Unless you don't want to HODL your coins and tokens forever then you need to cash out and sell some of your cryptos to realize a profit. Remember that you only made a profit or a loss the moment you sell your coins. Everything else is just happening "on paper".
When you are going to cash out your crypto, you have different possibilities.
You can withdraw directly to your bank account, you can spend it directly, you can get a gift card, or you can use a crypto debit card to cash out your crypto.
Withdrawing to a Bank Account
Sometimes, you still need to have some fiat in your bank account to pay your bills like electricity or your rent. Then you can sell your crypto on an exchange and withdraw the fiat value directly to your bank account. Of course, you have to keep an eye on the fees. Especially the fees for withdrawing fiat from an exchange can be quite high and they differ widely, not only from exchange to exchange but also from country to country.
Personally, I prefer Binance for fiat withdrawals to my own bank account. I pay for a withdrawal to my bank account via SEPA a fee of one Euro and for a withdrawal via debit card a fee of 1% of the total withdrawal amount. However, this fee varies from country to country, so you really need to do your own research to figure out the exchange with the lowest fees for fiat withdrawals.
If you just want to spend money on goods and services then you can also spend your crypto directly. Unfortunately, not many vendors are currently accepting crypto as a form of payment.
One possibility is the Binance Marketplace. On the Binance Marketplace, you can buy goods and services directly with your crypto, instantly and feeless from your own Binance account. You can read more about Binance Pay and the Binance Marketplace here in this post.
Another interesting option to spend your crypto directly is to sell it into gold or silver. There are some websites that allow you to buy precious metals like gold and silver with your crypto. It's actually a great way to collect your profits as you get the physical stuff delivered directly to your house.
Crypto Debit Card
There are also various platforms and exchanges that offer their customers cryptocurrency debit cards. These cards enable you to make online or in-person purchases, even if the vendors don’t accept cryptocurrency.
Instead of exchanging your crypto into your local fiat, you can pay almost directly with your crypto as the corresponding amount of cryptocurrency gets automatically converted at the time of purchase.
If you like to know the TOP 5 crypto debit cars then you might want to check out one of my previous posts with the title "TOP 5 Cryptocurrency Debit Cards 2021"
Personally, I am using the Binance Visa Card that can be used to make purchases wherever Visa is accepted. The card has zero fees and up to 8% cashback in $BNB. The Binance Visa Card’s cashback rate is the highest rate I’ve come across. Crypto.com, on the other hand, has recently reduced its cashback rates for using its card.
Finally, you could also buy gift cards with your crypto which is actually a pretty smart way of spending your crypto. With services like Bitrefill, you can buy and reload gift cards for hundreds of retailers like Amazon or Apple in many different countries. The gift cards can be purchased by using Bitcoin, Litecoin, Ethereum, and other cryptocurrencies worldwide. The Bitcoin and Lightning Network technology allows Bitrefill to provide a safe and private user experience with fast digital delivery. You only need to provide an email address to receive a receipt, voucher codes if applicable, and customer service.
A big benefit of using Bitrefill is that you will receive at least 1% cashback in Bitcoin and in some promotional cases, you can get even more cashback like 6%. By purchasing gift cards with your crypto, you can also spend your crypto with privacy and live on cryptocurrency more easily.
If you like to know more about Bitrefill, you can check out one of my previous posts "Cash Out Your Crypto With Bitrefill 😎 Zero Fees And No KYC!"
My Final Words
These are the different possibilities to cash out your crypto. If you would ask me "What is the best way to cash out my crypto?" then I would answer that THE BEST way does not exist. It all depends on why you want to cash out and what you need the cash for. If you want to make a purchase then the best way is to buy a gift card or to use a crypto debit card to enjoy some cashback.
At the end of my post, I also like to remind you that my intention is not to replace your own research. I may look smart on my profile pic but I am not your financial sensei. 🤓 However, my post really reflects my own opinion.
I hope I could provide you with some interesting and useful information about the different possibilities to cash out your crypto or at least some of it. Thank you guys as always for reading, liking, following, and tipping 👍
What is your favorite way to cash out your crypto? It would be awesome if you would let me know in the comments.