Can You Convert Cryptocurrency Into Cash? Yes 1x6k3i Here's How

There are two main methods through which you can convert your cryptocurrencies into cash. 462a1y

By Edited by Gadgets 360 with inputs from Reuters | Updated: 16 August 2021 11:42 IST

Can You Convert Cryptocurrency Into Cash? Yes, Here's How

There are several factors an individual might want to consider before converting cryptocurrency into cash 8s2m

Highlights

Converting any cryptocurrency into cash will involve taxation
An individual can use a peer-to-peer platform to convert
It's recommended that you ask for proof of ID and payment

ment

Cryptocurrency is now a popular investment option for younger people but you can't exactly spend your crypto in order to pay for your dinner. Well, you can if you want to choose from a few limited options (as big businesses get on board) but for the most part, people still need to convert their crypto into cash. The good news is that this is very easy to do. Having said that, there are several factors an individual might want to consider before converting their cryptocurrency into cash. Digital tokens are extremely volatile and their values fluctuate a lot so if your timing is wrong you potentially stand to lose money. On the other hand, a risk-averse investor, seeing the uncertainty around digital currencies, might consider converting their digital money to fiat currency.

Either way, here's what you need to know about converting your exists in a legal grey area in India, that's not to say that gains made from investing in this asset are outside the ambit of taxes.

How to convert your crypto into cash? 2t1h10

Let's understand this by taking Bitcoin price in India stood at Rs. 36.53 lakhs as of 10am IST on August 16.

Learn to Read Candlestick Charts Before You Invest in Cryptocurrency

Now let's come to converting cryptocurrency into cash. There are two ways of doing it.

Through an exchange or broker 4i1w2j

This is similar to the currency exchange system at airports. Once you deposit your digital currency to exchange and request for withdrawal, the broker will transfer the money to your bank .

However, since there are money laundering restrictions on brokers, you have to withdraw your money through the same bank that you made a deposit with.

Investing in Cryptocurrencies? Here’s What You Can Buy With Them in India

The biggest disadvantage with this method of conversion is the time it takes. Experts say it's safe and secure, but it takes time for the money to reflect in your bank . The exchange also charges a fee for the transaction, and it varies from broker to broker and country to country.

Through an exchange or broker 4i1w2j

Considered a quicker and more anonymous method, an individual can use a peer-to-peer platform to convert their digital currency into cash by simply selling it. The other advantages include a smaller fee and the possibility of a better exchange rate compared to a third-party brokerage. Having said that, you have got to be careful of fraudsters.

It's recommended that you ask for proof of ID and payment before releasing your cryptocurrency.
You can also use a peer-to-peer platform that keeps your digital tokens locked until your bank is credited with the money.

Interested in cryptocurrency? We discuss all things crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.

links may be automatically generated - see our ethics statement for details.

Cryptocurrency Prices across Indian exchanges

Comments

For the latest reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.