Definitely, you can convert your crypto into cash. What is, after all, the fun of investing in the crypto if we are not able to cash out them. We can easily convert crypto into cash or them as a legal tender in our bank accounts.
Converting crypto into cash can be done with the following:
- P2P- Peer-to-Peer Exchange-
In P2P system you can directly sell your crypto to some another trader. In return the buyer of your crypto will transfer money into your specified bank accounts. For this you have to set the price for your crypto and list down the payment options like UPI, PayPal or Bank Account.
This is a secure system as it is managed by the crypto-exchanges like Binance.
However, this may seem a bit difficult for the novice crypto traders. - Crypto Exchanges–
The other option to convert crypto into cash is centralized exchanges. Centralized Cryptocurrency exchanges like Coinbase, Binance or Gemini have the facility of converting crypto into cash or vice-versa.
Here, you just have to select the coin and its quantity to sell and in return you would receive cash. - Cryptocurrency ATMs–
Well, some countries have the facility of cryptocurrency ATMs. Just like traditional ATMs, Cryptocurrency ATMs allow us to covert the crypto into cash. Here, you just need to visit the ATM and sell out your specified quantity of crypto for cash. However, the facility is limited to few cities. - Over-the-Counter(OTC) Trading-
OTC Trading is also one of the way of converting your crypto into cash. It involves the direct buying and selling of crypto between the buyers and sellers. The amount involved in the transaction is usually big. For example, You can transfer 1 BTC (Bitcoin) to the wallet of your friend and in return you would ask him to credit our bank account with an amount of $70,000.
It is beneficial when the person involved in the trade have high level of trust or bounded by any contract.
Can You Convert Crypto into Cash on Binance?
Yes, you can convert crypto into cash on Binance. Binance is one of the largest cryptocurrency exchange in the world. The platform has following options that allow the crypto-users to convert their digital currency into real cash.
- Binance Pay
- Binance Card
- Binance Peer-to-Peer (P2P)
Can You Convert crypto to cash on Coinbase?
Certainly, you can do the this. Just sign into your Coinbase account->Go to Buy/Sell option->select Convert. You will be shown a preview of your transaction before converting the crypto into your local currency. Confirm the transaction and you are done.
Can you Transfer Crypto into Cash app?
Yes, we can transfer the crypto into our Cash-App. There are two ways in Cash-App to this task.
- $cashtags(P2P)- Navigate to the Payment Pad in Cash-App and press USD Toggle. Then select BTC and enter the recipient address like $cashtag or cell-number. Tap Pay and your are done.
- Bitcoin Gifts- Here you can send or receive a Bitcoin to/from a person and recipient would receive an equivalent amount of USD.
How do I Legally Cash out Crypto?
There are multiple ways to cash out your crypto legally. However, people in countries that have not legalized the trade in cryptocurrency may not be able to do so in their country.
Before, cashing the crypto legally one has to have account in some cryptocurrency exchanges like Binance. Then one can buy or sell the crypto in lieu of cash.
How much Crypto can I Cash out?
The amount of cash out depends on various factors like Exchange Limits, KYC Level, crypto-type, market conditions and Tax Considerations.
Exchanges have their own limits of withdrawal. The limit exists for daily, weekly and monthly basis.
Persons having completed all the levels of verification can cash out more than those having low or no verified level(KYC).
With regard to the type of currency, BTC(Bitcoin) and ETH(Ethereum) have more withdrawal limits than other crypto-coins.
Is there a Fee to Cash out Crypto?
Yes, certain amount of fee has to be paid when you cash out the crypto. There are multiple categories of fee that is imposed on the crypto-transactions. These include:
- Trading Fees- Imposed on each buy and sell transaction. It varies from exchange to exchange and ranges between 0.1% to 0.5% of the transaction amount.
- Conversion Fees-It is imposed on those transactions which involve conversion of one crypto-coin into another. For example, if you want to convert MATIC coin into BNB coin you a certain amount of conversion fee would be deducted from the transacting amount.
- Withdrawal Fees- It is fee that is imposed when a user withdraws crypto from an exchange into some other wallet or bank account.
How do I transfer USDT to bank account?
To transfer USDT to a bank account, login to the exchange holding USDT. If you have no USDT, you can sell you crypto currency in USDT.
Now the amount of USDT can be withdrawn from the exchange by taping the withdraw button. Select your currency and pay some withdrawal fee, your USDT would be cash out to the specified bank account.