Whether you believe that the market has reached the bottom and are ready to ready to convert a percentage of your wealth into crypto, or you think it has further to go and are looking to get out of the market by the exchange of crypto into fiat. Either way, you need an efficient, low cost and secure way to get in and out of the market quickly when you need to. There is no doubt that when you need to make a move in crypto, whether it is to buy or sell you need to do it quickly and without any complications. So it pays to prepare those pathways to exchange crypto to fiat and back in advance so you are ready to move swiftly when the need arises.
There are few that would argue that any smart investor should have a proportion of their portfolio in crypto but exactly how much is up for debate and depends on who you ask. 1-30% seems to be the consensus but it is a hotly debated subject. But one thing that very few suggest is that you should not have any crypto investments today. So let's get started in finding out the best ways to exchange crypto to fiat and back again.
What are the most common issues that traders face?
Once you have some funds that are converted to crypto, then moving around the crypto ecosystem is a breeze, converting from one coin to another is easy and quick to do. But when it comes to exchanging crypto to fiat and back again things get more complicated, partly because most governments what to know who is doing that. So you are likely to be subject to KYC procedures, this is the requirement that exchanges and many other financial institutions have to comply with that stands for 'Know your customer'. As the name suggests, your government requires the exchange to get proof of your identity so that you can be traced later if it turns out that the money came from an illegitimate source or was used for some criminal activity.
This only applies when your funds are entering or leaving the government financial system when you exchange crypto to fiat or vice versa. Anyway, KYC requires hoop-jumping and takes time, so if you want to be prepared to buy and sell crypto when you want, it's best to get that out of the way before you need it urgently.
Another issue that you could face when trying to move fast to exchange crypto to fiat or vice versa is liquidity. In gene,ral that should not be a problem when moving from say, BTC to USD or USD to BTC. But if there are a lot of people trying to make the move at the same time, like in a crypto sell-off situation, or even a USD sell-off for that matter, there could be insufficient liquidity in the market or on your exchange to do the trade you want at the price you are buying or selling, or in some cases, if the trade is large, there may not be enough liquidity to complete the trade at all. So if you want to be prepared to take advantage of large moves and to be able to exit the market quickly in a large way, then it pays to have accounts with a number of high volume, reliable exchanges, and trading desks. And have the accounts ready to go and the KYC already done, or you could find yourself needing to exchange crypto to fiat or vice versa and not being able to make the move when you need it.
Where to go when you need to exchange fiat for crypto?
So if you want to be prepared to take advantage of big market moves and to avoid getting stranded in either crypto or fiat, start preparing now and open a few accounts with reliable, high liquidity exchanges and complete KYC with them so you are ready to make a move when the time comes.
Binance
- A major general-purpose exchange that supports a wide range of coins and has a high liquidity
Nexinter
- Part of the NextHash group of businesses is ideal for small and high-volume trades. Has the advantage of also having an OTC trading desk so for large trades you can just place the order, and the trade will be executed at a fixed price with low costs.
Kraken
- Another general-purpose exchange is good to exchange crypto to fiat and vice versa. It has high liquidity so is good for small to medium-sized trades.
BitMart
- If you deal in altcoins, this is one that you probably should have an account with to include the most obscure coins and tokens.
Why is using Nexinter a smart way of buying crypto?
So we have established that if you want to be able to exchange crypto to fiat and back again, especially if you are trading high volumes, it is wise to prepare in advance with some high liquidity exchanges. Not only that it is wise to have an OTC (over the counter) trading desk available to you to execute complex and large trades. Because Nexinter is part of NextHash you have the advantage of an exchange and trading desk in one account and with one KYC. Not only that there are other facilities that NextHash offers, they also have Singlularifty, an NFT trading platform for all of your NFT trades. In order to exchange crypto for fiat, you need to prepare and NextHash's Nexinter is the perfect partner to do that.
Join the crypto revolution, join Nexinter
So sign up today for your NextHash account to take advantage of the one-stop shop for NFT trading, crypto exchange, and OTC trading desk. Then next time you need to exchange crypto to fiat or vice versa you will have all of the facilities that you need at your fingertips to execute the trade.