Yesterday we talked about how to trade Ethereum, or rather Ether (ETH) since Ethereum is the blockchain. There are different options for doing that, but when it comes to cashing out … there are only a few plausible ways.
Here’s how to sell Ethereum for USD
1. Peer-to-Peer (P2P) Trading
Of course, you could always set up a personal deal with someone, and exchange your ETH for their USD. Whether you meet them on a forum, P2P trading platform or just Facebook, it’s still considered peer-to-peer trading.
We just don’t think it’s very appealing to sell ether this way, since doing a cash trade requires you to meet up with this person, who is quite likely a stranger. How do you know the location is safe, and how do you know this person won’t rip you off or rob you of your belongings? I mean, it might be a negative view of the whole thing, but this method of trading and selling ethereum seems so archaic. Not to mention dangerous, creepy, and just plain unnecessary.
2. Bitcoin ATM
The fastest and easiest way to cash out your Ethereum Ether is using a Bitcoin ATM. But not just any Bitcoin ATM. You must check for two criteria: 1. It must be a Bitcoin ATM that’s compatible with Ethereum. 2. It must be a Bitcoin ATM that can pay you in cash (almost 80% of US-based machines do NOT allow this!)
“Wait a minute,” you might be thinking. “Why would something called an ATM not allow me to withdraw cash?” Yeah, it’s a good question.
The Truth About Bitcoin ATMs
The truth is that only 20% of all Bitcoin ATMs actually allow you to cash out. Instead, they let you BUY bitcoin (and sometimes a few other cryptocurrencies) with cash, but the machines aren’t capable of feeding that cash payment back out. They’re one-way (unidirectional) only.
You wouldn’t be alone in thinking that a machine isn’t anything like an ATM if it doesn’t let you withdraw cash.
And yet, 80% of self-proclaimed Bitcoin ATMs don’t let you get cash, because it’s much more expensive to build and maintain a two-way (bidirectional) machine. There’s more complex hardware, more robust software, higher manufacturing and repair costs, and more armored truck services required.
What Can I Buy with Ethereum?
Ethereum (ETH) is considered one of the most flexible, practical, and sought-after coins in the crypto space. Because more than just a currency, Ethereum also represents an ecosystem of innovative, real-world applications. That gives ETH exceptional buying potential.
But more important than asking “where to sell Ethereum,” the more pertinent question is “WHAT can you buy when you do?”
If you’re interested in the crypto game, you can trade your ETH for other assets like Bitcoin (BTC) or Litecoin (LTC). Seasoned traders can utilize the volatility of these coins to make big profits in just a single day. The advantage of doing this is that ETH is a wildly popular cryptocurrency, so you should have no trouble trading it in the market.
Alternatively, you can also use your ETH to get into an initial coin offering or ICO. This is where you can buy early coins from a new cryptocurrency at a discounted price. If it takes off, you can look forward to big profits.
Whether you’re looking to trade or participate in an ICO, you need to realize that doing so is very risky. As we mentioned, cryptos are incredibly volatile. The coins you bought with your ETH could drop in value in a span of just a few days, effectively losing you your investment.
However, for most people, the most attractive option is to exchange ETH for fiat money, like the USD. Doing this is straightforward as most reputable exchanges offer this option. Registering is easy, and they can credit the cash payment straight to your bank account.
There are also debit cards that enable the linking of your ETH wallet. It allows you to use your ETH directly as you would any debit card without exchanging it for cash.
You can also utilize ETH for apps in the Ethereum blockchain. Or you can get into the latest NFT (non-fungible tokens) craze and buy digital art pieces with your ether.
But what many people don’t know is that you can also spend your ETH on various goods and services in the real-world (and not just apps in the Ethereum blockchain). We’ll cover some of these in the next section.
How to Spend Ethereum
Before you figure out how to buy and sell Ethereum, you might want to know first where you can spend it. We covered in the previous section that you can use it for apps and assets in the Ethereum marketplace.
But as we said, there are also real-world businesses that accept ETH directly. So while it’s surprising that big businesses like Amazon don’t accept cryptos yet, there are plenty of perfectly legit companies that do embrace it.
For example, e-commerce platforms Shopify and WooCommerce allow stores to accept ETH payments. Thus, you can use your ether to pay for online purchases in many of their stores.
Some independent online retailers and marketplaces also offer ETH payments. A good example is Gipsybee.com, which sells various electronic gadgets, clothing, and sporting goods. In addition, peer-to-peer marketplaces like OpenBazaar are also popular for facilitating buyer and seller exchanges with cryptos.
Going beyond products, you can also use ETH to avail of services. CheapAir.com, for instance, is a one-stop search platform for all vacation needs from airfare to hotel bookings. They accept the majority of cryptocurrencies, including ETH.
