The first step to convert and withdraw cryptocurrency is choosing an exchange or broker that allows you to sell your crypto holdings for fiat currency like US dollars.
While the process may seem intimidating if you’re new to cryptocurrency, with a few simple steps you’ll be able to convert your digital assets into good old-fashioned cash.
In this guide, we’ll explore the various ways to convert and withdraw cryptocurrency and provide tips on how to do so safely and efficiently in 2024. Let’s break down the most common options.
Can Cryptocurrency Be Converted into Cash?
The short answer is yes, it’s absolutely possible to convert and withdraw cryptocurrency. This ability to convert and withdraw cryptocurrency makes digital assets much more versatile and opens the door for real-world spending opportunities.
While cryptocurrencies like Bitcoin started off as digital currencies that only existed online, innovative platforms have now emerged to bridge the gap between crypto and cold, hard cash.
So whether you’re looking to take some profits, pay off bills, or spend your crypto at local shops, it is possible to go from crypto to cash.
There are a few main ways this conversion can take place:
Cryptocurrency Exchanges – One of the most common ways people convert and withdraw cryptocurrency is by selling their crypto on a centralized exchange like Coinbase, Kraken, or Binance and then transferring the funds from their exchange wallet to their bank account. This is one of the most popular cash-out methods.
P2P Platforms – Peer-to-peer (P2P) marketplaces connect crypto holders directly with buyers. Sellers can often get a slightly better price than exchanges while avoiding taxes since transactions are perceived as barter rather than sales. Popular options include LocalBitcoins and Paxful.
Bitcoin ATMs – With over 30,000 Bitcoin ATMs globally, these kiosks let you exchange crypto for cash quickly without ID verification. Fees tend to be higher than exchanges. Usage has gained popularity during the pandemic.
Payment Services – Apps like PayPal and Cash App are integrating cryptocurrency more, sometimes allowing withdrawals to linked bank accounts within the app itself. This offers convenience but services vary by region and crypto asset.
Yes, through exchanges, P2P platforms, ATMs, or payment services, cryptocurrency can very much be converted into regular legal tender cash these days.
It is certainly possible to convert and withdraw cryptocurrency. Just choose an option that works best for your needs and location.
Can You Convert Crypto to Cash on Binance?
Now that we’ve established cryptocurrency can be cashed out, let’s walk through how to do so specifically on Binance, one of the largest cryptocurrency exchanges.
One of the easiest and most popular ways to convert and withdraw cryptocurrency is by using a cryptocurrency exchange like Binance.
Binance makes it easy to convert and withdraw cryptocurrency by allowing you to sell your holdings for either US dollars (USD) stablecoins like USDT or real fiat that can be withdrawn. Cashing out crypto on Binance follows these basic steps:
- Log into your Binance account and go to the “Wallet” section.
- Select the crypto you want to sell like Bitcoin (BTC), Tether (USDT), or USD Coin (USDC).
- Choose to “Withdraw” your funds and paste in the wallet address you’ll receive the cash at (like a P2P marketplace).
- Review the details and submit for the withdrawal to process.
- Sometimes an email or SMS verification is required for security.
- The funds are then typically deposited within a day.
From here, you’ve now withdrawn your crypto from Binance. The second half of actually receiving cash depends on which wallet/service you sent it to.
P2P sites allow selling directly for bank deposits, while other platforms may require an additional exchange. But yes – converting cryptocurrency holdings to cash is definitely possible directly through Binance.
How to Cash Out Large Amounts of Crypto?
If you’re looking to withdraw large sums of cryptocurrency, say over $10,000 worth, a cryptocurrency exchange alone may not provide the best option.
Selling massive crypto holdings all at once on an exchange could negatively impact market prices as supply floods in. It’s also important to consider methods that minimize taxable events if cashing out large cryptocurrency gains.
Here are a few recommended options when looking to convert and withdraw cryptocurrency in larger volumes:
One strategy that works well for larger amounts is utilizing an over-the-counter (OTC) crypto trading desk.
