Not every person in cryptocurrency right now is doing it for the technology. Some of them joined in to earn some money, and we support that. There are times when it pays big, after all. Some people do not know what to do after their initial crypto investment grows. There are different ways on how can you sell cryptocurrency for cash. This article will discuss cryptocurrency exchange platforms, money transfer apps, and selling your crypto personally.
Cryptocurrency Exchange Platforms
Cryptocurrency exchange platforms are the most common way on how can you sell cryptocurrency for cash. They are secure and supports a lot of different cryptocurrencies. Some exchange platforms support direct withdrawal of funds while others do not.
The first thing you need to do is select which platform you will use. Check if that platform supports your local currency or whatever currency you choose. Check the platform’s supported crypto assets because not all crypto assets are supported in every exchange platform. Lastly, find a platform that you understand how it works to not have a difficult time converting your crypto assets to cash.
You should find the platform that supports your preferred crypto asset and transfers money to your local account and currency. After you found that platform, create an account. Most exchange platforms require these steps in creating an account:
- Username and Password (basic)
- Two-Factor Authentication (adds a layer of protection for your account)
- KYC process (Know-Your-Consumer) to verify your identity
The next thing to do is to transfer your crypto assets to the exchange platform account. If your crypto asset is in a wallet, move it to the exchange platform. Follow the basic steps for transferring your crypto.
Copy the receiving address of the exchange platform account and copy it to the wallet for sending. Do not copy it by hand; most likely, there is a copy button on the interface so that you won’t send it to a random person’s address. Most accounts support QR codes now, so if both your wallet and exchange platform account does, it’s better to scan it directly.
For first-timers, please do a trial transaction first. Do not transfer all your crypto assets in one transaction. In case you make a mistake, not all of your crypto will be gone forever. Make a small transaction first. Once it is reflected in your account, meaning it is transferred properly, you can transfer the larger amount of crypto to your exchange platform account.
Once the crypto assets you transferred are reflected in your exchange account, create a sell order on the exchange platform. Check for the current pricing in asks and bids. Do not sell your crypto assets too high from the average prices in asks and bids because no one would think of buying something too high from the average. One difference to note regarding exchange platforms and brokers is this—with exchange platforms, you set the price on how much you will sell your crypto while you sell at the spot price with brokers. Some platforms apply fees to your transactions.
Once your crypto is sold, the money is now in your exchange platform account. The final step is to add a bank account. Connect a bank account to your exchange platform account, then withdraw your current balance to your bank account.
Those are the general steps on how can you sell cryptocurrency for cash through exchange platforms. One of the popularly suggested platforms for beginners is Coinbase.
Money Transfer Apps That Supports Cryptocurrency
If you want to skip the hassle of selling on exchange platforms, you should try apps that support crypto assets and bank accounts. One sample of this is Metal Pay. Create an account using your mobile number, then follow the KYC requirements. After that, link your bank account to buy, sell, send, and receive crypto assets with it. Since Metal Pay is insured by the Federal Deposit Insurance Corporation, there are some limits on withdrawal at $10,000 per day and $100,000 per month.
They convert crypto assets to cash relatively straightforward. The transactions sometimes complete within one business day. There are some fee charges too. There is also Wirex, a London-based firm, similar to Metal Pay but supports less cryptocurrency.
LocalBitcoin and LocalCryptos
If you really want to avoid creating accounts with KYC requirements, you can always opt for the P2P transaction websites such as LocalBitcoin and LocalCryptos. It relies on a reputation system that keeps everyone in check. The upside of these services is that you avoid the KYC requirements and deal directly with the buyer. It still has some minimal fees.
For LocalCryptos, it provides a noncustodial escrow service to prevent someone from running off without proper payment. Once both people agree on the trade terms, the crypto is then placed on the escrow account. The buyer and seller talk about the payment in encrypted messages, and it goes through outside the platform. After the buyer paid the seller properly, the seller then releases the funds from the buyer’s escrow. The fee is distributed to the “maker” (one who made the ad) with 0.25% and to the “taker” (one who responded) with 0.75%.
LocalBitcoin has the same process, but it only has bitcoin trades, and it doesn’t have the escrow service. However, they have their own way of securing the traders’ crypto and money. These are some things you need to consider when finding out if can you sell cryptocurrency for cash.
Final tip: Be careful in transacting with these P2P platforms. Some states deem it illegal to trade outside of regulated exchange platforms. Learn more about cryptocurrency exchange here!
These are some of the ways on how can you sell cryptocurrency for cash. If you are not ready to provide your details for KYC requirements and all those safeguards, then transact with regulated exchange services. This will help you avoid other uncertainties, especially if you’re a beginner. Those safeguards are in place to protect consumers. Hopefully, you found something here that works for you. Happy trading!