While Indians are swarming to take advantage of the cryptocurrency mania and make quick money, there are some practical problems with the cryptocurrency since it cannot be utilized for everyday transactions. However, the Indian cryptocurrency market has significantly expanded, with investments rising from $923 million in April 2020 to over $10 billion now. Here is everything you need to know if you want to convert your cryptocurrency assets into cash.
Through exchanges for cryptocurrencies
The first way to turn any cryptocurrency into cash is through an exchange or a broker; this is quite similar to the way that international airports handle currency exchange.
You fund an exchange like WazirX, CoinDCX, CoinSwitch Kuber, or Unocoin with your cryptocurrency, then request a withdrawal in the currency of your choice. Your bank account will be credited with the withdrawal. Let’s use Bitcoin as an example of a cryptocurrency that you want to exchange for cash in order to better comprehend this.
Transfer your Bitcoins to an exchange that permits INR purchases and sales. For demonstrational purposes, we use WazirX in this instance.
Step 1: Launch the WazirX app and select “Funds.”
Step 2: Select the INR option to view your account transactions, including deposits and withdrawals.
Step 3: You can find the “Deposit” and “Withdrawal” choices at the bottom of the screen.
Step 4: Select the withdrawal option, and then input the required withdrawal amount. Enter the amount and hit “submit” now.
Step 5: You’ll get an email shortly asking you to approve the withdrawal. The monies will soon appear in your account once you have authenticated.
Although this technique is regarded as the safest, it takes roughly 4-6 days for the money to arrive in your account. Additionally, there is a fee for the transaction that varies from broker to broker on cryptocurrency exchanges.
By use of a peer-to-peer network
You can exchange your Bitcoin for cash through a peer-to-peer marketplace for a quicker, more private withdrawal. LocalBitcoins is one of the most well-known peer-to-peer services.
Join a peer-to-peer exchange site and select the region where your ideal buyer is located. Then, seek buyers via the market.
The peer-to-peer selling approach must be used with caution because of fraudsters. Additionally, it is strongly advised to use a peer-to-peer platform that enables you to keep your Bitcoins locked until you can confirm the buyer has provided the payment.
It is important to keep in mind that if you cash out your cryptocurrency holdings, you will be required to pay taxes on your income. Even though investing in cryptocurrency is currently illegal in India, taxes still apply to it.