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How to Cash Out Crypto from Cold Wallet

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Quick Answer

  • To cash out crypto from a cold wallet, select a platform that matches your requirements, transfer your crypto to the platform, and sell the assets for a fiat currency supported by your bank. Then, you can withdraw the fiat, completing the cash-out process.

Learning how to cash out crypto from a cold wallet is daunting. A lot can go wrong. But we’ve broken down the process in its entirety.

This guide covers the entire process of cashing out crypto from cold storage, discussing risks, the best platforms, and what to consider before doing so. Let’s get started.

What should you consider before you cash out crypto from cold storage?

If you want to sell your Bitcoin, it can be tempting to get stuck in right away. However, there are several factors you should consider before cashing out your crypto from cold storage.

Ledger Cold Wallet

  • Cash-out amount: Depending on the amount you plan on cashing out, you may need to use an OTC desk or sell in small batches. It’s also important to consider how much cash you can withdraw from a bank once you’ve completed the cash-out process.
  • Which platform to use: The best type of platform for cashing out crypto will vary based on your preferences and requirements. Consider them carefully to ensure you use the best platform.
  • Exchange fees: Before cashing out crypto from a cold wallet, you should familiarize yourself with the fees. Exchanges charge trading, network, and withdrawal fees, which can add up.
  • Security: Cold storage wallets are among the most secure ways of holding crypto. Moving assets to a network-connected exchange has its risks. Therefore, you should make a plan to cash out securely before moving your funds.
  • Prices: Tracking the market is essential to cashing out at a fortuitous time. It’s important to consider how the assets you want to cash have been performing to ensure you’re happy with the sale price.

How to cash out crypto from a cold wallet

Cashing out crypto from a cold wallet is simple, yet it can seem daunting. To ensure that our readers can cash out their crypto without issue, we’ve broken down the entire act into a simple step-by-step process.

Step 1: Select a cash-out method

The first step when cashing out crypto is to select an appropriate method. A crypto exchange or peer-to-peer trading platform offers the best blend of convenience and security for most users. However, people cashing out large amounts of Bitcoin may prefer an OTC trading desk.

Step 2: Transfer crypto

After selecting a good place to cash out, move your cryptocurrency to the platform. Generally, the only way to transfer your assets is via an on-chain transaction. Remember to double-check transaction details and account for the cost of fees.

Step 3: Sell crypto and withdraw money

Once your chosen platform has been funded, you must sell the crypto for a fiat currency. Selecting a fiat currency supported by your bank will make withdrawing money easier. To complete your cash out, you can initiate a bank account withdrawal.

An alternative way to cash out crypto from cold storage

swissmoney crypto wallet

The financial services platform swissmoney offers an alternative way to cash out. The all-in-one platform lets users manage crypto and fiat in a single place. It boasts high spending limits, four dedicated fait IBAN accounts, an in-built crypto wallet, and a crypto virtual debit card.

Here’s how swissmoney simplifies cashing out from cold storage:

  • Effortless Transfer: Easily transfer your crypto from your cold wallet to the swissmoney platform.
  • High Spending Limits: Crypto debit card offers generous spending power for easy access to your converted funds.
  • Global Reach: Choose from dedicated IBAN accounts (GBP, EUR, USD, CHF) for seamless international transactions.
  • Unmatched Security: Rest assured knowing your assets are protected with advanced features like KYC and 2FA.

swissmoney empowers you to cash out large crypto holdings from cold storage with ease, security, and control.

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What platforms can I use to sell my crypto after transferring it from a cold wallet?

There are several different types of platforms that let you sell Bitcoin for cash. Each offers distinct benefits and limitations. As such, it’s essential to consider what you’re looking for and what each platform offers.

Centralized cryptocurrency exchange (CEX)

Centralized exchanges (CEX) are the most common platform for cashing out crypto from a cold wallet. They are platforms controlled by a central body, such as Bybit, Binance, and Coinbase.

Binance BTC USDT

A centralized exchange requires you to deposit crypto before you can sell it and cash out to a bank account. However, network, transaction, and variable withdrawal fees will be charged. Some CEXs also offer extra features like a crypto debit card for transferring crypto to your bank account.

While cashing out via a CEX is convenient, there are a few drawbacks. For example, most exchanges must report cash outs above a certain threshold. You must also complete identity verification, and limits can be relatively low.

