Individuals and institutions all over the world have adopted Bitcoin and other digital currencies as investments, financial services, or payment solutions. Crypto trading volume increases every day. Frequent traders and long-term investors may wish to sell Bitcoin and other cryptocurrencies to make a profit, convert and withdraw cash, and transfer fiat currency such as US dollar, to bank accounts.
However, cashing out becomes a real challenge; many crypto exchanges do not support fiat money because they are not regulated or able to build comprehensive cooperation with global banking partners. In order to work with banks and support fiat money on and off-ramps, Know Your Customer (KYC), Anti-Money Laundering (AML) mechanisms, and regulatory compliance are the most important foundations for a crypto exchange.
Two common ways to turn your Bitcoin and cryptocurrencies into cash:
- Convert and withdraw from exchanges
- Peer-to-Peer (P2P) transactions
Convert crypto and withdraw cash from exchanges
Most cryptocurrency exchanges across the globe do not allow you to deposit and withdraw directly using fiat currencies. This requires huge costs on identity verification, risk control, and AML procedures. However, some exchanges still allow you to sell Bitcoin and cryptocurrencies to fiat currencies and directly withdraw cash from the exchange to your bank account.
Global leading exchanges, such as Coinbase, Kraken, and XREX, work with international banking partners and regulators to provide secure, affordable, and fast withdrawals via a commercial bank. To comply with AML laws, you can only withdraw to your bank account which has been verified with the exchange for deposits and withdrawals.
Different exchanges support different fiat currencies depending on their strategy and the markets they serve. Currently, Coinbase supports USD, EUR, and GBP; Kraken supports USD, EUR, GBP, JPY, CAD, CHF, and AUD; XREX supports USD and INR — which makes it the world’s only exchange with both USD and INR market pairs.
Using XREX as an example, we will guide you step by step to sell your Bitcoin, cash out to USD, and withdraw from XREX to your bank account.
1. Sign up and get verified
Firstly, you need to create an account with XREX. XREX is run by a team with decades of collective cybersecurity experience to ensure world-class security. After getting verified, you can deposit and link your bank account for deposits and withdrawals. Currently, XREX supports USD, INR, USDT, BTC, ETH, BCH, and XRP.
2. Buy or deposit Bitcoin
Once you are registered and verified with XREX, you can deposit fiat money (including USD and INR) to your XREX wallet and buy Bitcoin. If you have Bitcoin already in another platform or your wallet, you can use blockchain to add cryptocurrencies to your XREX wallet.
3. Sell Bitcoin for USD
You can easily sell Bitcoin for USD on XREX. Just go to the Trade page and place an order at market price or limit price. Or you can go to the Wallet page and directly convert your BTC to USD.
4. Withdraw USD from your XREX wallet to your bank account
Go to the Wallet page, press Send, and select Withdraw to my bank. Select your verified account and enter the amount you want to withdraw.
Please note that XREX only accepts deposits from and withdrawals to a bank account held in your name which matches your identity verification documents with XREX. All other deposits will be rejected, and additional fees may be charged by banking intermediaries.
5. You’re done!
Congratulations! Your USD withdrawal request is confirmed and will be reviewed and approved within 24 hours.
Peer-to-Peer (P2P) cryptocurrency transactions
Apart from using an exchange to convert and withdraw, you can also try P2P transaction online platforms, such as LocalBitcoins, Binance P2P, and Paxful. However, one major concern for P2P transactions is trust. You might not know exactly who you are dealing with; many bad actors use P2P platforms for phishing, scams, and fraud.
Seeing this problem in P2P transactions, many crypto service providers are seeking new solutions to ensure the safety and security of online P2P transactions. One example is BitCheck. BitCheck is an online payment guarantee which escrows funds for crypto traders, money transfer operators, and cross-border merchants.
BitCheck is a unique product feature by XREX known for its security and transparency. BitCheck acts as an independent third party withholding payment until everyone fulfills their responsibilities in the transaction. No single party can cancel or release a BitCheck without the approval of the other side. This solves the trust issue of online P2P transactions and prevents you from being scammed because only verified users can access the BitCheck service.
Here, we will guide you step by step to sell your Bitcoin for USD and other local fiat currencies using BitCheck. To get started, you must first sign up and get verified with XREX — only verified users can send and receive BitCheck on XREX. This protects you and your counterparty and secures your global online transactions.
It takes only three steps to complete a P2P transaction via XREX’s BitCheck. For example, to sell your Bitcoins for USD:
- You send Bitcoin via BitCheck to your counterparty Rohit and share your USD bank account information with Rohit. These can all be done directly on XREX.
- The BitCheck is escrowed by XREX and Rohit will see it on XREX. Rohit then transfers USD to designated accounts. Once done, Rohit will request the release of the BitCheck.
- Once you confirm the payment of USD, release BitCheck to Rohit, and Rohit will receive the Bitcoin on XREX.
By leveraging its world-class security capabilities and blockchain technologies, XREX is able to ensure a trustworthy and secure environment for verified users to transact with each other using BitCheck.
Conclusion
In summary, when you want to turn your Bitcoin and cryptocurrencies safely, easily, and quickly into cash, you need to find exchanges with a good reputation and strong security, or use tools that will ensure the safety of your P2P transactions so that you won’t be scammed or get involved in suspicious activities. Cash out with ease!