Several mechanisms make it possible to convert its cryptocurrencies into euros and / or dollars in order to use them easily in everyday life. Although the operation may seem tedious, in reality it is very simple and fairly quick to perform.
Going through an exchange platform
Step 1: Convert your cryptos into euros
Some exchange platforms offer you to directly exchange your cryptocurrencies in euros (or other FIAT currencies) to receive them directly in your bank account.
Note: This system also allows you to leave euros directly on the platform and avoid permanent exposure to price fluctuations. (Attention, a variable commission depending on the platforms is levied for each exchange).
Among the platforms that offer this possibility, there is Coinbase or Kraken that we mentioned in previous articles in this series. If you already have an account, feel free to use it. Keep in mind to consult the fees for each transaction and select the platform imposing the smallest commissions if you trade larger financial volumes.
Step 2: Send the euros to your bank account
Once your cryptocurrencies have been converted to euros, you can now send them to your bank account. To carry out this last step, you will have to carry out a KYC (know your customer), if you have not already done so when registering on said platform. The withdrawal functionality in euros may not be accessible without this operation. Carrying out your KYC consists of validating your identity with the platform in the context of the fight against money laundering in particular. This step is classic, it will ask you for an identity document and proof of domiciliation (water, gas, electricity or other supporting documents). With your KYC validated, you can now request the transfer.
Take the example of Kraken, which is ideal for this kind of operation, since the fees applied are very low (> 0.2% on average). You must go to “Funding” (“financing” in the header). Here you will find the list of your balances in the different currencies. To make the withdrawal, click on “withdraw” on the Euro (EUR) line. Then simply select the amount and the destination account. If you have not registered an account, you can do so at that time. Even if it will be slightly different, you will find the same mechanism on other platforms. A “sale” step, for example “Bitcoin / EUR” and a second step of withdrawing your balance in Euro, to your bank account.
Example of a balance visual on Kraken
Using the Neobanks
Neobanks are very present in the world of cryptocurrency. Converting cryptocurrencies using a bank card is the easiest way to spend them afterwards. Several bank cards will allow you to carry out this type of transaction: Wirex, N26, Revolut, crypto.com and many others.
In this system, Wirex is the simplest and most complete solution. Their solution lies in the gap between a cryptocurrency wallet and an online bank. Apparently, Wirex works like a traditional bank account, you can store your money, make transfers, pay with your credit card, … But several features are different. First it is a multi-currency bank, you can store fiduciary currencies (€, £, $, …) and cryptocurrencies (bitcoin, ethereum … 6 others) on the same account. In this way, you can spend your cryptocurrencies in all stores accepting payment by VISA card, Wirex takes care of the conversion for you (this service obviously incurs costs, but we will come back to this in a more complete article).
In addition, as a bonus, Wirex offers 0.5% cash back in bitcoin on your purchases. If you spend € 100 in a shop, Wirex pays you the equivalent of € 0.50 in bitcoin. It seems little, but cumulating and with the variation in the price of cryptocurrencies, it can prove to be interesting over time. [This cash back can go up to 1.5% if you keep WireX tokens, however …]