Cashing Out: Converting NFT Earnings to Fiat

🎯 Course Objectives

By the end of this module, learners will:

• Understand how to transfer cryptocurrency from a personal wallet to an exchange.

• Learn how to sell cryptocurrency for fiat currency on an exchange.

• Know how to withdraw fiat funds from an exchange to a bank account.

• Be aware of tax considerations and record-keeping practices related to NFT sales.
  
  Estimated Duration: ~3 minutes
  Primary Blockchain(s): Varies (sell Ethereum-based earnings, Solana-based earnings, etc. on corresponding exchanges)
  Tools/Platforms: Crypto Exchange (e.g., Coinbase, Binance) for off-ramping; personal wallet for sending funds

🧰 Step-by-Step Guide

1. Transfer Crypto to an Exchange

• Open your personal wallet (e.g., MetaMask, Phantom).

• Copy your exchange deposit address:

  • Coinbase: Navigate to "Assets" > "Receive" > Select the cryptocurrency.

  • Binance: Go to "Wallet" > "Fiat and Spot" > "Deposit" > Choose the cryptocurrency.

• In your wallet, initiate a transfer:

  • Paste the exchange deposit address.

  • Enter the amount to transfer.

  • Confirm and send.
    
    

    

Note: Ensure the network selected matches between your wallet and the exchange to avoid loss of funds.

2. Sell Crypto for Fiat Currency

• Coinbase:

  • Go to "Buy & Sell" > "Sell".

  • Select the cryptocurrency and amount.

  • Choose "Cash (USD)" as the destination.

  • Confirm the sale.

• Binance:

  • Navigate to "Trade" > "Convert".

  • Select the cryptocurrency to convert and the fiat currency (e.g., USD).

  • Enter the amount and confirm the conversion.
    
    

    

3. Withdraw Fiat to Bank Account

• Coinbase:

  • Go to "Assets" > "Cash out".

  • Select your bank account as the destination.

  • Enter the amount and confirm the withdrawal.

• Binance:

  • Navigate to "Wallet" > "Fiat and Spot" > "Withdraw".

  • Choose the fiat currency.

  • Select "Bank Transfer" as the withdrawal method.

  • Enter your bank details and the amount.

  • Confirm the withdrawal.
    
    

    

Note: Processing times may vary; bank transfers can take 1–5 business days.

4. Tax Considerations and Record-Keeping

• Maintain records of all NFT sales, including dates, amounts, and transaction IDs.

• Consult with a tax professional to understand your obligations regarding capital gains and income reporting.