Why transfer crypto to cash? Although we know it’s very demanding, most traders convert it from digital currency to traditional currency. Why is this happening?
Although crypto has high worth, at the same time it also has some limitations, we cannot use crypto everywhere to buy goods and services. In most places, we need a traditional currency so that’s why we need to convert crypto to traditional cash.
The fragmentation of crypto is the biggest factor, in most countries, it is completely illegal to the point where it lags, similarly, most businesses don't switch yet to crypto, once again the biggest factor. But still, there are few businesses that accept crypto, here we don't need to convert crypto to cash, but very few.
Although crypto development is going fast, we still need traditional cash until unless not all the goods and services will not be switched to digital currency.
Moving Crypto to Bank Account
When we transfer bitcoin to a bank and in return, we receive an equal value this process is called an exchange. It’s just like money exchange when we go out of state, the very first task we do is exchanging currencies and it has no fee from the central bank, but the crypto exchange is determined as per its demand.
Cryptocurrency is not under any central authority; it is completely decentralized due to this the government cannot own it, so the exchange of crypto occurs privately. It’s just like exchanging currency but it is official and works under some economic laws regulated by the government.
How to Convert Crypto to Cash
There are two methods to convert crypto to cash and then deposit it in the bank. The first one is a third-party exchange broker, which includes Bitcoin ATM and Debit Cards. It is completely secure and works in a peer-to-peer model and works anonymously as you perform transactions in Bitcoin.
1. Cryptocurrency Exchanges Through Third-Party Broker
In this type of exchange, you need to deposit crypto like bitcoin into the exchange. When bitcoin has been received at the exchange, you have to request for withdrawal in the currency of your choice. Later, you can receive the payment from the attached bank account.
It is the simplest, easy but slow process, it may take 6 to 7 days or it varies with the country. Bitcoin ATMs and Debit cards are the same as third-party brokers, in both scenarios you create an account, sell bitcoin, and withdraw traditional currency. It has the biggest drawback: high transaction fees.
2. Peer-to-Peer Platform
To perform more anonymously, you can use a peer-to-peer platform to sell bitcoin, it’s another way to sell bitcoin and you have privileges to define the buyer's payment type.
You may request the buyer to send you the payment through the bank and PayPal. Always demand proof of identity before releasing the bitcoins.
The peer-to-peer model is safe for selling crypto if you have a better idea of how to do it, however, it’s important to protect you from fraudulent activities. It allows you to keep your bitcoin locked until the payment is received from the buyer.
Crypto-to-cash conversion can be done by two most famous methods, the first is cryptocurrency exchanges through third-party brokers and the second one is a peer-to-peer platform. Both methods are secure and can easily convert crypto to cash with very limited charges as well as keep you anonymous in the entire process.