When you sell crypto where does the money come from

A buyer and seller agree on a price and a trade is executed over an exchange. So our $50k investor buys that amount of bitcoins and the seller receives the $50k in the form of a cash deposit. That seller may now keep it in the bank, buy other cryptos or withdraw it and spend it in any way they choose.

Where does the cash from crypto come from?

How Does Bitcoin Make Money? The Bitcoin network of miners makes money from Bitcoin by successfully validating blocks and being rewarded. Bitcoins are exchangeable for fiat currency via cryptocurrency exchanges and can be used to make purchases from merchants and retailers that accept them.

What happens when you sell your crypto?

Depending on the payment option, the seller of the Bitcoin may receive a transfer directly to their bank account or card, a wire transfer, or an agreement to receive funds to some of the popular traditional payments platforms.

Who gives you the money when you sell bitcoin?

There are two main avenues to convert bitcoin to cash and ultimately move it to a bank account. Firstly, you can use a third-party exchange broker. These third parties (which include bitcoin ATMs and debit cards) will exchange your bitcoins for cash at a given rate.

Do you get real money from selling crypto?

Can You Make Money With Cryptocurrency? Yes, you can make money with cryptocurrency. Given the inherent volatility of crypto assets, most involve a high degree of risk while others require domain knowledge or expertise. Trading cryptocurrencies is one of the answers to how to make money with cryptocurrency.