Navigating the New Feature by MetaMask
To avail of the service, users can navigate to the MetaMask portfolio site, connect their wallet, and simply select the ‘Sell’ option. Users must input the amount they wish to convert, with a minimum requirement of 0.01 ETH. They are then presented with quotes from the available providers, enabling them to choose the most favorable exchange rate. This is in collaboration with well-known providers such as Moonpay, Transak, and Banxa.
MetaMask Portfolio’s Sell feature allows you to easily cash out your crypto to fiat currency (USD, EUR, GBP) directly to your destination of choice where available, like your bank account or PayPal balance. The Sell feature is currently available in the US, UK, and parts of Europe with plans to expand to more regions to cater to the worldwide community.
Below is the announcement from Metamask.
The KYC Hurdle
A significant point to consider is the KYC (Know Your Customer) requirement. If a user chooses Moonpay as the conversion provider, they would need to have completed the KYC process on Moonpay’s platform. This has led some to argue that if KYC is a prerequisite, conducting the transaction directly on Moonpay’s site might be more straightforward.
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Assessing the Costs
In addition to the current Ethereum network gas fees, there are hidden ask/bid spread fees associated with Moonpay. Moreover, MetaMask also charges an additional 1% fee for the service. To illustrate, a Twitter user from the UK shared their experience: they converted ETH worth 65.1 GBP (equivalent to 0.05 ETH) and received 59.42 GBP in their bank account. This translates to fees amounting to roughly 9% of the transaction.
Speed vs. Cost
While the speed of transaction is impressive – with transfers to bank accounts reportedly completed in as little as five minutes – potential users should weigh the convenience against the associated fees. For larger ETH conversions, traditional cryptocurrency exchanges (CEXes) might prove to be a more cost-effective alternative.
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Conclusion
MetaMask’s move into offering direct fiat conversion signifies the ever-evolving landscape of cryptocurrency wallets and their increasing integration with traditional banking systems. As always, users should stay informed and evaluate their options carefully.