Cashing out Crypto
We rely on word of mouth publicity. If you found this information useful – please consider sharing it in your network. It will cost you nothing but will help us immensely.
One of the key strategies that we failed to understand during the 2017 bull run (because we were newbies at the time) was the concept of ‘cashing out’.
Now that we have that experience in our arsenal we will try and not repeat the FOMO HODL like we did in 2017 (Bitcoin will always be an exception).
One of the key strategies we discuss on our free eBook: Top 5 Cryptos is ‘exit plan’. You can download the eBook to read it.
We will discuss ‘how to cash out’ once you have decided to cash out because no matter how big your portfolio might look in crypto, it means nothing unless you cash out (again, Bitcoin in our opinion is an exception to this rule).
The hope is that one day we can transact in crypto to pay grocery bills, rent, etc., however, until that becomes a reality, it is prudent to have an exit plan to ensure you are covered for your cash needs.
Especially in times like these it is important to never bet all on any one class of assets.
With that prelude, let’s look at various options on cashing out your crypto for fiat (yes we know, we are not getting into the argument of fiat’s worth here).
Peer to Peer networks
Peer to peer exchange is a place where you can simply select and purchase for the price set by the seller. Unlike centralized exchanges, p2p exchanges don’t have order books.
The best practice to purchase on a p2p exchange is to look for the sellers profile and the feedback they got.
The platform serves as an Escrow for secure payments.
Some of the leading peer to peer exchanges are:
Whether you love them or hate them, Coinbase continues to be one of the more popular fiat gateways into crypto. Much of mainstream access to crypto is through Coinbase.
It is no wonder that it is also a great option to cash out your crypto if the crypto you want to trade happens to be on Coinbase.
Thankfully, they have been adding projects quite aggressively in the recent times and that means there is a chance that the crypto bags you are holding will appear on Coinbase.
You can cash out directly into your bank or PayPal account.
Similar to Coinbase, Kraken offers the option to cash out your crypto into the fiat denominations they have: USD, EUR, CAD, AUD, GBP, CHF and JPY.
Bank Card cash out: Crypterium
Crypterium offers an easy way to cash out your crypto by sending it to your Crypterium account and start spending it right away.
They claim that it only takes a minute to transfer your crypto to your account and start using it.
This is another easy way to cash out your bitcoin. Although there are not as many bitcoin ATMs, which we think will change soon, ATMs do offer a way to cash out your crypto to cash.
The number of cryptos and the amount of cash you can get (not to mention a somewhat disconnected exchange rate) might put this option at the bottom but it is still an option.
Some considerations when cashing out crypto:
- When dealing with peer-to-peer transactions be very careful about your identity and offloading your crypto through trusted platform only
- Make sure to notify your bank ahead of time about the money flowing back into bank (especially if this is a substantial amount) so that your bank does not block or create nuisance
- Make sure you check the exchange rate (especially when using direct spend options like Crypterium or peer-to-peer exchanges like LocalBitcoins)
- If you are dealing with large sums – confirm which option works best. For instance, Coinbase or Kraken or similar may be your only options depending on the jurisdiction
- Don’t forget taxes…consider setting some funds aside for taxes before you go splurging your crypto profits!
We hope this quick overview helps and wishing you massive crypto riches.
Thank you for reading and sharing this article. We appreciate you.
Stay safe and healthy!
Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.
We do not endorse or guarantee the accuracy of the information and claims made.
All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.