How to Convert Cryptocurrency to Cash

Cryptocurrencies have taken the world by storm and enabled people to hold assets not controlled by centralized authorities. However, adoption still has a long way to go, and you will likely need to convert crypto to cash at some point. This article will describe how you can do this.

Ways to Cash Out Cryptocurrencies

There are various ways to convert your crypto assets into fiat currencies that you can use for everyday expenses. They include:

Debit Card

Several crypto exchanges and brokers offer a debit card that lets you spend the assets in your account. You can use the card for cash transactions, and the equivalent in cryptocurrency will be automatically deducted from your account. This saves you the stress of converting the cash yourself before spending it.

You can use this type of card to purchase stuff anywhere Mastercard and Visa are accepted or even to withdraw fiat from automated teller machines (ATMs). Before selecting a card, the most important thing to watch out for is the transaction fee. Different cards have different fees, and some offer additional perks like cashback and loyalty points to lure customers.

Pros

• Crypto debit cards don’t require a credit check, unlike traditional credit cards, where you have to submit a lot of personal information for vetting.

• You can get loyalty points and other rewards by using crypto debit cards.

Cons

• Geographical restrictions may apply.

Centralized Cryptocurrency Exchange

You can use a centralized exchange (CEX) to swap digital tokens for fiat currencies. These exchanges operate an order book model that matches buy and sell orders or an automated market maker (AMM) model that uses liquidity pools. This is an ideal method if you already have your tokens stored in a custodial wallet of the centralized exchange. Just choose the specific token and the amount you want to sell, agree to the rates, and receive the equivalent in cash in your account.

Note that centralized exchanges require know-your-customer (KYC) identification, so you will need to provide personal information to verify your identity before transacting. Transactions over a specific amount may also be disclosed to tax authorities.

Pros

• The transaction fees can be high (expect to pay between 1% and 5%).

• CEXs are easy to use and have high liquidity.

Cons

• Centralized platforms keep custody of your assets and may be vulnerable to hacking.

P2P Exchange

Peer-to-peer (P2P) is another type of crypto exchange, also known as a decentralized exchange (DEX). Here, the users trade directly with each other without an intermediary, unlike a centralized platform that keeps custody of the assets being traded.

In a P2P platform, users retain control of their tokens in their personal wallets and are responsible for securing them. This makes the tokens immune to theft and hacking from a central entity, but it also means that your assets will be permanently lost if you misplace the private keys and recovery phrase.

Pros

• Lower fees for a crypto swap.

• You can retain your anonymity while swapping assets.

Cons

• More complex to use than CEXs.

• Lower liquidity and slower trading speed than CEXs.

Bitcoin ATM

Many crypto companies have placed automated teller machines (ATMs) around the globe that let people swap their Bitcoin for local currency. There are currently about 40,000 such machines across dozens of countries.

You can use a website like Coin ATM Radar to find the nearest Bitcoin ATM to your location. Then, you can head there to swap your Bitcoin for fiat. The exchange rate depends on the prevailing market rate for Bitcoin when you perform the swap. Different ATMs have different buy/sell limits and supported tokens.

Pros

• Easy to use.

• Very high transaction fees (expect to pay between 5% and 20%).

Cons

• Withdrawal limits (between $1,000 and $10,000).

Conclusion

We have shown you the different ways you can convert crypto, e.g., HEX coin, into cash. Some methods are more complex than others, and each has its pros and cons, which we listed.

One of the easiest ways is to use a P2P exchange like ChangeNOW, which offers instant swaps with no hidden fees.