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How To Exchange Crypto To Fiat

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min read
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Cryptocurrencies have revolutionised traditional finance, giving people more freedom to dispose of their money. As they continue to grow towards mainstream adoption, more and more people are exploring the world of cryptocurrencies as an alternative to fiat currencies. And it may come to a point where they are interested to learn how to exchange crypto to fiat.

Whether you're looking to cash out your crypto earnings or simply want to diversify your holdings, understanding the crypto-to-fiat exchange process is crucial. In this comprehensive guide, we'll walk you through the steps to exchange crypto to fiat and introduce you to the user-friendly platform, the Xapo Bank app, designed to simplify this process.

Fiat vs cryptocurrency: the basics

What is fiat?

Fiat, or fiat money, is a government-issued currency that is usually not backed by any collateral asset. Fiat money is, therefore, a centralised form of money and acts as a country’s legal tender, its official currency.

Some of the most well-known fiat currencies are, for example, the US Dollar in the US, the Euro in the EU, or the British Pound in the UK.

What is crypto?

Cryptocurrency, or crypto, is a digital form of money. Unlike fiat currencies, cryptocurrencies rely on decentralised systems and don’t require centralised authorities or banks to function. Cryptocurrency transactions are verified through cryptography (hence their name) and run on blockchains, distributed ledgers that are public and open to everyone.

The first crypto was Bitcoin, launched back in January 2009. While today there are thousands and thousands of different cryptocurrencies, Bitcoin remains the most well-known and the largest cryptocurrency by market capitalisation.

comparison table of fiat vs crypto

When should I exchange crypto to fiat?

Now that we covered the differences between fiat vs crypto, let’s check when it can be necessary to exchange crypto to fiat.

While cryptocurrencies offer exciting possibilities, there are several reasons why you might want to exchange them for fiat currency. These reasons could include covering everyday expenses, diversifying your financial portfolio, and preparing for unforeseen emergencies.

Learn how to exchange crypto to fiat

You can exchange crypto to fiat on various online platforms and mobile apps, like the Xapo Bank app. Here’s a rundown of what the process of crypto-to-fiat exchange usually looks like:

  • Find a crypto exchange or app – Selecting the right platform is essential to ensure a smooth conversion process. Consider the different factors that are important to you for example supported cryptocurrencies, user-friendly interfaces, fees, etc.
  • Create an account – Before being able to exchange crypto to fiat on the selected platform, you will need to create an account and pass KYC verification to comply with regulatory requirements.
  • Deposit cryptocurrency – Before initiating the exchange, you'll need to transfer your cryptocurrency from your wallet to the platform’s wallet. Use the QR code or the address of the receiving wallet to send your cryptocurrencies.
  • Choose the fiat currency you would like to receive – Different exchange platforms and apps offer various fiat currency options. Choose the fiat currency that aligns with your financial needs and location.
  • Place and confirm the sell order – Specify the amount of cryptocurrency you wish to exchange for fiat currency on the exchange. Review the sell order and confirm it.
  • Withdraw your fiat to your bank account – Once your crypto-to-fiat exchange is complete, you’ll be able to send your newly received fiat currency to your bank account or financial account.

As you can see above, exchanging crypto to fiat involves many steps and may appear complex to new crypto investors.

However, the Xapo Bank app is one of the fastest and most secure ways to exchange crypto to fiat. It takes just a few taps to exchange Bitcoin for US Dollars. Your Bitcoin deposits at Xapo Bank also earn you 1% annual interest, which is paid out every day.*

You can also easily exchange USDT and USDC for US Dollars with your Xapo Bank account. Simply send the amount of USDT or USDC to your Xapo Bank address and automatically receive the US Dollar equivalent – depending on the exchange rates – to your Xapo Bank USD bank account. Plus, you will earn 4.5% annual interest on your USD holdings, which is also paid out daily.*

Where can I make a crypto-to-fiat exchange?

You can exchange crypto to fiat on several types of platforms like:

  • Cryptocurrency exchanges
  • Crypto mobile wallets
  • Payment services and wallets
  • Peer-to-peer (P2P) platforms

More surprisingly, you can also exchange crypto to fiat using your bank app. This is possible with Xapo Bank.

