How to Cash Out Shiba Inu Coin (SHIB): 5 Easy Ways to Convert SHIB to Cash
At some point in their lives, most crypto investors will have to liquidate some of their positions to free up cash. The reasons for doing so run the gamut, from starting a business or major life change. If you’re a holder of a more volatile asset like Shiba Inu Coin (SHIB), you may simply want to take a little breather from the crypto roller coaster. If you’ve been a devoted conscript of the SHIBArmy but now are looking to watch from the sidelines for a while, read on to learn some of your best options for cashing out.
How to cash out Shiba Inu Coin
There are a handful of options if you’re looking to convert your Shiba Inu Coin to cash, each with distinct benefits and drawbacks.
Use a crypto debit card like the BitPay CardSell SHIB for cash on a centralized exchange like Coinbase or KrakenUse a P2P exchangeSeek out a Bitcoin ATMBonus: Turn SHIB into hundreds of gift cards
Now let’s take a closer look at these options as you determine which makes the most sense for your situation.
Use a crypto debit card to turn Shiba Inu Coin into cash
Pros
Fast, simple and secure
Flexibility; use in-store and online or get cash from compatible ATMs
Requires no bank account
High cash out levels
Cons
Card only available to U.S. residents
Standard ATM fees apply
If flexibility is what you’re looking for when cashing out Shiba Inu Coin, a crypto debit card like the BitPay Card might be your best bet. A crypto debit card functions very much like an ordinary debit card, and can be used for spending SHIB like cash or withdrawing it from a compatible crypto ATM. The main difference is when using a crypto debit card, funds are taken from your crypto wallet instead of a checking or savings account. Load the card with as much or as little SHIB as you need.
The BitPay Card is one of the most popular and trusted crypto debit cards, offering holders superior flexibility and convenience. You can use the BitPay Card to cash out Shiba Inu Coin, and more than a dozen other top cryptos including Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Dogecoin (DOGE), Litecoin (LTC), XRP (XRP), ApeCoin (APE), Polygon (MATIC), Dai (DAI), Binance USD (BUSD), USD Coin (USDC), Wrapped Bitcoin (WBTC), Pax Dollar (USDP), Gemini Dollar (GUSD) and Euro Coin (EUROC). Learn more about crypto debit cards to see if they are right for you.
The best crypto debit card for spenders
Sell SHIB on an exchange for cash
Pros
Quick and easy to sell if you have a custodial wallet
Many exchanges to choose from
Faster than peer-to-peer (P2P) sales
Cons
Transactions incur service, exchange or other fees
Bank account required
If you already have a custodial wallet from a centralized crypto exchange like Coinbase, Kraken, Gemini or Binance, cashing out SHIB is super easy. However, that convenience factor comes with a price in the form of exchange or other transaction fees. To cash out Shiba Inu Coin, access your wallet or exchange account and simply choose the amount you’d like to sell. You’ll have to agree to any fees that are assessed before the transaction is signed and completed, but once you’ve done that you’ll have fiat ready to be transferred to your bank account. Fees are usually cited as the biggest downside to converting Shiba Inu Coin through an exchange, falling somewhere in the middle of the pack.
Peer-to-peer (P2P) exchanges
Pros
Usually lower fees than cashing out on a centralized exchange
Ability to negotiate for better rates
Cons
Often takes longer than selling through a centralized exchange
Requires a bank account
If centralization isn’t your thing and you prefer selling directly to another crypto user, a peer-to-peer (P2P) exchange might be a good option for you. Centralized exchanges like Coinbase and Gemini facilitate crypto transactions for customers, much like traditional banks do with fiat. And just like traditional banks, they’re not providing those services out of the goodness of their hearts. This is why exchange fees exist. However, if you transact directly with another crypto user, you can avoid those fees entirely and negotiate on your terms. To cash out SHIB on a P2P exchange, you simply set a price you’re looking to get for your SHIB and wait for an interested buyer. Once you’ve agreed on a price, the transaction is completed almost instantly, sidestepping those exchange fees and keeping more cash in your pocket.
Get cash from a crypto ATM
Pros
Perhaps the fastest way to get cold, hard cash in your hand in exchange for Shiba Inu Coin
No bank account necessary
Cons
Expensive; can be the priciest method of cashing out SHIB
Number of machines be limited in rural areas
Cash out capped by the amount of cash the machine contains
If you need to cash out your Shiba Inu Coin for fiat right this second and don’t really care what it costs, a crypto ATM is your best bet. As crypto has grown more popular, Bitcoin ATMs offering a variety of exchange services have started cropping up around the globe. They allow you to quickly get cash in exchange for SHIB without a bank account, but the fees can be several times those you’d pay using another method. Crypto ATMs are also a bit concentrated on the coasts, with limited options in the middle of the country. Check here if you’re curious about crypto ATM locations near you.
Bonus: Buy gift cards with SHIB
Pros
Low-cost way of converting small-to-medium amounts of SHIB into a cash equivalent
Gift cards available at hundreds of merchants in nearly any amount with the BitPay app
Cards can be spent just like cash at the corresponding merchant
Cons
Can be difficult to convert a purchased gift card back to cash if you change your mind
Another great option for cashing out Shiba Inu Coin is buying gift cards. Through the BitPay app or Google Chrome extension, BitPay makes it easy to convert your SHIB into gift cards that can be spent as easily as cash at top retailers. If you’re cashing out SHIB to buy a pricey video game system, a new computer or any other large purchase, BitPay gives you the option to exchange crypto for gift cards from some of the world’s top brands like Walmart, Home Depot, Lowes and Best Buy. You can even buy prepaid Mastercard gift cards. See our Merchant Directory for a more comprehensive listing of our partner merchants.
What to consider when cashing out SHIB
Now that you know your options, there are a few things you should keep in mind before you rush off and exchange your SHIB for cash.
TaxesTransaction feesSpeedMarket health/long term goals
Taxes
Whether you’re cashing out SHIB on a centralized exchange or selling to an individual user on a P2P exchange, the Internal Revenue Service expects you to report any profits you may realize. The IRS treats any trading, selling, swapping or otherwise disposing of cryptocurrency as taxable events subject to capital gains tax. If you’re cashing in a large amount of SHIB or any other crypto, it might be wise to consult with an attorney with experience in crypto taxation.
Transaction fees
As we covered above, different methods for cashing out crypto carry varying fees, with P2P exchanges on the cheaper end and crypto ATMs by far the most expensive.
Speed of conversions
How quickly you need fiat in your hands may dictate which cash-out option you go with, as some methods take longer than others. As a general rule, the faster you get your cash, the more you’re likely to pay in fees. P2P exchanges are a great way to save on transaction fees, but finding a buyer and negotiating a price can take some time. Conversely, if there’s a crypto ATM nearby, you can get cash for your SHIB about as quickly as it takes you to drive there. However the fees with this method can run into the double-digit percentages.
Market health/long term goals
Before cashing out SHIB or any other investment, it’s important to consider the potential impact on your long-term financial goals. If you’re selling during a bear market or crypto winter, for instance, you could miss out on potential upside when things eventually turn around. Nobody can time the market, so it’s entirely possible to get burned when deciding to liquidate an investment. However, it’s a highly personal decision, as only you know your entire financial picture.
Filed under: Bitcoin - @ December 23, 2022 3:19 pm