With the growing popularity of cryptocurrencies like XRP, many investors are interested in learning how to cash out or sell their XRP holdings. This guide will walk through the main options for cashing out XRP into fiat currency like US dollars or Euros.
How to Cash Out XRP to Fiat (USD, EUR, etc)
There are a few main ways to convert XRP holdings into fiat currency:
- Use a cryptocurrency exchange that supports XRP/fiat trading pairs
- Find an XRP broker that allows withdrawals to a bank account
- Use a cryptocurrency ATM that supports XRP
- Direct peer-to-peer trading to convert XRP to cash
The most common option is to use a cryptocurrency exchange. Exchanges like Kraken, Bitstamp, and Wirex allow users to trade XRP directly for fiat currency like USD or EUR. The basic steps are:
- Deposit XRP into the exchange
- Trade XRP for fiat currency on the exchange
- Withdraw fiat currency to a bank account
This deposits XRP, sells it for fiat, and withdraws the cash to your regular bank account.
1. Deposit XRP to the Exchange
First, you’ll need to transfer your XRP holdings to a compatible cryptocurrency exchange. Most exchanges will generate a XRP wallet address for you to send funds to. Log into your exchange account and find the XRP deposit address.
Then, initiate a transfer from your external XRP wallet to the exchange’s address. For example, if you hold XRP in a hardware wallet like Ledger, use the Ledger Live software to send XRP to the exchange’s deposit address.
Double check the address is correct before sending. It can take roughly 5-30 minutes for the XRP deposit to be confirmed on the exchange.
2. Trade XRP for Fiat (USD, EUR, etc)
Once the XRP is credited to your exchange account, go to the exchange section and trade XRP for your desired fiat currency. Most exchanges will have XRP trading pairs like XRP/USD, XRP/EUR, or XRP/GBP.
Place a market or limit order to sell your XRP and buy the fiat currency. Check the exchange’s trading fees – they usually range from 0.1% to 0.5% per trade. The fiat money will be credited to your exchange account balance after the trade completes.
3. Withdraw Fiat to Your Bank Account
With the fiat currency in your exchange account, go to the withdrawal section and enter your bank account details. Most exchanges can send a wire transfer or SEPA/ACH transfer to your bank account.
Input your bank’s SWIFT or IBAN number along with your account number. Double check the withdrawal details before submitting. It can take 1-5 business days for the bank transfer to be processed and reach your bank account.
Once the money arrives in your bank account, the XRP has been successfully cashed out to fiat!
XRP Exchanges That Support Fiat Withdrawals
Here are some of the main cryptocurrency exchanges that allow XRP to fiat withdrawals:
| Exchange | Supported Fiat Currencies | Countries |
|---|---|---|
| Kraken | USD, EUR, GBP, CAD, JPY | Worldwide |
| Bitstamp | USD, EUR | Worldwide |
| CEX.IO | USD, EUR, GBP | Worldwide |
| Wirex | USD, EUR, GBP | Worldwide |
These exchanges have the highest XRP trading volumes and offer bank transfers in most countries. Kraken, Bitstamp, and Wirex in particular are popular choices for cashing out larger amounts of XRP.
Other Options for Cashing Out XRP
In addition to regular cryptocurrency exchanges, there are some other methods to convert XRP holdings into fiat currency or cash locally:
XRP Brokers
Some cryptocurrency brokers specifically support trading and cashing out Ripple’s XRP token. These include:
- Uphold – Can withdraw XRP to a bank account
- Bitpanda – Supports SEPA Euro withdrawals
- Cryptonite – For Australian residents, links to Australian bank accounts
The process is essentially the same as using an exchange – you deposit XRP, sell for fiat currency, then withdraw the funds. The main difference is brokers focus solely on XRP rather than supporting many cryptocurrencies.
XRP ATMs
There are some cryptocurrency ATMs that support buying and selling XRP. These are located in major cities around the world. You can insert cash into the ATM and get XRP sent to your wallet, or send XRP to the ATM’s address and get cash as the output.
The downside is cryptocurrency ATM availability is still fairly limited, and fees are higher around 5-10% in most cases. But ATMs can be convenient for quickly converting XRP to cash locally.
Peer-to-Peer Trading
Finally, it’s possible to cash out XRP directly to someone else locally through peer-to-peer (P2P) trading. Sites like LocalCryptos allow you to post XRP trade ads and coordinate trades with interested buyers in your area.
