If you are planning on investing in Ethereum, specifically Ether, one of the main questions you will be asking is how to sell Ethereum for cash or how to cash out Ethereum.
Cryptocurrency is on the rise right now and Ether happens to be the second-most popular form of cryptocurrency on the market, behind Bitcoin.
Ethereum does have its advantages over Bitcoin, however, so there are many reasons why some investors prefer to trade Ether.
And if you are wondering how to sell Ether and whether it is worth it, this guide has you covered.
There are two main ways you can sell Ether for cash (legitimately) and it’s not as hard as it might seem.
So, make sure to keep reading to find out what these methods are and how you can do it.
Can You Really Make Money From Ethereum?
Ether, like any cryptocurrency, is starting to become more and more popular as both an investment and a form of digital currency for online purchases.
It’s worth mentioning here that Ethereum is the name of the blockchain technology on which it is built.
Ether, on the other hand, also referred to as ETH, is the native cryptocurrency that Ethereum utilizes.
In fact, Ethereum was born out of the blockchain technology used by Bitcoin, with key differences being that Ethereum has additional features, such as smart contract functionality and the use of decentralized applications, known as dApps.
Like stocks, Ether can be traded, and it’s a matter of following the usual method of buying low and selling high.
Ultimately, trading Ether is a gamble, which will depend on how knowledgeable you are at reading the crypto market.
But as long as you sell Ether for more than what you paid for it, it is possible to make money from Ethereum.
How To Sell Ethereum For Cash
So, how do you sell Ether for cash? Or, in other words, how do you transfer Ether to your bank account?
Both of these questions refer to the same thing, which is selling Ether and withdrawing the value of it (in your local currency) from your crypto account to your bank account.
If you are planning on investing in Ether or have already invested, you will be glad to know that there are two ways you can do this: using cryptocurrency exchanges and peer-to-peer cryptocurrency exchanges.
Don’t worry if you don’t know what these are, as these are explained below in simple terms.
Using Cryptocurrency Exchange
Crypto exchanges are the main and most common platforms for trading cryptocurrency, including Ether.
Major cryptocurrency exchanges, such as Coinbase, allow you to buy and sell a range of cryptocurrencies, complete with crypto wallet storage and crypto charts for monitoring the market.
Whichever cryptocurrency exchange you use or choose to use, it is possible to sell Ether (after you have invested in it) and withdraw the funds to your bank account.
After that, you can withdraw it as physical cash.
Crypto exchanges are currently the safest and easiest way to trade cryptocurrency.
Major cryptocurrency exchanges, in particular, offer security measures and other benefits that can make investing easier and less daunting.
Using Peer-to-Peer Crypto Exchange
Another way to sell Ether for cash is through P2P (peer-to-peer) cryptocurrency exchanges.
The main difference between cryptocurrency exchanges and peer-to-peer cryptocurrency exchanges is that crypto exchanges are centralized (also known as CEXs), while P2P crypto exchanges are decentralized (DEXs).
This means that while CEXs allow for crypto trading through a business-run service, peer-to-peer DEXs involve direct trading between buyers and sellers.
In other words, you will be selling your crypto to another buyer or broker for liquid assets/traditional currency.
The advantages of using peer-to-peer crypto exchanges are that service/transaction fees are minimized and there is room for potentially making more of a profit.
However, this does also mean that you have to find a buyer, which can be more time-consuming than simply selling on a major cryptocurrency exchange site.
Popular peer-to-peer crypto exchanges include Binance, Bybit, and Gemini.
When Should I Sell My Cryptocurrency?
Now that you know how to sell Ether for cash, when should you sell?
As briefly touched on above, the aim of investing in crypto to make a profit is a matter of following the old rule of buying low and selling high.
Of course, cryptocurrency, including Ether, is volatile – similar to buying stocks.
The value of the specific cryptocurrency you invest in will change frequently based on a variety of factors, which makes it important to not only know when to sell, but when to buy.
In any case, selling crypto for a higher price than what you paid for it is making a profit.
And this can be done by buying and holding over a long period or active trading.
Buying and holding involves investing (typically a lump sum) with the aim to sell down the line once the value has increased, while active trading involves buying and selling frequently to make a profit, big or small, as the market fluctuates.
Knowing when exactly to sell, however, will mainly depend on how knowledgeable you are at reading the market, which you can learn through familiarizing yourself with crypto charts, general market changes, and staying up to date on news and popular speculation.
When you should sell can also depend on how much you have invested and whether you need the money back.
The short answer? Selling Ethereum for cash is possible through cryptocurrency exchanges and peer-to-peer cryptocurrency exchanges.
On either platform, how it is done is by selling what you have invested and withdrawing the value of it to the bank account linked to your crypto wallet.
Major crypto exchanges, like Coinbase, are the most popular method for trading Ether using service-style transactions.
P2P crypto exchanges, such as Binance, involve direct trading between buyers and sellers, which can minimize transaction fees for greater profit.
Whichever route you take for selling Ether for cash, always make sure that the platform you choose to use is safe, secure, and widely trusted!