So you might be eyeing taking advantage of the crypto space and wondering, “how do I purchase tokens or coins?” “where do I buy crypto?” or “how do I convert crypto back to cash?”
It’s a simple process, but also can be a bit of a tedious one depending on what country you’re in.
However, the process looks like this:
On Ramp => Exchange => Purchase Tokens => Transfer To What You Want To Invest In
Off Ramp => Send Token Back To Exchange/Protocol => Convert To Currency => Send To Bank or Card
There are some exceptions where you can use a debit or credit card connected to your exchange.
However, let me give you a few exchanges that you can use to safely and easily purchase crypto and tell you how you can get the funds back out when you need them:
1. Coinbase – The largest crypto exchange in the U.S.
2. Binance – Another large exchange with a wide selection of coins
3. OkCoin – Easy to use and beginner friendly
4. FTX.com– Exchange with advanced features for traders
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Read these reviews to determine which exchange suits you best:
Best Crypto Exchange: Binance vs KuCoin Review & Comparison 2022
Best Crypto Exchange : FTX vs Coinbase Review & Comparison 2022
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There are others you can also use such as Moonpay, Kucoin, and more. However, there are restrictions for those in certain countries.
The tricky part is what you want to do with the coins after you purchase them. If you’re just looking to buy some BTC or ETH for long term holding, then there isn’t much else you need to do.
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But if you’re looking to get funds into a DeFi project, then the process can be a bit more tedious. You can read more about it in my Free Beginners Guide to Cryptocurrency and DeFi.
Now, once you have those tokens and you wanted to get funds back into your bank account, you could reverse the process or you could take out a loan on your crypto or stake your crypto to earn yield.
Using a platform like Nexo.com allows you to do this. One benefit of this is since you’re not exchanging that crypto back into fiat, you could possibly avoid capital gains tax.
Another benefit is that you don’t sell your crypto. So you still own it while you pay the loan back and the loan repayment is peanuts compared to most other loan terms. If you choose to stake your crypto, you can earn yield. Yield % varies depending on a coin or token you are staking.
However, you need to be cautious of not borrowing too much against your crypto and getting liquidated. (I’d personally convert to USDC for this option).
Also, you need to consider potential risks associated with staking coins on ANY centralized crypto platform.
Remember:
Related:
Risks of Anchor Protocol vs. Nexo, Celsius, BlockFi | Are Crypto Savings Accounts Safe?
While this can seem a little intimidating, it really isn’t. You only need to go through the process a couple of times to get the hang of it.
Just make sure if you decide to transfer funds somewhere else, do a small test first to make sure you’re using the right networks.
This will save you a ton of heartache and lost funds.
Disclaimer: The information provided on this page does not constitute investment advice, financial advice, trading advice, or any other sort of advice and it should not be treated as such. This site does not recommend that any specific cryptocurrency should be bought, sold, or held, or that any crypto investment should be made. The Crypto market is high-risk, with high-risk and unproven projects. Readers should do their own research and consult a professional financial advisor before making any investment decisions. AliceBuzz.com does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is AliceBuzz.com an investment advisor. DYOR. Please note that AliceBuzz.com participates in affiliate marketing.
