Users can withdraw cryptocurrency and exchange it for USD or other fiat money via exchange services, directly from exchanges, for cash, and in other ways.
Private crypto exchange services
Cryptocurrency exchange services allow selling digital coins for US dollars or other fiat money, and then send them to a bank account, PayPal payment system and others. A user can stop on an exchange service and indicate which crypto coin and how much he wants to cash out. In response, the crypto exchange service determines the amount to be received, for example, in USD and also indicates the address to which the cryptocurrency should be sent by a user. Upon the receipt of crypto coins, exchange service will proceed with the transaction and transfer funds to the user’s account. Some crypto exchange services set up the commissions up to 15%. At the same time, their work sometimes boils down to mediation between the buyer and the virtual crypto exchange.
Crypto conversion with familiar people
On the Internet, you can find crypto communities, conferences and meetups. The crypto group has its own chats, the participants of which are familiar with each other in real life. The parties agree either to deal with cash or a bank card, fix the rate, and the seller transfers the agreed amount to the buyer`s wallet. If you personally know a party to the transaction which has a good reputation in the community, the risk of fraud on his part is still low. The commission for buying from “friends” does not exceed 2%. Most often, there are ads with a commission of 1% or even “zero”.
P2P exchanges provide an opportunity to convert crypto coins with another person. Buyers can negotiate a deal and set their own terms. The operation of such exchanges is based on an understandable mechanism for exchanging and withdrawing money.
Professional cryptocurrency exchanges are considered as one of the most “civilized” ways to convert crypto for fiat and vice versa. Many exchanges now have the ability to withdraw fiat money to a bank card. From one perspective, it is more convenient and safer, from another perspective, the commissions for withdrawing cryptocurrency directly from the exchange can be much higher than those ones set by exchange services since trading platforms rarely work with fiat currencies on their own and enter into partnerships with other services.
These are OTC agents who match a buyer to a seller for a commission. This type of OTC trading is aimed at large investors who prefer to use the services of a trusted broker or intermediary to complete transactions instead of independently participating in exchange transactions. OTC transactions allow to bypass local bans on cryptocurrency trading in some countries. However, with OTC transactions, all information is kept in the hands of one person or organization and this may lead to data leakage for fraudulent schemes.