Mar 20, 2022 2 min read Guides

How to Convert Crypto to Cash and Why Do We Need It?

After a remarkable turnover of Bitcoin and Ethereum, demand for cryptocurrency has increased. Instead of investing in property and gold, people are preferring crypto coins. Crypto coins are a suitable investment. Trend and demand of crypto increase with time which elevates the price of the token. If you have bought bitcoin in the past at a lesser rate, you will get triple the amount if you sell it now. Most people replace crypto with another token or get cash in place of it. We are interested in knowing how to convert crypto to cash? So, let's check it out.

Why Do We Need to Transfer Crypto to a Bank?

A person invests in an asset with the purpose of utilization at the time of need. Similarly, if you have invested in crypto with the hope of investment then you need it some time. When you see that the market of crypto has elevated enough and you will get a fantastic turn-over on conversion then go ahead.

The Crypto market is very volatile. Currencies fluctuate abnormally. At one point in time, the value of a coin is high while every other coin is facing a catastrophic situation. It's better than when you saw a bull market get your coin converted into cash. Because the future is unpredictable.

Another reason could be security issues. Cryptocurrency is a decentralized system. There is no third party who can look after or protect your coins from theft. Hackers and malicious software can attack your crypto coins easily from exchanges or crypto wallets. It's better to convert them in cash as soon as possible to avoid future risks.

How to Convert Crypto to Cash?

Converting crypto to cash is the same as converting cash into other currency at an airport exchange. But when we talk about currency exchange, economical factors decide the price. Whereas in cryptocurrency demand of a particular coin decides the value of a token.

Let's discuss a few methods to convert crypto to cash.

1) Third-Party Platforms

Third-party platforms are similar to exchanges. It follows the same process of currency exchange. Deposit, process, and withdrawal.

We need to look for trusted and credible third-party platforms. For example, Coinbase and Kraken. These are two trusted platforms through which we can convert crypto to cash. Start with a deposit. Deposit crypto coins in your account. The next step is the process. You need to have a time of at least 4-6 days for transaction processing. And at last, corresponding cash will be transferred into your bank account.

2) Peer-to-Peer

Peer-to-peer is the fastest way of conversion. But everything demands a price. Peer-to-peer is more anonymous and risky. Chances of fraud are higher in such a method.

You need to search for a buyer who is ready to buy your crypto coins. Marketplaces are easy places for a good buyer. After you have found an optimal buyer, you need to specify your transaction methods. The seller won't release crypto coins until the buyer provides confirmation detail of cash transfer. It can be anything from ID verification to transaction proof. After you receive cash in your account, you can release the crypto coins.

In this method, we don't need to pay huge transaction fees which are consumed by exchanges.