Projections show that there may be over 1 billion global crypto users by the end of 2022.
A cryptocurrency is a digital asset that uses blockchain technology to allow people to trade, transfer, and otherwise manage their funds. Each cryptocurrency works on a distributed ledger rather than through a central financial institution.
Cryptocurrencies have grown in popularity over the years, but their use in everyday life is still fairly limited. Because of this, you may find yourself wanting to convert crypto to cash.
If you want to know how to do this, keep reading.
Where Can You Use It?
Bitcoin was created in 2009. At the time it had a very low value and no real-world use. As the years have gone by, more and more people have gained an interest in crypto.
With that, many new cryptocurrencies have been invented, and the ways people can spend them have increased. It still has a long way to go, but the most popular cryptos now have a range of uses.
Many charities allow you to donate with crypto. As charities are always in need of extra funds, this is a great way for them to receive donations from anywhere in the world.
Microsoft accepts Bitcoin, but it’s currently limited to Xbox store credits. Tesla has also stated they intend to let customers purchase vehicles with cryptocurrency in the future, and Home Depot even accepts Bitcoin payments in-store via Flexa checkout systems.
Some other companies that accept crypto payments in some form are:
- KFC Canada
The Spend app also allows you to use various cryptocurrencies to make in-store purchases at Wholefoods, Gamestop, Baskin Robins, and many more.
How to Convert Cash to Crypto
When getting into the world of crypto, the first thing you need to do is actually invest in some. There are several ways you can do this.
You can convert cash to crypto in several ways. The most popular method is through a cryptocurrency exchange. All you have to do is set up an account, set up a payment method, and then you can buy some crypto.
Many exchanges have extra features such as staking, yield farming, and crypto trading. The features available change across different exchanges.
You can also use a P2P (peer-to-peer) exchange. They act as an escrow service and offer various features such as:
- Withdrawing funds from your bank account
- Trade hundreds of different cryptocurrencies
- Safety through escrow services
You can use various payment options, and may even be able to message the buyer before you make a purchase.
In-Person With Cash
Many people still don’t own or use crypto, but you might be able to find someone happy to trade in person for cash. The easiest way to do this is by looking online. Forums, social media sites, or local websites are your best bet.
Just be aware that there are scammers out there, so it’s best to not reveal your real name or location. You should also try to meet up in a public location such as a coffee shop or a mall.
Using a Bitcoin ATM
Bitcoin ATMs are growing in popularity, and there are now thousands all across the US. You can deposit your cash directly to a chosen wallet address, or specify that you don’t have one. Doing this will create a paper wallet, and you can use that to send the Bitcoin wherever you like.
How to Convert Crypto to Cash
Now that you know how to convert cash to crypto, you need to know how to do it the other way around. You can often do this using some of the same methods as above.
Through an Exchange
The process here is relatively simple. If your crypto is in a separate wallet, you need to deposit it into the exchange. Once it’s there, you can request a withdrawal in your chosen currency.
Money laundering laws are in place for crypto exchanges, so you can only withdraw to the same bank account you originally deposited with. The process is that easy, and it’s very secure.
The downside it transactions can take several days depending on what country the bank account is in. There may also be additional fees, which will again depend on the bank’s country.
Through a Cryptocurrency ATM
Crypto ATMs allow you to convert crypto to cash using a similar method to exchanges. ATM providers differ slightly in terms of what they offer. They are generally a lot faster than exchanges, but often have higher transaction fees.
Byte Federal has over 1,000 ATMs across the US that allow the use of a range of cryptocurrencies. Their fees are built into their rates, so you won’t have any hidden charges getting you by surprise. You can open an account in just minutes at one of their ATMs, so it’s easy to get started.
Through a Peer-to-Peer Network
You can use a P2P exchange to find someone who will trade cash for your crypto. This can be very fast and have lower fees. You can often get better rates with this method too.
The buyer can send the cash to your bank account or a PayPal address. If you go with this method, make sure you ask for ID and proof of payment before sending the crypto.
Considerations When Converting Crypto to Cash
Converting crypto to cash can be useful, and it’s relatively easy to do. Just bear in mind that profits from this are taxable, so keep track of all of your transactions. Also, remember to take any fees and transfer times into account when converting your funds.
If you’re interested in reading more tech articles, check out some of our other blog posts.