If you want to know how to exchange stablecoins for fiat, then look no further. In this article, we will go through where and how to exchange your stablecoins for your national currency. But first, it is important to understand what a stablecoin is.
Stablecoins were initially created and launched by exchanges such as Bitfinex and Gemini to provide traders with a stable asset to use as a placeholder to store value between trades. There are currently two types of stablecoins: centralised and decentralised. The supply of centralised stablecoins – such as Tether – is controlled by a central company, whereas the supply of decentralised coins like MakerDAO is controlled by transactions and market movements.
All stablecoins allow users to switch from one crypto to another in a fast and efficient manner. By exchanging cryptocurrencies this way, the user will also not lose too much value due to the volatility of the market. Stablecoins are usually linked to a fiat-based asset such as USD or EUR as fiat currencies are much more stable than crypto.
How to exchange stablecoins for fiat
Now you have a better understanding of what stablecoins are, you will need to know where you can exchange them for fiat. There are hundreds of cryptocurrency exchanges currently on the market, but not all of them support stablecoins. Many exchanges allow users to exchange stablecoins such as Tether for other cryptocurrencies. However, not many allow users to cash them out for the fiat currency of their choice.
Gemini is a licensed digital asset exchange for both institutions and individuals. Based in New York, Gemini boasts a reputation as one of the most reputable exchanges in the cryptocurrency space. It focuses on regulatory compliance and customer security, and the exchange offers a competitive structure fee that allows users to deposit and withdraw USD free of charge. Gemini allows users to cash out the Gemini Dollar – its native stablecoin – via wire transfer.
Bitfinex is another cryptocurrency exchange that allows users to convert their stablecoins into fiat currency. Launched in 2012, it is one of the oldest exchanges available and boasts high levels of volume and stability. The exchange allows users to withdraw USD directly to a bank account. This withdrawal feature means stablecoin owners can cash out their coins to fiat whenever they wish to do so.
Stablecoins will always be valued and needed in the cryptocurrency space. With the market being so volatile, it is important traders know they can withdraw their profits whenever they wish. With these exchanges, users can do so with ease in the knowledge that their money is secure.