Cryptocurrency has become a popular investment choice for digital natives, but you can't exactly use it to pay for your supper on the daily.
As in, it can be done if you want to limit yourself to only a handful of options to choose from - not exactly something most of us would decide to do as long as there is an alternative. The vast majority of consumers will decide to convert their crypto into cash before they spend it. The good news is that it's getting easier and cheaper to accomplish.
In this guide we’ll look at how to cash out of crypto in Dubai. We’ll cover both large and small amounts of crypto.
Main ways to cash-out digital currency in UAE
There is no shortage of off-ramps from cryptocurrencies into cash these days, which is a great thing. There are various ways to cash out, so just choose the one that best meets your needs.
Regardless of what way you’ll choose, the primary criteria that you should look for in any cash-out intermediary are as follows:
- Profits are calculated based on the amount of fiat money exchanged for one cryptocurrency unit
- High level of trustworthiness, including the secure conversion and transfer of your funds
- Convenience, i.e. the ease with which the transaction may be completed and the amount of time it takes.
In Dubai, the following are the most common methods for withdrawing cryptocurrency:
- Withdrawal of funds through centralized, KYC’d exchanges
- Using exchange services and P2P markets to convert into cash
- Web Money payment system - it allows Bitcoin payments, thus you'll need an official WM Passport to setup a WMX wallet
- Over-the-counter deals (OTC) with private individuals
Each option has its own set of benefits and drawbacks, but one drawback is present pretty much acros the board: Money will be usually sent to your credit card. In UAE, you'll have to pay a tax for that, which might be rather substantial in the case of large conversion amounts.
Some other ways of selling cryptocurrency for cash in Dubai can help you reduce your fees and maximize profits on your crypto stash.
Cashing out cryptocurrencies in UAE
From the point of view of UAE-based business people, the utility value of cryptocurrencies is quite clear.
Big business people and ultra high net worth investors are the most common owners of cryptocurrency accounts. They feel it is better to conduct transactions through offshore accounts, where large sums of money may be moved tax-free.
Due to a variety of characteristics, the UAE is one of the most preferred offshore zones:
- The world's most dependable banking system for money safety and security.
- Cashing out money without restrictions, including transfers from US and Hong Kong exchanges to UAE accounts.
- Taxes and tax reports are not required of non-residents.
- Absolute transactional confidentiality.
- Stable political conditions.
You can use a peer-to-peer platform to convert your digital tokens into cash by simply selling it to another person. The advantages include a smaller fee and the possibility of a better exchange rate compared to a third-party brokerage.
But it's recommended that you ask for proof of ID and payment proof before releasing your cryptocurrency, especially if you trade with a counterparty for the first time ever.
OTC dealers like Coinsfera make it easier to buy and sell Bitcoin and USDT in Dubai because as companies, their reputation is always on display.
Coinsfera enables buying and selling bitcoin and other cryptocurrencies simple and secure. Whether you're looking to buy or sell bitcoin in UAE, we've got you covered.
Coinsfera charges a modest fee when using cash, and supports four currencies - AED, USD, EUR, and GBP. The process is simple for buying as well as selling.
If you want to start accepting crypto payments in your business, Coinsfera has a payment gateway and crypto POS machine that is first in the world to support over 100 cryptocurrencies. With a 0% fee, it can be used for global e-commerce and retail all over the world, not just in the UAE.
Crypto Debit Cards in UAE
Last way to mention in this guide on cashing out is crypto banking. In the UAE, it is now possible to get a prepaid bitcoin debit card.
Instead of maintaining your digital coin balance as an investment, you may use it like any other money to make ordinary transactions or withdraw it as cash.
If you want to conveniently spend your balance, you'll need to create an account with a company that sells cryptocurrency debit cards and utilizes the type of digital currency you hold.
By way of a conclusion, a quick note: Before converting cryptocurrency to cash, think about a few things. Digital tokens are extremely volatile and their values fluctuate frequently, you risk losing money if your timing is off.