While decentralized finance is more prominent than ever, we must merge it with the existing traditional monetary system. Hence, users will want to learn how to exchange crypto to Euro.
There are several ways to achieve this objective, from exchanges to ATMs. But what is the easiest way to convert crypto to fiat? What are the benefits of doing so? This guide will provide the necessary knowledge about the topic.
What are the differences between crypto and the Euro?
The Euro is fiat money. So, it’s worth learning about the differences between crypto and fiat. Crypto (or cryptocurrencies) and fiat are the two prevalent kinds of money. Based on simple monetary principles, they are a medium of exchange, store of value, and unit of account. It’s best to cover what fiat is, given it’s the older form.
Fiat (also referred to as fiat money or fiat currency) is simply a government-issued currency. ‘fiat’ is Latin for ‘let it be done,’ expressing a decree or an official law. While fiat currencies have no intrinsic value, they are legal tender that all citizens must accept for payment.
The country’s central bank is the top body controlling the fiat currency supply. For instance, when we look at the Euro, we refer to the European Central Bank. Below the central bank in the hierarchy are the many commercial banks in each nation that deal with the average person. Examples of well-used fiat currencies include the United States dollar, the Euro, the British pound, and many others.
While fiat money seems very old, it’s only been around correctly since the early 70s. The trend began when then-U.S President Richard Nixon suspended the conversion of the dollar to gold in 1971 following decades of commodity-based money.
Fast forward to 2009, and the first official digital money or cryptocurrency is born with Bitcoin. Unlike fiat money, a digital currency doesn’t rely on a central authority to exist. Instead, it uses blockchain technology through a distributed computer. The lack of an intermediary like a bank to confirm transactions makes crypto a faster medium of exchange than fiat money. Examples of popular digital money include Bitcoin, Ethereum, XRP, Tether USDT, USDC, etc.
Still, crypto is less prevalent than traditional money. Thus, users find themselves in several scenarios where they need to convert one to another.
Learning how to exchange crypto to Euro
The primary motivations are accessibility and convenience. For general purposes, it’s common for someone to get paid by another person using crypto. Rather than using this as their withdrawal currency, they’ll convert it to a familiar local currency like the euro.
As mentioned earlier, decentralized currencies are still emerging in most countries. Whether you’re dealing with an online merchant, a local businessman, or a bank, fiat currencies remain the go-to medium of exchange. Thus, even if you receive lots of crypto money, you’ll want to convert it to Euro.
Another scenario that personifies this convenience is investing. An investor may decide to withdraw their digital currencies from an exchange. But instead of transferring crypto to a Bank Account, they could ‘park’ it on that trading platform. However, there are risks of leaving those funds idle in their crypto form due to price fluctuations.
This is the benefit of stablecoins, digital currencies backed by fiat currencies like the US dollar and Euro while retaining their native stable value. Examples of popular stablecoins include USDT, USDC, EURC, EURT, and many others. Still, some investors may convert their crypto to an original familiar fiat currency instead of a stablecoin.
The various ways you can exchange crypto to Euro
So far, we’ve looked at the differences between crypto and the Euro and why you should learn how to exchange crypto to Euro. Now, let’s look at the different ways of doing it.
1. Crypto exchanges
An exchange is an online trading marketplace where you can buy and sell many cryptocurrencies, which can also be paired with multiple fiat currencies. These platforms can be centralized, where the exchange is the ‘market maker’ and retains custody over its clients’ private keys. Alternatively, an exchange may also be decentralized. Here, the actual users provide liquidity for the different coins and keep the private keys of their digital assets.
However, a centralized exchange is more user-friendly. It’s also more accessible in its payment methods, including standard options like debit/credit cards and bank wire. Users trade the available markets using the exchange’s trading or charting interface.
An extension of a crypto exchange is crypto-fiat ramps. These are designated services for customers to sell their crypto in exchange for fiat money. They may also exist within a P2P platform or on their own.
2. Peer-to-peer marketplaces
A peer-to-peer marketplace (or P2P marketplace/P2P crypto exchange) allows individuals to trade digital currencies. While somewhat of a decentralized method, it’s not a pure autonomous decentralized exchange.
