How to exchange cryptocurrency for real money

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Bitcoin’s popularity has grown significantly over the past couple of years. More and more novice traders and investors are joining the market. It is useful for beginners to know how to exchange cryptocurrency for real money. This can be done in several ways. In 2023, users convert coins on exchanges, exchangers, P2P services. It is important to choose a reliable and safe platform.

How the exchange of cryptocurrency to fiat works

When operating with digital currencies, there is a need to convert them into real money. This is usually required in two cases: to lock in profits and to avoid losses, as cryptocurrencies are very volatile. There are 3 types of exchanges:

Traditional. The user creates an account and confirms their identity. Then it is possible to send coins to the platform’s internal account. Withdrawal in fiat takes place either on the built-in P2P service, or by selling to a card from the balance of the platform. However, such services are not provided by all exchanges.
Conversion on non-custodial services. This method does not involve storing funds on the platform. The market participant sends assets to the address of the cryptocurrency wallet, and in return receives a payment to the details provided by him (bank card or EPS).
Face-to-face exchange. The parties organize a meeting or make a direct online transfer. This is a rather risky method, as it requires a high level of trust in the counterparty.

How to exchange cryptocurrency for real money

There are several ways to convert digital currency into fiat. There are exchanges, online exchangers, EPS, ATM-banking machines, P2P services, Telegram-bots, trading “from hand to hand”. Each of the methods has pros and cons. When choosing a site, you need to pay attention to the following conditions:

Verificationrequirements . The process includes the provision of identity documents. It should be borne in mind that the procedure can take several days.
Withdrawal limits. Usually sites assume a daily maximum on the amount that can be withdrawn.
Fee structure. Conversion services charge a commission for depositing, trading and withdrawing funds. On some platforms, payments are fixed and transparent, on others – set by the provider and sewn into the course. The fees can be 1-5% relative to the market value.
Ease of use. It can be difficult for beginners to understand the functionality of crypto platforms. If a site has an unfriendly interface, traders are very likely to move on to another.
Customer Support. If problems appear, it is important to be able to contact a representative of the service and get quick help.
Resistance to hacker attacks. Some cryptocurrencies use the custodial function. The platform has full access to the client’s funds and control over them. The history of the cryptocurrency market has many cases of stealing money from the accounts of exchanges.

Online exchanges

Such platforms allow you to cash out cryptocurrency almost instantly. Usually they do not require registration and verification, you can sell assets immediately. To exchange coins, you need to:

Select the service in the monitoring.
Go to the trading window.
Select the asset to be given.
Specify the direction (bank or EPS).
Write the amount in rubles. The amount of BTC will be calculated automatically according to the current exchange rate.
Enter details, email, full name.
Click on “Sell”.
A window with a wallet for payment will open. You need to transfer the coins to the address. For the transaction is given 15-30 minutes.
After sending tokens, click on “I paid”.

Before the exchange, you need to know the details of transactions. For example, some sites process transactions in manual mode. The transfer can be delayed for several hours. Customers should study the user agreement.

Pros and cons

Exchangers have a number of advantages and disadvantages. The details are reflected in the table.

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Pros	Cons
Exchangers are customer-oriented and usually provide a support service that helps with any questions 24/7	The price of a token is determined by the platform. As a rule, commissions are included in the exchange rate and can be up to 5%.
Services do not require registration and verification	Exchangers often have limited reserves
Often have referral or bonus programs	No regulation. Such services can change quotes, block withdrawals.
There is no storage function. Users’ funds are on their wallets, no one can steal them.	Not every platform provides a large list of assets

Crypto exchanges

CEX is the most popular way to exchange BTC and other currencies for fiat. The process of trading on the exchange is understandable even for users without experience. The instruction includes the following steps (using Binance as an example):

Register an account.
Pass verification.
Put the cursor on the wallet in the upper right corner of the page and click on “Browse”.
Click on “Deposit” and select a coin.
Specify the network and check the entered data. Incorrect choice of network can lead to loss of money.
Then the address of the wallet will appear. You need to copy it and transfer funds according to the details.
Wait for the receipt of coins on the account.

Now you can exchange cryptocurrency for money. To do this, you need to go to the “Wallet” tab and click on the asset. Users are offered 2 ways:

P2P trading. It is possible to choose the most suitable counterparty announcement. A filter by payment method, price and limits is available.
Sell for RUB. You will need to fill out a special form (enter the amount and card details).

Pros and cons

Exchanges are safer than other methods of exchange. However, they also have their disadvantages.

Advantages	Disadvantages
Platforms offer an extra layer of safety and security when it comes to transactions and trading. This includes 2FA, email and sms confirmation.	Large exchanges typically hold billions of dollars worth of coins, making them a target for hackers. An example of such an incident is Mt.Gox, which was once the world’s largest cryptocurrency exchange until it reported the theft of 850k BTC.
Great liquidity. You can trade in any amount.	Not every marketplace allows the use of cards
You can sell digital currency at its own price by setting a limit order	Clients must register and verify their identity

Payment systems

Such services allow market participants to open accounts in BTC and other cryptocurrency. Users can buy coins and withdraw them in fiat using bank cards. In November 2022, services to residents of the Russian Federation are provided by such international platforms:

Payeer. The commission for deposit is 5.99%, for withdrawal – 3.99% + a fixed amount of 50 rubles.
Advcash. Offers from 3.50% to 4.50% and 2% + 50 rubles, respectively.

