In this article, we are about to consider how to convert stablecoins into fiat in a safe, fast, and efficient way. Stablecoins (USDT, USDC, BUSD, etc.) are very important for the cryptocurrency ecosystem, but sometimes it becomes necessary to cash out for one reason or another. There are several various conversion methods that differ in their nature, user requirements, fees, and other parameters.
How to Swap Stablecoins for Fiat Money: 7 Ways to Know
#1 Exchange Platforms
Some exchanges (Binance, FTX) have fiat accounts, so it is possible to simply exchange a stablecoin for fiat via a trading terminal or an instant conversion. And then, users may withdraw fiat to a card or payment system using available methods.
If an exchange does not support fiat accounts (Bybit, Huobi, OKX, MEXC), then there is an option to receive dollars, hryvnias, etc., via a built-in p2p platform.
Examples:
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- Binance
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- OKX
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- Bybit
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- Huobi
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- MXC
#2 P2P Exchanges
P2P exchanges stand for peer-to-peer platforms. Their essence is reminiscent of a bulletin board when some traders place offers, and others respond to them. It is convenient that traders accept payment directly to their personal wallets and cards and choose for themselves which method of receiving payment is convenient for them. Commissions are usually minimal or non-existent, but the rate may be slightly higher than in the spot market.
Examples:
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- Binance P2P
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- Bybit P2P
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- OKX P2P
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- Huobi P2P
#3 Crypto Exchangers
Exchangers offer, perhaps, the freest choice of exchange directions, supporting dozens of crypto assets, banks, and payment systems. There is also an opportunity to sell stablecoins for cash if you visit the office. No identity verification is required. The exchange is carried out quickly, but it is important to indicate the correct details and have time to pay for a created order within a limited time.
#4 Telegram Bots
Some exchangers and P2P exchanges, in addition to a website or mobile app, provide the ability to make a quick exchange using telegram bots. The nuances can be different — some bots require creating an account, while others allow you to work without it. The bot is controlled by pressing buttons in a chat window, thereby selecting the desired operation step by step.
#5 Payment Systems
Electronic payment systems allow you to effectively manage finances, in particular, exchange currencies between internal accounts or buy/sell cryptocurrencies with their help. Some platforms have crypto accounts (including stablecoins), while others have only fiat accounts. Still, you can sell crypto by getting paid on your balance.
#6 Cryptocurrency Wallets
Some custodial and non-custodial crypto wallets are equipped with a built-in exchanger, which allows you to convert stablecoins or other digital assets into fiat immediately from storage, and this is quite a convenient option. Please note that commissions may be higher since their size depends both on the wallet’s own fees and on the conditions of partner exchangers.
#7 Crypto ATMs
These machines are similar in appearance and function to ordinary ATMs or trading terminals, but they work with cryptocurrency. This option is worth considering for its convenience and the ability to get money from the withdrawal of stablecoins in cash.
After you have decided that you want to buy Bitcoin with cash using an ATM, you will need to find one closest to you. Here is a convenient map with 1200+ Bitcoin ATMs all over the world, which will help you to find some ATMs close to your home location
Prospects for Stablecoins in 2022
The collapse of an algorithmic stablecoin, TerraUSD (UST), in May 2022 triggered a general decline in confidence in stablecoins. Moreover, Tether (USDT) broke away from the dollar peg for a short time and then quickly restored it.
If you’re wondering where to buy USDT, you should definitely think about buying it at Switchere. On our platform, you have an opportunity to buy USDT in the fastest and most convenient ways using any available payment method. Moreover, we offer some surprising bonuses! Users of our platform enjoy a 0% service fee for the first order.
Algorithmic stablecoin projects have tried to gain regulatory acceptance and have done poorly due to the high risks in value pegging mechanisms. When UST’s algorithmic peg mechanism came under speculative pressure, the company’s cryptocurrency reserves weren’t enough to support it.
Recent developments are likely to lead to increased regulation of stablecoins. US Treasury Secretary, Janet Yellen, has already noted that the event shows the importance of an appropriate regulatory framework for stablecoins. In Europe, the installation of regulatory measures is nearing completion, according to which the issuance of stablecoins must be controlled by banks and provided with appropriate reserves.
At the same time, secured stablecoins have their own set of issues, which differs from algorithmic ones, in particular, the safety and liquidity of reserve assets, transparency of reserves, legal rights of holders, management, and operational risks.
Investors losing confidence in stablecoins will greatly affect the entire cryptocurrency sector. However, not everyone is so pessimistic. Given Terra’s mistakes, other projects will be able to improve the quality and security of their tokens.
Conclusion
We have considered the key ways to easily convert stablecoins into fiat and get real money on a card or electronic wallet. Whether it is worth keeping funds in stablecoins or it is better to withdraw them into a traditional currency is up to you, based on your personal needs, as well as the situation in the cryptocurrency market. In any case, stablecoins are an important element of the crypto market, without which it is almost impossible to imagine the blockchain industry, trading on exchanges, and other aspects. Therefore, the sphere will develop and improve.
Do you invest in stablecoins? Feel free to share your experience in the comments below!
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