How to cash out crypto safe and easy?

Most articles online will tell you how easy it is to buy and sell crypto.

Still, it seems there are not so many specific guides on how to cash out your crypto or Bitcoin without breaching any policies.

What exactly does "crypto cash out" mean?

Cashing out crypto usually means selling crypto for fiat currency (USD, Euro, GBP, etc.).

After selling the crypto (mostly in case of making a profit on the initial investment), the user wants to withdraw the money to a personal bank account.

In this article, we will show you several easy ways you can sell your crypto or only Bitcoin and transfer the profit to your bank account or even in paper cash.

Method 1: Use the crypto exchange or crypto brokerage

This is the most obvious step since many people hold their cryptocurrency on a popular exchange or crypto brokerage.

Most of crypto exchanges and brokerages have the "withdraw option" - withdrawing fiat currency directly to the bank account.

If your exchange or brokerage indeed has the cash withdraw option you need to:

1. Log in to your cryptocurrency exchange/brokerage account
2. Place a sell order to sell a cryptocurrency at a specific price or at the market price.
3. Click on Withdraw cash/fiat (if your exchange or brokerage has the option of converting crypto to EUR, USD, etc).

Once you do that, the fiat should be available in your bank account.

If you hold crypto on a cold wallet or in another private wallet, you will have to register and verify your account on that particular exchange/brokerage (that applies if you don't have an account on a crypto exchange or brokerage).

After that, you will have to transfer the cryptocurrency (from a private wallet) to the exchange/brokerage.

Once you do that, the process is the same as mentioned in those 3 steps (placing a selling order and withdrawing fiat).

And which platform to choose, especially if you are a complete beginner?

Bitcoin Store platform is definitely one of the easiest way where you can cash out your crypto holdings.

Why, you might ask?

For starters, Bitcoin Store has a very simple and intuitive way to buy and sell more than 170 cryptocurrencies.

Basically, you can buy and sell your favorite crypto in a few clicks.

Not to mention you can quickly sell your cryptocurrency for Euros and withdraw money directly to your bank account.

If you want to find out how easy it is to navigate through the Bitcoin Store platform, we recommend you check out this guide first: How to Buy and sell Bitcoin and other cryptocurrencies.

Method 2: Sell your crypto for paper cash (Euro)

If you didn't know already, there is also another convenient way where you can get paper cash when selling crypto. And no, it's not Bitcoin ATM.

Instead of dealing with online crypto transfers and bank transfers, you can simply sell your crypto on the spot for cash in one of Bitcoin Store’s walk-in crypto stores.

Additionally, if you are not a "crypto native", you can get help from one of the agents.

Here is how it works:

- first, visit the nearby store,

- tell the agent the which cryptocurrency you want to sell and of course, the amount you want to sell,

- the agent will guide you through the process of transferring the cryptocurrency,

- once the transaction is confirmed, you will receive the equivalent amount in cash right there on the spot.

This method is perfect for people who want immediate access to their money without waiting for bank processing times or dealing with the complexities of online platforms, or for beginners who are not very comfortable in the online environment.

Think of this process like going in your local bank. It' straightforward, secure, and you walk out with cash in your hand, making it one of the most tangible ways to convert your digital assets into real-world money.

Method 3: Use a crypto debit card

Not that long ago many exchanges/brokerages came up with a convenient way to spend cryptocurrency like regular money by introducing crypto debit cards.

Crypto cards work just like traditional debit cards, but instead of being linked to a bank account, they’re connected to your crypto wallet.

You can top up your card with Bitcoin, Ethereum, or other cryptocurrencies, and when you make a purchase or withdraw cash from an ATM, the card automatically converts crypto from your wallet into fiat currency.

Crypto debit cards are handy because they allow you to use your cryptocurrency in everyday situations, whether you’re buying sneakers online, paying for groceries, or even withdrawing cash on ATM.

Another benefit of these cards is a fact that they are accepted worldwide (that will depend of the credit card provider and issuer).

Method 4: Use a P2P (Peer-to-Peer) platform

If you’re looking to sell your cryptocurrency and withdraw the money directly to your bank account, using a Peer-to-Peer (P2P) platform is also a good option.

Unlike traditional exchanges, P2P platforms connect you directly with other people who want to buy your crypto.

How it works?

Usually the first step includes creating an account on a P2P platform and listing the amount of cryptocurrency you want to sell.

On platforms like these you can set your preferred price and choose how you’d like to get paid. As you might've guessed it, most people choose a direct bank transfer.

Once someone agrees to buy your crypto, the platform holds your coins securely until you confirm that the buyer has transferred the money to your bank account.

Only then is the cryptocurrency released to the buyer.

It's fair to say that this method is often used by seasoned crypto investors.

Most beginners use the online exchanges or brokerages, because P2P platform processes seem complex and intimidating.

3 things to consider when withdrawing money and cashing out crypto

Receiving cash in your bank account after selling the cryptocurrency might seem like the final step in your crypto journey, but it’s important to approach this process carefully.

Whether you’re a seasoned trader or just starting out, there are a few key things you might want to keep in mind to ensure the peace of mind.

Here are three important factors to consider before you sell your crypto and convert it to cash.

1. Understand the fees and conversion rates

When you decide to sell your crypto, one of the first things to be aware of is the various fees that may apply.

Different platforms and services charge fees for selling and withdrawing cryptocurrency.

These can include:

Transaction Fees: Charged by the platform for processing the transaction (buying or selling crypto).

Withdrawal Fees: Applied when you move your money from the platform to your bank account.

Conversion Fees: If you’re converting your crypto to a different currency (e.g., from Bitcoin to Euros), there might be additional costs.

These fees can add up and reduce the amount of money you receive.

It’s also important to consider the current market rates, as the value of your cryptocurrency can fluctuate.

Before you proceed with the sale, take a moment to review the fee structure of the platform you’re using.

This way, you’ll know exactly how much you’ll be paying and won’t be surprised by any deductions when you cash out.

2. Don't forget about tax implications

Taxes are one of the things people often overlook after they sell their crypto holding for profit and withdraw the cash.

In many countries, selling cryptocurrency is considered a taxable event. Many countries also have tax laws covering this matter.

Depending on your local laws, you could be liable for capital gains tax, which is a tax on the profit you made from selling your crypto.

For example, if you bought Bitcoin when it was worth €10,000 and sold it when it was worth €20,000, you’ve made a €10,000 profit.

The profit you made is now taxable.

To avoid any unpleasant surprises, consider consulting with a tax professional who can guide you through the process and ensure you’re complying with all regulations.

3. Prioritize security

Finally, security should be a top priority whenever you’re dealing with cryptocurrency, especially when you’re cashing out.

The process of selling crypto usually involves transferring funds online, which can expose you to potential risks such as hacking or scams.

To keep your funds safe, make sure you’re using a reputable and secure platform for your transactions.

Look for platforms that offer two-factor authentication (2FA), which adds an extra layer of security by requiring you to confirm your identity in two different ways.

Always double-check the details before transferring funds to ensure they’re going to the correct recipient.

Be cautious of phishing attempts or offers that seem too good to be true, as these can be signs of scams.

By taking these precautions, you can help protect your assets and have peace of mind throughout the cashing-out process.

Note: Bitcoin Store is not a consulting firm and as such is not authorized to provide financial and investment advice. Our opinions, analysis and other content on the website are for informational purposes only and cannot be considered a basis for investment. Cryptocurrency trading is speculative. Prices can change quickly, which can lead to a loss of investment. Before you start investing in cryptocurrencies, seek independent advice and be well informed about the potential risks associated with this type of financial instrument.