How to cash out your crypto?

When you invest your money in cryptocurrencies, the next obvious question you want to ask is–how do you sell crypto? It is important because, at the end of the day, you invest because you want your money to grow. If you want to sell some or most of your crypto assets, there are numerous options to carry out the trade. Some of them are online cryptocurrency exchanges, direct peer-to-peer (P2P) transactions online or offline, and even a Bitcoin ATM. Read more

Cryptocurrency exchanges

To sell crypto and to trade tokens such as Bitcoin, online exchanges are a one-stop solution. If you want to sell a cryptocurrency, it may be a good idea to opt for an exchange that acts as an intermediary. They carry out activities such as holding onto sellers’ as well as buyers’ funds and releasing them as per the requirement. Also Read

First, you need to open an account with an online platform you trust. A renowned exchange will typically request identity verification. You should also have a bank account connected to be able to take out cash. It is a good practice to take into consideration the exchange restrictions that may exist in your country. You should also be aware of any policies or rules that prohibit trade and exchange from certain regions.

When you have created your account and are also done adding your cryptocurrency tokens to it, all you need to do is place a sell order. You have to mention the currency type you want to trade in, the amount as well as your ask rate. As soon as an offer matches your ask, the exchange will automate the transaction. Though this looks very simple, trading crypto is much more layered and there are various types of crypto trades.

Withdrawing crypto

Once the funds are added to your account, you can withdraw them through the bank account that you connected to in the first place. It could be a time-consuming process as there could be liquidity problems or the exchange may be facing some difficulty with the bank. In some cases, the bank might just refuse to process any transaction of funds that are credited by crypto trading.

To avoid this, it is best to store your cryptocurrency in an offline wallet. When you withdraw funds from a wallet or a platform that is personal, you have complete control over the funds.

Direct trades (person-to-person)

You can sell your crypto holding through direct trade with another party. This can be done online or directly person-to-person. You could either meet the person and carry out the transaction or use a specialized platform to conduct the trade.

Online P2P selling

A lot of specialized platforms facilitate online peer-to-peer sales. There are different products from renowned crypto exchanges that can be purchased and sold over such platforms. Crypto trading cards for cash or getting cash for your crypto asset from another entity becomes possible because of these platforms.

Typically, Bitcoin buyers will use these platforms to post listings with details such as asking price, payment options, etc. If someone is interested in these offerings they can process the transaction as per the instructions of the platform. It is common for such platforms to have escrow functions which brings a sense of security for both involved parties. The payment option chosen helps in determining how the Bitcoin seller would get their dues. It could be through a direct bank transfer via card payments, through wire transfer, or using any traditional payment system that has been agreed upon by the buyer and seller.

Face-to-face transactions

You can also sell your Bitcoin directly to another buyer in person-to-person interaction. You may come across some platforms that allow selling crypto for cash in person. You may even do so by directly meeting the buyer and exchanging crypto for cash based on a mutual agreement. Remember that if you want to sell crypto in person, you should be able to fully comprehend how crypto is sent, how a crypto wallet functions, and how the crypto platform that holds your crypto funds operates.

While not all countries have warmed up to cryptocurrencies and crypto trading in general, you can in fact go to a physical outlet or shop to exchange Bitcoin in some parts of the world. To note that crypto rates differ across various exchanges and across regions. This difference or discrepancy is referred to as ‘premium’. A crypto premium is essentially the sum at which an asset trades. It could be less, more, or at par with the underlying asset’s rate.

Bitcoin ATMs

When we talk about Bitcoin ATMs, it is natural to think of them as typical cash ATMs. However, they’re quite different. Unlike transactions done via traditional ATMs, Bitcoin ATMs are linked to the internet to carry out transactions. All you have to do is scan a wallet QR code to sell Bitcoin for cash. You can easily look for a Bitcoin ATM near you on the internet. Note that these ATMs come with high transaction fees and not all ATMs will both buy and sell options. It is important to bear this in mind when you’re looking to sell crypto.

In some cases, the service providers of a Bitcoin ATM will ask users for an existing account in order to sell cryptocurrency. The process of registration can be demanding and may require a lot of time and effort. For instance, as a new user, you may have to submit your contact number on which you will receive activation updates and notifications. You would have to submit a government-issued ID card, a palm scan, and a recent photograph that the ATMs camera would take. While the entire process would vary from one service provider to another, there will be some degree of verification required.

Bitcoin ATM providers should adapt their machines’ settings to be aligned with the AML and KYC regulations that apply in the area where they’re operating. Depending upon the location, it may need a money transmitter license, while some countries may not allow such ATMs in the first place.

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