This guide is for illustration purposes only, the actual steps to complete a transaction may vary between wallet and exchange services. Users should always do their own research before using any exchange, platform or wallet service.
Opening a cryptocurrency account and getting started in decentralized finance (DeFi) are exciting parts of the crypto journey; however at some point all users want to get their cryptocurrency out into the real world.
In the world of digital assets, this is called off-ramping (as opposed to on-ramping, when you bring your fiat currency into the crypto-sphere). This process can seem a little complicated, but fear not: we have prepared this step-by-step guide to help all our users on this journey.
Finding your crypto off-ramp
To get money out of your cryptocurrency wallet and into the real world you would typically have to use a crypto exchange and the largest gateways for your crypto assets into the real world are centralized exchanges. These include well-known names such as Binance, Coinbase and Kraken.
Sticking to the big, well-known exchanges is usually a good strategy as they typically have the best security, cryptocurrency availability and customer support. However, some may have heard about the troubles experienced by Binance in recent weeks.
By far the largest exchange by trading volume (according to CoinGecko), Binance recently shocked the crypto world by suspending withdrawals (i.e. off-ramping) in British Pounds (GBP) and Euros (EUR).
This follows the UK’s regulator, the Financial Conduct Authority (FCA), banning Binance from undertaking any regulated activity in the UK, which is effectively any activity involving GBP. According to the watchdog, Binance failed to register with the FCA after not meeting its anti money-laundering requirements.
With the above in mind, it is more important than ever to do your research and choose a fiat-crypto gateway that is more likely to be regulator-proof. Those exchanges, platforms and protocols that have shown a history of consistent engagement and compliance with regulators are likely to encounter fewer problems in the future.
Key things to consider when choosing an off-ramp:
Does the crypto exchange allow you to withdraw money in your chosen fiat (“real life”) currency? If not, you will have to look for a different platform that supports your chosen fiat currency (USD/EUR/GBP etc.).
Does your centralized exchange support the cryptocurrency you want to off-ramp? For example, some exchanges don’t support YLD and so you will need to swap it into an asset they do support before you transfer it (see below).
Moving crypto from DeFi to your off-ramp
Ok – let’s get started moving your crypto from DeFi to the real world!
Go to where the crypto that you want to move into the real world is currently stored. If this is in your YIELD App wallet, login there. Or, if it is in the Web3 wallet you use to interact with DeFi (such as Metamask or MyEtherWallet), login there.
If the asset that you want to move into the real world is accepted by your offramp exchange, then you can transfer it straight from this wallet to the offramp. To do this, you:
- Login to your off-ramp exchange and copy the address of your wallet there
- Go back to your DeFi wallet and click “Send” next to the asset you want to send to your offramp (depending on the wallet setup)
- Paste the address of your offramp wallet in the box you are prompted to paste it into by your DeFi wallet
- When you click “Send” you can then monitor the transaction on the network scanner, which is Etherscan for Ethereum, or BSCscan for Binance Smart Chain (BSC), and so on. This way, you can see whether the transaction has come through or failed
If, however, the asset you want to get into the real world is not supported by your offramp, you will need to swap it into an asset that is. If you cannot do this in the wallet or protocol it is currently in, you will need to move it first to your Web3 wallet following the same steps as in 2), above, but substituting your off-ramp address for your Web3 address.
Once your crypto is in your Web3 wallet, you should then be able to swap it into an asset that is accepted by your offramp exchange using a decentralized exchange such as Uniswap for the Ethereum network, PancakeSwap for BSC, and so on.
To do this, head to your DeFi exchange of choice and connect your wallet. Then:
- Select the token you’d like to exchange from the top menu (i.e. YLD)
- Then select the token you would like to exchange it into from the bottom menu (i.e. USDT) Note: If either token isn’t showing up you can find the contract address at CoinGecko or CoinMarketCap and add it in manually using “custom token”
- Specify how much you want to exchange of the top token for the bottom token
- Once you’re happy with what you have entered, click “Swap”. Make sure you have the native token of the blockchain that your exchange operates on (ETH for Ethereum, BNB for BSC etc.) in your wallet to cover fees
- Preview the transaction in the pop-up window
- Confirm the transaction request in your wallet
- Wait for the transaction to be confirmed and the new asset to land in your Web3 wallet
Now it’s time to move your funds to your chosen off-ramping exchange! After making sure the exchange supports your cryptocurrency AND the fiat currency you want to off-ramp into, you can transfer the funds to your off-ramp exchange from your Web3 crypto wallet.
- Wait for the transaction to be confirmed and the new asset to land in your Web3 wallet
- Go to the asset you want to send from your DeFi wallet to your off-ramp wallet and click “Send”
- Following the same steps in 2), copy and paste your off-ramp exchange wallet address into the box that your DeFi wallet prompts you to paste it into
- Click “Send” and then monitor the transaction on the network scanner as you wait for your crypto to land in your offramp wallet
- Don’t forget to specify how much of your asset you want to send or you might pay a network fee for sending nothing!
Top transferring tips:
You can keep track of your transactions via Etherscan for Ethereum, or BSCscan for BSC, and so on. These are where you can see all transactions happening on a network. This way, you can see whether the transaction has come through or failed.
In order to make a swap on a decentralized exchange such as Uniswap or PancakeSwap, you will need to have some of that chain’s native token in your wallet to pay for fees. This is Ether (ETH) for Ethereum and Binance Coin (BNB) for Binance Smart Chain.
Withdrawing crypto into your fiat bank account
- If you haven’t yet used your off-ramp wallet, you will first need to make a small deposit into your crypto exchange account from the fiat bank account you want to off-ramp into (only the first time you do this). This can take a few days to clear. Once you have done this, you can make future withdrawals.
- Before you can transfer the crypto you have transferred from your DeFi wallet, you will need to convert it into your fiat currency of choice using the trade option on your offramp exchange. In other words, you need to sell your crypto for USD/EUR/GBP, for example. You can do this on your chosen exchange by placing a “spot” trade order for the currency pair (for example, ETH-USD, to convert your Ether into US dollars).
- Once this trade has completed and you now have your chosen fiat currency in your wallet, find the appropriate “Transfer” or “Withdraw” option in your crypto exchange account and follow the directions to transfer the money to your bank account Note that your name on your crypto exchange account and your name on your fiat bank account has to be the same, otherwise the transfer will be rejected
- The money will land in your fiat bank account in anything from one hour to a few days, depending on your offramp exchange and bank account provider.
Voila! You have now moved crypto from DeFi into the real world – congratulations!!
The first time you off-ramp from DeFi into the real world may feel a little intimidating, but once you know what you’re doing, the process is pretty quick and painless. Do remember that every transaction has fees attached to it, so the fewer transactions you make – the cheaper it will be. With a little experience, though, you will soon feel confident to withdraw into fiat currencies and solidify those crypto gains!