How to convert the crypto currency into cash: choosing a method
Some owners of the crypto coins are in hurry and they are ready to sacrifice a part of the amount for the sake of speed - but other can wait in order not to overpay.
Therefore, it is impossible to talk objectively about the best way of converting the crypto currency into cash. But there are three key criteria for assessment of the suitability of each method:
Today, there are four common methods of cashing the crypto currency:
- via exchange;
- through the exchanger;
- with WebMoney;
- with the help of individuals.
Method # 1: To convert the crypto-currency into cash via exchange
Transactions on exchange and buy/sell of both crypto-currencies and traditional money are made on the cryptocurrency exchanges. Like ordinary exchanges, it is created for the deposit and withdrawal of funds available on the account. To cash out the crypto-currency you should firstly exchange it for traditional money and withdraw it from your account.
The easiest way is to cash out popular currencies such as bitcoin or etherium: almost everyone accepts them. But there are also exchanges which work with unpopular crypto currencies. For example, Poloniex, which allows you to perform operations not only with Bitcoin, Litecoin, Ethereum, but also with Huntercoin, Radium, Riecoin, DNotes and many others. It is by no means one of a kind.
The first thing you need to find is an exchange which will support the currency pair you need (ETC / USD, if you need to exchange the classic ethereum for dollars, etc.). The easiest way to do this is to search for the right currency pair in the top-level exchanges (which are easy to find using Google) or by entering into Google search a request like "ETC / USD exchange". The first requires more time, but it is more reliable, because the exchanges enter the top because they are quite safe and fulfil their obligations. The risk to face scammers is higher on the little-known exchanges. The reviews from users can help to determine whether the exchange is reliable or not.
After signing up on the chosen exchange, you should add funds to your wallet or account from your crypto wallet. After that the owner of the crypto currency must put his crypto money on the auction for the rate which he considers acceptable. If the proposed rate is adequate and the currency is in demand there will always be a buyer and the transaction will be concluded. Instead of the crypto currency there will be dollars (or euro, yuan, rubles, etc.) on your account, and you will be able to withdraw them, for example, to a Visa or MasterCard. Some exchanges work with WebMoney and other payment systems. Options are usually displayed in the "Funds withdrawal" section, where you can choose whichever you want.
However, there are two notable disadvantages. First, the commission fee. It is not very high (0.1-0.2% on Poloniex, about 1% on BTC-Trade), but it can be charged twice: at the time of conclusion of a deal with the buyer of crypto-currencies and in the process of withdrawing of already "converted" money. The second problem is the duration of the process. Sometimes it takes a long time to get a deal with a buyer.
- Benefit. From medium to high. Depends on the commission fees put by the exchange. However, you can independently set a currency rate for selling a crypto currency. Though if your rate is too high you will have to wait a really long time for a buyer.
- Reliability. From medium to high. Exchanges sometimes can be hacked. Top exchanges face this less often than smaller exchanges. Top exchanges try to keep their reputation; as a rule they are not engaged in fraud. The same cannot be said about less popular exchanges, though you can have luck.
- Convenience. It depends. The speed of obtaining cash is depending on the profitability of the transaction, i.e. if you have set a currency rate profitable for the buyer - it will be possible to sell the crypto currency very quickly, but if the rate is not very profitable - the buyer will not come immediately. Technically, the withdrawal of funds is usually simple, also there is technical support.
Method # 2: To convert the crypto currency into cash through the exchanger
Exchange services - the first thing that search engines show to those who want to convert their crypto currencies into cash. There is a great variety of conditions in which they work. They differ in: courses, commission fees, speed of transactions, banks and payment systems, which you can use to withdraw your funds. Based on the above listed criteria, you can choose the most suitable for you exchanger.
There are so many exchangers that it is impossible to manually study the currency rates on each one. That is why there are special sites for currency rates monitoring in different currency exchangers. The World use the monitoring site bestchange.com, but there are a lot of alternatives in the most popular languages.
Do not hurry to exchange the currency in the exchanger with the best rate. It is necessary to look at the commission fees, which are charged when you withdraw the funds. It often happens that on exchangers with a good rate the commission fees are so high that it is much better to use other sites with a worse rate, but less commission fees. For example, some charge 10% of the withdrawal amount, while other only 3%.
