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.

date published

reading time

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We look forward to hearing your questions, comments, and opportunities

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We look forward to hearing your questions, comments, and opportunities