With Xapo Bank, you’ll have access to one of the fastest options to exchange your crypto to fiat. It takes just a few taps on the Xapo Bank app to exchange Bitcoin to USD and get immediate access to it. You can then hold your USD to boost your savings with 4.5% annual interest*, spend it globally using your Xapo Bank debit card with up to 1.1% cashback**, or make international money transfers with SEPA, FPS, or stablecoins rails.

Exchanging crypto to fiat with Xapo Bank

1. Create your Xapo Bank account

At Xapo Bank, you have access to exchanging crypto to fiat seamlessly. All that’s needed it’s a few taps on the Xapo Bank app to perform a crypto-to-fiat exchange in instants. Let’s see how you can exchange Bitcoin, USDT, and USDC to USD.

First, you’ll have to register as a member to use Xapo Bank’s service. Click on Apply for membership and follow the registration process. Once your registration is approved, you’ll enjoy a 30-day free trial of our services.

2. Deposit Bitcoin to your Xapo Bank wallet

Once you have access to your Xapo Bank account, you can deposit Bitcoin into your wallet. Follow the steps below on the Xapo Bank app:

  • On the Wallet tab, tap the Receive button
  • Tap the Bitcoin option
  • Scan the displayed QR code with the receiving wallet or copy/paste the BTC address
  • You can also share your wallet details if someone else sends you BTCOnce the transaction has been executed, you will see the received Bitcoin in your BTC account in the Wallet tab.

3. Exchange Bitcoin, USDC, or USDT to USD

After depositing Bitcoin to your Xapo Bank Bitcoin account, you can initiate a crypto-to-fiat exchange:

  • Tap Exchange on the Wallet tab
  • Input the amount of BTC to exchange or tap Use full balance
  • Tap Continue
  • Review the order and tap Confirm to proceed
  • Find your just-exchanged USD in your USD account.

For stablecoins, the process is slightly different. All you have to do is deposit USDT or USDC to your Xapo Bank account. The funds will be automatically converted to USD and credited to your USD bank account, earning 4.5% annual interest* right away.

  • On the Wallet tab, tap the Receive button
  • Tap the USDC or Tether option
  • Scan the displayed QR code with the receiving wallet or copy/paste the USDC/USDT address
  • You can also share your wallet details if someone else sends you USDC/USDTOnce the transaction has been executed, the USDC/USDT sent is automatically converted to USD and will appear in your USD bank account in the Wallet tab.

4. Transact with your USD

After exchanging your Bitcoin, you get immediate access to USD. Pay in USD using your Xapo Bank debit card, send money worldwide, and save your USD with 4.5% annual interest*.

Learning how to exchange crypto to fiat is a valuable skill for cryptocurrency enthusiasts and users. It allows you to access the traditional financial system and provides flexibility in managing your cryptocurrencies. While the process might be overwhelming depending on the platform chosen, the steps outlined in this guide can help you navigate it.

Exchange your Bitcoin to USD in a breeze with the Xapo Bank app. Join us today!

Disclaimer

This article is for general information purposes only and is not intended to constitute legal or other professional advice or a recommendation of any kind whatsoever and should not be relied upon or treated as a substitute for specific advice relevant to particular circumstances. We make no warranties, representations or undertakings about any of the content of this article (including, without limitation, as to the quality, accuracy, completeness or fitness for any particular purpose of such content), or any content of any other material referred to or accessed by hyperlinks through this article. We make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up-to-date.

* The Annual Interest Rate offered on both USD and Bitcoin deposits is variable and may change at any time. Please see our Interest FAQs for more information. Interest on Bitcoin deposits will only be paid on balances of 5 BTC or less. For more information, visit our Help Centre. Interest on both USD and BTC is currently paid in Satoshis. We may instead choose to pay it in any other supported currency or currencies (fiat and/or crypto) from time to time.

** Please note that some merchant categories are excluded from earning cashback. Please see our Xapo Bank card FAQs for more information

Xapo Bank is a crypto-enabled bank licensed by the Gibraltar Financial Services Commission. We give our members access to a US Dollar and Bitcoin account, successfully bridging the gap between traditional banking and crypto. USDC deposits into Xapo are immediately converted to USD on a 1:1 basis, giving instant dollar cash value with zero exchange fees.

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