A recent study by a leading international payment system company revealed that 40% participants are looking forward to using crypto in the coming months. Crypto ownership and investment is undoubtedly proliferating by leaps and bounds with each passing year. But, fiat ownership is almost universal- comparatively, although growing, yet crypto ownership is just a fraction of fiat ownership. Check out more at multibank.io.
Most importantly, the majority of businesses worldwide are yet to accept crypto. Naturally, there will be times when crypto users would prefer to convert crypto to fiat. Good part is, there is a wide range of options to cash out your crypto coins.
Reasons to convert
Why would you consider converting crypto to fiat?
Well, the primary reason behind conversion of crypto to fiat is more flexibility. Crypto use, as of now, is still sparse compared to fiat use. As mentioned previously, fiat is the dominant unit of currency for almost any industry and nearly all merchants, all across the world. Moreover, crypto use is limited to certain age groups at large- say the millennial and the Gen Z. If you stack up a huge amount of money in crypto, you will only limit your options. Smarter thing would be to rather convert at least a part of crypto to fiat to ensure more options for your money.
The other reason to convert crypto to fiat is to make the most of rising market conditions. Harnessing the magic of volatility, the crypto industry can swing to extreme highs if the market moves towards a bullish trend. So, if you are HODLing some cryptos for quite some time now, you might opt to convert crypto to fiat if the market seems to be shooting up.
Top ways to convert crypto to fiat
For those uninitiated, there are a host of ways for turning crypto to fiat. Here goes a brief on the best ways to convert crypto to fiat.
Bank on crypto exchanges
Did you know that the same crypto exchange that is used for crypto trading can double up as crypto to fiat converter? Well, that’s true- in fact, crypto exchange platforms are the most popular portals to convert your crypto to fiat.
Almost all crypto exchanges out there are designed with an in-built converter that works to convert crypto to fiat money, say USD, Pound, Lira, etc. In fact, before you convert, the converter will show how much fiat money you might receive currently if you convert your specific crypto into fiat. The exchange will charge around 4%-7% commission for the conversion service. Upon conversion, the fiat money will be directly sent to your bank account.
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However, there is one drawback of converting crypto to fiat through a crypto exchange. It usually takes quite some time, say days, for the converted amount to arrive in your bank account.
Remember these points while option for crypto exchange for conversion-
- Look for a crypto exchange that accepts users from your specific country
- The exchange must follow advanced security measures- some leading exchanges follow cutting-edge 2 Factor Authentication before processing a conversion request
- The commission fee should be reasonable
- Stellar market reputation
- The exchange must allow crypto to fiat conversion in your choice of fiat
- You might have to submit KYC to the exchange
- The chosen crypto exchange should assure user-friendly interface
Go for P2P exchanges
If you want a more direct approach to convert crypto to fiat, online P2P exchanges will come to your help. A P2P marketplace directly connects a seller with a buyer over an online platform. Interestingly, there is no fixed rate at these exchanges- both the seller and buyer can set their own deal.
As a seller, you can create a profile with a P2P exchange and post your offer. You can also check out offers posted by others, and if you like it, respond to the deal. The moment you will approve the deal, the P2P exchange will lock your funds till both parties complete the deal. Both the parties have to confirm after receiving funds.
Two things about using P2P online exchange- one, there is no fixed commission as the commission varies from one seller/buyer to another. Second is, you don’t know the character of the buyer. What if he turns out to be a fraudster? Also, you will usually have no clue about the fund you are getting after converting crypto to fiat.
Thus, it’s better to settle with a reliable P2P exchange that has been operating in the industry for at least 3 years now.
Crypto ATMs are handy
Crypto ATM is another viable option to convert crypto to fiat. Bitcoin ATMs rule the roost for obvious reasons. Good thing is, the number of these ATMs is growing with each passing year. Compared to 14,000 Bitcoin ATMs in 2020, there will be 34,000 Bitcoin ATMs now in 2022. The United States leads the pack when it comes to crypto ATMs, especially Bitcoin ATMs. Next to the US, you have Canada, Spain, Hong Kong, Poland, and so on.
It’s as easy as 1-2-3 to withdraw cash by converting crypto to fiat from a crypto ATM-
- Find a working crypto ATM
- Make sure the ATM is designed exclusively for your chosen crypto
- Scan QR code to send the crypto, say BTC
- Receive the converted cash from the ATM
This is a convenient, reliable, and fast way to convert crypto into fiat.
However, the crypto ATMs usually charge a hefty fee, say around 25% commission. Besides, crypto ATMs are fewer and fewer when you have to convert some other crypto to fiat than BTC. The situation would probably improve in the coming couple of years when there would be even more numbers of crypto ATMS.
Crypto debit card websites
Just like you use traditional debit cards to withdraw cash, you can use crypto debit cards today to convert crypto to fiat. There are specific debit cards for each crypto. Great bit is, you can use these cards on any online platform that accepts debit cards.
You will simply have to deposit a certain amount of crypto in the debit card website upon which the platform will convert the amount into fiat money. You will need to link your crypto storage wallet with the debit card website.
A more contemporary option is state-of-the-art money transfer smartphone apps that allow conversion of crypto to fiat, among other functions.