Although Indians flock to cryptocurrency for quick profit, there are some practical problems with cryptocurrency — it cannot be used properly for day-to-day transactions. Nevertheless, the crypto space in India has grown exponentially, with Indian investments increasing from $ 923 million in April 2020 to over $ 10 billion. If you want to convert your crypto assets into cash, this post will help you.
The first method of converting any cryptocurrency into cash through cryptocurrency transactions is through an exchange or a broker. This is very similar to the currency exchange system at a foreign country’s airports.
Deposit your cryptocurrency in exchanges such as WazirX, CoinDCX, CoinSwitch Kuber, Unocoin and ask for a refund in the currency of your choice. The money will be paid into your bank account. Let’s understand this by taking Bitcoin as an example of the cryptocurrency you want to convert into money.
Convert your bitcoins to exchanges that support buying and selling in the INR. In this case, we can use WazirX for example purposes.
Step 1 : Open the WazirX app and tap on the ‘Funds’ option.
Step 2 : Click on INR option. You can view your account transactions, deposits and withdrawals.
Step 3 : At the bottom of the screen, you will see two options ‘Deposit’ and ‘Withdrawal’.
Step 4: Click on the Withdrawal option. Enter the amount you want to withdraw.
Step 5: You will receive an email shortly. There you have to approve the withdrawal. Once you verify, the money will be reflected in your account as soon as possible.
This method is considered safe. But at the same time, it takes about 4-6 days for the money to come into your account. In addition, crypto exchanges also charge a transaction fee. And it varies from broker to broker.
You can use the Bear-to-Bear site to sell Bitcoin for cash, for quick and anonymous withdrawals through the Bear-to-Bear network . One of the most popular peer-to-peer sites is LocalBitcoins.
Register on the Peer-to-Peer Exchange site and choose the location of your best buyer. Then, use the market to find buyers. Most peer-to-peer operating systems have an escrow option. Your bitcoins will not be released to the buyer until you confirm that you have paid there.
When using a peer-to-peer sales method, it is important to be wary of fraudsters. Also, it is highly recommended to use a peer-to-peer site to help lock your bitcoins until you can verify that money has been received from the buyer.
It is important to note that if you monetize your crypto assets, you will have to pay tax on your profits. Although crypto is currently in the legal gray area in India, investing in this asset is not beyond the tax threshold.