How to Exchange Cryptocurrency for Real Money?

WhiteBIT
Published 08 March 2023
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How to Exchange Cryptocurrency for Real Money?

Cryptocurrency converting means buying or selling digital assets for crypto or government currency. This can be done through centralized or decentralized cryptocurrency exchanges, crypto ATMs, or P2P platforms.

In this article, we will discuss exchange platforms, factors to consider when choosing them, and how to exchange digital assets for WhiteBIT.

Where to convert cryptocurrency

Centralized cryptocurrency exchanges

Cryptocurrency centralized exchange (CEX) is a platform where users can buy, sell and exchange crypto online. CEX works similarly to the stock exchange but with cryptocurrencies as the underlying assets.

A centralized exchange is so called because it has a “central governing body” as an intermediary between users who want to make a deal with cryptocurrency. The exact storage of cryptocurrencies takes place on the cold and hot wallets of the exchange.

Most of these exchanges support fiat currencies, allowing users to fund their accounts with fiat currency via wire transfers or other means.

Decentralized cryptocurrency exchanges

Decentralized cryptocurrency exchanges (DEX) provide access to digital assets without intermediaries. DEXs offer P2P asset exchange using blockchain technology. In particular, DEXs use smart contracts to make trades.

Unlike CEX, decentralized platforms are non-custodial. That is, users themselves are responsible for their private keys when making transactions.

An example of a decentralized exchange is WhiteSwap. Here you can buy assets without verification.

Cryptocurrency exchanges

A cryptocurrency ATM is an exchange that allows you to buy and sell cryptocurrencies such as BTC or ETH for cash, debit cards, and other payment methods. However, this method of converting cryptoshas significant drawbacks. Here are the main ones:

  • High fees. Crypto ATMs often charge higher fees than exchanges;
  • Limited choice. ATMs offer a small selection of cryptocurrencies;
  • Limited amounts. Crypto ATMs have a limit on the amount that can be bought or sold. This can be inconvenient, especially for large transactions;
  • Insufficient availability. They are limited in number and may be far from your location.

P2P platform

Direct P2P cryptocurrency exchanges allow you to exchange crypto directly from another person without the participation of a centralized authority. In this case, the platform is a guarantor of the security of the transaction.

A good example is Bitcoin Global. This is another product of the WhiteBIT ecosystem. To get started on the platform, you only need an email address. After signing up, you can post your ads or respond to others. The buyer pays the seller directly without the participation of the platform. At the end of the trade, both traders leave feedback to each other.

However, the conversion can take longer than on a centralized exchange. This is because you must look for a counterparty with suitable conditions for the transaction.

How to choose a cryptocurrency exchange platform?

Fees

Cryptocurrency exchange sites charge fees when depositing, exchanging, trading, or withdrawing funds. Fees range from 0% to 5%, depending on the exchange, payment method, network congestion, and transaction type. For example, on WhiteBIT, trading fees do not exceed 0.1%.

Reliability

Cryptocurrency exchanges are vulnerable. Therefore, it is wise to avoid storing or exchanging cryptocurrency on platforms with a history of cyberattacks or theft. Most crypto exchanges offer basic security features such as two-factor authentication.

At WhiteBIT, we store 96% of our assets in cold wallets and use Web Application Firewall (WAF) to detect and block hackers, so your funds are safe.

In addition, the platform has been audited by Hacken.io, a leading cybersecurity service provider specializing in blockchain technologies. According to an audit by Hacken.io and the CER.live certification platform in 2022, WhiteBIT meets the highest security requirements and is one of the top three exchanges regarding reliability with a high AAA rating.

Cryptocurrency conversion speed

The cryptocurrency conversion rate refers to the time required to complete a transaction related to crypto exchange for fiat or another asset. Several factors can influence this. For example, network congestion, transaction processing time, and the speed of the cryptocurrency exchange platform.

Centralized exchanges typically offer faster conversion compared to decentralized exchanges. It happens due to their centralized nature and ability to process transactions faster. However, decentralized exchanges offer greater security and control over assets and the ability to trade without intermediaries.

When choosing a cryptocurrency exchange service, it is essential to consider the conversion speed and the trade-off between security, control, and transaction processing speed. Some cryptocurrency exchanges also offer instant conversion options for selected cryptocurrencies. It can be useful for traders who need to make trades quickly.

Easy-to-use crypto trading calculator

When selecting a platform for exchanging cryptocurrencies, you should also consider the ease of use of the trading calculator. A good crypto convert calculator should have a user-friendly interface and provide clear and accurate information such as cryptocurrency exchange rates and trading fees. It should also be updated in real-time to reflect the latest market data.

Some popular crypto convert calculators such as CoinTracking, BlockFi, and CryptoCompare offer a range of features and customization options to meet the needs of different users. Considering a crypto valuation calculator, pay attention to its ease of use, accuracy, and range of features it provides.

Limits

A cryptocurrency exchange platform limits the number of assets bought or sold within a certain period. These restrictions are in place to prevent fraud, money laundering, and other malicious activities. Limits may vary depending on the exchange and user verification level.

There are usually two types of limits: deposit and withdrawal of cryptocurrency. As a rule, they are based on such factors:

  • Location. Some countries may have regulations that limit the number of cryptocurrencies that can be bought or sold;
  • Payment method. Deposit and withdrawal limits may vary depending on the payment method used, such as debit card, bank transfer, or cryptocurrency transfer.

