As the world moves toward a more digital future, numerous cryptocurrencies continue to rise and give individuals the ability to invest for their future. And over the last few weeks, the crypto community has been talking about one thing – The Merge. It’s the Ethereum blockchain’s most risky and ambitious software upgrade and has been in the works for several years. This upgrade represents a crucial overhaul of how the currency’s blockchain works in the hopes of moving away from the energy-intensive approach called “proof of work.”
Although this change opens the door to numerous possibilities, one question remains: can you cash out your Ethereum 2.0 assets?
To help you out, this article will discuss Ethereum 2.0, its perks, and how you can convert your ETH 2.0 assets into cash.
What Is Ethereum 2.0?
Ethereum has an annual power consumption similar to Finland and produces a carbon footprint roughly equal to Switzerland. This is because the currency uses a “proof of work” consensus mechanism, a complicated process that devours a huge amount of electricity.
To minimize its carbon footprint, the currency will launch an upgraded version called Ethereum 2.0. Instead of using the traditional “proof of work” method, the upgraded version will utilize “proof of stake” to verify transactions via staking.
Why Is Proof of Stake Better That Proof Of Work?
Heightened Energy Efficiency
Unlike PoW, PoS blockchains are viewed as a more energy-efficient system. Because of this shift, Ethereum is predicted to witness a 99.95% reduction in power utilized to secure the network.
Significantly Less Ethereum Issuance
PoS utilizes less energy and less expensive hardware, so stakers won’t require as many ETH incentives to participate in securing the network. So from 4.3% ETH issuance, it will drop to 0.43%, which is a 90% reduction. It’s a significant factor that could make Ethereum assets deflationary.
Nowadays, economic penalties for misbehavior such as “slashing” make it more difficult for cybercriminals to attack than proof of work. Moreover, if caught, attackers may be removed from the pool of stakers. This is in addition to other economic penalties due to misbehavior. As a result, Ethereum 2.0 will enjoy better cloud security by utilizing PoS.
Opens New Scalabilities Opportunities
Proof of Stake ensures that all the nodes are correctly coordinated. Because rather than competing against other nodes, individual nodes are assigned the responsibility of making new blocks. With the building blocks for sharding, new scalability possibilities are more achievable.
Can Ethereum 2.0 Be Cashed Out?
As the Ethereum blockchain enters a new era of possibilities, some users might fear that their investments will disappear. But don’t worry because your ETH assets will remain the same. You may still cash out Ethereum 2.0; the most common way to do so is by using a crypto exchange.
How to Cash Out Ethereum
Choose a Crypto Exchange
For starters, it’s crucial to pick a reliable crypto exchange platform that operates within your trades Ether and jurisdiction. By partnering with a trustworthy exchange platform, you’ll avoid getting scammed, paying hidden fees, and being bombarded with high commission rates.
Connect To Your Bank Account
After setting up an account, you’ll be asked to connect it to your existing bank account. Moreover, you’ll be asked to provide additional information like your birthday, country of residence, phone number, and email address. This is a crucial step that’ll make it easier to sell your ETH 2.0 crypto assets in exchange for cash.
Transfer Your ETH To The Exchange Platform
You must take this extra step if you use a different source to obtain your assets. And don’t worry because most crypto exchange platforms offer wallet services, so rest assured that your gains will be protected. Send the necessary amount of Ether in the new wallet, and the transfer will instantly occur.
Trade Your Ethereum Assets For Your Preferred Currency
Like any other cryptocurrency, Ethereum may be traded by placing an order on the exchange platform. On most exchanges, you’ll have two options: either place an order and wait for someone to accept it or you may browse through the platform and look for an already placed order to fill.
The final Ethereum price is determined by the amount you’re willing to trade. For your convenience, the exchange rate is automatically calculated by most platforms to ensure fairness between traders.
Withdraw Your Money
After the trade has been completed, the funds will be transferred into your exchange account. From there, you’re free to withdraw your money into your connected bank account.
Beware Of Exchange Fees
Of course, crypto exchange platforms provide services to generate revenue. So when withdrawing funds, fees are associated with it. And unfortunately, there isn’t an average amount because the cost will depend on your preferred trading platform. So it would be best to keep this in mind as you look for an exchange platform to trust.
How Long Does An Ethereum 2.0 Cash Out Take?
Before cashing out your Ethereum 2.0 assets, there are three factors you must consider.
Transferring ETH To Your Crypto Exchange Wallet
First, transferring your Ethereum 2.0 assets to your crypto exchange wallet may take some time, especially if the network is more congested. However, there’s no need to be alarmed because Ethereum 2.0 will have a quick blockchain, so this process won’t significantly hold up your transaction.
Your Chosen Method Of Completion
Another factor to consider is the method of order completion you choose. On average, placing an order means that you have to wait for another trader to fill it. As a result, this may take more of your time. On the other hand, filling an already-placed order means that you can cash out your funds immediately.
Withdrawing Funds From Your Bank Account
Once the exchange order has taken place, your funds will be transferred to your account. The transfer usually happens via wire transfer which takes several business days to push through.
The upcoming change within Ethereum’s blockchain mechanism comes with multiple perks, such as energy efficiency, protection against cybercriminals, and scalability.
But despite these changes, you don’t have anything to worry about because your current assets won’t be affected, and you may still convert them to your preferred fiat currency. Follow the step-by-step guide provided in this article, and you’ll be good to go.
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