Money from thin air. That is how cryptocurrencies were first described when they started gaining value in fiat currency equivalents. Many were astounded that real money was being produced through the use of computers without any intrinsic backing, effort in terms of labor, or even an economic application. The hype was on and millions of average people started scouring the web in search of how much they could earn on cryptocurrencies and how. The most popular search query of that time became “buy Bitcoin” and all the associated terms that extended to other cryptocurrencies, which has started springing up by the dozens a day.
The hype may be over and cryptocurrencies have been grounded in the legal framework on some level, easing off the rampant volatility they had previously showcased. Users no longer believe in ludicrous outcries about hundreds of percentage point gains on a new cryptocurrency, nor do they believe that any form of staking can ever produce double-digit yields. The reason is simple – the volatility factor has faded and hard cash has taken over. Instead of jumping on the bandwagon of some local craze or scam, newcomers into cryptocurrency space jump into the fray after a long period of preliminary research.
The most popular search query of modern times related to cryptocurrencies is “how to convert crypto to cash”. The fact that cryptocurrencies have become accessible for purchase using bank accounts is making it possible for users to onboard without having to eke out a few tokens on some god-forsaken website as initial capital for a round of community hassle. Instead, users can now safely connect their debit card to any of the myriad cryptocurrency exchanges and buy Bitcoin in a few clicks.
But buying cryptocurrencies is only half the story. After the assets have been purchased, for whatever reason, users need to keep in mind that they will eventually want to cash them out. Be it the result of asset appreciation and the desire to fix profits, or the result of a profitable trade, the yield generated by cryptocurrencies is inconstant unless it is converted into the most secure and reliable form of value storage – the fiat asset.
The pathway cryptocurrencies trace from being digital currencies to fiat is rather straightforward in itself. What is more important is the path they take and the way users select the gateway for their operations.
All digital currencies start off in the user’s wallet as assets acquired on an exchange. Be it Binance, KuCoin, AAX, or any other, there are hundreds of centralized and decentralized exchanges out there on the market. The choice of exchange is what should matter to all users willing to engage in cryptocurrency operations.
Not all cryptocurrency exchanges are created equal and the reasons for that are quite many. First and foremost, a crypto exchange is a business, a financial one at that. And that means it is subject to some heavy regulation on the part of both international oversight authorities and local regulators. This means that the exchange needs to have a legal entity from which it will pay taxes, and one that can be held accountable for its compliance to Know Your Customer and Anti-Money Laundering requirements. The users and their intentions are the biggest points of interest on all exchanges, since the authorities hold cryptocurrencies in rather low regard as assets that can be used to finance terrorist or any number of other criminal activities.
Indeed, the anonymous nature of cryptocurrencies places them on the dubious pedestal of suspicion, thus forcing exchanges to report on any activities that may raise some eyebrows. As such, users seeking to enter the cryptocurrency arena must first decide whether they want to be traced and remain in the legal field, or they prefer anonymity.
In the former case, they need to resort to centralized exchanges. Such venues are fully legal and offer myriad opportunities for making all kinds of cryptocurrency operations. Binance is just one of the ecosystems on the market that offers a wide range of digital currency options, such as trading, staking, NFT transfers and many more. Most centralized exchanges are ideal for cashing out cryptocurrencies, since they come with built in gateways and connection to VISA, MasterCard, and e-wallet services like PayPal, making the use of fiat funds as simple as connecting a debit or credit card.
Should users select the anonymous pathway, then the decentralized arena is their only choice. Such platforms do not have legal entities, do not follow Know Your Customer or Anti-Money Laundering procedures, and offer rather limited cash out opportunities.
It should be noted that some cryptocurrencies like Bitcoin can be cashed out through ATMs. In order to use such an approach, which is available in a few countries, users need to approach such a machine and follow the instructions on the interface. Sometimes, users have the ability to cash out their cryptocurrencies using specialized crypto bank cards, which are connected to a special wallet account with VISA and MasterCard gateways. Such cards are easy to use and apply an instant exchange rate in real time to ensure a streamlined workflow.
Once the exchange venue has been selected, users need to start the cash out procedure. Most exchanges provide a very smooth cashing out experience, which starts with the connection of the off-ramp channel. Basically, users need to access their personal accounts and connect the withdrawal destination. It can be a bank card, a bank account, or an e-wallet service like PayPal.
The ensuing steps are easy, as the user will be ushered to a dedicated withdrawal page, where they will need to select the amount of cryptocurrencies they wish to cash out and select the destination. Once the fields have been filled, all users need to do is press the confirmation button.
Cashing out cryptocurrencies is easier than most users think. The process revolves around selecting either an exchange for such operation, or a dedicated service that will act as an intermediary for the process. Users also need to take into account the fact that intermediary services, even exchanges, charge a commission for any cash out operations. This factor can be decisive when selecting which venue will serve as the medium for the cash out procedure.