Have you made more than you expected from that crypto you bought a while back and forgot about? That is, you forgot until the early 2021 Bitcoin price spike. Finally, your other crypto got a nice infusion and they’re still growing.
In the meantime, you need to use some of it and you’re looking for a good onramp and offramp for your funds. Depending on how your crypto is stored — and where — the question could be difficult to answer.
Keep reading to find out the common ways of getting Bitcoin and several cryptocurrencies converted into cash.
Best Way to Change Crypto to Cash (and Vice Versa)
First, let’s talk about the best way to change crypto to cash. Fintech 2.0 was started by the humble ATM.
It kicked off the idea of digital dollars, as banks kept a ledger of what they owed each other due to inter-network (not to be confused with internet) ledgers. They also had to keep each ATM connected to the internal ledger that told it how much money you had in your account.
There was a fair number of innovations going on behind the scenes.
Bitcoin ATMs are helping to facilitate Fintech 3.0 and Fintech 3.5 in a powerful way. They are the most accessible ways to interact directly with a blockchain network.
You put your fiat currency into the ATM and an ATM bitcoin goes out into your Bitcoin wallet. For that matter, ETH, BCH, BTC, and so on.
Not all cryptocurrency or Bitcoin ATMs are created equal, so you’ll have to do your homework about the ones in your region. It’s best to make sure they follow all KYC and AML rules so neither of you gets into hot water with regulators.
Other Ways to Change Crypto to Cash
Exchanges are popular ways to get into and out of a market. They tend to have a few problems.
- They have you use a custodial wallet for trades
- There are fees for wires into and out of your bank account
- They’re linked to your bank account
- If you travel from one country to another often, they may freeze your accounts
- Cooldown periods for withdrawing your funds or trading
- Freezes on withdrawing and trading when cryptocurrency spikes in price
- High fees for everything
The list could be as long as their terms and conditions. Exchanges have been known to get hacked in the past and likely will get hacked in the future. This exposes your identity information and puts your crypto assets at risk.
This is why custodial wallets are generally thought to be the least secure option.
PayPal is another on- and off-ramp to crypto, but you can’t purchase anything using your crypto or exchange it to another wallet. They also charge fees for buying and selling.
Peer-to-peer purchases carry risk, but you can arrange an exchange with another individual taking advantage of an escrow account service.
Cash in Hand
Remember us when you’ve changed your crypto to cash and you’re holding a fistful of dollars. Deciding which on- or off-ramp you should use to get in or out of crypto is always tough. Hopefully, we’ve helped you make a decision about your best option.
Keep browsing our articles to find out more about crypto tips and tricks!