What do you do with your cryptocurrency when you are done using it? If you keep it with the exchange, you risk losing it all if the exchange gets hacked. If you hold it yourself, there is a chance of losing everything to a computer crash.
These reasons are why many people are looking for ways to convert cryptocurrency to cold cash and use it to wager on their picks & predictions.
Below are ways to convert cryptocurrency to cold cash:
Sell on an Exchange
If you have a huge amount of crypto, you can use an exchange like Coinbase to sell it for fiat currency like US dollars or Euros. Depending on how much money you want to convert and how fast you want it transferred into your PayPal or bank account, you may have to pay some fees.
LocalBitcoins allows people worldwide to meet up and exchange their bitcoin for cash or vice versa. Some fees are involved, but they tend to be quite low compared to those charged by exchanges like Coinbase or Gemini.
LocalBitcoins also provides escrow services for buyers and sellers so that nobody gets ripped off during these transactions.
Another option for converting cryptocurrency into fiat currency is peer-to-peer trading. This involves meeting up with another person (or online) and exchanging your cryptocurrency for their cash — no intermediary needed!
Peer-to-peer trading may be more convenient than selling on an exchange, but it’s also riskier because there’s no guarantee that the individual you’re meeting will pay up once they get their hands on your coins.
Buy Prepaid Cards with Cryptocurrency
You can buy gift cards at several online retailers using bitcoin or other cryptocurrencies; one such site is Gyft, which sells gift cards from over 200 retailers, including Amazon and Target.
You can also use BitCart to buy Amazon gift cards from the popular cryptocurrency exchange CEX.io.
Use an ATM or Check Cashing Store
If you live in a city, Some ATMs will allow you to withdraw cash from your crypto wallet. However, it’s important that you only use machines that have been approved by your wallet provider, as not all machines will be able to process withdrawals or deposits for certain wallets.
For example, Coinbase has listed its approved ATMs here, while Kraken has listed its list here (though this list is not exhaustive).
You should check with your area bank before using any ATM, as they may charge additional fees if they discover that the machine has been used for cryptocurrency transactions. Some banks may also require ID verification before allowing you to transact.
Sell Services for Cryptocurrency
This is the least desirable way to convert your cryptocurrency into cash, but it’s also one of the easiest. You need to provide your services (online or offline) for a certain amount of cryptocurrency.
If you know how to design websites, start a blog and offer your services for bitcoin or ether. If you’re an accountant, start offering your accounting services for BTC.
Sell Something for the Cryptocurrency
This is another way that people convert their cryptocurrencies into cash. The most common way people do this is by selling their property or belongings on eBay or Craigslist and accepting payment in bitcoin or ether instead of dollars.
However, since there’s no central authority regulating these websites, it’s important that you only deal with reputable buyers who will send you their payment promptly after receiving their goods/services.
Invest in Other Cryptocurrencies
If you’re looking to convert cryptocurrency into cash, one of the easiest ways to do so is by investing in other cryptocurrencies.
Entrepreneurs have many opportunities to earn money by buying and selling different types of cryptocurrencies, and you can make a large amount of cash by investing in a particular coin or token.
Several platforms allow users to buy and sell different types of digital currencies for fiat currency, so it’s easy to get started with this type of investment if you choose the right exchange platform and pick out a promising altcoin.
Meet Up in Person and Get Your Cash
This is the easiest way to convert cryptocurrency to cold cash. You can find someone on Craigslist or even Facebook who is willing to buy your crypto for cash. However, you have to trust them with your money, so make sure you do it in a public area.
Lending platforms are the simplest, most direct way to convert cryptocurrency into cash. And they’re growing in popularity.
Lendoit and Nexo are two examples of these platforms which offer loans in exchange for crypto collateral. The borrower gets a loan in fiat currency and pays interest in fiat currency.
The lender gets an interest rate higher than traditional money markets can offer, plus the appreciation potential of cryptocurrency.
It’s pretty easy to get started with a lending platform: Deposit your cryptocurrency into your account and lock it up as collateral. Then you can request a loan with the click of a button or through the platform’s web app.