Once you’ve been trading for a while, you’ll probably start to wonder when and how to cash out your crypto. Cashing out crypto simply refers to selling Bitcoin and over crypto assets in your portfolio.
But why sell your holdings? Well, you may want to enjoy using your crypto as fiat currency to make transactions. Or, you may be interested in withdrawing crypto as cash to put in a savings account or to use for a loan.
All in all, there are plenty of reasons to want to cash out your crypto! Plus, even if you don’t want to cash out your crypto right now, it’s always a good idea to still know how to. In this article, we’ll discuss the top four best methods for cashing out crypto and include a quick guide for each. Time to get started!
How To Cash Out Crypto Using Four Different Methods
To make cashing out cryptocurrency in 2023 easy and hassle-free, we’ve handpicked the four best methods for doing so. We chose these methods based on convenience, safety, and affordability. We’ve also included a quick guide for each method so you know exactly what to do when wanting to sell, withdraw, or convert your crypto.
Method 1 – Through a Peer-To-Peer Exchange
A peer-to-peer exchange allows traders to sell crypto without the need for a third party. This is a highly private and low-cost method for cashing out crypto, but it can be too complicated for some. Peer-to-peer selling is also fairly time-consuming, as traders have no additional help. However, this gives them plenty more control, so they can convert crypto into cash on their own terms.
- Find a P2P Crypto Exchange
There are hundreds of fantastic P2P platforms to choose from, and the best one for you depends on factors such as the type of crypto you own and how much you want to sell. If you’re struggling to find a P2P exchange alone, we suggest trying out Paxful! Just remember to check that your chosen P2P exchange is available in your country and supports the crypto you want to sell.
- Set-up an Account
Once you’ve chosen a peer-to-peer exchange to sell crypto from, you just need to complete the sign-up process. The time it takes to do this depends on which P2P exchange you choose, as some require verification or identification checks whilst others don’t. Most exchanges also have dedicated apps that you can download to sell Bitcoin and other cryptocurrencies on the go!
- Post a Listing
Now you need to post a listing. You’ll need to choose your preferred fiat currency as the payment method and, for some platforms, input your desired price. After you’ve posted your listing, it will be visible to other traders on the platform who can make offers (keep in mind that this may take a considerable amount of time).
- Negotiate a Price
After looking through all offers that have been made, you can select the one that you think is most suitable and fits your specifications. You’ll have a chance to contact the potential buyer and negotiate the price. This is how P2P selling can become one of the most cost-effective options for selling crypto!
- Sell Your Crypto
When you come to an agreement with the buyer, they will send the payment in your preferred currency. Once you’ve verified and confirmed this payment, you’re all done! You’ll now have access to your cash whilst the buyer has access to the crypto you’ve sold.
Method 2 – Using a Crypto Debit Card
Crypto debit cards allow traders to make real-time conversions of their cryptocurrency into fiat currencies such as Euros, Dollars, and pounds. Using a crypto debit card, you can make transactions using your crypto at thousands of online and physical locations worldwide. This is a simple way to convert your crypto without substantial fees or unnecessary hassle.
- Find a Crypto Debit Card Provider
Thankfully, you’ll have a range of different crypto debit card providers to choose from. When choosing a provider, you need to ensure they support your preferred fiat currency. The best debit card for you can also depend on how many fees you’re willing to pay and whether you’re interested in other bonuses such as cashback and rewards. Personally, we recommend looking into the Binance debit card!
- Create an Account
Next, you need to create an account on your chosen provider’s platform. In most cases, the provider will also have a mobile and/or desktop application you can download. Typically, when creating an account for a debit card, you’ll also have to complete various identification checks, such as KYC (Know Your Customer).
- Get the Card
After your account has been verified, your provider will send you your crypto debit card. In some cases, you may need to activate this card. You’ll also have to connect your crypto wallet to the debit card to enable transactions.
- Spend Your Crypto
Now, you’re all set! As you make transactions, your crypto debit card will automatically convert cryptocurrency from your wallet into cash. You can also use compatible ATMs to check your cash balance and withdraw fiat money. All in all, crypto debit cards are a highly practical method for repeatedly cashing out crypto!
Method 3 – With a Crypto Broker
A crypto broker, similar to other types of brokers, acts as an intermediary between traders and the crypto market. Crypto brokers are best suited for inexperienced traders who want to do more than cash out their crypto. A broker can also offer guidance, provide tools, and support traders as they learn to navigate the crypto market.
- Sign-up for a Crypto Platform
Rather than finding a broker alone, an efficient and safe way to match with one is through a crypto platform. These platforms analyse user data to make an optimal match with a well-rounded broker, saving traders both time and stress.
- Connect With a Broker
Soon after you’ve created an account on a crypto platform, you’ll be notified that a suitable broker has been found for you. This can take anywhere between a few minutes and a couple of hours, based on your chosen platform and your individual needs as a trader.
- Discuss Your Options
If you’re satisfied with the broker the crypto platform has matched you with, you can start to provide them with more information about your trading experience and goals. This would also be the time to inform your broker that you intend to cash out some or all of your crypto holdings.
- Create or Link a Wallet
If you don’t already have a crypto wallet, then the broker will help you set one up. Alternatively, if you do already have a wallet, you just have to link it with your broker (your broker will inform you how to do this and guide you through the process). Finally, you can begin to cash out your crypto with the help of your broker!
Method 4 – At a Bitcoin ATM
A Bitcoin ATM acts the same way as a standard ATM does. These ATMs are located in cities worldwide and can be a convenient option for nearby traders who want to quickly cash out Bitcoin and other cryptocurrencies.
It’s worth noting that Bitcoin ATMs do lack some features compared to traditional ones. For instance, Bitcoin ATMs typically do not allow users to check their bank account balances. However, this shouldn’t be an issue if you just want to use one of these ATMs to cash out your crypto.
- Find a Bitcoin ATM Near You
The first step is finding a Bitcoin ATM that you can access. If you’re located in or near a large city, then it’s likely there’s at least one ATM that’s within a sensible distance from you. To find one, you can either look up “Bitcoin ATMs near me” or use a Bitcoin ATM map such as this one.
- Check Which Crypto Is Supported
After you’ve located an ATM you want to use, you should check that the machine supports the type of crypto you own. As per the name, all Bitcoin ATMs support Bitcoin. But typically, other popular currencies are also supported, such as Bitcoin Cash, Ethereum, Ripple, and Tether.
- Enter How Much You Want To Convert
When you’re at the machine, you can choose how much of your crypto you want to convert into cash. The ATM will display all instructions on-screen to help you out! Keep in mind that these ATMs usually charge transaction fees of up to 10%.
- Connect Your Wallet
Now, you can connect your cryptocurrency wallet by inputting your wallet address into the Bitcoin ATM. After this, all that’s left is to confirm the transaction and collect your cash from the ATM!
Now you know how to easily cash out crypto in four different ways! Each method has its own pros and cons, so make sure you consider each option carefully before taking any action.
So, do you think you’re ready to start converting your crypto into cash using the methods we’ve mentioned above? Before you do, take a look at these top crypto cash-out tips!
- Check what transaction fees are included in your chosen method beforehand;
- Find out if you’ll have to pay capital gains taxes on your crypto assets;
- Make sure your chosen method supports the type of cryptocurrency you own;
- Do plenty of research on any provider you’re thinking of signing up for;
- Don’t cash out all your crypto at once!