The buyer will typically pay cash or bank transfer, and you send the negotiated amount of XRP. This allows cashing out XRP without needing an exchange account. However, P2P trading has higher risks as you deal with strangers online and need to negotiate pricing.
How to Cash Out XRP to PayPal
Many users specifically want to know how to cash out XRP to PayPal. There are two main options for withdrawing from XRP to a PayPal account:
- Use an exchange like eToro that supports PayPal withdrawals
- Sell XRP P2P to someone willing to pay via PayPal
eToro is one of the only major exchanges that allows withdrawing to PayPal. You can trade XRP for fiat on eToro, then withdraw USD, EUR, or other currencies to your linked PayPal account. PayPal withdrawals are subject to a $25 fee and minimum $30 withdrawal by eToro.
If you want to avoid exchange fees, you could sell XRP directly to someone who will pay with PayPal through P2P trading. This is riskier but means you get the full sale amount via PayPal with no withdrawal fees.
How Much Are the Fees to Cash Out XRP?
When cashing out XRP, you’ll typically encounter a few different fees:
- Trading fees – Exchanges charge 0.1% to 0.5% on each XRP/fiat trade.
- Withdrawal fees – Some exchanges charge fixed fees for fiat withdrawals ($10 to $60 usually).
- Network fees – The XRP ledger charges a tiny fraction of XRP (0.00001 XRP) for transfers.
- Foreign exchange fees – Cashing out to a different currency like USD may incur forex fees.
Consider these fees when choosing the best exchange/method to cash out your XRP. You want to maximize the amount of money received after fees.
P2P trading can avoid exchange trading and withdrawal fees, but has higher risks and may require selling XRP at a discount compared to the market rate.
Taxes on Cashing Out XRP
In most countries, cashing out cryptocurrency to fiat is considered a taxable event. You will likely owe capital gains tax on any profits made when selling XRP for cash.
For example, if you bought 1 XRP for $0.50 and later sold it for $1.00, you have a $0.50 capital gain per coin. These gains must be reported to the tax agency and taxes paid.
Make sure to keep records of:
- XRP purchase dates and costs (cost basis)
- XRP sale dates and sale amounts
- Exchange fees and other costs
You can subtract fees and costs from the total capital gains. Many exchanges provide downloadable tax reports to help with recording taxable cryptocurrency transactions.
Consult a tax professional if you need help reporting XRP gains. Failing to properly report crypto cash outs can lead to penalties.
Advantages of Cashing Out XRP
Why might you want to cash out XRP holdings into fiat? Here are some of the main advantages:
- Realize profits – Sell XRP to lock in gains if the price has increased substantially.
- Eliminate risk – Cashing out removes exposure to XRP’s volatile price swings.
- Spend fiat currency – Pay bills, buy items, and spend normally using converted cash.
- Support XRP adoption – Spending converted XRP helps real-world usage.
- Diversify investments – Cashing out allows investing in other assets outside just crypto.
Every investor will have different reasons for wanting to convert XRP holdings to fiat money (either occasionally or completely). Taking profits, reducing risk, spending, diversification, and supporting adoption are all benefits.
Disadvantages of Cashing Out XRP
There are also some potential downsides of cashing out XRP to consider:
- Tax consequences – Selling XRP may generate tax obligations.
- Lose upside potential – XRP’s price could still increase after cashing out.
- Fees – Exchanges and services charge fees for cashing out.
- Security risks – Cashing out has risks like accounts being hacked.
- Irreversible – Once XRP is sold, the position is closed permanently.
Taxes, losing upside, fees, and irreversibly closing a position are negatives to keep in mind. There are also risks if cashing out through exchanges or other methods.
Conclusion
Cashing out XRP involves selling holdings on a compatible cryptocurrency exchange and withdrawing funds to a bank account. Kraken, Bitstamp, Wirex, and CEX.IO are top choices that support XRP/fiat pairs.
Other options include using an XRP broker, ATM, or peer-to-peer trading. Typically, exchanges offer the best combination of speed, functionality, and low fees for cashing out any significant XRP amounts.
Remember to factor in trading fees, withdrawal fees, network costs, and taxes owed on capital gains. Keep records of buy and sell transactions. Withdraw the funds from the exchange to your bank account once the XRP is sold.
Overall, cashing out XRP is fairly straightforward, especially through a major exchange. Just make sure to choose a reputable platform and account security is a top priority.
