How to cash out your crypto (beginner’s guide)

You've bought some cryptocurrency, and now you're wondering: "How do I turn my crypto into money I can spend?" or, you find yourself searching “How to cash out crypto in the USA?” with multiple options and recommendations. Cashing out doesn’t need to be complicated. 

Cashing out crypto to bank accounts, or, in the industry, commonly referred to as “using a crypto off-ramp,” means converting your coins (like withdrawing Bitcoin BTC to bank, ETH, USDT, USDC, MNEE) back into fiat currency like USD, EUR, etc., which then lands in your bank account. A simple example would be processing a USDT to USD withdrawal. 

Whether you need to pay rent, want to lock in profits, or just need some spending money, knowing how to safely move from crypto to cash is an essential skill to have in a beginner’s guide to cashing out crypto. 

In this crypto to fiat beginner guide, you’ll learn: 

• What “cashing out your crypto” really means 
• The main ways to move crypto back into your bank or card 
• How to cash out your crypto step-by-step using RockWallet in supported regions 

What is cashing out crypto? 

Cashing out cryptocurrency and cashing out stablecoins means selling your digital coins for traditional money (called "fiat") like dollars or euros, then transferring that money to your bank account or debit card. 

Think of it like this: 

• Buying crypto = On-ramp (traditional money → crypto) 
• Cashing out = Off-ramp (crypto → traditional money)  

This is different from just swapping one crypto for another (like trading Bitcoin for Ethereum). When you cash out, you're completing the full journey back to traditional banking. 

How crypto off-ramps work 

When you cash out, a few simple things happen in the background: 

• You sell your crypto (for example, USDC to bank transfer) 
• The platform or wallet sends the fiat money to your bank account or card so you may withdraw crypto to bank directly, in-app 
• Banks and regulators may require identity checks and reports, especially for large transactions, to help prevent fraud and money laundering 

Why off-ramps matter 

Governments and financial regulators pay close attention to crypto off-ramps because they connect the crypto world to traditional banking. KYC procedures aim to prevent money laundering, terrorist financing, and other financial crimes by collecting and verifying customer information.  

This is why most platforms ask you to: 

• Verify your identity (provide ID and personal information) 
• Link a bank account or card in your own name 
• Follow local financial regulations  

These requirements might feel strict, but they help keep the system safer for everyone. 

How does cashing out work? 

When you initiate a cash-out, several things happen behind the scenes: 

1. You sell your crypto – You may cash out Ethereum, Bitcoin BTC, or other coins; 

2. The platform processes your withdrawal - Your chosen service sends the fiat money to your bank account or card. 

3. Verification happens - Banks and regulators review transactions, especially larger ones, to prevent fraud. 

The entire process usually takes anywhere from a few minutes to several business days, depending on your payment method and location. 

5 ways to cash out your crypto 

1. Centralized exchanges 

How it works: Sell your crypto on exchanges like Coinbase, Kraken, or Binance, then withdraw fiat to your bank. 

Pros: 

• High liquidity means you may sell large amounts easily 
• Clear pricing and order books 
• Support for many different cryptocurrencies 
• Multiple withdrawal options (wire transfer, ACH, SEPA)  

Cons: 

• Requires creating an account and identity verification 
• Crypto withdrawal fees and bank transfer fees apply 
• Exchange holds your assets during the process 
• Withdrawal times vary (1-5 business days typically)  

Best for: People who already use exchanges for trading or hold crypto on exchange platforms. 

2. Wallet apps (like RockWallet) 

How it works: Some wallet apps let you cash out directly without transferring to an exchange first. 

RockWallet, for example, allows users in supported regions to: 

• Hold crypto in a self-custodial wallet (you control your keys) 
• Sell selected assets for fiat 
• Withdraw via bank transfers or card rails 

Pros: 

• Your crypto stays in your own wallet until you may sell crypto for cash (cash-out) 
• All-in-one solution: buy, hold, swap, and cash out in one app 
• Clear fee breakdown before you confirm 
• No need to move funds to exchanges  

Cons: 

• Availability varies by region 
• Limits may apply based on verification level  

Best for: People who prioritize control over their crypto and want a streamlined and highly secure crypto experience. 

3. Payment apps 

How it works: Apps like PayPal, Cash App, or Venmo let you sell crypto and transfer money to your linked bank account. 

Pros: 

• Familiar interface if you already use these apps 
• Quick and easy setup 
• Instant access to your money for spending 

Cons: 

• Limited cryptocurrency selection 
• You may not actually own the underlying crypto 
• Often can't withdraw crypto to external wallets 
• Higher fees compared to dedicated platforms 

Best for: Casual users with small amounts who want convenience over control. 

4. Crypto debit cards 

How it works: Cards that automatically convert your crypto to fiat when you make purchases. 

Pros: 

• Spend crypto like regular money 
• Automatic conversion at point of sale 
• Some offer cashback or rewards 

Cons: 

• Conversion fees on every purchase 
• Not true "cashing out" to your bank 
• Card fees and limits apply 

Best for: People who want to spend crypto directly rather than withdraw to a bank. 

5. Bitcoin ATMs & peer-to-peer (advanced) 

How it works: Bitcoin ATMs let you sell crypto for physical cash, while peer-to-peer (P2P) platforms connect you with individual buyers. 

