- >Ask CryptoVantage: How to Convert Crypto to Real Money
Ask CryptoVantage: How to Convert Crypto to Real Money
The time has come! You are ready to take your Bitcoin or other cryptocurrency hodlings and turn them into cash, but how do you do that? There are actually quite a few ways to turn digital assets into fiat currencies (like USD), and there are even ways to pay with your crypto without ever converting it, which saves you fees on many fronts.
It is also time to recognize that crypto IS real money, it has as much value as whatever fiat currency you get paid for your job. Of course, there are always circumstances where you will need actual fiat and are not able to use crypto, and that’s why you came here. In this week’s AskCryptovantage we will show you three main ways to convert your crypto into real money.
Evan Jones | Feb 17, 2021
The simplest answer was likely staring you in the face. Assuming you bought your crypto through a crypto exchange there is a good chance you can use the same exchange to turn it back into fiat. Major exchanges such as Binance, Coinbase, Crypto.com, and Kraken all have options for you to convert your crypto into fiat.
There are fees and the speeds are often slow so this is not necessarily your best option, it just may be the simplest as you have likely gone through the Know Your Customer process already and have possibly already linked a bank account. Most exchanges will have a few different options for the transfer with different fees and processing times that generally range from one to three days. If you are not really in a rush this is a pretty good option as long as you do not mind the fees.
These days competition is driving the cost of fees down for most exchanges, which is great for consumers.
P2P Crypto Exchanges
One less well-known way to convert crypto to cash is a P2P Exchange or Peer to Peer Exchange.
Whereas centralized and decentralized exchanges provide platforms for you to make a trade, you have no direct contact with the person you are trading with. This is the difference when using a P2P Bitcoin Exchange, as you are able to browse different sellers and pick the rate that you like best. It is completely anonymous and incurs far less fees whether you are trying to buy or sell Bitcoin when compared to selling through an exchange such as one of the ones mentioned in the section above.
Most P2P exchanges work the same way. You register for the site, which simply requires an email address and password, no identity verification. There are buy and sell offers posted for Bitcoin, and other altcoins depending on the exchange, by individuals either looking to sell their holdings or add to them. Each of the offers has a different rate, different accepted methods of payment, and generally a minimum or maximum purchase or sale amount. As a buyer you simply browse the various offers, find one that suits your needs, and then contact the seller to set up the transactions. As a seller, you simply post what you have for sale, what you will accept as payment and if any extra fees are involved.
Much like converting through a crypto exchange though, a P2P exchange is not the fastest way to convert crypto in cash, so it is only recommended if you do not mind the wait, or the purchase you are planning (if any) with the fiat cannot be made at the point of sale. This is where crypto cards come in.
That same exchange you bought your crypto through and are maybe even considering using to convert it back to cash might have another solution for you: crypto cards.
These work just like a regular debit card, except the conversion happens at the point of sale and it uses the crypto you have in your exchange wallet. This allows you to potentially keep earning interest on whatever you are planning to convert and depending on the issuer you might not be paying any fees in order to use your crypto to buy things priced in fiat. The only downside is they are not available to all regions, yet. Check with the issuer.
Major exchanges such as Binance, Paxful, and Crypto.com all offer crypto debit cards, often backed with a credit card as well. Once you are verified through the exchange you can begin the process of signing up for their card, and this is a fairly quick process if you already did Know Your Customer at initial sign up. Once you receive the card you can begin spending your crypto like real money and might even realize then that it is no different.
There are more options than just the three we have mentioned, such as Bitcoin ATMs, but they are not readily accessible to all. Which option is best for you depends on what you need the cash for, how fast you need it, and how much you are willing to pay in fees. If you are planning on being in crypto for the long haul, then consider a crypto card.