While Indians are flocking to earn quick profits out of the crypto frenzy, there are some practical issues with the cryptocurrency— as it cannot be exactly used for daily transactions. Nevertheless, the crypto space in India has grown massively with Indian investments increasing to over $10 billion from $923 million in April 2020. If you’re looking to convert your crypto assets into cash, here’s what you need to know.
Through cryptocurrency exchanges
The first method to convert any cryptocurrency into cash is through an exchange or a broker, this is quite similar to the currency exchange system at airports of a foreign country.
You deposit your cryptocurrency into an exchange such as WazirX, CoinDCX, CoinSwitch Kuber, Unocoin , and request a withdrawal in the currency of your choice. The withdrawal will be paid into your bank account. Let’s understand this by taking Bitcoin as an example of a cryptocurrency that you want to convert into cash.
Transfer your Bitcoins to the exchange that supports buying and selling in INR. In this case, we use WazirX, for demonstration purposes.
Step 1: Open the WazirX app, and tap on the ‘Funds’ option.
Step 2: Click on the INR option and you will be able to see your account transactions, deposits, and withdrawals.
Step 3: At the bottom of the screen, you will be able to see two options, ‘Deposit’ and ‘Withdrawal’.
Step 4: Click on the withdrawal option, where you will be able to enter the amount you need to withdraw. Now, enter the amount and submit.
Step 5: You will receive an email soon, where you have to authorise the withdrawal. Once you have verified, the funds will be reflected in your account shortly.
This method is considered the safest, but at the same time, the time for money to reach your account is about 4-6 days. In addition, crypto exchanges also charge a fee for the transaction, and it differs from broker to broker.
Through peer-to-peer network
For a quicker, more anonymous withdrawal, you can use a peer-to-peer platform to sell Bitcoin for cash. One of the most popular peer-to-peer platforms is LocalBitcoins.
Sign up on a peer-to-peer exchange platformand choose the location of your ideal buyer. Then, use the marketplace to find buyers. Most peer-to-peer platforms have an escrow option where your Bitcoins are not released to the buyer until you have confirmed you have received payment.
While using the peer-to-peer selling method, it is crucial to be aware of fraudsters. Also, it is highly recommended to use a peer-to-peer platform that lets you keep your Bitcoins locked until you verify the payment has been obtained from the buyer.
It is worth noting that if you cash out your crypto assets, then you will need to pay taxes on your profits — although crypto currently exists in a legal grey area in India, investing in this asset is not outside the ambit of taxes.
FAQs
How Long Does it Take to Sell a Bitcoin? Depending on your payment method it can take anywhere from 2 seconds to several days. When using methods like PayPal and credit cards the transaction is usually instant (although it can take some time to show up on your account).
Can you turn crypto into real cash? ›
There are mainly two ways to convert Bitcoin into cash. The first one is to use third-party exchange brokers including Bitcoin debit cards and ATMs, which exchange your Bitcoin for cash at any given rate. The second one is to use peer-to-peer transactions to sell your token.
How do I cash out crypto to USD? ›
The best bet is to use a platform like Binance.us or FTX.us to save on fees, and quickly cash out your crypto for dollars. The mobile apps make it easy to sell, and you can connect your bank account to transfer funds after the crypto is sold.
How long do I have to wait to cash out crypto? ›
In most cases, withdrawals are almost instant and normally should take no longer than 2-3 hours to be processed. Note: Withdrawals will be sent from an address that differs from your crypto's deposit address.
Can I cash out crypto to my bank? ›
To cash out your funds, you first need to sell your cryptocurrency for cash, then you can either transfer the funds to your bank or buy more crypto. There's no limit on the amount of crypto you can sell for cash.
How can I cash out my money from crypto? ›
At a Glance: To withdraw money from Crypto.com, open the app, link a bank account (if you haven't already), hit the Withdraw button towards the bottom of the screen, choose Fiat and select your preferred currency, enter how much you want to take out, and hit the Withdraw button.
How do I transfer crypto to my bank account? ›
Walkthrough: How Do I Transfer Bitcoin to My Bank Account?
- First, transfer your Bitcoin. ...
- Sell your bitcoin. ...
- Check that all looks good and confirm the transaction.
- Select the bank account you wish to receive the money.
- Another option is to sell on an exchange at your desired price.
To cash out Bitcoin, you'll first sell it using your preferred crypto exchange, a payment platform, or Bitcoin ATM. From there, you'll withdraw funds to your bank account.
How much does it cost to convert crypto to USD? ›
Conversion tables
The current value of 1 CRO is $0.08 USD. In other words, to buy 5 Crypto.com Coin, it would cost you $0.40 USD.
Why can't i cash out Coinbase? ›
If you are unable to sell or withdraw from Coinbase, it could be due to one of a few reasons: There are restrictions in your region. You are a new account holder. You haven't completed the verification.
How do I disable 24-Hour Withdrawal Lock?
- Go to the Crypto.com Exchange and log in to your account.
- Head to the Dashboard and click Settings.
- Under the Security tab, select Withdrawal Whitelist.
- In this menu, you can toggle on/off 24-Hour Withdrawal Lock.
If you've recently purchased crypto via card or ACH, your crypto may be subject to a holding period. During a holding period, you cannot withdraw from your cash (GBP, EUR, or USD) account, send funds to your Private Key Wallet, or send to an external wallet.
How much cash can you withdraw from crypto? ›
Maximum withdrawal limit for all cryptos is BTC 10 (or equivalent) on a 24h rolling basis. Please check the Fees & Limits section in the app's Settings, for the most current information.
What banks allow crypto withdrawals? ›
13 Best Crypto-Friendly Banks
- Revolut.
- Quontic.
- Ally Bank.
- USAA.
- Bank of America.
- Goldman Sachs.
- Juno.
- Wirex.
There is a 1% fee to convert and withdraw your crypto to cash in addition to standard network fees. A network fee is necessary in order to have your transaction processed by the decentralized cryptocurrency network.
Can you cash out crypto to cash App? ›
Bitcoin withdrawals and deposits must be enabled to get started. You can deposit up to $10,000 worth of bitcoin in any 7-day period. Depending on network activity, it can take hours before transfers into or out of your Cash App are confirmed on the blockchain. Cash App only supports Bitcoin (BTC).
How do I cash out millions in Bitcoin? ›
Best Ways to Cash Out Big Amounts of Bitcoin
The question is, how to cash out large sums of crypto? At the end of the day, you have 5 options: a cryptocurrency exchange, an OTC brokerage, peer-to-peer exchanges, Bitcoin ATMs, and crypto gift cards.
How do I cash out cryptocurrency without paying taxes? ›
Can You Cash Out Bitcoins Tax-free in the U.S.? Some people can cash out Bitcoins tax-free in the U.S. Investors who do not exceed a $78,570 income can cash out at a 0% capital gains tax rate. You can also avoid taxes by investing Bitcoin in strategic investment accounts or modifying your citizenship.
Will Coinbase refund if scammed? ›
With an active Coinbase One subscription, you may be eligible to receive a one-time reimbursem*nt for up to $1,000,000 (U.S. Dollars) of actual losses (or the U.S. Dollar equivalent thereof, in the case such losses were in the form of Digital Currency) that you sustain due to a compromise of your Coinbase Account login ...
