How to convert cryptocurrency into fiat in Russia
Sooner or later all cryptocurrency owners face the need to withdraw money, as digital assets are rarely accepted as a payment means. How can users convert cryptocurrency into fiat and using which tools simplify the process?
It’s no big deal to purchase or mine cryptocurrency today. Cashing out and converting digital money into fiat is a more difficult task. Especially, it refers to countries that try to restrict or control cryptocurrency circulation. Nevertheless, there are now legislative hurdles for the Russian residents, so there are ways of converting cryptocurrencies to fiat. Every method has advantages and disadvantages.
Cashing out cryptocurrencies through exchanges
Users can buy, sell, or exchange digital currencies on special cryptocurrency exchanges that stand out for integrity and can guarantee safe storage of funds. Reliability and popularity are the main conditions for working on an exchange: users trust top-class, trusted portals with positive reviews from traders. Most of the popular platforms do not work with fiat money, allowing users to exchange one cryptocurrency for another but not to withdraw it.
However, some exchanges with stable rankings provide cash out services, for instance, Poloniex, EXMO, or famous Russian YObit. They are very convenient to cash out Bitcoin or Ethereum, as these digital currencies are the most popular.
After registering on an exchange and refilling an account, a user can place an order to exchange cryptocurrency for fiat. When a buyer responds to the order, a deal is concluded – the seller receives fiat money to his account and can withdraw it. Different exchanges support different withdrawal methods, but all of them take fees.
Advantages of withdrawing a cryptocurrency through an exchange:
- trustworthiness of ranked portals;
- the possibility of lower fees for loyal customers;
- technical support.
Disadvantages of working with an exchange:
- high fees (sometimes double – for closing the deal and withdrawal);
- verification is required for withdrawal of big sums.
Exchange offices and converting cryptocurrencies into fiat
Apart from exchange markets, there are exchange offices – simple online resources intended to exchange various cryptocurrencies including for fiat.
Similar to exchange markets, users can choose exchange offices using rankings, for instance, bestchange.ru. All exchange offices in the cryptocurrency market differ by several parameters: rate, fees, withdrawal speed.
In the case of a profitable rate of exchange, the service may take high fees, so users should calculate everything carefully. Sometimes an extremely high fee levels out the advantage of the high exchange rate.
Most of the exchange offices support QIWI, WebMoney, Yandex. Money and the possibility of transfers to a bank card. Services also differ by the range of cryptocurrencies on offer.
The withdrawal process is usually simple: a user should leave an application with his data and wait for execution. It is important to carefully check information and feedbacks about the service not to pay hidden charges and not to use an unreliable service.
Advantages of exchange offices:
- the simplicity of use;
- high transaction speed.
Disadvantages of exchange offices:
- the highest fees as compared to other methods;
- exchange offices do not always have funds for cash out.
Withdrawal through WebMoney
WebMoney electronic payments service introduced cryptocurrency wallets back in 2013. WebMoney became the first system of the kind that started to support Bitcoin officially. In such a way, users received a possibility to convert cryptocurrency into fiat using their personal profile. To create a personal cryptocurrency wallet (WMX) with WebMoney, a user has to undergo the identity verification procedure by providing a scan of ID. It is a standard procedure for all users of the service.
The scheme is quite simple: if a user already has created and verified a WMX wallet, it will be enough to specify the cryptocurrency address. After the confirmation is completed (six steps), money hit the account – Bitcoins turn into WMX, a title unit equal to 0.001 ВТС. Users can convert WMX into fiat using any available WebMoney method.
Usually, the procedure takes from several hours to a day, but users can speed it up by paying a higher percentage of the amount. The commission rate is usually higher than on exchange markets but lower than at exchange offices.
Advantages of withdrawing Bitcoin through WebMoney:
- system’s reliability (high level of protection);
- reasonable fees;
- the simplicity of use.
- compulsory identity verification procedure;
- exchange time – up to one day;
- higher fees for speeding up the transaction.
There is another the riskiest and least reliable way of converting a cryptocurrency into fiat – exchange with individuals. Users can find crypto buyers using specialized forums. However, there are no guarantees. This exchange method is attractive due to the lack of fees and a possibility to sell assets at a profitable price, but risks are high as well: in case of fraud, a user can lose all money and it will be hardly possible to return funds.
Exchange markets and offices are more reliable and in most cases tested by thousands of other users whose feedbacks one can find on the web. At the same time, each tool has advantages and disadvantages that should carefully considered before converting cryptocurrencies into fiat money.