The cryptocurrency industry has gained considerable growth in the last 2 years. From bitcoin to ripple, ether to litecoin, all cryptocurrencies with a meaningful technology have gained popularity. Smart investors have also enjoyed great profits with some cryptocurrencies returning ten times or higher the initial investment. Apart from cryptocurrencies, services that enable investors to deposit and withdraw their investments have also gained massive popularity.
How to Withdraw Cryptocurrencies
Cryptocurrency investors convert their funds into real money through a variety of ways. Some users sell their coins to other users for real money, while some use the services of a cryptocurrency exchange.
Types of Exchanges and how they allow you to withdraw Funds
Since there are several types of cryptocurrency exchange platforms, the withdrawal process also varies.
#1: Regular Exchanges
The famous bitcoin exchange, Coinbase, is a great example of a regular trading platform. Coinbase lists the real value of bitcoin; ethereum, litecoin or bitcoin cash and allows users to purchase any of the cryptocurrencies directly.
Users link a payment method such as a bank account and choose how many bitcoins to buy. Withdrawing cryptocurrencies from regular trading platforms are no different. Simply click the ‘withdraw’ tab of your preferred cryptocurrency exchange and activate the process.
- Regular exchanges accept a variety of payment methods – take note to ensure that your bank is accepted by the exchange you want to withdraw from.
- A small fee is charged and counted as a miner’s fee. The fee is usually dynamic depending on how fast you want the withdrawal process to take.
- Some exchanges don’t allow withdrawals directly to the bank- exchanges such as Binance allow you to withdraw your cryptocurrencies into your bitcoin wallet. From there you can withdraw from an exchange that accepts real money. Read this Binance review to learn more.
- Do your due diligence before working with any exchange- some exchanges take ages to process a withdrawal, while some charge very high fees.
Just like foreign exchange brokers, there are people whose job is to look for buyers and get commissions after someone sells them cryptocurrencies. As the cryptocurrency owner, you register an account with a brokerage firm such as CryptoGo. The company’s representatives usually will call you to ask about your preferred profit margin. You will need to provide your bank account details and the broker looks for buyers.
Here is how it Works
- Create an account on the exchange and provide the necessary details.
- Specify the amount of bitcoins you want to sell.
- The brokers may contact you to ask about your preferred profit margins from the deal.
- The brokers set the prices and ensures you sell your cryptocurrencies successfully.
- The brokers cut a commission and the rest of the cash is deposited into your bank account.
#3: Peer to Peer Exchanges
Instead of trusting a third party exchange to handle your cryptocurrencies, peer to peer lenders use a software program to connect you with an interested buyer. The peer to peer exchange platform plays the role of mediating in case of disagreements. The platform also acts as an escrow account and will release your cryptocurrencies once the transaction has been confirmed.
- Peer to peer lenders are often flexible and allow you to send varying amount of coins. You can sell a fraction of a bitcoin or sell a dozen of them and you will be paid in real money.
- You can set buying terms – if you don’t need the money urgently, you can set your prices higher than the average price or ask the platform not to sell your coins below a certain price tag.
#4: Cryptocurrency Debit Cards
For people used to purchasing products using credit cards, you can load your cryptocurrencies into a physical bitcoin debit card and withdraw your funds from any ATM. With a debit card such as Spectrocoin, you create an account and request for a prepaid card, which cost $15 or less. You then load the card with cryptocurrencies and use it purchase goods where bitcoins are accepted.
Withdrawing Coins from a Debit Card
- You must create an account on a bitcoin payment service such as Spectrocoin.
- You then purchase a physical debit card from the service provider.
- The debit card is deposited with cash equivalent to your cryptocurrencies.
- Withdraw cash from any ATM just like you do with any other VISA or Mastercard.
Discover how to get a cryptocurrency debit card here and what benefit it offers over holding coins in a normal wallet.
#5: Sell to a Person Physically
A few years ago when there were few cryptocurrency exchanges, buying and selling cryptocurrencies through a meet up was quite popular. It’s still possible to sell cryptocurrencies this way but it’s less popular with most users. All the same, here is how you can sell your cryptocurrencies to a friend and get real money in exchange.
- Arrange a meet up in an open place if you are not selling to a friend.
- Carry your wallet and Internet-connected phone.
- Ask the recipient to show you the money before you send.
- Ask for her private address and send your coins via your mobile wallet.
The reason why exchanging cryptocurrencies physically isn’t popular anymore is because of the risks involved when interacting with strangers. The inconvenience of traveling a distance to sell a few coins isn’t the most preferred choice for many. You can read this guide to learn more ways to sell your coins for real money
What’s the Best Way to Exchange your Coins for Real Cash
Any service that meets the following criteria is probably the best way to exchange your coins for fiat currency.
- Legitimate service – it’s not a new service and has been successfully used by people in the past.
- The charges are not higher than 1% of the value of your cryptocurrencies.
- The service can process your payment in minutes- unless the blockchain is overloaded, a good exchange service should process your payment in minutes.
- User-friendly – the withdrawal process should be fast and efficient.
Although it’s now possible to purchase goods and services using cryptocurrencies, real money still rules the world. It’s important to have a good option to use when you need to convert some of your cryptocurrencies into cash. Hopefully, you can get a service that meets the criteria above.
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