How to cash out NFTs? Learn to convert an NFT to cash by selling it to cryptocurrency and use Coinbase to make a bank transfer.
Are you an artist looking to monetize your digital NFT creations? Or perhaps you’re an investor that just sold an NFT for cryptocurrency?
If so, you’ve probably found yourself wondering how to convert these digital assets into real-world cash. Also, you might be curious about the process of transferring crypto outside NFT marketplaces. In other words, how to cash out NFTs?
In recent years, Non-Fungible Tokens (NFTs) have taken the digital world by storm, revolutionizing the way we perceive and value digital assets. As the popularity of NFTs continues to soar, many creators and investors find themselves wondering how they can convert their unique digital collectibles into tangible cash.
By continue reading this guide you will get all the answers you are looking for regarding getting an NFT into cash:
- How to convert an NFT into cash(by selling cryptocurrency)
- Know how to use Web3 wallets like MetaMask
- Converting crypto into cash and withdrawing to a bank account
How To Convert An NFT to Cash: Quicktake
In short, below are the necessary steps to cash out crypto from the NFT marketplaces like OpenSea, Rarible, or Ninfty Gateway.
Additionally, I assume you already have sold an NFT for cryptocurrency and have funds available in a crypto wallet(e.g. MetaMask). Overall, you have to do the following:
- Sent crypto from MetaMask to Coinbase
- On Coinbase, sell crypto for fiat(USD, EUR, GBP, etc)
- In ‘My Assets‘, choose ‘Cash out all‘ option
- Link your bank account to Coinbase
- Transfer money to the bank
The steps above are a quick take of the steps you have to follow. Later on in this guide, I’ll go more into detail by including screenshots. Remember that I use Coinbase as a practical example in this guide. However, you can use the same procedure for any other crypto exchange as well.
Understanding Web3 wallets like MetaMask
MetaMask is a very popular Web3 wallet used by millions of enthusiastic crypto and NFT users. With MetaMask you can easily connect to all kinds of platforms that are using blockchain technology. A good example of Web3 platforms is NFT marketplaces.
Additionally, MetaMask allows users to store, manage and exchange digital assets securely. Thanks to its easy-to-use interface and robust security features, MetaMask has become the most popular crypto wallet for many crypto enthusiasts.
Even though MetaMask has a lot of interesting features, there isn’t a direct option to cash out crypto for money. To do this, you need a centralized exchange like Binance or Coinbase to achieve.
In other words, you need to withdraw your crypto to another platform first before you can cash out. How to do this properly?
Convert an NFT to Cash with Crypto Withdrawals
Again, when you want to cash out crypto from MetaMask by initiating a withdrawal, you need to send your funds elsewhere. Also, to receive the funds in your bank account you must find a platform that supports this.
To continue with this guide, I’ll use Coinbase as a practical example, however, it’s up to you to decide what kind of exchange to use here.
Step 1: Create an Account at Coinbase
First of all, you need to open an account which shouldn’t be a complicated step. On top of that, you can use this link to open a free account at Coinbase.
In short, Coinbase is a very popular crypto trading platform mainly focused on US customers. Also, it has millions of cryptocurrency traders using its platform on a daily basis. In addition to trading and wallet services, Coinbase also offers various other features such as a merchant payment gateway and educational resources for beginners to learn about the world of cryptocurrency.
Remember that crypto exchanges use custodian wallets for holding crypto and are subject to attack by hackers all the time. As a result, security is a top priority for them, and withdrawing money to your bank account requires you to verify(KYC).
In short, an account verification(KYC) process consists of the following:
- Upload official documents(passport, identity card, driving license, or else)
- Take pictures of both sides of the document
- Make a selfie
Step 2: Send funds from MetaMask
After you have finished the sign-up process at Coinbase it’s time to use your newly created profile in order to withdraw cash from MetaMask.