📚Related: Best Crypto Exchanges in Europe

📚Related: Best Crypto Wallets to Withdraw Money

Bitcoin ATM

Bitcoin ATMs are an alternative way to sell crypto after transferring it from cold storage. In fact, you send the crypto directly from your wallet to the Bitcoin ATM. This reduces fees as much as possible and cuts out intermediaries.


A CEX requires a user to deposit and sell crypto before they can withdraw. However, using a Bitcoin ATM, you only need to transfer your assets once, and you can attain cash. Therefore, a Bitcoin ATM could be worthwhile if you’re looking for the most seamless way to turn Bitcoin into cash.

Unfortunately, Bitcoin ATM withdrawals require a person to travel in person to use them, which reduces accessibility. Bitcoin ATMs typically charge high fees, impose low limits, and require identity verification. As such, Bitcoin ATMs are less convenient than a crypto exchange.

Crypto Loan Service

Using a crypto loan service could be ideal if you need cash but wish to maintain your cryptocurrency exposure. In contrast to other cash-out methods, a loan service doesn’t require selling Bitcoin. Instead, you use your Bitcoin holdings (or another crypto) as collateral for a loan paid to your bank or in a stablecoin like USDT.


One of the most significant advantages of cashing out via a crypto loan is the lack of tax implications. Unlike selling for fiat, receiving a crypto loan isn’t a taxable event. Therefore, the service is highly useful if you need money but do not wish to liquidate your crypto.

Cashing out via crypto loan provides an easy way for people to withdraw fiat without being taxed. However, crypto loans charge interest on any borrowing, which can add up if you need a loan for an extended period. As such, crypto loan services are best for people wanting to cash out crypto over the short term.

Peer-to-peer (P2P)

If you prefer to trade with another person when cashing out from cold storage, you may prefer peer-to-peer (P2P) trading. You can find a person willing to trade crypto in the real world. You can also use a P2P trading platform, which brings buyers/sellers together online while offering protection.

Binance P2P Marketplace

P2P trading systems are excellent for people wishing to conduct large transactions. Those not wanting to complete know-your-customer (KYC) verification also benefit. You can conduct any size of transaction and are not subject to the same regulations as an exchange.

Unfortunately, cashing out crypto in a P2P carries some risk. Meeting somebody in person is risky, particularly for large transactions. However, you can reduce many risks associated with P2P trading by using a dedicated online P2P platform.

OTC trading desk

Over-the-counter (OTC) trading desks are another way to cash out crypto from a cold wallet. The platform tailors OTC services to high-value transactions conducted off an open exchange. Instead, the seller and the desk agree on a sale price.


OTC desk trades have deep liquidity and are conducted away from open exchanges. Therefore, they do not affect market prices, making them preferred for large transactions. OTC trades are pre-agreed, meaning the seller won’t receive a lower-than-expected price.

An OTC desk is suitable for large transactions but doesn’t support more minor sales a trader could conduct using another method. OTC trades typically involve extra fees and premium rates, reducing cost-effectiveness for the average crypto holder.

Are there any risks in transferring crypto from a cold wallet to an exchange?

While transferring crypto from cold wallets to cryptocurrency exchanges isn’t inherently risky, a few things could go awry. It’s worth familiarizing yourself with the potential problems ahead of time to prevent any issues.

  • Missing deposits: One of the scariest issues when transferring crypto to an exchange is your deposit going missing. Generally, deposit problems are related to network issues and get resolved automatically. But, if the problem is more severe, it’s best to contact the exchange and provide all deposit details immediately. 
  • Incorrect address: Another common issue is sending funds to the wrong address. To avoid this problem, ensure the address on your wallet matches the recipient’s. Crypto transactions are irreversible, so double-checking the address is a must.
  • Account locked: If you send a considerable amount of your holdings to crypto exchanges, your account could get locked. To prevent this, you should look up any limits your chosen exchange imposes.
  • Illegitimate platforms: Bad actors sometimes create a fake version of an exchange, mirroring its interface. The criminals promote these platforms via ads on Google or Social Media. You should always check the URL of a website to ensure it is genuine before logging in or sending funds.

Several risks exist when transferring crypto from cold storage to an exchange. However, you can mostly eliminate them by taking time and verifying all details during a transaction.


How do you cash out a Ledger?

Anyone with a Ledger crypto wallet can use several different methods to withdraw. The most common (and often the cheapest) is to send Bitcoin or another crypto to an exchange, where you can sell it for fiat and withdraw the crypto to a bank account. More conveniently, users can sell their crypto directly on Ledger Live, although fees are high, at about 3%.

