Before you cash out your bitcoin or other cryptocurrencies, you should consider the following:
Depending on where you live, you may be required to pay taxes when you make a profit after selling your crypto. Most reputable trading platforms will report your transactions to the authorities for tax purposes. So if you want to sell through an exchange, you should ascertain if you are required to pay tax on your profit.
Converting your crypto to cash will usually cost you a fee. However, the amount to pay depends on which option and platforms you use. So compare fees across the options we recommended above before making a pick.
Here, you should consider how fast you want to cash out your crypto. Some platforms may credit cash to your bank account almost immediately, while others may require you to wait a couple of days before you get your money.
You have limited options if you want to exchange your bitcoin for cash. However, the cheapest, fastest, and most secure ways to cash out your bitcoin right now are by using crypto exchanges, withdrawing via Bitcoin ATMs, and playing at crypto casinos.