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
3 min read