Popular cryptocurrency rates are growing, and cryptomonet owners are getting richer. Not only in words. If at the time when Bitcoin cost a penny, the statement “I have 10 Bitcoins on my account” could cause a reaction like “And what does this give you?”, now only a person who is not familiar with cryptocurrency at all can ask a similar question. Today, bitcoins, lightcoins, ethereum and other currencies can be converted into traditional money in different ways. And the problem now is not about cash out it is about choice of the best way to cash out of the many existing ones.
How to cash out a cryptocurrency: the choice of method
It is important for one owner of cryptomonet to get them quickly, and he is ready to sacrifice part of the sum for the sake of speed – and the other may wait, just not to overpay.
Therefore, it is impossible to talk about the best way to convert cryptocurrency to cash. But there are three key criteria by which you can evaluate the feasibility of applying each method.
The benefit involves getting the highest amount per unit of currency possible. Reliable is considered the method of cashing, which will ensure the safety of money in the process of conversion and “delivery” to the owner. As for convenience, the process of obtaining cash should be quick and easy.
Unfortunately, none of them can guarantee maximum benefits at the same time with maximum reliability and maximum convenience. Each has its pros and cons.
Method № 1: Cash out cryptocurrency through the exchange
On the stock exchanges of cryptocurrency, operations are performed on the exchange and purchase and sale of both cryptocurrency and traditional money. Like ordinary exchanges, they involve the input and output of funds on the account. You can cash out a cryptocurrency if you exchange it for a traditional one and withdraw it from the account.
The easiest way to cash out well known currencies like Bitcoin or Ethereum, almost everyone works with them. But there are also exchanges that work with unpopular cryptomonettes. For example, Poloniex, which allows you to perform operations not only with Bitcoin, Litecoin, Ethereum, but also with Huntercoin, Radium, Riecoin, DNotes, and more. etc. It is not one of a kind.
First of all, you need to find a stock exchange that will support the required currency pair (ETC / USD, if you need to exchange the ethereum classic for dollars, etc.). The easiest way to do this is by searching for the right pair in the top exchanges (the top is easily located using Google) or by entering a request in the Google type “ETC / USD exchange”. The first option takes more time, but it is more reliable, because the exchanges go to the top, they are safe enough and fulfill obligations. On the little-known exchanges, the risk of getting to scammers is higher. More or less help to determine the reliability reviews.
After registering on the selected exchange, you must replenish your wallet or account by crediting the corresponding cryptocurrency from the crypto wallet to its address. After that, the owner of the cryptocurrency should put it up for auction at the rate that is acceptable. If the exchange rate is adequate and the currency is in demand, then the buyer is there and the deal is concluded. Instead of cryptocurrency, dollars appear on the account (euro, yuan, rubles, etc.), and you can withdraw them, for example, to a Visa or MasterCard card. Some exchanges support output to WebMoney and other payment systems. Options are usually offered in the “Withdrawal” type section, where you can choose the most convenient one.
There are two minuses here. First one is commission. It is not very large (0.1 0.2% at Poloniex, about 1% at BTC Trade), but it can be charged twice at the time of concluding a transaction with the buyer of cryptocurrency and in the process of withdrawing already “converted” money. Second one is duration of the process. Sometimes it takes a long time to wait for a buyer.
Method № 2: Cash out a cryptocurrency through the exchanger
Exchange services – the first thing that search engines offer to those who wish to cash out cryptocurrency. The variety of working conditions is great. All courses, commission, speed, banks and payment systems where you can withdraw funds are different. Based on the above, you can choose the appropriate.
There are so many exchange services that it is impossible to study courses on each one manually. Therefore, there are special sites for monitoring cryptocurrency rates on various exchangers. The Russian-speaking segment uses the monitoring site bestchange.ru, there are alternatives in most popular languages.
You should not rush to exchange cryptocurrency in the exchanger with the most favorable rate. You need to look at the commission that the resource charges for withdrawing funds. It often happens that on exchangers with a good rate the commission is so high that it is much more profitable to use the services of a site with a worse rate but a lower commission. For example, some charge 10% of the amount withdrawn, and some – 3%.
When withdrawing funds to an international bank card, it makes sense to check sites in other languages where you can find more favorable rates and conditions. The exchangers are good in that, if necessary, you can almost always find a suitable service if you want to transfer funds to a card with an unallocated account currency (Ukrainian hryvnia, Uzbek sum, etc.) On the other hand, withdrawing money to such a card without conversion from international currency significantly limits the list of suitable services, which means that you will most likely have to pay an average commission at best and a very high one at worst. The speed of work and the quality of support may also be lower compared to sites that exchange cryptocurrency for dollars or euros.
There are exchangers that allow cash out without a bank card, for example – through the Western Union system. To do this, you need to enter only passport data – and to pay a commission, of course, it will be rather big for bitcoins, for example, it can be 15%.
Some exchangers allow you to withdraw very small amounts that can not be cashed using exchanges or the WebMoney system (up to 0.0001 BTC). But again, these are specialized sites that may have a worse course, a greater commission, and so on.
Among the drawbacks is that reliable exchange offices with favorable rates often may not have the necessary currency reserve. That is, getting dollars or euros to the card may not be trivial due to the depletion of their stock from the owners.
Technically, the withdrawal of funds through the exchanger is simple. Often it is required to enter the purse number and the card or account number for crediting money. The withdrawal rate ranges from several minutes to 24 hours, although it can sometimes be 2-3 days.
Method № 3: Cash out a cryptocurrency on WebMoney
WebMoney recognized Bitcoin, and this currency can be directly transferred to the WM electronic wallet. You will need at least a formal passport (in your account must be confirmed by passport scans, etc. personal data). If you have one, you can create a wallet for bitcoins – WMX.
Further actions are standard: prescribing address for crediting Bitcoins, and after that the amount of cash is credited. Then they can be converted to another currency or transferred to a bank card. For both actions, a commission is charged – less than on exchange sites, but more than on many exchanges.
It can depend on the speed of the operation. So, bitcoin operations on WebMoney, lasting more than a day, are cheaper than “urgent” operations. For the last one you will have to pay 0.8% of the amount.
Method № 4: Cash out a cryptocurrency with the help of private individuals
On websites dedicated to cryptocurrencies (for example, on the Bitalk.org forum) there are currency traders – crypto and traditional. Those who wish to cash cryptomoney, they offer traditional money at a favorable rate and vice versa.
There are usually no guarantees with the same probability that traffickers may turn out to be honest people and scammers. But, if you bargain with an honest buyer, you can sell cryptocurrency at a favorable rate. You can also agree on the transfer of money through a convenient bank or payment system, i.e. the final payment for cash withdrawal will be minimal.
To get a good result when withdrawing funds, you just need to prioritize and choose the way in which the combination of benefits, reliability and convenience is optimal for specific circumstances.