ETH is also getting into the luxury travel segment. Airstream Jets is a company that allows you to book a private jet with crypto payments. Fancy riding a yacht? You can book one using ETH at Boatsters Black.
ETH is also useful for subscribing to digital services or even hiring staff if you own a business.
For instance, you can get web hosting services such as Hosting.co.uk and Coinhost with ether. For custom merchandise for marketing purposes, Print-ted will print one for you in exchange for ETH. And if you need help with your business, you can hire freelancers with ETH at Ethlance.
A gamer at heart? You can use ETH to play interesting games… and even potentially profit from it. You can often buy in-game assets like NFTs in these games and then sell them for profit. Some, like Crypto Games, enable players to bet on casino games with ETH.
Lastly, you can also purchase goods and services from an individual using ETH. This is made safer thanks to Ethereum’s smart contracts technology. The contract terms can be digitally enforced before payments are released for either party, without the need for a lawyer or bank.
This wealth of options makes ETH investments a very attractive proposition not only because of the profit you can earn but also the privileges you can get.
When is it Right to Sell Ethereum?
So, far we’ve covered all of the great things you can exchange your hard-earned Ethereum for. But what we haven’t covered is the when; specifically, what should you do right now with Ethereum – sell it or hold on longer?
The problem with cryptos like Ethereum is that their prices move wildly, more so than any other asset type. It’s common for a crypto’s value to increase by several points, often within a single day. Thus, it’s often difficult for a beginner to know when’s the right time to sell.
A rule of thumb is that if you’ve already reached a decent profit margin on your investment, it might be a good time to sell. This enables you to “lock-in” your profit by converting it into a stable fiat currency like the USD.
It might also be a good practice to allow for a bigger profit margin, ideally around 3X to 4X your original investment. This will enable you to ride out any short-term volatility when you cash out and still hit a nice profit gain. Also, don’t forget that you should also account for taxes and fees, making having enough margin all the more important.
On the other hand, if you have a longer-term outlook or have a relatively smaller amount invested, holding on to your ETH might be a good move. The idea is that you weather out any short-term price swings and still gain substantial profit in time.
However, be prepared to wait for years to maximize this strategy. It also counts on the fact that Ethereum will continue to be a popular and valuable platform in the years to come. While recent news makes this highly likely, anything can happen, so you need to consider this in your strategy.
But whether you decide to sell or hold on to your ETH, it helps to accept the fact that you can lose your investment. Preparing for this mentally can help alleviate any potential stress that a loss can bring.
How Difficult is it to Sell Ethereum?
Once you’ve decided to sell Ethereum, the good news is that the process is relatively straightforward.
The main way you do this is through crypto exchanges. Now, if you’re holding to any ETH, chances are you’ve already bought from these platforms before. So the process of selling it is similar, only in reverse.
A big challenge with selling ETH, however, is the price. We all know that ETH is volatile, so you need to consider these price swings and time it for the best price in your favor. Getting your desired price isn’t guaranteed either, as it depends on the number of willing buyers who will agree to your deal. Exchanges can also introduce some delays, which can help to time the best price difficult.
Thus, while selling in exchanges is trivial, getting the best out of it does require a bit of expertise and market savvy. An alternative is to sell through informal channels like peer-to-peer. The process can be faster (as long as you find a willing buyer right away). However, it’s riskier since no central authority governs the exchange.
For novices who don’t want to delve into exchanges, a fantastic option is crypto ATMs. These machines also offer the easiest way to cash out; it’s just like using any other ATM. However, a big caveat is that many crypto ATMs don’t allow cash payments. Some even don’t accept ETH! So if you’re lucky enough to find one, selling ETH becomes quite effortless.
So the bottom line is that selling Ethereum is only difficult as you allow it to be. Thankfully, you have many alternatives if you don’t want to dabble in the complexities.
Trust a Coin Cloud BTM
But guess what? 100% of Coin Cloud Bitcoin ATMs are two-way, AND they let you cash out your Ether (plus 30 other currencies).
Coin Cloud is the compliance leader, so all your transactions are safe. If you need help or have questions, our best-in-class customer service team is available 7 days a week.
Disclaimer: The information and views supplied on the Coin Cloud blog are for educational and entertainment purposes only. We are not financial advisors, so please do your research and consult with a trusted financial specialist before investing your money.
Founded in 2014 in Las Vegas, Nevada, Coin Cloud is the leading digital currency machine (DCM) operator. With over 4,500 locations nationwide, in 48 states and Brazil, Coin Cloud operates the world’s largest and fastest-growing network of 100% two-way DCMs, a more advanced version of the Bitcoin ATM. Every Coin Cloud DCM empowers you to quickly and easily buy and sell over 40 cryptocurrency options with cash.
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