Reserves

Cryptocurrency exchanges hold reserves of various cryptocurrencies to provide their users with sufficient liquidity to buy and sell. These reserves are also used to pay for expenses incurred by the exchange, such as salaries, rent, and marketing.

The size of an exchange’s reserves can significantly impact its stability and security. A large reserve reduces the risk of running out of funds during periods of high demand and also provides greater protection against hacking and theft. However, it is essential to note that large reserves also represent a concentration of risk, as the value of reserves can be affected by fluctuations in the cryptocurrency markets.

It is also worth noting that some cryptocurrency exchange sites may artificially inflate their reserves using fake trading to increase the trading volume on their platform. This can give the appearance of greater liquidity and stability. This is an alarm for potential users.

When choosing a cryptocurrency exchange, it is critical to consider the size and composition of its reserves and reputation. Also, check the exchange’s publicly available financial and reserve information, and consider contacting the exchange’s customer support team to learn more about the exchange’s operations.

How to convert crypto to cash on WhiteBIT: a step-by-step guide

Step 1. Signing up on the exchange

For converting crypto to cash or other assets, you must have an account on the exchange. Haven’t you signed up for WhiteBIT yet? Here’s how to do it:

  • Click “Sign up” in the upper right corner of the platform;
  • Enter your email address and a strong password in the appropriate fields;
  • Check the boxes to confirm that you agree to the WhiteBIT User Agreement, Privacy Policy and are neither a citizen nor a resident of prohibited countries and territories;
  • Pass CAPTCHA;
  • Verify your email address with a one-time security code that was sent to the specified address;
  • Use your credentials to sign in to your account.

That’s all. A few minutes, and you have an account on the exchange.

Step 2. Identity verification (KYC)

You must pass identity verification to gain access to all the platform features. This procedure helps us protect our users’ data. See how to do it:

  • Select your nationality and country. Make sure you select a country from the allowlist;
  • Fill out the form indicating your data: name, surname, gender, date of birth, and address of residence;
  • Select an identity document. Three options are available: ID card, passport, and driver’s license. Choose the most convenient way for you and upload the document;
  • Take a selfie. This simplifies and speeds up the verification process. All you have to do is turn your head from side to side as the interface instructs. This can be done through the application and desktop version;
  • Complete the identity verification process by turning on two-factor authentication for added account security.

Citizens of Ukraine can also verify their identity using the state portal Diia. In this case, the portal will provide your data independently, and it will take only 2–3 minutes to wait for the exchange’s decision. After processing the documents, the user can perform all the necessary operations without restrictions.

Step 3. Make a deposit

To start trading, you need to have funds on your balance. Here’s how to do it:

  • Go to the “Balances” tab and select “Main”, then click “Deposit” next to the desired digital asset;
  • In the case of state currencies, choose one of the available payment systems, indicate the amount you want to deposit and fill in the appropriate fields;
  • For cryptocurrencies, select a network and use its address on the sender page.

The minimum deposit amount depends on the chosen currency.

Step 4. Exchange cryptocurrency for dollars or another currency

Buy cryptocurrency with national currency or exchange one digital asset for another in seconds. How can you do that? Let’s do it together, step by step:

  1. Sign up for the WhiteBIT exchange and confirm your identity, or log in to your account if you have already verified it;
  2. In the “Trade” section, open the “Convert” page;
  3. Select the asset you want to “Give” and the asset you want to “Receive.” Exchange any assets for any others. This function can be used at the current rate at the time of exchange with no hidden fees;
  4. Specify the necessary asset amount. The sum you’ll get and the one you’ll give will be displayed in USDT equivalent for convenience. The system fixes the rate every 10 seconds, after which you need to update the offer by clicking the button. You will see the current rate. Click on the “Continue” button to complete the transaction;
  5. If you don’t have enough assets for the exchange, click the “Deposit” button and top up your balance. After that, return to the “Convert” page and continue;
  6. After the exchange, you can go to the assets you exchanged by clicking the “Go to balance” button. Check the info about previous transactions in the “History” — “Convert” section.

Learn more about how to buy cryptocurrency in our article.

FAQ

Yes, you can exchange your digital assets for government currency at WhiteBIT. And then withdraw it on your bank card.

It is an exchange that allows you to buy and sell cryptocurrencies such as BTC or ETH for cash, debit cards, and other payment methods.

If you want to exchange crypto fast, you can use our Quick Exchange option. In this case, you should only choose the pair. For example, you want to convert BTC to USD. Then put the number of assets you want to exchange in the corresponding field and click the Confirm button.

The electronic exchange of cryptocurrencies involves the exchange of one asset for another or the state currency.

To exchange the state currency for crypto on WhiteBIT, deposit the balance, go to the “Quick Exchange” section, select the desired pair and the amount of the asset you want to buy. Then click the “Exchange” button.

In the case of a quick exchange on the WhiteBIT exchange, you only need to select the desired pair and enter the amount you want to exchange. The exchange usually takes place within a couple of minutes. The conversion takes place at the current market price of the market order.

In the case of spot trading, you need to select the desired pair and place an order that matches your strategy.

To view your transaction history on WhiteBIT, log into your account on the exchange, open “Balances”, then click on the “History” tab in the upper right corner. You will see the history of operations on the stock exchange. To find the right one faster, you can filter transactions by currency, date, type, deposits, withdrawals, transfers, etc.

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