A central authority is still necessary for P2P matchmaking to maintain a reputation system so you can see the most trusted buyers and sellers. Users post ads on the exchange’s site with their exchange rates and the payment methods they accept for buying. Finally, the platform enforces an escrow system that transfers the funds to the buyer after they appear in the seller’s account.
Another unique feature is offline trading, where users can meet each other in person. Also, P2P platforms accept various fiat-based and digital currency payment methods like a traditional crypto exchange.
3. Automated Teller Machines (ATMs)
Just as there is an ATM for Euro, so is there for cryptocurrencies. These are physical self-serving kiosks where you can get crypto in exchange for Euro and vice versa. They are also bidirectional, meaning you can buy and sell an individual crypto on the ATM. The accepted payment methods include cash, debit/credit cards, and other digital currencies.
Crypto ATMs are a slowly developing trend, with most of them operated by two companies, Bitcoin Depot and Coinme. Thus, they are scarce for now. According to research, the United States holds 90% of the roughly 36,000 crypto ATMs installed worldwide.
Customers generally need an existing account with the ATM operator before using the machine. Another downside is that ATMs have higher transaction fees than exchanges and marketplaces. Finally, there is a limited range of coins you can trade.
4. Over-the-counter trading
Peer-to-peer marketplaces technically provide over-the-counter or OTC trading. OTC is a private or discreet way of trading between two parties without a crypto exchange. The parties will negotiate and agree to their prices and terms. However, many centralized exchanges provide a dedicated premium OTC platform or desk.
Over-the-counter trading is used for large transactions performed by high-net-worth individuals, institutional investors, and businesses. Given the vast trade size, going over the counter is to maintain the exchange’s public market price.
5. Crypto debit cards
You can use these real or virtual cards at retail stores that accept traditional cards and fiat currencies. This method doesn’t allow users to withdraw regular fiat money. However, it’s a way you can use your crypto holdings to buy goods at physical and online merchants that take standard cards.
What factors should you consider when choosing a crypto exchange?
Here’s a look at the key considerations to select the best crypto exchange:
The measures an excellent exchange should include (but not limited to) are:
Proper exchanges should keep their clients’ digital assets in offline wallets. This is the most secure way to protect the holdings from the vulnerabilities of the internet.
This system uses two distinct identification measures (e.g., email and authenticator app) for sensitive transactions like payments and withdrawals.
Trading platforms should use HTTPS and SSL/TLS protocols to encrypt the information they exchange between themselves and users’ devices.
Centralized exchanges implement a Know-Your-Customer to reduce legal risks, prevent money laundering, and increase transparency.
Consider the crypto exchange’s deposit, trading, and withdrawal fees and compare them with the competition. Also, be aware of potential hidden charges.
Available payment methods
Users should be able to fund and withdraw using as many options as possible, emphasizing simple crypto-Euro conversions.
Expansive coin selection
Trading all your favorite markets on one platform is more convenient than opening several accounts. So, traders should prioritize exchanges with the most coins and which constantly add new ones.
Type of trading
Your exchange should cater to both, whether you seek simple buying and selling or advanced options like derivatives.
A responsive live chat service is essential for any exchange to solve most queries quickly. Other must-have channels include a phone line and email support. Furthermore, any trading platform that can attend to customers 24/7 is a bonus.
An exchange that provides an in-built wallet is a plus to keep your trading and coins in one place. However, investors with significant holdings should consider a hardware or ‘cold’ wallet for better protection.
Advantages of crypto exchanges
While we’ve looked at several methods of crypto-Euro conversion, exchanges are the best options for several reasons:
Centralized crypto exchanges have the financial experience to keep their customers’ funds safe. It’s common for these trading platforms to divert most assets to ‘cold’ wallet storage to prevent online large-scale hacks.
Another point to note is that a centralized exchange retains the private keys of its clients’ holdings. While some prefer an alternative, users won’t have to bear this responsibility themselves. Finally, more centralized exchanges are becoming regulated to ensure they abide by the best ethical and financial practices.
