Cryptocurrencies, despite increased adoption, are not universally accepted, making it necessary for users to cash out their digital assets portfolio for traditional currencies to spend.
Cashing out on cryptocurrency can be a complicated task for new users or users in a jurisdiction with very few services and unclear regulations.
In this post, we look at the best methods to cash out cryptocurrencies like Bitcoin.
Peer-to-peer platforms are a popular way of cashing out cryptocurrencies. P2P trades are directly executed between buyers and sellers, either in person or via the web.
To cash out cryptocurrencies on P2P exchanges, you can ask for cash deposits, bank transfers, or a one-on-one meeting with the buyer.
Cash deposits allow people you trade with to deposit cash into your bank account. In most cases, the buyer is required to send you a proof of their ID and payment receipt before funds are released.
On the other hand, bank transfers require buyers to send money directly to your bank account during a trade. Payment proof is also expected with this method before cryptocurrencies are sent.
Finally, you can decide to meet the trader in person to take cash in hand. This is risky from a safety perspective.
P2P platforms like LocalBitcoins and Paxful continue to work on ways to mitigate the risks associated with peer-to-peer trading. Nevertheless, there is always a possibility of not getting your funds after sending the other trader your Bitcoin or cash.
Some exchanges allow you to cash out cryptocurrencies directly on their platform. To identify exchanges that enable you to transfer traditional currencies, it is vital to review their withdrawal methods.
The method preferred by most exchanges is bank transfers. This withdrawal method sends your funds from the exchange directly into your bank account.
Bank transfers from exchanges mostly take a couple of hours to confirm.
It’s important to know that most exchanges require you to verify your identity to conduct bank transfer withdrawals and sometimes also require you to deposit money with your bank account to verify ownership.
Remittance platforms are applications that provide various payment options for users, mainly intended to allow seamless global transactions of value.
In recent times, these applications have integrated cryptocurrencies as a deposit method. This means is that a user can load their wallets on these apps by depositing bitcoin and spending it as cash at stores.
This is best exemplified by so-called crypto bank cards – which you can top up with digital assets. These cards can be used by any merchant that accepts card payments.
Stablecoins have become very popular on cryptocurrency exchanges. These digital currencies are different from most cryptocurrencies because they are pegged to other, usually stable and highly liquid assets.
You can cash out cryptocurrencies using stablecoins that have a direct bank transfer feature. For example, USD Coin (USDC) can exchange your stablecoins and transfer money to your connected bank.
You can also read our stablecoins guide to find out more about stablecoin use cases.
Cash Out With AAX
AAX allows you to cash out cryptocurrencies securely and simply by using our OTC platform.
AAX’s over-the-counter (OTC) platform allows you to buy and sell cryptocurrencies in a more secure environment where the platform provider serves as a mediator. You can purchase and sell Bitcoin, Ethereum and USDT, and there are various payment methods available.