Although it’s a relatively simple process, there are many different ways of cashing out
Cryptocurrency represents an intriguing alternative to fiat currency, but until it’s possible to purchase every product and service using digital, most of us need to “cash out” every once in a while: to pay bills, pocket profits, cover an emergency, buy a plane ticket, whatever the case may be.
Thankfully, cashing out has become a formality with most cryptocurrency exchanges and payment platforms (including Zumo) utilising fiat off-ramps: for users, it’s as simple as tapping a few buttons on their smartphone and converting crypto to fiat in-app. In most instances, fiat funds are available in your bank account within just a few minutes.
Although it’s a relatively simple process, there are many different ways of cashing out – and newcomers to the industry might understandably wish to learn about each one. Here are four options for cashing out crypto in 2021.
As mentioned, most major crypto platforms have a fiat on- and off-ramp through integrating with payment processors such as Visa. In the case of Zumo, cashing out your cryptocurrency couldn’t be simpler. First, from within the application, access the Exchange screen. Then select the top option BTC/GBP, which opens up the bitcoin price chart, and tap the small blue circle with white arrows between the BTC and GBP icons.
At this stage, you can enter the exact amount of bitcoin you’d like to sell. When the process is complete, you’ll receive a notification in-app, after which you can withdraw to your fiat wallet by tapping Send in the bottom menu, then Withdraw Funds in the search box. Simply select Linked UK Bank, enter the amount you want to extract, and you’re done!
The process of cashing out is broadly similar on other platforms – though Zumo was designed with the goal of making the process particularly quick and intuitive. Our rates are also the best in the industry: we charge no fees for sending or receiving crypto, nor for loading fiat funds or sending fiat to other Zumo users. The only fees taken by Zumo are 0.5% of the exchange value when you exchange cryptocurrency or buy crypto using fiat. More info here.
With more people than ever curious about crypto, another cash-out option is selling your BTC or ETH to a friend or family member. Indeed, if you’re convinced crypto represents a sound investment, you might see it as your duty to compel them to get some skin in the game.
Needless to say, it’s up to you how you negotiate a cash-for-crypto sale: but when you’ve agreed terms, simply dispatch the arranged amount of crypto to their wallet address and accept payment via bank transfer, PayPal, cash, etc.
If you’re using the Zumo app to send crypto to a friend, Zumo imposes no fee. However, each transaction does entail a mining fee. This will be displayed before you confirm a transaction, so you can agree on a price with the buyer that suits both parties.
Some users prefer to cash out peer-to-peer, via a platform such as LocalCryptos. Launched in 2017 and available in over 130 countries, this non-custodial crypto marketplace enables the purchase and sale of digital assets using any payment method, from bank transfer to cash, PayPal, MoneyGram, Skrill and more.
LocalCryptos utilises both an escrow and reputation system to ensure no-one gets ripped off, and there’s no need to complete AML/KYC to participate. What’s more, some buyers are willing to pay above the market rate to get their hands on assets like bitcoin and ether.
The only drawback with LocalCryptos is that there are multiple hurdles: you have to scan the search results, open dialogue with a buyer via an encrypted chat window, send crypto from your wallet to LocalCryptos (a transaction that requires additional blockchain confirmations), then fund an escrow account. Providing you’ve chosen to receive funds via a bank transfer, it’s your job to ‘Release Escrow’ once you see said funds appear in your account.
All in all, this process can take half an hour or 45 minutes. Not ideal if you urgently need fiat, but acceptable in certain cases.
Last but not least, you can cash out crypto to a third-party payment card which you can use at the point of sale, the same way you would a Visa debit/credit card. Conversion can occur in-app, and usually works both ways – meaning you can also convert a fiat balance into crypto. There are many options on the marketplace, and they’ll soon be joined by a Zumo equivalent. Yes, we’re launching our convertible debit card very soon, in partnership with Visa. You can sign up here.
And there you have it: four quick and easy options to convert crypto for cash.