Anyone would guess it right that before crypto can become mainstream, there will need to be an easier way of converting from fiat in any form to crypto and vice versa...and a cheaper way to do it would come in handy. Already, there are a number of cryptocurrencies including Bitcoin that are leading the way and are much easier to cash out for fiat. But the market is not yet there. However, anyone these days would delve into interesting ways that they can spend their cryptocurrencies.
Nevertheless, it is now much easier to convert crypto to fiat than it was a couple of years ago, because many companies are into interesting projects to facilitate this. And because cryptocurrencies are much more popular today than they were a few years ago. Minus the increasing public interest, the large trading volume and capital invested tells it all that it will be faster to do the conversion in future than it is currently. Besides, if you are thinking about cashing out your cryptocurrencies into fiat, you might want to learn the best method that earns you highest returns.
Here are the options to take:
These are the most popular method for many people willing to convert their cryptocurrencies into fiat. For many exchanges, you will need to create an account, then link it with either a debit, credit card or bank account. Then using the exchange's platform, you would be able to select how much BTC, ETH, LTC, BCH or whatever cryptocurrency you want to cash out, then choose the currency of choice and you are good to go.
The process is instant in some exchanges using some methods, but takes a few hours to a few days in most cases. Therefore, the fees and time it takes to get the money, depends on the exchange, method of cashing out, and the bank or card provider involved in the process. Many exchanges, however, will put a limit on the amount you can exchange without verification. This is a very good option for many crypto traders whether you are new or old into the trading because many want to cash out only some when they perceive that the prices are favorable.
Unfortunately, the process currently takes days for most cryptocurrency exchanges before the fiat can reach your bank account for withdrawal. Once it is in, you are able to withdraw via an ATM using a card or via a teller. At the same time, fees differ from one exchange to another.
As an example, Coinbase, Gemini, Kraken, Coinmama and Bitstamp are just some of the exchanges where you can convert your earned crypto to fiat. This should be much easier when dealing with common cryptocurrencies such as BTC, ETH, LTC, Dash, because the conversion for these is direct.
The challenge for these is that not all cryptocurrencies will be convertible directly to fiat, so you might want to check a crypto exchange that first converts your unpopular crypto to a popular one like BTC, LTC, BCH or ETH, then head to an exchange that allows conversion of these to fiat.
Conversion from an unpopular cryptocurrency to Bitcoin should not be difficult also because the platform where the cryptocurrency is hosted will most likely have a way for converting to Bitcoin for free or at a very little fee. But many will not offer the option to withdraw to fiat, the reason why you would need a different exchange to convert the Bitcoin to fiat.
As an illustration, using Blocktrades, you can convert Steem, Steem Power or Steem Dollar to Bitcoin or LTC or ETH or BCH. With Shapeshift.io, you would be able to do conversion of numerous coins into Bitcoin and the exchange is instant. The same case applies with Changelly and many other exchanges such as Coinswitch. After conversion, you get the BTC on your wallet and then head to an exchange that allows cash out to fiat such as Coinbase, Gemini, Kraken, Coinmama and Bitstamp.
Coinbase crypto exchange is supported in 32 countries around the world now. With Coinbase, you can sell BTC, LTC, BCH or ETH for fiat simply by selecting the amount of crypto you want to sell on their sell page and then selecting the crypto wallet from where you want to sell, and then selecting the account where the money should be deposited such as your linked bank account. You can also use the iOS and Android wallet tools for Coinbase. The money will take about 4 to 6 business days for U.S. customers but the delivery date will be shown on the trade confirmation page before you can submit your order. Withdrawals to USD are instant for those residing in states that support the Coinbase USD wallet (these are ). For European customers, it takes about 1-2 business days and wire actualizes the next business day.
For SEPA countries, you would pay a fee of €0.15 to cash out and in Europe, Singapore, UK and other countries a 1.49% fee to sell via Coinbase. In USA, it costs 1.49% to withdraw instantly via the Coinbase USD wallet for supported states and 3.99% to PayPal. Wire transfers can cost $25 outgoing transactions. See details of their fees here.
Gemini cryptocurrency selling feature supports selling of BTC for USD, ETH for USD, ETH for BTC. With Kraken, you can sell BTC and ETH to withdraw EUR, USD, CAD, GBP and JPY via SWIFT. The SEPA bank transfer for EUR costs €0.09, SWIFT international wire transfer for EUR costs €60, USD US domestic wire transfer costs $5, USD SWIFT international wire transfer costs $60, JPY Japanese domestic bank transfer costs ¥300 while CAD SWIFT international wire transfer costs $10 according to this page. With Coinmama, you can sell Bitcoin and ETH and it supports 226 countries.
Using LocalBitcoins and other person-to-person marketplaces
LocalBitcoins is one of the many person-to-person marketplaces where you can trade cryptocurrencies. These marketplaces simply connect individuals willing to sell or buy digital currencies directly to other people. Trust issues are non-existent because there is escrow and other methods to facilitate the trade.
At LocalBitcoins, individuals are able to choose the methods they can meet and exchange the currencies they want, including selling through gift cards, Western Union and other methods or meeting in person to pay for cash.