Places like Genesis Trading, Cumberland, and OSL specialize in facilitating large block trades of Bitcoin and other digital assets directly with accredited traders and institutions.
Trades are negotiated off-exchange at pre-agreed rates, with your crypto directly exchanged for US dollars or other preferred currency. This circumvents market impact concerns while potentially providing better pricing than retail exchange rates.
OTC desks are ideal for cashing out five or six figures worth of crypto in a single, tax-efficient transaction.
For those leery of trading large sums with centralized parties, decentralized exchange protocols can also handle bigger withdrawals while keeping funds non-custodial.
As DEXes continue expanding liquidity pools, swapping six or even seven figures worth of crypto for stablecoins or other assets is becoming more realistic in a single trade.
Stablecoin proceeds can then be further realized off-chain if desired without disrupting the market.
In any case, for large crypto withdrawals always research options thoroughly before deciding. Multiple paths and crossing taxes carefully will help ensure a smoother cash-out process. Planning ahead is key when converting larger crypto balances into fiat currency.
How to Withdraw Crypto to Bank?
Getting fiat currency from your favorite cryptocurrency directly into your personal bank account is one of the most straightforward ways to convert and withdraw cryptocurrency.
While this stage is often straightforward, a few best practices will help ensure a fast and seamless crypto to cash conversion:
Verify your bank account on the exchange
Before any withdrawal, make sure to complete identity verification and link your verified bank account. This activates your fiat wallet.
Check minimum withdrawal limits
Review if there are any limits on the minimum amount that can be transferred to your specific bank. Avoid issues by withdrawing more than the minimum.
Consider withdrawal processing time
Be aware of typical timeframes for deposits to hit your bank account. Schedule accordingly and don’t withdraw funds you’ll need immediately.
Double check account numbers
When inputting bank details, triple check account and routing numbers are correct to avoid depositing funds into the wrong account.
Allow for transaction fees
Most exchanges charge flat or percentage based crypto withdrawal processing fees. Factor this cost into your total expected funds.
Confirm receiving your deposit
Once processed, log into your bank account online or through mobile to verify the funds arrived as expected. Resolve promptly if any issues occur.
Following these best practices helps cryptocurrency seamlessly wind its way from your exchange wallet to the security and accessibility of cold hard cash in your bank when the time comes to liquidate holdings.
With a few prudent steps, crypto profits can be reliably converted into legal tender.
Cryptocurrency was created as a digital alternative to traditional currencies. However, there will always be a need to convert crypto gains into good old banknotes and coins to cover real world expenses.
With the right process on trusted platforms, it has never been easier to withdraw your favourite digital assets and enjoy the fruits of your crypto investments in cash form.
How do I Convert Crypto to Cash ATM?
For those wanting an instant conversion of cryptocurrency to physical cash notes, using a cryptocurrency ATM is one option to convert and withdraw cryptocurrency on-the-spot.
These machines, which can be found all over major cities and some smaller towns, function similarly to a traditional cash ATM but allow crypto-to-cash transactions.
To cash out your cryptocurrency using an ATM, you’ll need to bring your wallet address and the desired amount of crypto you want to exchange. Here are the basic steps:
- To convert and withdraw cryptocurrency ATM, you’ll need to locate a two-way machine near your area.
- Locate your nearest cryptocurrency ATM using a locator tool like www.coinatmradar.com.
- Insert your crypto wallet address and the amount you wish to sell into the ATM interface.
- The machine will provide you with a QR code containing a crypto payment address.
- Scan or input this address back into your crypto wallet app and send the requested funds.
- Once the transaction is confirmed, the ATM will dispense your cash withdrawal amount minus any service fees.
- Collect your money and you’re done! The whole process takes just minutes.
It’s important to note that crypto ATM fees tend to be higher than exchanges, often 5-10% per transaction. But for quick, hassle-free crypto cashouts, ATMs offer unmatched convenience. Just be strategic about amounts if high fees will eat significantly into your profits.
How to Turn Bitcoin into Cash?
