- Bank transfer
- Cash deposits
- A P2P exchange and
- Through a broker.
However, you will need to be acquainted with a lot of things to know how best you can cash out the crypto coins that you have amassed over the past couple of years.
First, you will need to know that the methods will vary according to the amount of coins you want to cash out. Check out Best Day and Time to Buy and Sell Crypto.
If you want to cash out millions of dollars worth of crypto coins, the way to accomplish this will be much different from cashing out a small number of coins.
You will also be better off by knowing the limits of withdrawal of the crypto exchange. Different crypto exchanges have different limits on the quantity of daily withdrawal. This limit may however increase as you upgrade your account level.
You will also need to consider other factors to choose the right method to cash out such as:
- Your needs
- How quick you want to cash out
- The security aspects and
Also, you must talk to your bank first so that you are allowed to make such transactions, especially if it is a large one, and not suspected of money laundering!
Add to that, you will be better off if you consult with your accountant as well as with a lawyer who has adequate experience in cryptocurrency tax laws and its complications according to the jurisdictions and regulations of your country.
8 Best Ways to Cash out Crypto
If you are stuck or confused, here are some of the best ways to cash out crypto easily. Choose a method suitable to you and your needs and stay safe from legal and financial obligations.
Make sure that you consider the pros and cons as well before making your final choice.
1. Broker Exchanges
- Deposit your crypto coins and
- Place a request for withdrawal in fiat currency.
Ideally, they will make a wire transfer the dollar value to your bank account. This bank account however will be the same one you used to make your deposit. This is done to eliminate any chances of money laundering.
Brokers usually make the payments through the SWIFT method if you want payments to be made in USD and through SEPA if you want them in Euros.
By the way, if you wish to take this ruote, you will have to wait for anywhere between 1 to 5 days for the money to reach your bank account.
2. Peer to Peer
If you want to cash out your crypto coins in a much less time consuming way and with more anonymity, then you should follow the peer-to-peer platform. This is the method in which you sell bitcoins to others via a P2P platform.
For this, you will have to first decide the specific payment method you would like the buyers to use. These methods include:
- Cash deposit into your bank account, but make sure that they do so along with a valid ID proof and proof of payment before you release the coins to them
- Bank transfer payment, but that too along with proper proofs before releasing the coins to them and
- Meeting the buyer in person to pay you in cash for the coins.
Ideally, P2P method of cashing out is much safer since you will know what you are doing. Also, the P2P platforms ensure adequate safety with their escrow service.
They will typically lock your coins until they get a confirmation from you that you have received the payment from the specific buyer. However, please be aware of the fraudsters.
3. Online resources
The internet will provide you all the information that you need regarding everything, and yes, including cashing out your bitcoins.
There are several good online resources that will help you to find a cash-for-crypto buyer, and even seller.
This process is quite simple and the best thing about it is that this process will allow you to bypass the bank system. This also means that you will not have to pay any conversion fees.
However, there are two things that you should know before you choose this method to cash out your crypto.
The exchange rate will be a bit higher and may eat up your profit. Still, this is not as major a threat as the fact that there exists a lot of frauds in these exchanges.
Therefore, this method of cashing out crypto is certainly faster and cheaper but not absolutely reliable.
4. OTC Trading
You will come across several such projects which are also viable and reliable options to cash out crypto coins.
These Over The Counter desks are ideally of different exchanges and they follow a pretty simple and quite fast verification and onboarding process.
While discussing matters with the customer service desk you will be offered with several deals that are available at the moment and some of these will be the best ones.
If you still do not like the deals offered, you can surely wait for a more feasible one.
The outcome of cashing out through the OTC trading desks often turn out to be cheaper than those deals made traditionally through the crypto exchange itself, albeit a bit slower.
5. Crypto ATMs
Just like traditional ATMs, there are also several cryptocurrency ATMs that will offer you an instant cash out for your crypto coins.
These ATMs are quite safe and convenient to use. However, these ATMs are usually found in big cities and therefore most of the users may not be as privileged.
Moreover, in order to make a transaction you will have to physically visit the ATM, if there is any within your vicinity, that is.
6. Crypto cards
One of the best ways to cash out your crypto coins is by using a cryptocurrency card. This is an advanced, safe and fast option.
You can get a prepaid cryptocurrency card from different crypto exchanges. These cards can be used in different merchant outlets as well as in compatible ATMs for cash withdrawals.
You can top up these crypto cards as well but be wary of the options as that may differ from one card to another.
These cards however support a majority of the popular crypto coins including BTC, LTC, ETH, and others. And, yes, the transaction limits and fees are applicable.
7. Exchange services
There are also several exchanges that act just as direct crypto exchanges and allow you to cash out your crypto coins. Research a bit to find a trusted one.
After you choose one, fill up the form in the homepage of their website. Once you do that, furnish your payment data. You will get a confirmation email or message and once you get that confirm your request.
If everything goes fine, a courier will be sent to you, if available, or you will be told about the place from where you can receive the cash, such as Western Union.
This is a faster way to cash out crypto. It is also a very user-friendly method and you will get good support from the exchanges.
Most importantly, the process allows anonymity because you do not need to register with the exchanges and they delete all your data once it is confirmed that you have received the payment.
8. Personal contacts
If you know a friend or a family member who is into crypto trading, chances are high that you can trade with them personally for cash.
This is one of the fastest and best methods to cash out crypto. The other person will always agree to such transactions promptly because they will get the coins fast and without having to pay any fees for it.
If you cannot find any such friend, do not fret. You can go to one of the many cryptocurrency summits and be lucky to find someone to sell your coins.
Along with that you will also get loads of useful information on crypto trading, developments and regulations as a bonus.
One of the biggest advantages of cashing out crypto through personal contacts is that both the parties do not need to pay any fees. This means that both of you will make profit from your respective perspectives.
And, your friends will not cheat you when you crack a deal with them, which, by the way, is not a walk in the park.
There are lots of different ways to cash out crypto or to change it into fiat currency. Every method has its characteristic pros and cons but you should find the best and most convenient way to do so by following the tips in this article.