The plan you might have is to swap crypto for the money so you need to send crypto funds from MetaMask to Coinbase here. How to do this? Below are the necessary steps for Coinbase(using ETH as an example):
- In Coinbase above, click ‘Send & Receive‘
- Choose Receive tab, and click Bitcoin to search for ETH
- In the search bar, type ETH and choose Ethereum result
- Click ok and copy ETH address to the clipboard
Next, go back to your MetaMask wallet, enter your password to log in, and find your ETH funds.
Consequently, in order to transfer, click on ‘Send‘. Now tap on your ETH funds and paste the Coinbase ETH address from the clipboard into the Send to Ethereum address field.
Finalize the withdrawal of ETH funds from MetaMask by giving the amount of ETH and approving the transaction.
Step 3: Receive ETH funds at Coinbase
As the Ethereum blockchain processes transactions very fast it’s just a matter of seconds waiting before funds arrive in the Coinbase account. Just make sure that you have received the funds by going to your assets wallet on Coinbase.
On top of that, Coinbase will send you a notification message when the ETH funds have reached their platform.
Consequently, the withdrawal process for crypto from Exodus to Coinbase has been finished. Additionally, we are ready to start the withdrawal process to cash out crypto for money on Coinbase.
Step 4: Trade ETH for USD on Coinbase
At this point, you can start selling ETH for fiat currency(USD, EUR, etc). All you have to do now on the platform is to go to ‘My Assets‘ and choose ‘Buy & Sell‘. It’s all very straightforward.
In the pop-up screen, find ETH, also make sure to choose USD as fiat option and click on the ‘Sell‘ option. Simply enter the amount you wish to sell, click “Preview Sell”, and then hit the “Sell Now” button.
Next, after the platform has processed the transaction(which takes seconds) your wallet will be updated with the amount in USD.
Step 5: Withdraw Cash from Coinbase to your Bank
Finally, we have reached the level where you can transfer money to your bank account. Now go to your money account under “My Assets”. Next, click on this to view the Cash Out option and select “Cash Out All”.
Click the continue button and a new screen appears that asks you to choose a destination for your cash withdrawal. You have the following options:
- Add a debit card
- Add a bank account
If you just created a new account on Coinbase you have to link your bank account first. Therefore, choose the second option: Add a bank account. (*skip this step if you already did this).
Particularly, the screen for adding a bank account differs and depends on your local situation. As I’m an EU habitant I can only add an EURO bank account here.
However, if you are from the USA or some other country outside the Eurozone, you will be able to add your local bank here.
Next, just follow the steps by adding the necessary details including verifications steps to link your bank account to Coinbase.
Finally, if everything went well you can finalize the withdrawal process and receive the cash within a few days in your bank account!
And this is the entire process of how to convert an NFT to Cash by using the Coinbase exchange! Enjoy your profits and don’t forget to share this guide if it was helpful 😁
FAQ – How is NFT converted to Cash
Can You Directly Withdraw Money from an NFT Marketplace?
Unfortunately, there isn’t a direct way to transfer your funds from an NFT marketplace to an external bank account. The main reason for this is that NFT marketplaces are part of the Web3 infrastructure that allows cryptocurrencies only.
As a result, it’s necessary to send your funds away to a major cryptocurrency exchange to cash out from crypto. In other words, ‘to convert an NFT into cash’ you need a centralized crypto exchange like Coinbase.
Are There Fees Involved when Converting an NFT to Cash?
Yes, there are fees associated with converting an NFT to cash. When you sell your NFT on a marketplace, you may encounter platform fees, which are typically a percentage of the transaction value.
Additionally, there might be transaction fees, such as gas fees, involved in the process of listing, selling, and transferring your NFT on the blockchain. These fees cover the costs of processing the transactions and maintaining the blockchain network. It’s important to be aware of these fees and factor them into your decision-making process when cashing out NFTs.
Is MetaMask Wallet Trustworthy?
MetaMask Wallet provides solid security features, and it doesn’t store any user passwords, data, or seed phrases on its servers. All that information is stored on your device where you’ve installed MetaMask Wallet. Meaning, you are in charge of your funds and this makes it a safe way to store crypto.
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