How to sell and cash out crypto

What you need in advance

Before selling, get three things ready:

• crypto in an exchange account or in your own wallet that you can access;
• an account that has passed the identity check (KYC), when a service asks for an ID and a selfie, like a bank opening an account. It is required even when you sell from your own wallet, for example through the off-ramp provider MoonPay²;
• a card or bank account in your own name.

Also find out whether the service you chose operates legally in your country ⚖️. The rules of Argentina, Brazil and Kazakhstan are collected on the pages cryptocurrency in Argentina, cryptocurrency in Brazil and cryptocurrency in Kazakhstan.

Where to sell crypto

There are four ways to sell crypto, and the money reaches you by a different route in each.

On an exchange, a sale takes two steps. First you sell the crypto and the money appears in your account balance in local currency; then, in a separate operation, you withdraw it to your bank³.

An off-ramp provider sends the money for your crypto to a bank account or card²⁴. Each one has its own list of countries and payout methods.

On a P2P platform you sell crypto to another person, who pays you directly, usually by bank transfer. The platform works like a middleman holding your goods: the buyer pays you, and the middleman hands the goods over once you confirm the money has arrived. This holding is called escrow escrow. The platform is not a party to the deal, though, and is not obliged to step into a dispute between you and the buyer⁵.

An exchange office you can walk into takes your crypto and pays out cash on the spot. How to compare specific exchanges and exchange offices by the facts is covered in how to choose a crypto exchange.

How to sell crypto on an exchange and withdraw the money

1. Before selling, add up three charges: the trading fee, the gap between the buying and selling rates (the spread), which is already built into the rate, and the fee for withdrawing money. The spread works like the board at a currency exchange counter, where dollars are sold for more than they are bought for. Compare all three charges before you confirm⁶. Fee amounts and limits depend on the service, the country and the withdrawal method. where to check: the chosen service's fees and limits page
2. If the crypto is in your own wallet, move it to the exchange. Take the address, the network (the system the transfer will travel through) and the memo (an extra recipient number) only from the exchange's deposit page. A transfer from your own wallet usually needs that network's coin for the fee, such as TRX on Tron or ETH on Ethereum. Send a small test amount first. The full procedure is described in the guides how to send crypto and how to send USDT.
3. Sell the crypto for local currency. The money will appear in your account balance.
4. Withdraw the money to your own account or card. Try a new withdrawal method or new bank details on a small sum, and once it arrives, withdraw the rest. Do not split a large sum into many small withdrawals to get around checks: splitting like this with no clear reason is treated as a sign of money laundering⁷ ⚖️.
5. Keep your history of trades and withdrawals. In many countries, selling crypto for money has to be reported to the tax authority even when there is no profit, as in the United States⁸ ⚖️. How to approach taxes in your own country is covered in the tax guide.

How to sell crypto through P2P

1. Choose a buyer's listing and open the deal right on the platform. While payment is under way, the platform holds your crypto.
2. The buyer transfers money to your account and marks the deal as paid. That mark on its own is not money.
3. Log in to your bank yourself and check that the full amount has arrived and that the payer's name matches the buyer's verified name on the platform⁹. If you cannot get into your bank account, keep the crypto where it is¹⁰.
4. Confirm the payment in the deal, and the platform will pass the crypto on to the buyer. The platform's rules set how long you have to confirm. where to check: the chosen platform's P2P rules
5. If the money is not there, or the payment came from a different person, do not send the crypto, and open a dispute in the deal. Do not accept payment from third-party accounts¹¹.

Why a screenshot, receipt or text message proves nothing about payment

A fake payment receipt is easier to make than a real transfer. Scammers send fake screenshots of bank transfers and demand that you send the crypto at once¹⁰, or text messages made to look like a bank notification⁹.

Sometimes a buyer pays for real and then asks their bank to reverse the payment and return the money. Such payments often come from someone else's card or account⁹, so the same name check from step 3 protects you against a reversal. Other scams are covered in the article phishing and scams.

How the "triangle" scheme works

In the "triangle" scheme, the money you receive comes from a deceived person who knows nothing about your deal. The scammer advertises, say, a laptop at a low price and at the same time opens a P2P deal with you as a buyer. He gives the laptop buyer your bank details. That person pays you for the laptop, you see the money and transfer the crypto to the scammer, who then disappears¹².

Money from someone else's fraud is called "dirty". When the laptop buyer reports the fraud, the bank finds their money in your account. After victims' complaints, banks have blocked the accounts of scammers and of honest sellers alike¹³ ⚖️. A seller caught up in such a story can also end up involved in a criminal investigation¹² ⚖️. In this scheme the amount is correct, so the main sign of a "triangle" is a payer whose name is not the buyer's.

How to get cash

There are three routes to cash for your crypto: send the money to your card and take it out at your own bank's ATM, sell the crypto at an exchange office, or meet a buyer from a P2P platform in person.

At an exchange office, ask about the exchange rate and fee in advance.

Whether the office holds a license is checked in the register of the regulator, the government body that authorizes financial companies ⚖️. The page for your country tells you where that register is.

At an in-person meeting for a P2P deal, the rules are the same as online. The deal is opened on the platform, if it allows cash payment at a meeting, and you confirm it once you have counted and checked the banknotes. Whether the platform allows this method is shown in its list of payment methods.

Meet in a busy place, such as a bank branch, where the cash can be checked and deposited straight away.

If a withdrawal is delayed or blocked

An exchange withdrawal is held for review

A delayed withdrawal does not always mean trouble. An exchange may briefly hold the money from a sale before it can be withdrawn to a bank account; Coinbase, for example, does this³. Check the withdrawal status in the exchange app and do not create repeat requests. If the exchange asks for documents, reply in its app or on a website whose address you typed yourself, and do not trust links in emails and messages¹.

The bank blocked your account after a P2P deal

Contact the bank right away¹³. Prepare the record of the deal on the platform: the deal number, the messages in its chat and proof that the crypto went to the buyer. What happens to you after receiving such money is decided by the law of your country ⚖️, and if the block follows a victim's complaint, it is worth seeing a lawyer.

Frequently asked questions