When people first came to know about bitcoin, the world’s first most popular decentralized digital currency, not many took it seriously. Little did they know that digital currencies like these would take over the world in the coming years. Even though many countries have not officially accepted cryptocurrencies like Bitcoin, Ethereum, Litecoin, and others as a legal currency, it has not stopped people from getting their hands on these seemingly-profitable digital investments.
If you’re in India and hold a pretty impressive crypto profile, you might face a common challenge in most retail outlets, i.e., purchasing anything using cryptocurrencies. Whether you’re taking your family out on a dinner or willing to purchase something from any online/offline retailer, you cannot offer cryptocurrency to pay the bills, as most merchants don’t accept it yet.
So how exactly can you use your cryptocurrencies to purchase anything? The answer is simple, by converting it into an Indian rupee. For example, if you hold bitcoins, you will have to convert your btc to inr. Even if you don’t want to buy anything, you can still cash your cryptocurrency to use it the way you want by getting it deposited in your bank account.
Process of Converting Cryptocurrencies into INR
Irrespective of the cryptocurrency you own, you can convert it into INR by any of the following methods:
Crypto Exchange or Crypto Broker
The sudden surge in popularity of cryptocurrencies gave rise to several cryptocurrency exchange platforms in India and abroad alike. These exchanges facilitate the easy buying and selling of digital currencies and can also be used to convert the digital tokens you hold into the currency of your choice.
You have to pick a reliable crypto exchange platform or a broker where you can deposit your cryptocurrencies and ask for a withdrawal. When you use exchanges or brokers to cash out cryptocurrencies, you’ll have to pay a fee on the transaction. You will also be subjected to pay tax on the cryptocurrency amount you converted to INR.
Some people believe that since there is no regulatory framework around cryptocurrency and it still falls in the grey area, they don’t have to pay taxes on it – which is a myth.
When you use any exchange to deposit and convert cryptocurrency into cash or INR, you will have to pay the transaction fee and taxes (while filing your returns). If you’re new to the crypto exchange space, go ahead with exchanges that bear a good reputation in the market, like Coinswitch Kuber.
Transactions and conversions are secure on crypto exchange platforms, but you may have to wait for the transfer to get completed. The duration and conversion fee vary from one exchange platform to another, so you’ll have to check these details based on the platform you’ve shortlisted.
Another point to note if you’re cashing out cryptocurrencies via brokers is the money laundering restrictions imposed on brokers. You will be asked to withdraw the converted amount to the same bank account you used to make a deposit.
A peer-to-peer platform is ideal to cash out cryptocurrency if you want to maintain anonymity. Say for example, if you want to convert eth to inr via a peer-to-peer platform, you can sell your cryptocurrency directly to a buyer available on these platforms. Though these platforms charge a comparatively lower fee, you have to be careful of the fraudsters available online.
A great way to save yourself from a potential scam is by signing up on a peer-to-peer platform that locks your crypto and releases it to the buyer only when you confirm the receipt of the payment in your bank account. You can also ask the buyer to send his ID proof to reduce any chances of entering into fraudulent transactions.
Bitcoin Debit Cards
You can find websites that allow users to sell Bitcoin in exchange for a prepaid debit card. These debit cards are powered by either Mastercard or VISA and can be used like any regular debit card. You can use these Bitcoin debit cards to make purchases online/offline and also withdraw cash at ATMs. It is an excellent way to cash out cryptocurrency, but it’s only downside is the limited cryptocurrency option.
This method can be used to cash out only Bitcoin and no other cryptocurrency. So if you hold a diverse crypto profile, including the likes of Bitcoin, Ethereum Litecoin, or any other cryptocurrency, you can choose any of the above two methods. But for Bitcoins alone, you can consider getting Bitcoin debit cards for ease of use and withdrawal.
Other Important Points to Consider
Besides these three methods, you can also find direct buyers of cryptocurrency who will make a direct transfer to your bank accounts. But you have to be vigilant/careful of scammers. Another point of prime importance is choosing only trusted and well-established exchange platforms or brokers in the market for secure, hassle-free, and worry-free transactions and conversions.
Now that you’re aware of all possible methods to convert your cryptocurrency into INR, you can choose the method perfect for you and proceed. If you cannot pick a reliable exchange and are looking for a trusted name in the crypto space, go ahead with Coinswitch Kuber.
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