Many cryptocurrency investors cash out after a profitable run, looking to lock in gains and exit the market. The most common way to convert crypto into fiat currency is through USDT. However, for Hong Kong-based investors, withdrawing funds and converting crypto back to HKD can be quite troublesome. This is largely due to the fact that crypto operates somewhat outside Hong Kong’s traditional financial system, and many popular exchanges are based overseas, making it difficult to transfer funds back into local bank accounts.
Fortunately, Hong Kong’s licensed cryptocurrency exchanges, HashKey Exchange and OSL, are now live. They allow users to deposit and withdraw in HKD directly, making crypto investing and cashing out much easier for local users.
In this article, we’ll explain the most practical and secure ways to withdraw crypto and convert it into Hong Kong dollars, helping you get your money out safely and smoothly.
Why USDT Is the Most Convenient Way to Deposit and Withdraw
The stablecoin USDT is one of the most widely used settlement currencies in the crypto market. When investors buy assets like BTC or ETH, they often convert HKD into USDT first before trading.
When it comes to withdrawing or cashing out, USDT is also the go-to option. It is one of the easiest cryptocurrencies to convert back into HKD. Since both USDT and HKD are pegged to the U.S. dollar, the exchange rate is relatively stable. This reduces currency fluctuation risk and makes price calculations more straightforward.
While some platforms that support HKD transactions also offer over-the-counter (OTC) services or peer-to-peer (CTC) trades, these usually apply only to major coins like BTC and ETH. If you’re holding altcoins like Dogecoin (DOGE), Shiba Inu (SHIB), or Akita Inu (AKITA), you’ll find it much harder to sell directly for HKD.
In addition, selling crypto for HKD often comes with higher price spreads, which can eat into your profits.
That’s why, regardless of the coin you’re holding, the most practical exit strategy is to first convert your assets into USDT, then use a method that suits you best to withdraw in HKD.
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4 Ways to Cash Out USDT and Convert to HKD
After selling cryptocurrencies like BTC, ETH, or DOGE, how can you withdraw the USDT in your wallet and convert it into Hong Kong dollars? Here are four common methods used by Hong Kong investors:
1. Over-the-Counter (OTC) Trading Platforms
Also known as CTC, OTC, or P2P trading, this is one of the most cost-effective and mainstream ways to trade crypto. It’s especially popular on major exchanges like Binance. The process is simple: the seller lists an order to sell USDT on an OTC platform, and once the price is agreed with a buyer, the buyer transfers HKD—often via FPS (Faster Payment System)—to the seller’s bank account. The seller then transfers USDT from their wallet to the buyer.
Selling USDT through platforms like Binance allows buyers to convert funds to HKD with zero transaction fees, and the exchange rate is often favorable to the seller. This makes it a highly efficient method for cashing out. However, sellers must be aware of the risk of receiving illicit or suspicious funds.
Apart from online platforms, some investors opt for face-to-face OTC transactions. There are also OTC platforms that operate like currency exchange shops, where users can scan a QR code in-store and exchange crypto in their wallet for HKD cash.
2. Using Platforms that Support HKD/USD Withdrawals
While major platforms like Binance do not support direct HKD bank withdrawals, there are platforms in Hong Kong that allow users to cash out into fiat. HashKey Exchange, Hong Kong’s first SFC-licensed crypto exchange, enables local users to deposit and withdraw directly via online banking. Once your bank account is linked with your HashKey account, funds can arrive within minutes.
Withdrawing USDT or other crypto through an exchange follows a similar process to withdrawing funds from a brokerage. Simply select the currency, amount, and your linked bank account on the platform, and confirm the transaction.
However, there have been past incidents, both in Hong Kong and overseas, where users were unable to withdraw funds from crypto platforms. Therefore, always verify whether a platform is trustworthy—check for proper licensing, operational transparency, and whether it has had any major incidents or negative press.
3. Crypto Debit Cards
Some crypto platforms offer debit cards linked to your crypto balance. Like a traditional debit card, you must preload funds before use, but instead of HKD, the card draws from your crypto holdings. These cards also allow ATM withdrawals.
The main benefit is user convenience, as it feels just like using a regular bank card. However, users need to consider exchange rate spreads and service fees, which can reduce overall returns.
4. Crypto ATMs
Crypto ATMs are not traditional banking ATMs, but machines designed specifically for buying and selling cryptocurrencies. Most support major coins like BTC and ETH. However, fees are typically high, and there is usually a noticeable spread between the buy and sell prices.
Important information:
Investment involves risks. This information is intended to be educational and is not tailored to the investment needs of any specific investor. This information does not constitute investment advice and should not be used as the basis for any investment decision nor should it be treated as a recommendation for any investment or action. Past performance is no guarantee of future results. The value of investments and the income from them can go down as well as up, so you may not get back what you invest.