When you withdraw funds to an international bank card, it is advisable to look through the websites in other languages where you can find more beneficial rates and conditions. Try to withdraw funds to a card with an unpopular currency. Though, the withdrawal of money to such a card without conversion from the international currency substantially shortens the list of available services, and by all appearances, you will have to pay at the best case scenario the average commission, and at the worst - very high. The speed of transactions and support quality can also be worse than in the sites exchanging crypto coins for a popular currency.
There are exchangers that allow you to cash out funds without a bank card, for example - through the Western Union system. For this you only need to enter your passport details - and pay a commission, of course, in this case it will be rather high: for bitcoins, for example, it can be up to 15%.
Some exchangers allow you to withdraw very small amounts, which cannot be cashed using exchanges or WebMoney system (up to 0.0001 BTC). But again, these are the specialized sites which may have worse course, the higher commissions, and so on.
One of the disadvantages is that reliable exchangers with profitable exchange rates often may not have the necessary reserve of currency. That is, you might not be able to get dollars or euros only because the owner has run out of them.
Technically, the withdrawal of funds through the exchanger is simple. Often, it is required only to enter the wallet number, card number or account. The speed of the funds withdrawal is from a few minutes to 24 hours, although sometimes it can be 2-3 days.
- Medium, if you want to withdraw funds to an international card (because the competition is large and the exchangers are trying their best to attract the client). Low, if you need to transfer funds to the account of a small bank or a little-known payment system. Exchange sites, in comparison with other ways of cashing out crypto currency, charge the largest commission (the average commission for withdrawal of funds to a bank card is 7-8%).
- It depends. It is necessary to carefully look at the users’ reviews about the exchanger and check its availability in the ratings. If there are not many reviews and the site is unpopular, then the likelihood of its unreliability is quite high. Often, scammers offer very profitable currency rates and when users fall for it and exchange their crypto currency, they keep huge commissions without even warning.
- Depends. Almost always top-level exchangers are convenient, fast, have good instructions and technical support, especially if they work internationally and with popular currencies. Convenience varies on smaller resources which work with local banks.
Method # 3: To convert the crypto currency into cash with Epayments.com
Epayments.com recognized bitcoin, and this currency can be directly transferred to the electronic purse Epayments. It will be necessary to have at least a formal certificate (you must provide your passport details with the scans, etc., personal data). If you have this, you are allowed to create translations with crypto currency BTC, BCC, BTG, ETH, LTC.
The next actions: the address for transferring bitcoins is written down, crediting takes place. Then they can be converted into another currency or withdrawn to a bank card. For both actions, a commission is charged - less than on exchange sites, but more than on average exchanges.
- Medium, if you do not use the service named "urgent" operation. However, on the exchanges you can sell and withdraw the bitcoins with more profit, if you wait (the waiting time often does not exceed the time of the transaction on Epayments), since the exchange rate of bitcoins on WebMoney is usually not particularly profitable. Benefit is low if you want to cash out bitcoins urgently.
- Reliability. High. The funds from the bitcoin-wallet, which is a very well-protected depository, are transferred to the wallet of the WebMoney system, the reliability of which is also in little doubt. There is no risk of encountering scammers or hackers.
- Convenience. From medium to high for users with a formal certificate. In fact, they only need to create a purse, but the speed of money transactions may be low at the same time.
Method # 4: To convert the crypto-currency into cash with the help of individuals
The most risky way of cashing out the crypto currency.
On the sites dedicated to crypto-currencies (for example, on the Bitalk.org forum) you can encounter currency traders – dealing both with crypto currencies and traditional money. For those who wish to cash out their crypto coins and vice versa currency traders offer traditional money at a favorable rate.
No one can predict: with equal probability, traders can turn out to be honest people and scammers. But, if you meet an honest buyer, you can sell the crypto currency for a good price. Also, you can agree with him or her on the transfer of money via suitable for you bank or payment system, i.e. the loss will be minimal.
- High, if you meet an honest seller. First, the currency rate, as a rule, suits to both sides, and secondly, there are practically no commission fees. But if you face a scammer, you can lose all the money.
- Low. The main role plays the human factor - very unstable variable.
- High. The seller and the buyer can agree on the most convenient way of transfer. If it does not exist, the owner of the crypto currency can find a buyer who agrees to his or her terms.
To get a good result in the withdrawal of funds, you just need to prioritize and choose a method in which the combination of benefits, reliability and convenience is optimal for particular circumstances.