How do you sell crypto and turn it into cash?

Yes, crypto can be converted to cash. The usual way is to sell it on an exchange for dollars or another national currency and then withdraw the money to a bank account. Peer-to-peer trades and some bitcoin ATMs offer other routes.

How does selling on an exchange work?

1. Move the coins to the exchange. Coins held in a private wallet first have to be sent to a deposit address the exchange provides. This costs a network fee and takes time to confirm.
2. Place a sell order. A market order sells at once at the best available price. A limit order waits for a price the seller sets and may never fill. The guide to crypto trading explains both.
3. Receive a cash balance. The proceeds appear in the account as dollars or another currency.
4. Withdraw to a bank. The money goes to a linked bank account. Depending on the payment method, this takes anywhere from minutes to several business days.

What other ways are there to cash out?

• Peer to peer. A buyer pays the seller directly by bank transfer or in cash, often through a platform that holds the coins in escrow. The main risk is a payment that is faked or later reversed after the coins have gone.
• Bitcoin ATMs. Some bitcoin ATMs pay out cash for crypto. They tend to charge high fees and set low limits.
• Broker and payment apps. Coins bought in such an app can generally be sold there, with the cash landing in the app balance.

What does it cost, and are there limits?

Selling carries the same kinds of fees as buying: a trading fee, the gap between buying and selling prices, and often a charge for the withdrawal. Platforms also cap how much can be withdrawn in a day or month. The cap usually depends on how much identity checking, or KYC, the customer has completed.

New accounts and recent deposits may be subject to holding periods. Large or unusual withdrawals can prompt questions from the exchange or the bank, because both are required to watch for money laundering.

Is selling crypto taxable?

In the United States, yes. Under Internal Revenue Service guidance in force as of October 2026, digital assets are treated as property, and selling them for dollars produces a capital gain or loss that must be reported. Swapping one coin for another counts as well. The gain is measured against the original purchase price, so records of dates and amounts matter. The guide to US crypto tax has more detail.

Many countries tax sales in a similar way, but rules differ by country and state, and they change. The official tax authority or a qualified professional is the place to check a particular situation.