If you’ve purchased crypto, you may need to exchange it for cash. There are a few different ways to do this.
Centralized exchanges and P2P exchanges are two popular options for selling your crypto for cash. Typically, they charge low trading fees and have a wide range of supported currencies and cryptocurrencies.
Centralized Exchanges
Centralized exchanges, also known as CEXs, are a common way to exchange cryptocurrency for cash. These online trading platforms allow traders to buy and sell cryptos in a similar way as they would on stock markets.
These exchanges aggregate orders posted by users in a marketplace, and then execute them using specialized software. This allows the exchange to make money through commissions and transaction fees.
However, centralized exchanges can be risky and have been subject to hacking attacks. This can lead to the loss of funds and, in some cases, the shutdown of the exchange.
In contrast, decentralized exchanges, or DEXs, are peer-to-peer exchanges that do not rely on a third party to facilitate transactions. They use smart contracts on the blockchain to match and execute trades. This makes DEXs safer than centralized exchanges and more user-friendly for new investors. They also typically charge lower taker fees than centralized exchanges, as well.
Peer-to-Peer Exchanges
When you’re looking to exchange cryptocurrency for cash, peer-to-peer (P2P) exchanges may be the best option. This is because P2P exchanges allow users to trade directly with each other without relying on a centralized platform.
These platforms are typically free to use and offer a range of payment options, including cash payments in person. They also have escrow services that can protect both parties in the event of any conflict.
To get started, you’ll need to create an account with a peer-to-peer exchange and verify your identity. This can take from a few minutes to several days depending on the platform and the level of verification required.
You can then find sellers who have the cryptocurrencies you want to buy. You can then choose to pay for them with any method that the seller accepts, such as a local bank transfer or an e-wallet like PayPal or Skrill. Once you’ve completed the payment, the cryptocurrencies will be released to your wallet address.
Bank Transfer
Bank transfers are a good way to exchange cryptocurrency for cash. They’re easy to do and don’t involve any physical movement of funds.
You can transfer crypto from a crypto exchange to your bank account via a bank wire or a P2P payment app. These methods are safe and secure, but they can take up to two business days.
Alternatively, you can convert your crypto to cash on a centralized exchange like Coinbase, Bybit https://www.bybit.com/en-US/ or Gemini. They have an easy-to-use buy/sell button that lets you quickly convert your crypto to cash, which can then be withdrawn to your bank account.
Another option is a peer-to-peer exchange, which allows you to sell your digital tokens directly to someone else for cash. This process is quicker and more private than selling on a centralized exchange, but it can be more costly in terms of fees. It’s important to do your research before using a peer-to-peer exchange. It’s also a good idea to have your wallet backed up regularly, as some exchanges can suffer from liquidity issues.
ATM
Crypto automated teller machines (ATMs) are a convenient way to exchange your cryptocurrency for cash. These ATMs do not require identity verification, and they accept a wide variety of cryptocurrencies.
When exchanging your Bitcoin or other crypto for cash, you should be sure that the ATM is compatible with the type of digital wallet you use. RockItCoin crypto ATMs support sales of Bitcoin (BTC), Bitcoin Cash (BCH), Litecoin (LTC), and Ethereum (ETH).
You can find these machines by entering your location in the RockItCoin location map or by using an online search tool to find nearby ATMs. Be aware that some crypto ATMs have higher transaction fees than others, so you should consider your budget before heading to an ATM to exchange your crypto for cash.
After selecting the crypto you want to sell, the machine will display a QR code for you to scan with your mobile wallet app. You can then send the funds to your digital wallet. The transaction will be completed once the machine receives the onchain confirmations of your sale, which can take minutes.