Crypto conversion

Cryptocurrency has become a popular medium of investment in the recent past, but its use has still not
reached anywhere compared to flat currency. In such a situation, to use them, they have to be
converted into cash.

Can cryptocurrency be converted into cash? Yes, of course, these are the ways

Cryptocurrency can be converted into cash.

In today's time, Cryptocurrency has become a popular medium of investment for the youth, however,
the trend of its use is nowhere in comparison to flat currency. There are only a few companies, which
are taking payment in crypto, otherwise, they have to convert crypto coins into cash to use them. The
good thing is that it is easy to convert.

However, investors have to keep many things in mind

while converting crypto to cash. The prices of virtual
currency go up and down very fast, so if you do not pay
attention then you may suffer loss. On the other hand,
if you want to invest in crypto without taking any kind
of risk, then you have the option of converting crypto
coins or tokens into cash.

 Cryptocurrency profits will be taxed

Whatever it is, know that if you are converting cryptocurrency into cash, then you will have to pay tax on
your profit. Yes, of course. It is true that cryptocurrency is not legal tender in India, there is no
regulation, but it does not mean that if you are earning profit from this investment, then you will not
have to pay tax on it.

Suppose you have to convert bitcoin into cash, this work will be done on the cryptocurrency exchange.
Whatever profit you make while converting will be taxed. At the same time, you will also have to pay the
exchange fee to the third party broker. It may take a day or two for the money to be transferred to the
account in this process.

 From exchange or broker

This is exactly the same as the currency exchange system at airports. You deposit your digital currency
here and the exchange or broker transfers the money to your account. However, since certain anti-
money laundering rules apply to brokers, you will need to transfer the money to the same account from
which you deposited it.

The problem with this method is that it takes a long time. Experts say that this is a safe method,
however, it takes time for the money to reflect in your bank account. The exchange also charges a fee
for the transaction and the fee may vary from country to country and from exchange to exchange.

1
  Peer-to-peer network
This method is faster and anonymous means secret.
However, it also has some risks, which we are telling
you. Direct link means peer-to-peer network means
that even by directly contacting another investor, you
can sell your virtual currency directly and get cash.
There is also an advantage in this that there is less
exchange fee in comparison to any other exchange. But
let us tell you that you have to be careful of fraud in
this method. Transactions in peer-to-peer networks
carries the risk that you are not transacting on the trust
of the exchange, in which case the entire responsibility rests with you.

If you are doing this transaction, see the ID proof from the person in front and make the payment before
transferring your crypto coins. You can use any peer-to-peer platform that will keep your coins locked
until the money is transferred to your bank account.