To convert cryptocurrency to fiat, you need to follow a few steps. The algorithm of actions is as follows (using Payeer as an example):

Go to the platform’s website.
Pass verification. It is required to provide full name, phone number and upload copies of documents.
After verification, open the “Exchange” section.
Convert cryptocurrency to fiat.
Go to the “Transfer” tab.
Choose a system (Visa/MC, Maestro, Mir).
Enter the card number and specify the amount. The minimum is 500 rubles.
Click on “Transfer”.

Usually the withdrawal takes 1-3 minutes. If the payment is not received within a day, it is recommended to contact technical support.

How to exchange cryptocurrency for real money — Payeer interface

Stationary exchangers

It is possible to convert cryptocurrency offline. The first ATMs offered only bitcoins. Nowadays, many terminals allow you to buy and sell popular altcoins (Bitcoin Cash, Ethereum, Dash, Litecoin and others).

There are ATMs with one-way and two-way transactions. The first ones only allow you to buy cryptocurrency. With the help of the second, you can also sell assets. The general algorithm of exchange in an ATM:

Select a token.
Specify the amount of receipt in RUB.
Scan the QR code of the wallet where the tokens should be deposited.
Transfer the coins to the specified address.
Wait for transaction confirmation and receive cash.

You should also keep in mind that all providers charge commissions for transactions. They amount to 7-12%.

P2P-platforms

Peer-to-peer exchanges are a popular method of exchanging cryptocurrency. Such platforms allow users to place ads, specifying the desired price, preferred method of payment, limits. The interested party then finds the offer and conducts the transaction by following the instructions.

Usually, P2P services are based on an escrow feature. This means that funds are kept on hold until the cryptocurrency is sent to the buyer after the transaction is confirmed on the blockchain. The funds are then transferred to the seller.

P2P exchanges carry risks. There are chances of encountering a fraudster. Before sending coins, you need to verify the payment in the bank’s app.

There are two types of peer-to-peer services: independent sites and the additional option of centralized exchanges. You can exchange cryptocurrency for money in this way:

Open the list of ads and filter them by coin, payment method and transaction amount.
Select the offer, focusing on the rating of the counterparty.
Click on “Sell”.
Enter the amount and details.
Confirm the operation and wait for the replenishment of the card.
After the money is received, send the coins to the buyer.

For payment is usually given 15-30 minutes. The application will be canceled automatically if the transaction partner does not make the payment within the allotted time.

Telegram bots

Users often exchange cryptocurrency in messenger. Usually, programs in Telegram are launched by exchangers and P2P services.

Some bots, on the contrary, later transformed into full-fledged cryptocurrency platforms.

Such platforms allow you to sell coins without registration and verification, which ensures the anonymity of customers. The most popular services in November 2022: Bitpapa, Bitzlato, BTC Banker, 60cek, Xchange. The scheme of the sale on the example of Bitpapa:

Open the Telegram bot and click on Start.
Select the “Market” tab.
Click on “Sell”. You can also add your own offer. To do this, click on “My ads”. and then on “Create”.
Select the coin and currency.
Specify the method of payment.
A list of listings will open. Select and proceed to the transaction.
Write in the chat details and wait for the incoming payment.
When the money arrives on the card, click on “Send Coins”.

Then the system will send the cryptocurrency to the counterparty. It will also be offered to put an assessment and write a review.

Direct exchange

This is the most risky method. Such a transaction can be carried out through a face-to-face meeting or a direct transfer to the user’s wallet. In these scenarios, buyers and sellers should be careful not to send fiat or cryptocurrency until the transaction is confirmed. It is recommended to make appointments in a public and safe place when there are many other people around.

The conversion service to cash is provided by some exchangers. The transaction takes place in the office, or the money is brought by courier to a pre-arranged location.

There are many ways to convert coins to fiat in 2023. Each of them has its own risks. Also, the use of some platforms makes the exchange unprofitable. To sell cryptocurrency safely and profitably, you need to follow the following recommendations:

Before choosing a service, study the rating, comments and reviews of users. If transactions are carried out on a P2P platform, it is recommended to cooperate with counterparties who have many successful transactions and good reviews.
Find out what rate the platform offers and how much it differs from the market rate.
Go to Telegram-bots only from official sources.
To increase the profit from the sale, you can set laddered limit orders.
Many exchanges offer new clients discounts on commissions or remove them altogether for a certain number of transactions.

Frequently Asked Questions

👀 Is it safe to buy cryptocurrency from cards?

You need to make sure that the site is not fraudulent. Many unscrupulous users create copies of well-known exchangers, and can steal customers’ funds.

❓ How does fiat differ from digital currency?

Fiduciary money is part of a centralized system. They are subject to inflation and have no intrinsic value.

🧐 What is the safest way to cash out tokens?

Use a reputable crypto exchange. You can research the ratings on monitoring sites.

📱 Can I change cryptocurrency in a mobile app?

Exchanges provide programs on your smartphone. Exchanges may not always offer mobile clients, but the interface is usually adapted for all devices.

💰 Where to exchange coins for a small amount?

P2P services offer conversion with low limits. They start from 1 ruble.

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Author: Saifedean Ammous, an expert in cryptocurrency economics.