For most, exchanging Bitcoin for cash will involve using a cryptocurrency exchange like Coinbase, Gemini, or Binance and following these basic steps:
- Sign up for an account on your chosen exchange and complete identity verification if required.
- Transfer your Bitcoin holdings from your personal wallet into your exchange wallet. Be sure to use the correct cryptocurrency and network.
- On the exchange, go to the “Sell” or “Trade” tab and select Bitcoin as the crypto you’d like to sell.
- Choose your preferred fiat currency (USD, EUR, etc.), enter the amount of BTC you wish to exchange, and review market order details.
- Click confirm to place your market sell order. The exchange will match you with a buyer.
- Once the order fills, you’ll see your fiat currency funds in your exchange balance.
- Withdraw your cash to a linked bank account. Most major exchanges support ACH/wire transfers.
- In 1-5 business days, your withdraw request will be processed and money hits your bank.
Exchanges offer competitive rates and their size provides high liquidity. But fees of 1-3% are common. For major withdrawals, consider negotiating lower fees with an OTC trader or brokerage service instead if available.
Withdraw Cryptocurrency to Bank Account
Another way to convert and withdraw cryptocurrency is withdrawing funds directly to a linked bank account after selling your crypto holdings on a cryptocurrency exchange.
Withdrawing the fiat currency proceeds of your cryptocurrency sales to a linked bank account is the last crucial step in the cash-out process.
With the right exchange, a bit of paperwork for identity verification, and following the withdrawal process, traders of all experience levels can easily convert and withdraw cryptocurrency. Here are some tips:
- Ensure your bank account is verified on the exchange before initiating withdrawals. This may require providing documents.
- Carefully double check your withdrawal address is correct before confirming to avoid sending funds to the wrong place.
- Most exchanges offer low-cost wire transfers as the fastest option but it incurs additional fees.
- Normal ACH transfers are free but slower.
- Daily/monthly crypto withdrawal limits apply depending on your account verification level. Manage your cashing out over time if you exceed limits.
- Wait 1-5 business days on average for withdrawals to reach your bank account and clear pending. Monitor status in your exchange account.
- If the withdrawal is rejected, contact support immediately for assistance troubleshooting issues with their processing.
With the right precautions, converting your digital wealth seamlessly into real currency in your bank is very achievable through exchanges. Just be patient during waiting periods.
How to Convert Cryptocurrency to USD?
After comparing options like exchanges, OTC desks, P2P marketplaces and ATMs, you’ve decided the best method for your specific needs to cash out crypto and which platform best facilitates it. But what if you don’t want US dollars and need another fiat currency instead?
Well, most major crypto platforms support withdrawals in numerous national fiat currencies beyond just USD. Here are the basic steps to convert and withdraw cryptocurrency no matter which digital asset you hold:
- Deposit your crypto into your preferred exchange or brokerage service.
- On the “Trade” page, select your crypto in the top dropdown and the desired fiat currency in the bottom – i.e Ether to GBP.
- Enter order details like the amount you wish to trade and your preferred order type (market, limit, etc).
- Review the order and click “Sell” or “Confirm” to execute.
- Your fiat currency balance will update once the order matches.
- Navigate to ” withdrawals” and select the currency you now hold funds in.
- Choose your withdrawal method like bank transfer and supply required details.
With most platforms, the process of swapping cryptocurrency for currency is identical regardless if the end goal is USD, EUR, or elsewhere – just select the correct pairing. Always double check you have the right currency selected.
The bottom line
As this guide has shown there are diverse methods available for converting held cryptocurrencies into good old legal tender cash.
As the cryptocurrency space continues maturing, there are now many easy, regulated ways to convert and withdraw cryptocurrency whenever needed.
Whether using popular exchanges, peer-to-peer marketplaces, specific brokerages, or crypto ATMs – with careful planning anyone can smoothly convert their digital wealth holdings.
Just be sure any cashing out plans comply with applicable tax rules in your location. Cryptocurrency may be newfangled, but its value can absolutely be extracted for your regular spending needs.
With any of these techniques a cryptocurrency portfolio’s worth is as liquid as its owners need it to be.