2. Ease of use
Compared to decentralized exchanges, most crypto exchanges are quite user-friendly regarding their interfaces.
3. High liquidity
Exchanges have access to multiple liquidity providers. Liquidity dictates how users can trade a digital asset without impacting its price. This is crucial, especially considering the volatile nature of crypto. So, buying and selling a cryptocurrency happens significantly quicker through an exchange due to the high liquidity. There will always be a buyer or seller for even the massive transactions.
4. Wide market selection
Unlike P2P marketplaces and ATMs, exchanges can provide hundreds to thousands of tradable markets. It makes it easy for investors to create diversified portfolios and experiment with new altcoins.
List of the most popular crypto exchanges
Let’s now review the go-to digital currency exchanges.
PlasBit is a Polish all-around crypto platform founded in 2020. While only having three years under its belt, the company serves over 100,000 users globally. The company’s essential products in the crypto world include an exchange, a wallet, a transfer service, and a PlasBit-branded bank card.
- You can trade Bitcoin and over 40 altcoins with PlasBit, with minimum deposits of $1.
- A wallet is handy for those wishing to keep their digital assets idle until their next move. PlasBit offers this online service, which is equipped with iron-clad security for maximum asset protection.
- The transfer service lets you quickly send fiat money online to over 130 countries.
- Customers can choose between a PlasBit-branded plastic, metal, or virtual card. You can spend Bitcoins from your PlasBit wallet with any merchant worldwide that accepts VISA/Mastercard. It has a tapping option, an EMV chip for enhanced security, and a PIN code for ATM withdrawals.
PlasBit is registered with the Ministry of Finance in Poland and licensed to perform Activities in the Field of Virtual Currencies. The company prides itself on top-notch safety, security, and asset protection. Boasting an ISO/IEC 27001 certification means the exchange uses the most advanced policies, risk assessment, data confidentiality, and cybersecurity.
PlasBit holds its customers’ assets in 100% cold storage to prevent hacker interference. Furthermore, it performs automated penetration tests regularly to ensure the system has no vulnerabilities.
Finally, clients can expect excellent customer service, including 24/7 live chat, so their queries are handled quickly.
- Supports several fiat currencies like EUR and USD
- $1 minimum deposit
- Beginner friendly
- Provides a few crypto-fiat conversion services
- Limited coin selection
- Restricted in several countries
- No margin trading
While only debuting in 2017, Binance quickly became the crypto exchange with the most significant trading volume. The brand boasts among the highest selection of digital currencies. It’s an exchange packed with various services, from simple trading and derivatives trading to lending and staking.
- 395 coins available (1459 total markets)
- 11 fiat currencies supported
- Offers basic, classic, advanced, margin, OTC, and P2P trading
- Binance Coin (BNB) offers discounts and incentives
- Maker and taker fees of 0%-0.10%
- Derivatives trading
- Binance VISA card
- Crypto loans
- Liquidity farming
Funding methods: Debit/credit card, bank deposit, crypto, Banxa, Simplex
- Largest crypto exchange
- Provides numerous DeFi services
- Competitive maker-taker fees
- Offers a massive selection of digital currencies
- Derivatives trading on margin, futures, and options available
- Provides wallet service through Trust
- Not beginner-friendly
- Currently facing legal/regulatory issues in several regions.
Gemini is a well-known US-based exchange founded by the billionaire Winklevoss twins. Experts regard the firm as boasting the best quality of security among digital currency exchanges.
Gemini offers a curated mixture of cryptos through a user-friendly interface. The exchange offers its self-hosted wallet, stablecoin, and a lending program for earning interest.
- 77 coins available (113 total markets)
- seven fiat currencies supported
- Maker fees of 0-0.10%; taker fees of 0%-0.35%
- Derivatives trading
- NFT platform available (Nifty Gateway)
- Gemini Earn
- Gemini Wallet
- Gemini credit card (US only)
- Industry-leading security
- Unique services for institutions
Funding methods: Debit/credit card, bank wire, ACH, crypto
- Well-recognized for offering the best security
- Provides wallet
- Reasonable funding/withdrawal costs
- Crypto lending offered
- Has its stablecoin
- Doesn’t have a wide market selection
- No margin trading
- Only email support is available
- Not available in many countries
Founded in 2011, Bitstamp is one of the oldest crypto exchanges. Despite this longevity, it has limited services, making it user-friendly for beginners.