Can you transfer crypto from a cold wallet?

To transfer crypto out of a cold wallet, you must connect the hardware wallet to your computer, enter your passphrase, and gain access to the wallet. Afterward, select an asset, use the send button to initiate a transfer, input a crypto address and double-check it, preview any fees, and confirm the transaction.

How do I get crypto out of cold storage?

To get crypto out of cold storage, transfer it to a network-enabled wallet or platform. For example, you could use a hot wallet like MetaMask, a crypto exchange like Bybit, a crypto loans service like Nexo, or a crypto debit card like swissmoney offers.

Can you take cash from a Bitcoin ATM using a cold storage wallet?

Withdrawing cash from a Bitcoin ATM directly from cold storage is possible if you have a wallet supporting mobile connectivity. As you need to scan a QR code using your mobile phone camera, it must be able to connect to your cold wallet. For example, an Elipal Titan or Ledger Nano X can verify transactions sent from a mobile.

📚Related: Bitcoin ATM Withdrawal Guide

Can you sell crypto directly from a Ledger?

Anyone with a Ledger wallet can sell crypto directly using the Ledger Live software. Users can navigate to the buy/sell section to exchange Bitcoin or another crypto for fiat currency. Ledger doesn’t provide this service but has partnered with several third-party exchanges to act as an aggregator, allowing users to browse offers.

How do I sell Bitcoin from a cold wallet?

To sell Bitcoin from a cold wallet, you can use the propriety buy/sell system (if available with your cold wallet) or withdraw funds to an exchange to sell. For Bitcoin, ensure you have enough BTC to cover fees and your desired transfer amount, input the exchange address, and confirm the transfer. Then, sell the Bitcoin on an exchange and withdraw cash to a bank account.

📚Related: How to Withdraw Crypto to Bank Account 

How do I sell Ethereum from a cold wallet?

Checking fees before selling Ethereum from a cold wallet is advisable as they vary substantially. Next, wait until the transaction fees are reasonable, then transfer the funds to an exchange. Afterward, sell the Ether for fiat currency, check withdrawal fees, and withdraw money to a bank account.

📚Related: How to Cash Out Ethereum

How do I sell USDT from a cold wallet?

USDT can exist on several networks, including Polkadot and Ethereum. It’s critical to double-check which type of ETH you own, as you’ll need a particular cryptocurrency to send it, for example, ETH for ERC-20 USDT. After confirming your USDT type, send the assets to a centralized exchange, sell them, and withdraw fiat to a bank account.

📚Related: How to Withdraw USDT to Bank Account

How do I sell USDC from a cold wallet?

Selling USDC is very similar to USDT. You must confirm the type of USDC you own, ensure you have the token required for transaction fees, and send the tokens to an exchange. Afterward, the USDC can be sold for fiat and withdrawn to a bank account.

📚Related: How to Withdraw USDC to Bank Account

How do I sell Tron from a cold wallet?

To sell Tron from a hardware wallet, you must ensure you have ample TRX tokens to cover fees. Transactions are cheap on the Tron network, so you don’t need much. Then, send the tokens to an exchange, sell them for fiat currency, and withdraw the funds to your bank account. 

📚Related: How to Withdraw Tron to Bank Account

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Jay Leonard


Jay is a cryptocurrency expert who has utilised his extensive experience in the industry to provide commentary on the latest news and developments in the crypto space for four years. As an active investor and trader, Jay has a finger on the pulse of the crypto space, enabling him to offer unique insight and break down complex topics in a simple manner.

While beginning his career as a writer, Jay studied at Open University, achieving a degree in Business Management (Marketing), which gave him knowledge of the inner workings of business and enabled a further level of depth in the content he produces.

Jay’s work has appeared in many high-profile publications, including CryptoNews, Business2Community, HedgeWithCrypto, EconomyWatch, and Finance Illustrated.

Open University – Business Management (Marketing) – Graduated with Upper Second-Class Houners (2:1)

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Please be advised that the information presented in this article is intended for general informational purposes only. It should not be construed as professional advice from swissmoney. It is important to note that swissmoney does not act as a financial adviser, and individuals are strongly encouraged to seek independent advice from qualified legal, financial, or accounting professionals before making any decisions related to cryptocurrency investments. Furthermore, investing in cryptocurrency assets carries inherent risks, and individuals should be aware that they may potentially lose all of their invested capital.

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