Once you convert your crypto to Bitcoins, you might head here. You then create a sell Bitcoins online advertisement where you choose a payment method and even set your pricing, limits and write your terms of trade as a free form message. From there, you fund your LocalBitcoins.com wallet with Bitcoins you need to sell. The amount is taken into escrow. Customers are able to see the ad and open a trade request with you. You keep communication lines open with the buyer and direct them how and where to pay, and the customer will press the "I have paid" button on paying and you receive a confirmation. The customer will then receive the BTC amount.
Registering, buying, and selling Bitcoin is completely free. However, there is a 1 % fee for every completed trade for which an ad was created. A paid invoice pays a fee of 0.5 % when using the company's merchant invoicing system. Transactions to other Bitcoin wallets are subject to Bitcoin network fees.
Bitcoin prepaid cards
There are some crypto exchanges working on crypto cards that you can use to spend and withdraw cryptourrencies for fiat.
Bitcoin prepaid cards offer a number of advantages compared to cryptocurrency exchanges. This include the ability to pay at any POS system, ability to cash out at worldwide ATMs, ability to do instant conversion from BTC to fiat such as USD/EUR/GBP and many more, as well as low commissions, free delivery, chip and PIN support and transparency fees.
However, the challenge is that they are only accepted in a number of countries. If the provider does not support a local currency, then you would need to pay a conversion fee to convert it to supported popular currency such as USD and EUR to your national currency. Besides,you would need to undergo through a verification process for KYC and other anti money laundering purposes if you wish for legal operations.
TenX is one example of a prepaid cryptocurrency card that supports Bitcoin, Dash, Ethereum, and various Ethereum ERC20 Tokens, the last of which includes ANT, TRUST, REP, DGX, and others.
It earned the first-place title during the DBS Blockchain Hackathon under the name OmniChain and graduated from PayPal’s startup incubation program. Their debit card of multiple cryptocurrencies is linked to the user's mobile wallet and therefore, users are able to spend cryptocurrencies anywhere, offline and online, all without incurring incur transaction or foreign exchange fees..
The TenX card and wallet have been used in more than 50 countries. Users receive rewards that provide additional savings. Holders of TenX tokens get 0.5 percent rewards in Ethereum currency and card holders get 0.1 percent rewards in PAY currency. The physical and virtual card attract a $10 fee, which is waived if you spend more than $1,000 in the year. You also pay $15 for a new physical card to cover issuing and shipping. Activating the virtual card, it will cost you $1.50 instead.The ATM fee is $2.75on minimum.
Monaco card is another example of a prepaid cryptocurrency card that supports Bitcoin and ETH and is VISA. In addition to withdrawing, you are able to spend your cryptocurrency at different retailers who accept the card. The company offers its own token called MCO and they provide a cashback of up to 2 percent on all transactions.
There are different types of Monaco cards. With the Midnight Blue plastic card, you get all basic features including $200 limit for free ATM withdrawals and an inter-bank exchange rate limit of $2,000. The annual and monthly fee is zero. You get all these benefits without having to buy the Monaco coin.The Ruby card steel option is limited in supply but with more benefits including an interchange exchange rate limit of $4,000 for free, charging 0.5 percent after. The limit for free ATM withdrawals is $400 and the charge afterward is 2 percent. There is also a $500,000 of travel insurance coverage and 1 percent cashback on every purchase. To get these benefits, you require buying a minimum of 50 MCO.
There is also the option of the Precious Metal card, which is a limited edition, and one which you need at least 500 MCO. The cashback is 1.5 percent, inter-bank exchange rate limit increases to $10,000 for free, and you are able to withdraw up to $800 from ATMs for free.
The other option is an Obsidian Black card, which is metallic and limited in edition with just 999 cards available in total. It does not have any limit on inter-bank exchange rates, has a free ATM withdraw limit of $1,000, and the cashback is 2 percent. You, however, require 50,000 MCO at a minimum.
Speaking of prepaid cards and exchanges, you can also send your cryptocurrency to bitshares DEX. You convert the crypto to bitUSD or other smart coins of choice such as bitEURO and bitGold and these smart coins are backed by 200 percent collateral in bitshares to avoid counterparty risk. You can then use OCASH to spend or withdraw to fiat.
Crypto loans do not require you to cash out crypto for fiat. However, you can get fiat as loan against your cryptocurrency holdings via established companies. You deposit the cryptocurrency into a smart contract where it is held and you receive fiat.
In addition to avoiding the cash out hassle, the event is not taxable. You also get to hedge against crypto prices. An example of such a service is Ethland and Salt. Ethland is built on ERC-20 compatible tokens on the Ethereum blockchain and awards a reputation score for each Ethereum address and this is used by lenders. It uses the Credit Token (CRE) token. You can also use the service to secure a loan against any Ethereum Name Service (ENS) domains, used by an Ethereum wallet.
Bitcoin and crypto ATMs
There are many crypto ATMs that allow you to sell Bitcoins and other cryptocurrencies for cash. Although the ATMs do not support most cryptocurrencies, you get a deal on BTC, LTC, ETH, Dash, etc and other popular cryptocurrencies. So you can convert the crypto to one of these and then sell the Bitcoin to fiat at an ATM.
See further details on Bitcoin ATM machines and where the various operators are located.