Bitstamp allows clients to exchange 54 cryptocurrencies in about 130 markets with a $10 starting balance. Moreover, you can earn around 1.6% to 4.50% yearly interest staking Ethereum and Algorand.
- 81 coins available (180 total markets)
- three fiat currencies supported
- Staking provided
- Maker fees of 0-0.30%; taker fees of 0.03%-0.40%
- Institutional OTC trading available
Funding methods: Debit/credit card, bank deposit, crypto, ACH, Faster Payments (for UK clients), SEPA (for EU clients)
- Been in existence since 2011
- 24/7 email and phone support
- Staking rewards offered for Ethereum and Algorand
- Many payment options are available
- No deposit fees for crypto
- Reasonable trading costs
- No live chat service
- No wallet provided
- Limited services outside of exchanging
Coinbase is another old name in the crypto exchange industry founded in 2012. It’s now a publicly traded company on the Nasdaq. Coinbase is a popular, regulated digital currency trading platform for US residents and most countries globally. Like Binance, it frequently ranks among the exchanges processing the most trading volume worldwide.
- 241 coins available (394 total markets)
- three fiat currencies supported
- In-built wallet
- Maker fees 0-0.50%; taker fees 0.04-0.50%
- Staking available
- Derivatives trading
- Coinbase Card Visa® Card with spending rewards
- Borrowing using Bitcoin collateral
- NFT platform
- Bespoke business services
- Email and phone customer support
Funding methods: Debit/credit cards and Credit Bank, PayPal, ACH, bank wire
- Regulated, publicly traded company
- Been in existence since 2012
- One of the biggest crypto exchanges in trading volume
- Broad selection of markets provided
- Offers an in-built wallet
- High trading fees than the average
- Poor customer service
How to exchange crypto to Euro on PlasBit
Of the trading exchanges mentioned here, PlasBit provides the best services for exchanging crypto to Euro. Let’s go over a step-by-step process for this very purpose.
- Visit PlasBit’s website and click the ‘Get Started‘ tab to register.
- You’ll be directed to the signup page, prompting you to enter your email address. Ensure that it’s accurate since it will be the go-to method of communication and verification.
- Create a secure password. Create a robust yet memorable password for at least eight characters meeting this step’s criteria. Afterward, click the ‘Continue’ button to proceed.
- PlasBit will email the email address you provided earlier to verify your identity and account. Check your inbox and click on the verification link.
- Following successful verification, users will have access to their dashboard to see their wallets, cards, transactions, and other options.
Now that you have entered your dashboard, here are the next steps. Ensure you already have the Euro you wish in the wallet to convert to crypto. PlasBit supports digital coins like BTC, ETH, USDC, USDT, and TRX
- Access the ‘Exchange‘ tab.
- Click the icon with the two arrows in the ‘Exchange Rate’ bar. This will swap the top bar to show USD. Click on that and choose ‘EUR’ from the dropdown. After imputing how many euros you want to convert to crypto, click the red tab to sell. An order confirmation screen shows up, where you should click the ‘Submit Order’ button at the bottom right.
You’ll want to submit the order quickly before the transaction expires. Otherwise, a user will receive confirmation of a successful transfer, and their wallet will be updated with the chosen crypto accordingly.
While cryptocurrencies continue to gain more prominence, there still is a pressing need to convert these digital assets into standard fiat money like the Euro. Digital currencies provide more trading and investment opportunities. However, fewer merchants accept them for spending purposes. So, it’s necessary to transform them into familiar currencies.
PlasBit is a reliable service for crypto-Euro conversions appealing to all experience levels. The process is effortless and has tight security to keep your funds intact. So, they are worth considering in your trading or investing journey!