Pros: 

• Can provide privacy 
• Immediate cash in hand (ATMs) 
• May work in locations with limited banking options 

Cons: 

• Very high fees (often 7-20% for ATMs) 
• Higher scam risk with P2P trades 
• Safety concerns meeting strangers 
• Limited to smaller amounts usually 

Best for: Experienced users in specific situations. Not recommended for beginners. 

Tax season is coming 

 The IRS considers cryptocurrency taxable, with transactions subject to capital gains taxes. Cashing out helps you set aside money for tax obligations and simplifies record-keeping. 

Always consult a tax professional about your specific situation. 

Step-by-step: cashing out your crypto with RockWallet 

This example demonstrates the cash-out process using RockWallet in supported regions. While specific steps may vary by platform, the general process remains similar across most services. 

Step 1: Download and set up RockWallet 

Download the RockWallet application from the official iOS or Android app store. Open the app, follow prompts to create a new wallet, and carefully write down your recovery phrase on paper. Store this phrase securely offline, as it provides complete access to your funds if you need to restore your wallet. 

Step 2: Complete identity verification 

Enter required personal information and upload a government-issued identification document. This KYC process helps maintain platform compliance with financial regulations and creates a safer environment for all users. 

Step 3: Add cryptocurrency to your wallet 

You can either purchase cryptocurrency directly within the app in supported regions, or send cryptocurrency from another wallet or exchange to your RockWallet address. Always verify the address and network before sending funds to prevent permanent loss. 

Step 4: Initiate the cash-out process 

In RockWallet's supported regions, navigate to the “Sell” or “Cash Out” section. Select the cryptocurrency you want to sell (such as: Bitcoin BTC, USDT, USDC, or MNEE) and choose your preferred payout method, which may include bank transfer or card rails depending on availability in your location. 

Step 5: Review transaction details 

Carefully examine the amount of fiat currency you'll receive, any applicable fees, and estimated processing time. RockWallet displays complete transaction details before confirmation, eliminating surprises. Once you've verified all the information, confirm the transaction. 

Step 6: Receive your funds 

After processing completes, funds arrive in your designated bank account via transfer or through supported card rails where available. Processing times vary based on your region, bank, and chosen payment method, but you can track status within the application. 

From there, you can use funds for everyday expenses, allocate money to savings, or maintain partial cryptocurrency holdings if you want continued market exposure. 

Safety considerations for cashing out your crypto 

Following basic security practices protect your funds during the cash-out process.  
 

Use regulated, reputable platforms 

Choose cash-out services that:

Operate under financial regulations in your region,  

Provide clear terms and fee structures,  

Offer responsive customer support, and  

Follow standard anti-money laundering and KYC requirements. 

Understand all fees: 

Before the initial bank transfer crypto cash out, identify all applicable costs:  

• Trading fees or spreads when selling cryptocurrency,  
• Withdrawal fees for sending fiat to your bank, and  
• Potential foreign exchange fees if cashing out in a different currency. Compare the amount of cryptocurrency you're selling against what will arrive in your bank account. 

RockWallet helps by displaying total amounts after fees before confirmation, ensuring transparency throughout the process. 

Be aware of tax implications: 

Many countries treat cryptocurrency as taxable property, with sales triggering capital gains or income tax obligations. Keep detailed records including dates, amounts, prices, and fees for each transaction. Check your local tax authority's website for official guidance or consult a qualified tax professional. 

Protect your recovery information: 

Never share your seed phrase, private keys, or recovery phrase with anyone. Enable two-factor authentication on your accounts, use strong, unique passwords, and remain skeptical of anyone promising "instant cash-out with guaranteed profits"; these represent classic scam patterns. 

Start small for your first cash-out 

If this is your first time cashing out, try a small test amount first. Before sending, check the receiving address again to form a healthy habit. Confirm that it arrives correctly and on time, then increase transaction sizes once you feel comfortable. This approach helps you understand processing times and fee structures without risking significant amounts. 

Bottom line 

Cashing out cryptocurrency doesn't have to be complicated. With the right platform, clear understanding of fees, and attention to security, you can easily convert crypto back to traditional money.  

The best way to convert crypto to fiat depends on your individual needs. Whether you use a centralized exchange, a self-custodial wallet like RockWallet, or a payment app, the key is choosing a method that fits your comfort level. 

Whatever method you choose, prioritize security, understand the fees, and start with small test amounts until you're comfortable with the process. 

Ready to cash out with confidence? RockWallet cash out makes the process secure and straightforward with the security of SOC 2 Type II compliance, ISO/IEC 27001 certified, and transparent low fees.  

Download RockWallet today and experience the future of mobile wallets.! 

Written by Stefan Furcoi. 

Stefan Furcoi is a Web3-native, communicator and crypto educator who lives at the intersection of blockchain, stablecoins, and real-world adoption. Most of his work is about clarifying complex topics like crypto wallets, DeFi tools, gas fees, protocols, and into clear, practical steps anyone can follow. He is also exploring how AI is reshaping crypto infrastructure and marketing, but his goal stays simple: help people enter and use the world of digital assets more smoothly and safely, without hype but with both trust and practicality.