But after you’ve learned how to buy cryptocurrency and have made some profits, you may be thinking about selling some of your coins. You can use the money to pay bills, buy a car or home, or lock in your gains and diversify into other investments. Depending on how large or small your transaction is may determine which method you use. While technically not cash, converting crypto into gift cards usable practically anywhere is a close compromise.

Use your broker to sell crypto

And while peer-to-peer (P2P) exchanges and Bitcoin ATMs offer anonymity, consider the (potential) high fees and hassles of the process. Many centralized exchanges also offer P2P exchange options, including Binance, KuCoin, and ByBit. The downside of Bitcoin ATMs is the high fees that most of them charge. In addition to paying network fees to transfer your Bitcoin, ATMs charge service and transaction fees that can exceed 15% per transaction. While not quite as easy as swiping your debit card at an ATM, cashing out Bitcoin (or other cryptos) has gotten much easier over the past few years. So, yes, there are several ways to turn your Bitcoin holdings into cold, hard cash — but there are several things to consider before you do.

FinanceBuzz and CardRatings may receive a commission from card issuers. Turning Bitcoin into cash may seem simple, but there are a few things you’ll want to consider before cashing out your crypto wallet. Some exchanges do identity verification for security reasons, especially if you’re planning to withdraw crypto in larger amounts. In order to achieve this, you will need to pass the KYC verification procedure and submit your ID or take a selfie. The platform should have a withdrawal section where you will need to state all the details. Choose the crypto you want to sell, enter the amount, and indicate how you plan to withdraw.

Transaction fees range based on the provider and amount of bitcoin, but costs range from 7% to 20% of the transaction amount. While most people prefer cash, sometimes you may find more lucrative options. Some exchanges enable you to trade your bitcoin for gift vouchers and other items of value. With a P2P exchange, you can negotiate pricing and form of payment. However, many buyers and sellers on these exchanges use the current cryptocurrency pricing as a starting point for negotiations.

What is the difference between a crypto exchange and a brokerage?

Many crypto wallets have built-in crypto exchanges, and some even allow you to exchange your crypto for cash directly. While crypto wallets are designed to store and secure your crypto, many of them partner with crypto exchanges to offer trading services. The best bet is to use a platform like Binance.us or FTX.us to save on fees, and quickly cash out your crypto for dollars. The mobile apps make it easy to sell, and you can connect your bank account to transfer funds after the crypto is sold. You cannot simply deposit digital currency into your checking account at the bank down the street. The same goes for how and where to buy and sell cryptocurrencies like bitcoin stocks, bonds, mutual funds, and many other investments.

1. The CryptoWallet.com card charges just 0.8% for converting crypto to fiat.
2. Whether you need to pay for your Bitcoin withdrawal will depend on the exchange you’ve chosen.
3. Bitstamp is a Bitcoin exchange that accepts other cryptocurrencies, including Ethereum (ETH) and many others.
4. Bitcoin ATM withdrawals usually have a variable fee of 7% to 20% based on the amount of the transaction.
5. Most banks do not yet accept bitcoin for deposit, so you’ll need to convert your bitcoin into cash before you can deposit it.

What are the withdrawal limits on crypto exchanges?

To prevent fraud and ensure liquidity, most crypto exchanges place withdrawal limits on accounts. Depending on the exchange, you may have different limits based on the type of account you have, the currency of the withdrawal, and other criteria. The closest comparison to using a third-party broker exchange is exchanging foreign currency how to buy weth for U.S. dollars (USD). Many travelers convert their foreign currency at a bank or exchange company and receive cash immediately. With bitcoin, you deposit your coins into an exchange, and then you can request a withdrawal in the currency of your choice. You’ll quickly exchange cryptocurrency into cash, which you can access from your cash balance in Coinbase.

Some exchanges set commission rates that differ between the token type being transferred and the number of tokens involved. Selling crypto for cash typically comes with fees, but sometimes it is more than you think. While most exchanges and money apps allow you to sell your crypto at a reasonable rate, places like crypto ATMs charge extremely high fees, which may eat into your profits. You can also earn crypto rewards that deposit into your Coinbase account (reward rates vary).

Step-By-Step Guide To Cashing Out Crypto With Exchanges

Once you’ve selected a trading platform, it’s time to create an account. You’ll be asked to go through a verification process, and you may have to conduct an initial transaction. Once you’ve completed the identity verification process, you’ll be able to add Bitcoin.

BitPay allows you to purchase gift cards with Bitcoin along with 15+ other top cryptocurrencies. Cash out crypto onto popular gift cards like prepaid Mastercards, Best Buy gift cards and more. Cashing out at an ATM is the equivalent of selling your Bitcoin, says California Bitcoin ATM company Hermes Bitcoin. Bitcoin ATMs are a way to get immediate access to cash using your bitcoins. In order to make a cash withdrawal and sell your Bitcoin from the ATM, the machine provides a QR code to which you send your Bitcoin. We’d love to hear your preferred methods for converting crypto holdings to cash!

This article was subjected to a comprehensive fact-checking process. Our professional fact-checkers verify article information against primary sources, reputable publishers, and experts in the field. The commissions on Bitcoin ATM trades can be tremendously high, however, so it’s important to note how much you’re paying and whether it’s worthwhile to go another route. After you complete the trade, you’ll have the cash in your account and be ready to trade again. The article was reviewed, fact-checked and edited by our editorial staff prior to publication.

FinanceBuzz is not a financial institution and does not provide credit cards or any other financial products. No matter which payment option you prefer, you need to protect yourself from fraud. A good P2P exchange has adequate safety protocols in place to ensure a legitimate transaction occurs. Many cryptocurrency investors hold onto their coins natural language processing specialization deeplearning ai for the long haul because they believe the coins will continue to increase in value.

There’s an in-depth guide to help you convert and withdraw your cryptocurrencies in the most efficient way. The first step is to find a brokerage firm that will find a suitable buyer for your tokens. OTC trading enables direct securities trade between parties, providing access to capital markets for smaller and large crypto-fiat trades. Plus, the OTC market can be complicated for beginners, so it’s more suitable for experienced crypto users. Besides, ATMs charge cash-out fees, so whether it’s worthwhile or not depends on the amount you plan to withdraw.